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Human Resource Management Practice of Shams D Wears Limited (Part 07)
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Alamgir Hossain
I am Md. Alamgir Hossain, a student of MBA, University of Chittagong. I have complete some reports for my academic requirement. I think those reports will help growing students for their study. 
By Alamgir Hossain
Published on 16 November 2012
 
Human Resource Management (HRM) Practice in Chittagong on the context of Shams D Wears Limited

Human Resource Management Practice of Shams D Wears Limited
3.5) HUMAN RESOURCE MANAGEMENT PRACTICE IN CHITTAGONG ON THE CONTEXT OF SHAMS D WEARS LTD. (RMG)
The Readymade Garment Industry of Chittagong has become the largest foreign exchange earning sector, exporting apparel of all sorts to the USA, Europe & other developed countries. The readymade Garment (RMG) industry of Chittagong tells an impressive story about the leadership of private enterprise & the country’s successful transition to a major export oriented economy. The country registered its first apparel export in 1978, but the progress since the early 1980s has been simply phenomenal.

Shams D Wears limited, a truly export oriented manufacturing company has started its business about 17 years ago. It has been established since 1993, 8th November. It is 100% export oriented company under the banner of the Bangladesh. Their total numbers of employees are 2500. It is a private organization & sole-trader ship.

MANPOWER PLANNING
We know that the starting point in attracting qualified human resource is planning. HR planning, in turn, involves job analysis and forecasting the demand and supply of labor. Basically the personnel manager is responsible for manpower planning, but before taking any decision he consults with line managers.

In fact, Manpower planning is the process by which an organization can engage the right number of people for the right job at the right time. Shams D Wears follows this structure for ensuring manpower planning.
The sequence of the activities performed by Shams D Wears Limited to ensure quality people on the right job is given below:
  • Human Resource planning
  • Recruitment
  • Selection
  • Orientation
  • Training
  • Performance
  • Compensation and Benefits
  • Career Development
RECRUITMENT
Recruitment is a process to find out quality people for the organization. It is directly related to a number of personnel or human resource activities are as follows:-
Employment planning > Recruiting > Providing > Job application > Selection

And for recruiting employees through advertising, the company follows the daily newspaper, Internet and others. The company also collects the applications from applicants by post or courier service and others.

SELECTION
Shams D Wears Limited selects right employees for job. To select right person they arrange following tests:
  • For workers: physical tests, working experience, skill and knowledge about work etc.
  • For officers: physical test, written test, oral test, working experience etc.
TRAINING AND DEVELOPMENT
For increasing the knowledge, skill and improvement of competency of employees both in-house and out-door system are followed. There are some training methods for developing employees. They are:
•    On the job training,
•    Apprenticeship method,
•    Lecture and conference method,
•    Sensitivity training,
•    Vestibule training etc.

But SHAMS D WEARS LTD follows on the job training.
It means informing the trainees about the nature of work, conditions, environment within a short period of time. The company has a separate training department in which a continuing training system is maintained. Employees are also sending to train up in foreign country.

The only purpose of training and development program in this company is to increase the performance and promotion.

PROMOTION / DEMOTION
The most important policy question in promotion is the relative significance of seniority and competence. In recent times potentiality and competency are considered as most important basis for promotion. Though there is an increasing pressure and tendency to give more weight to seniority in making promotions, because of the great importance that worker attach to length of service.

SHAMS D WEARS LTD considers the merit and seniority as the basis for promotion.
Like public concerns, they do not have any system of demotion. HRM urged that the incompetent employee has to be trained.

WAGE AND SALARY ADMINISTRATION
Personnel department has its own policy for salary and wage administration. There are some bases for setting pay. These are as follows:
a.    Seniority
b.    Experience
c.    Performance
d.    Position
e.    Geographical distance
f.    Academic qualification
g.    Personal relation
h.    Others

There is a salary structure for employees in the organization. And this salary varies employee to employee to employee. Seniority and performance are the main basis for setting basic pay.
The company also provides Medicare, Transport, Leave allowance and Gratuity other than salary. It offers package bonus in different heads, like festive bonus special financial incentives. Moreover, there are two festival bonuses in a year.

MOTIVATION

In motivating the employees the HR department of Shams has introduced financial incentives, increment, profit sharing, job security. SHAMS D WEARS LTD follows the two factor theory of motivation:

Intrinsic factors: intrinsic factor which is related to job satisfaction such as recognition, growth advancement, works itself and achievement etc.
Extrinsic factors: extrinsic factor is associated with dissatisfaction such as company policy, administration supervisions and salaries.

If extrinsic or hygiene factors are available than employees will not be dissatisfied, it does not mean that employees are satisfied. Because, these are very common factors and exist in every organization.

In my practical findings, SHAMS D WEARS LTD motivates their employees through some facilities. These are:
a.    Handsome basic pay
b.    Extra allowances
c.    Increment in basic pay
d.    Job security
e.    Job status
f.    Good behavior

PERFORMANCE APPRAISAL
Performance appraisal is a process for evaluating the past performance of an employee by his supervising officer who is conversant with the employees’ job performance. There are two types of performance appraisals:-
1.    Traditional performance appraisal
2.    Result oriented performance appraisal

In SHAMS D WEARS LTD, result oriented performance appraisal (MBO) is followed. There is a continuous evaluation system for performance appraisal. The company has professional appraisers to evaluate the performance.
For evaluating performance, this company uses an appraisal form to be filled by nominee’s associates and superior.

PARTICIPATIVE DECISION-MAKING
Participative decision making is one of the core concepts of industrial democracy. Industrial democracy is the modern global world phenomenon. Shams D Wears takes participative decision making, but do not encourage CBA. Whenever we were discussing with the unit manager and team manager, they told us their workers are well satisfied and do not want CBA. Although they do not encourage CBA but take participative decision.

LABOR TURNOVER
Shams D Wears also faces problem in case of labor turnover. But there is only 10% labor turnover in previous 5 years due to the employee’s personal interest.
To reduce the employee turnover the company gives the promotion and increases the salary.

INDUSTRIAL DISPUTES
There are various forms of industrial disputes like
1.    Strike
2.    Sit-down
3.    Lock-out
4.    Go slow, etc.
In Shams D Wears, there is no downsizing system in this production oriented company. Because there is a strong code of conducts about the workers, which are basically imposed by the foreign-buyers.

INDUSTRIAL RELATIONSHIP
Industrial relation occurs within dynamic conflict situation. This is permanent and unalterable so long as the structure of society of the social remains unaltered. SHAMS D WEARS follows the industrial relation ordinance of 1960 properly. The existence relationship between labor and management is good. The management tries to develop the relation with the labors. There are no trade union activities in the organization. The worker welfare committee discussed with BGMEA to solve the any problem.
SHAMS D WEARS also emphasizes on the following factors to develop industrial relation
  • Payment the proper wages within due time
  • Ensure better working condition
  • Arrangement educational and training facilities
  • Ensuring participatory management.