Executive Summary

As student of MBA in HRM course , we were assigned to work on this project which
we believe would help in gaining lot of knowledge & experience on the relevant field.
This knowledge & experience will expedite professional career of one’s in terms of
reaching the expected goal in life . The main motto of this report is to see the HR
practices in the organizations like Bangladesh , how the organizations are following
,implementing HR practices ,to what extent it’s practices held etc.

Being an student of MBA we were fortunate to have a wide array of knowledge about the
different aspects of KDS management iceberg during our visit there in for the purpose
of collecting the related information, findings.

This sort of information & findings helps to gainer an accurate synopsis of the assigned job
and relevance and reliability of the report findings too. This report helps the reporter in
defining the report problem in clear-cut manner and finds a final destination and also may
benefit the Company in many ways relating to the HR Practices in the Organization in
their future endeavor.

This report will show the organizations recruitment procedure, their future
planning ,their compensation system ,PMS ,training system that will give
comprehensive view of HR practices in the organization like KDS Garment through
the perspective of Bangladesh.
 Chapter 1
Introduction

1.1 Introduction
Performance means accomplishment of an expected course of action. Performance
may relate to various disciplines. By HR performance we mean the performance of
an organization relating to its human resources, viz., Get the people, Develop the
people, Work with the people, Retain the people and so on.

Functions of HRM are Recruitment & Selection, Training & Development,

Performance management system, Pay roll & compensation etc. In Bangladesh HR
practices are not that level as it is in western countries. But many organizations in
Bangladesh are now trying to incorporate comprehensive HR practices in their
organization as part of company up gradation, modernization, benefits of employees
which may lead to the benefits of both employees as well as company to the
success. There are certain limitations in implementing comprehensive HR
practices in the organizations of Bangladesh due to non practice of labor law &
govt. lack of support for it’s implementation, whimsical attitude & approach to
it by the part of management etc. Through Overcoming these congenial
environment for HR practice in the organization of Bangladesh is possible
unless it’s practice in Bangladesh will remain inadequate.

We were urged to prepare a report on “ Human Resource Management Practices in

Bangladesh ” perspective of KDS Garments in order to examine & evaluate the HR
practices . We have given emphasis on the followings and I firmly believe that after
analyzing these criteria, one can easily judge the HR practices in any organization:

o Recruitment & Selection in the Organization.

o TNA based training & employee development program
o Yearly Training Program in accordance to annual calendar.
o Employee benefits scheme & programs.
o Performance management system in the organization.
o Safety ,Health & Environment practices in the organization
o Human Resource planning in the organization.
1.2 Methodology
There are two sources of information in our study. One is primary information and
another is secondary information. Before collecting primary information we
have prepared a questionnaire. We asked our selected questions to the
selected expert officials of KDS Garments and they have responded to our
questions. At that stage we have followed the direct interview method for
collecting information. During the responding period they have provided us some
informative, valuable information which were very much helpful for our study.

The secondary data is collected from the books, articles related to HR and HR
Hand book of KDS Garments.

For making our study more informative, useful and effective we have collected
processed and analyzed our information carefully and sincerely so that it
becomes useful maintaining the required standards and also may fulfill the
expectations of our University Authorities.

1.3 Objectives of the study

On the basis of some objectives we have prepared our report. The core objectives
of the report are to evaluate & examine the overall HR practices of the Company
through examining the –

o Recruitment & Selection in the Organization.

o TNA based training & employee development program
o Yearly Training Program in accordance to annual calendar.
o Employee benefits scheme & programs.
o Performance management system in the organization.
o Safety ,Health & Environment practices in the organization
o Human Resource planning in the organization.
1.4 Scope of the study
We were assigned the topic “Human Resource Management practices in
Bangladesh” by the Department of MBA, Independent University Bangladesh. We
have collected our required information from the garments office located at
255, Nasirabad Industrial,Chittagong. The office is located in the factory building
from where HR practices of KDS Garments are controlled. So, it was much easy
for us to collect our required information related to our topics. We also
visited many of the departments of the Company to know more about KDS
Garments.

1.5 Limitation of the Study

Since for accomplishing the project work time is limited it was not possible
to get all information as required to complete the work more smoothly &
adequately. So, the time provided for the study was short for collecting
information, processing, and evaluation and recommend something for future.
The resourced person of KDS Garments was very much busy. They have spared
time but it was not sufficient for completing our work more comprehensively.

We were unable to present some necessary information due to the company

secrecy. This is why we failed to make our report more informative and fruitful.
We also face some methodological ignorance; there is lack of some objective
oriented information also. The reporters had tried their best to use supreme faculty of
ingenuity in the report preparation but the limited time compels them to be object
oriented. On the other hand, it is really tough job for any to present a paper without any
mistake.
1.6 The Company Overview:

KDS Group is a renowned group in Bangladesh having diversified business activities

like Steel, garments, Textiles, Accessories, and many others. They have total
employee strength of around 8000 people with a turnover of USD 250 million. They
are based in Chittagong and Dhaka and aspire to become the largest and the most
diversified business group in Bangladesh.

KDS Garments Division

KDS has made its mark in readymade garments manufacturing in Bangladesh, being
the pioneer and one of the largest in the country. Since 1983, KDS Garments has
been growing at a phenomenal pace and has bagged 11 National Awards for highest
exports in different years. The customers of KDS include world leaders like Wal-
Mart, K-Mart, Fila, Target and Globe Trotter, among others. KDS Garments is a
renowned name in the fashion industry. The facilities at its production unit in
Chittagong include a highly skilled workforce including expatriates, benchmarked
practices and technical facilities like the washing plant with world-renowned
washing machinery.

KDS Textile - KDS has the finest textile-manufacturing units in Bangladesh with complete
range of European machineries to produce the finest knitted fabric.

Other KDS Group companies

KDS Steel Division One of the oldest and most reliable steel plants in Bangladesh
which has built its reputation based on quality and economics of the business. KDS
has a new cold rolling meal and is the only European steel mill in the country. KDS
Steel Division consists of three individual factory having workforce near about 800
with the aim to delivering high quality product as well as maximum quantity. KY
Steel Started it’s journey successfully meeting the demand of its customers as well
as giving high standard of product. KYCR is established after the succession of KY &
is striving hard to meet the demand of all customers exclusively through
maintaining high quality of product. Its new inclusion of NOF technology paves it’s
way to giving more superior & standard product. More than 300 hundred
employees are engaged here. Another one is steel accessories being established to
supply raw material to it’s steel manufacturing as well as other concern of the
group.

KDS Technologies - KDS established the first Broadband ISP in the country called Dominox
Technologies. It is an associate of the KDS group. It was formed in 2000 with a vision to
create a revolution in the IT industry of the country.

KDS Accessories - Pioneering the linkage to the robust garment industry, KDS has most
comprehensive accessories offerings for the widest range of products.

1.6.1 Vision
To become a globally preferred supplier of apparel solutions upholding our social
responsibility.

1.6.2 Mission
 Delighting our customers through sustained performance
 Achieving excellence in process and technology
 Building a culture of cost consciousness
 Leveraging through competent people
 Leadership through innovation
 Thrust in new product design

1.6.3 Core Values

 Doing the right thing- We members of KDS Garments have the responsibility
to do the right thing for our shareholders, customers and one another.
 Pursuit of Challenge and success- KDS Garments challenges more
energetically with attitude exhibiting stronger spirit to achieve success.
 Winning- We have a passion for achieving results and winning – for our
shareholders, customers, country and one another
  Inclusive Meritocracy- We care about one another, value one another’s
differences, focus on results and strive to help all team members reach
their full potential.
 Leadership- We will be decisive leaders at every level, communicating our
vision, living our values and taking positive actions to help build a better
future for our company, country and ourselves.

1.6.4 Core Objectives

 Maintain quality of the product to the optimum level

 With an aim to establishing Can do Culture, teamwork is what unites
everybody in KDS Garments.
 Winning customers through loyalty by establishing culture of hearing rather
than our offerings and thereby providing the best solutions.
 Achieving excellence in process and technology
 Building a culture of cost consciousness and climate of trust.
 Leveraging through competent people
 Leadership through innovation
 Excellent product range to deliver a seamless diversity of customer-specific
solutions through a single point of access. Nationally and internationally.

1.6.5 Highlights
KDS Garments has a turnover of US $ 80 million per year

• KDS Garments has employees who have been working for the last 25 years and are
essentially the first generation workers. They are not adept to modern ways of working
and hence follow traditional methods . The worker’s efficiency level is low due to their
lack of exposure to modern way of conducting business. Lack of and also a sense of
complacence of being part of a large business house.

• KDS Garment is currently operating at 35 % efficiency (approx) due to its inability

in optimizing resource utilization which primarily caters to the utilization of human
resources. KDS has state of art machines but the mind set of employees are non
competitive.
• KDS garments aims at reaching USD 150 $ mn. per year with the existing
infrastructure , by means of increasing the plant efficiency . Such efficiency enhancement
will be only possible through the changing mindset of the workforce. Along with this KDS
needs induct new employees from other leading garment manufacturing companies across
the globe.

• Currently the market share of KDS is not significant as compared to the potential
that the organization has. KDS wish to increase their share of the pie in the market by
means of introducing a change in the way of conducting business which involves addressing
the process deficiencies in the operational area .

• KDS Garments want to move up the value chain in their line of business by creating
higher value products and also by designing new products to sell as their own labels. To
achieve this KDS will require to orient themselves towards the development and design
mode

• Currently KDS has an impressive line up of the business partners, but it is equal y
important to maintain the existing business partners and to increase the base as these
would provide a steady generation of business and brand recall. KDS as this juncture to
reach US 150 $ business has to focus on high value items from their business partners. This
is possible only by means of a “quality and Customer orientation “approach across the
organization.
1.6.6 HR organizational structure of KDS Garments
 Chapter 2
Employee
Acquisition
(HR Planning, recruitment&
Selection)
2.1 Theoretical Framework

2.1.1 Employment Planning

The process of determining an organization’s human resources needs. By such
planning an organization ensures that it has the right number and kinds of people,
at the right place, and at the right time. It ultimately translates the organization’s
overall goals into the number and types of workers needed to meet the goals. EP
involves three things:

I. Forecasting Personnel Needs or Demand for Personnel

II. Supply of inside candidates
III. Supply of outside candidates

2.1.1.1 Forecasting Personnel Needs

It is based on the following factors:
• Mission of the organization
• Strategic Goals and Objectives
• Forecast of personnel requirements
• Projected turnover
• Quality and skills of employees in relation to what is required if the needs of
the organization changes.
• Technological and other changes resulting in increased productivity.

Several Methods to predict employment needs

• Trend Analysis: Study of a firm past employment needs over a period of
years to predict future needs. It may be for the whole organization or for
each subgroup like sales, administration etc. However, it provides a simple
estimation and ignores many other factors like sales growth, productivity
etc.
• Ratio Analysis: A forecasting technique for determining future staff needs by
using ratios between some causal factors (like sales volume) and the number
of employees required, (for instance, number of salespeople.)
 • The Scatter Plot: A graphical method used to help identify the relationship
between two variables, such as a measure of business activity and your
firm’s staffing levels. For example, Number of students and requirement of
teachers.
• Using computer to forecast Personnel requirements: determination of future
staff needs by projecting sales, volume of production, and personnel
required to maintain this volume of output, using software packages. The
software generates a what-if scenario of personnel requirements at
different level of business activity.
• Managerial Judgment: Forecast of personnel needs on the basis of
managerial judgment depending upon factors like change in productivity,
change in market conditions, etc.

2.1.1.2 Forecasting the supply of Inside Candidates

• Qualifications inventory: Manual or computerized records listing employees’
education, career, and development interests, languages, special skills and
so on, to be used in selecting inside candidates for promotion.
• Personnel replacement Chart: Company records showing present
performance and promotion-ability of inside candidates for the most
important positions.
• Position replacement Card: A card prepared for each position in a company
to show possible replacement candidates and their qualifications.
• Computerized Information System: A computer database of employees with
information from wide variety of areas related to employee and
employment. It usually includes:
• Work experience
• Product knowledge
• Industry experience
• Formal education
• Training Course
• Foreign language Skills
• Relocation limitations
• Career Interests
 • Performance Appraisals
• Skills: Type, level etc.

2.1.1.3 Forecasting the supply of Outside Candidates

To understand the supply of outside candidates the organization should know
about the general Business environment and unemployment rate in the country. It
should also know the supply conditions in different occupational categories like,
nurses, chartered Accountants, leather technologists, radiologists,
telecommunication engineers etc. Employers may adopt the following sources:
• Monthly updates of Bangladesh bank
• Publication of Professional Associations
• Publications of employment agencies etc.

2.1.2 Decruiting
When any oversupply of employment observed, HRM must undertake some difficult Steps
to severe some of their people from the organization.

2.1.3 Effective Recruiting

The effectiveness of recruiting lies initially with the number of applicant generated by the
recruitment process. The more applicants you have the more selective you can be in your
hiring. Recruitment is a more complex activity than most managers think it is. It does not
just involve placing ads or calling employment agencies. The recruitment effort should
make sense in terms of the company’s strategic plans. It should take care of its timing,
method and importance of non-recruitment issues.

2.1.4 Finding Internal Candidates

• Job posting: Publicizing an open job to employees (often literally posting it
on bulletin boards) and listing its attributes, like qualifications, supervisor,
working schedule, personnel records: pay rate etc. However, the
organizations usually don’t post supervisory jobs.)
• Personnel records: Information in the personnel records may reveal the
potentiality of existing employees.
• Skills banks: Some companies develop a skills bank that list current
employees with specific kills.
2.1.5 Succession Planning
The ongoing process of systematically identifying, assessing, developing organizational
leadership to enhance performance.

2.1.6 Outside Sources of Candidates

• Advertising
• Employee referrals
• Employment Agencies
• Schools, Colleges and Universities
• Professional organizations
• Unsolicited Applicants
• Cyberspace/Internet recruiting
• Headhunting
• Internship

2.1.6.1 Advertising
The employers should address two issues related to ad: the advertising media and the ad’s
construction.
• The media: It depends on the positions for which we are we are recruiting.
The varieties of media may include:
• Job posting at the factory gate
• Ad in the local newspaper
• Ad in the national newspaper
• Ad in the international magazines
• Ad in the professional journals
• Ad in the Internet Construction of the Ad: follow the AIDA (Attention,
Interest, Desire and Action) principle.
• Attention: by using heavy margin, background, caption etc.
• Interest: crate interest about the job with some interesting features like
changing nature, location, salary package etc.
• Desire: mention the required qualifications and skills required.
• Action: call for call or write.
• Be creative in preparing the Ad.
2.1.6.2 Employee referrals
It is a very strong source of recruitment. Benefits:
• The candidates are likely to be more capable. Because otherwise he/she
will be accused.
• The candidates will get a better and realistic picture about the job. It will
increase job survival.
• It is considered a very useful means for hard-to-fill positions. Even some
companies announce reward for referring an employee for such positions.

Disadvantages:
• Sometimes it may be backed by the existing employees’ personal interest.
• May lead to nepotism.
• May minimize the opportunity for diversification in the workplace.

2.1.6.3 Employment Agencies

Employment agencies act like an exchange for both employers & employees.
• Job posting facility for the employers
• Access to the database by the employers
• CV posting facilities for the candidates
• Conducting screening for the employers
• Providing training on how to prepare CV, face interview etc.
• Facilitate employer in preparing job advertisements etc.

2.1.6.4 Schools, Colleges and Universities

The employers may contact the management of the institutions or the placement center
(if there is any) for sending resumes or the candidates to their organizations. They also
may visit campuses and make a spot recruitment

2.1.6.5 Professional organizations

Many professional Organizations like, Nurse’s Association, MBA Association, labor
unions etc. operate placement services for their members.
2.1.6.6 Unsolicited Applicants
Unsolicited applications, whether they reach the employer by post, e-mail,
telephone, or in person, constitute a source of prospective applicants

2.1.6.7 Cyberspace/Internet recruiting

Benefits:
• It is rather a very cheap means of advertisement.
• The information about the candidates may be collected quickly and
uniformly.
It provides more information about the company itself to the candidates.

2.1.6.8 Headhunting
Used for the midlevel and top-level executives. It is usually based on informal
contacts.

2.1.6.9 Internship
Many organizations recruit their full time employees through internship placement.

2.1.7 The Selection process

A standard and comprehensive selection typically includes the following steps:
♦ Initial Screening interview
♦ Completing the Application form
♦ Employment test
♦ Comprehensive interview
♦ Background Investigation
♦ A conditional Job offer
♦ Medical or physical examination
♦ Permanent job offer.

2.1.7.1 Initial Screening

 ♦ Screening the candidates on the basis of inadequate or inappropriate
education, inadequate or inappropriate experience, gap in employment
history, many brief jobs, poor result etc.
♦ Sharing detailed job information, salary range etc with the candidates so as
to unqualified or disinterested candidates leaves the process. It also
provides an opportunity to make an initial assessment about the candidates’
level of knowledge, skills and motivation about the job.

2.1.7.2 Completing the Application form

This is a company specific employment form used to generate specific information the
company wants. It includes:
- Personal information,
- Work history,
- Education & training,
- Specific skills and their level etc.
- Information about drug abuses, criminal offences etc.

2.1.7.3 Employment Test

The employment tests may include the following tests:
♦ Test of cognitive abilities
♦ Tests of Motor and physical abilities
♦ Tests of measuring personality, honesty and interest
♦ Achievement Tests
♦ Simulation tests

2.1.7.3.1 Test of cognitive abilities

Cognitive tests include tests of general reasoning ability (intelligence) and tests of specific
abilities like memory and inductive reasoning.
♦ Intelligence test: Intelligence tests (IQ) are tests of general intellectual
abilities. They measure not a single trait but rather a range of abilities,
including memory, vocabulary, verbal fluency and numerical ability.
 ♦ Specific cognitive abilities: There are measures of specific mental abilities,
such as inductive and deductive reasoning, verbal comprehension, memory
and numerical abilities.

2.1.7.3.2 Tests of Motor and physical abilities

♦ The tests of Motor abilities measure the abilities like finger dexterity,
manual dexterity, reaction time etc.
♦ The physical abilities tests measure static strengths (such as lifting weights),
dynamic strength (like pull-ups), body coordination (as in jumping rope) and
stamina

2.1.7.3.3 Tests of measuring personality, Honesty and interest

Factors like motivation and interpersonal skills are very important for job performance. As
a consultant put it, “most people are hired based on qualifications, but most are fired for
nonperformance. And nonperformance (or performance) “is usually the result of personal
characteristics, such as attitude, motivation and especially temperament.”

2.1.7.3.3.1 Personality tests

♦ The personality tests measure different dimensions of personality of a
person. It may include:
♦ Projective tests by using blurred pictures
♦ Thematic Appreciation tests
♦ Sentence Completion
♦ Story completion etc.
♦ Graphology

2.1.7.3.3.2 Honesty Tests:

An increasing number of business establishments are using honesty and integrity tests
("honesty tests") in the process of screening and selecting job applicants. The commonly
used honesty tests are The Polygraph and paper and Pencil tests.

2.1.7.3.3.3 Interest inventory

A personal development and selection device that compares the person’s current
interested with those of others now in various occupations so as to determine the
preferred occupation for the individual.

2.1.7.3.4 Achievement tests

Achievement tests measure what a person has learned. They measures the “job
knowledge” in areas like economics, marketing, or personnel etc.

2.1.7.3.5 Simulation tests

Some employers emphasize on the job itself and test the abilities of the candidates
concerning the job they have applied for. To test this they may use
♦ Work samples or
♦ Management Assessment centers

2.1.7.3.5.1 Work Sampling

The work sampling techniques measure how a candidate actually performs some of
the job’s basic tasks. Designed properly, work-sampling tests exhibit better
validity than do other tests designed to predict performance.

The procedure:
♦ Choose several tasks crucial to performing the job and test applicants on
samples of each task.
♦ An observer monitors performance on each task and indicate on a checklist
how well the applicant performs.

2.1.7.3.5.2 Management Assessment Centers

A management assessment center is a two to three-day simulation in which 10 to 12
candidates perform realistic management tasks (like making presentations) under the
observation of experts who appraise each candidate’s leadership potential. The center
itself may be a plain conference room or a special room with a one-way mirror to
facilitate observation. Typical simulated exercises include:

• The in basket
• Leaderless group discussion
 • Management games
• Individual presentations
• Objective tests
• The Interview

2.1.7.4 The Comprehensive Interview

♦ An interview (selection interview) is a procedure designed to predict future
job performance on the basis of applicant’s oral responses to oral enquires.
♦ A research showed that 99% employers use interviews for employee
selection.
♦ HRM interviewers, senior managers within the organization, a potential
supervisor, and potential colleagues and so on, may interview the applicant.
♦ Structured and well-organized interviews are more reliable.
♦ The interview is most valid in determining an applicant’s organizational fit,
level of motivation and interpersonal skills.

2.1.7.5 Background Investigation

The process of verifying information of those applicants who appear to offer potential as
employees. This may include:
♦ Contacting former employers to confirm the candidate’s work record and to
obtain their appraisal of his or her performance,
♦ Contacting other job related and personal references,
♦ Verifying the educational accomplishments shown on the application,
♦ Checking credit references and criminal records.
♦ Researches indicate that nearly half of all applicants exaggerate their
backgrounds or experiences

2.1.7.6 Conditional Job Offer

The offer made to the individual, which will become permanent after passing required
medical and physical tests

2.1.7.7 Medical/Physical Examination

An examination indicating an applicant is physically fit for essential job performance.
Purposes are:
♦ To ensure that the person is physically fit for the job to be done.
♦ To show that minimum standards of health exist to enroll in company health
and life insurance programs.
♦ To provide base data in case of an employee’s future claim of injury on the
job.
♦ The employers pay for the exam.

2.1.7.8 Permanent Job offer

♦ Those who perform successfully in the preceding steps are now considered
to be eligible to receive the employment offer.
♦ The actual hiring decision should be made by the manager in the
department where the vacancy exists, because,
♦ First, the applicant will eventually work for this manager, and
therefore, a good fit between boss and employee is necessary.
♦ Second, if the decision made is not correct

However, HRM representative may send the official letter. As a matter of curtsey, all the
finalists who did not get the job should also be notified that they didn’t get the job.

2.2 Practices of the KDS Garments

2.2.1 HR Planning:
Every organization has own HR planning and usually an organization forecast their
personnel needs based on their mission, strategic goals & objectives & technological and
other changes resulting in increased productivity. Although there are several methods to
predict personnel needs, but KDS Garments uses managerial judgment because it gives the
more real world scenario for personnel needs. But managerial judgment method depends
upon the change in productivity, market conditions etc.

2.2.1.1 Employment Standard

These policies define qualification standards for KDS Garments job applicants. The Head of
HR along with the MD will be responsible for introduction or modification of any policy and
the HR department as a whole is responsible for implementation of the policy.
Standards of Employment

• National I.D. Card

All job applicants must have a valid Voter I.D. Card/Passport photocopy/ or an official
Government Document proving Bangladesh citizenship.

• Physical
The Head of HR establishes health-screening standards and categorizes candidates
according to these standards. Handicaps and other major physical limitations will be
reviewed jointly by HR and to determine the availability of suitable jobs, if any.

• Age
The Head of HR establishes minimum age requirements for Company employment in
compliance with Bangladesh Labour and Workmen Law. Minimum age requirement for
all Bangladesh recruitment categories is 18 years and normal retirement age for all
employees is 58 years, unless otherwise mutually agreed to between the employee and
the Company. Employment offers to candidates age 58 or older require the approval of
the concerned Business Head.

• Education
The Head of HR is responsible for establishing minimum educational requirements for
the Company.

Exceptions
Exceptions to this policy require endorsement by the Head of HR with concurrence of the
MD. Unless noted otherwise, exceptions must have the prior approval of the MD and Head
of HR.

2.2.1.2 Personnel Policy

KDS Garments facilitates work culture for commitment to profession and adherence to
human values, beliefs & ethics. In pursuance of this, we underline the following
commitments:
 • Operate an economically flourishing business so there exist consistent level of work
and equal opportunity to grow.
• Recruitment of Quality manpower at all levels in terms of knowledge, skills and
attitude and character without any discrimination on the basis of age, sex, religion,
nationality or caste.
• Development of manpower is the basic objective in Company’s Personnel Policy.
KDS Garments believes in promotion of continuous growth and sustenance of
knowledge, skill and proper aptitudes.
• The company encourages free flow of information and effective free and congenial
upward communication to create amongst the employees the sense of
participation, innovation and creativity to proceed ahead through the challenges of
global competition in the present scenario.
• KDS Garments believes in culture of corporate family therefore the Company does
everything to build a sense of pride and belonging amongst employees.
• The Company aims at building up living standards for the employees by improving
quality of life on the work front and the family front as well.
• KDS Garments strongly believes in congenial and harmonious human relationship
with mutual understanding and in maintaining healthy industrial relations.

2.2.1.3 Manpower Planning Policy

Manpower Planning is a strategy for the acquisition, utilization and preservation of the
Human Resources of an Organization

• To coordinate the requirements for the availability of different types of employees

in the organization.
• To ensure that the organization has the right kind of people at the right time.
• To adjust the requirements with the available supply.

Process
Forecasting future manpower requirements either in terms of mathematical projections of
trends in the economy and development in the industry or of judgmental estimates based
upon specific future plans.

Inventorying present manpower resources and analyzing the degree to which these
resources are employed optimally.
Anticipating manpower problems by projecting present resources into the future and
comparing them with the forecast requirements to determine their adequacy both
quantitatively and qualitatively.

Planning the necessary program of recruitment, selection, training and development,

motivation and compensation so that future manpower requirements will be met.

Step 1:
Defining and Documenting the Corporate Objectives of KDS Garments.

Step 2:
Articulation and documentation of Job requirements. “What all is to be done” this
question needs to be clearly answered. This step would enable to compartmentalize the
jobs and various departments, which need to operate and need for a Departmental Head,
can be established, who would be responsible for all the activities of the said department.
For existing units the departmental head needs to document the functions of his
department.

Step 3:
Job Descriptions to be documented. A standard job description format has been prepared
by Ernst & Young which is to be circulated to all the departmental heads by the Human
Resources, who in turn, would ask the actual jobholder to write down all his activities.
The department head would authorize the same and send it to HR for further actions. If
the unit is new and the activities are not being carried out the department head in
consultation with a HR representative will have to document the proposed job
descriptions. Here, the accuracy of job descriptions would be based on the experience of
the department head.

Step 4:
After Job descriptions have been documented the next step is to document the job
specifications. Job specifications would indicate minimum acceptable qualification the
incumbent must possess to perform the job successfully. A standard job specification
format has been prepared by Ernst & Young for use by the HR at KDS Garments.

Step 5:
The next stage would be to crystallize the department’s organization structure. The job
description and the specifications documented would be aids to structure the department.
One would know and be clear about jobs to be carried out and what levels of people to
engage. A standard Organization Structure format has been prepared by Ernst & Young
which is to be followed at KDS Garments.

Step 6:
The Department Organization Structure to be approved by Head of the Business or the
process owners and linked to the organization structure of the company. Ernst & Young
has carried out this exercise for defining the Organization structure. Any changes to the
existing structure must be approved in the manner specified above.

Step 7:
The next stage in Manpower Planning would call for taking in the stock of existing
manpower and the skills available in the organization. Technically, this is referred to as
Skills Inventory of Human Resources. A standard Human Resource skill inventory format to
be prepared by HR.

Step 8:
Additional or Surplus Manpower to be identified and future projections to be made.

Step 9:
Budgets to be prepared for additional expenses.

Step 10:
Manpower Plans to be prepared. HR to prepare the plans and the views of respective
departmental heads to be taken into account.

Step 11:
The Manpower Plan to be approved by respective Department Heads and finally by MD.

Step 12:
Head of Human Resource to initiate steps such as Recruitment, Selections, Transfers,
Redeployment, etc. to meet Manpower requirements.
2.2.2 Recruitment
2.2.2.1 Recruitment Policy
To have a recruitment process that provides equal opportunity based on merit and is
process based and to acquire high quality talent at the optimum cost.

• This guideline/policy is applicable to all personnel in the company who are

engaged in the recruitment process for the company for any level/grade.
• For all employees of KDS Garments.

The Head of HR and the MD are responsible for developing and implementing recruiting
programs which comply with the Labor and Workmen Law.

Personnel Requisition Process:

• The Heads of the Departments are required to give their budget for personnel to
the HR Department in the beginning of the financial year and as and when the need
arises, depending upon the expected increase in business and work load. This
should be in the Specified Format - “Personnel Requisition Format” (refer
Annexure)
• Any requisition without the PRF format will be returned back to the requisitioned
for modification and resubmission.
• PRF should be filled by the immediate superior of the vacant / new position and
approved by the department head before sending it to the Human Resources
Department.
• The HR Department will forward the duly completed PRF to the MD for ratification.
• All PRF need the approval of the MD.
• After ratification from the MD, the HR Department will take necessary action on
the same.
• HR Department may maintain the records of all PRFs. This will help in the process
of future budgeting and recruitment of personnel.

Exceptions to this policy require endorsement by the concerned HOD, concurrence of the
MD. Unless noted otherwise, exceptions must have the prior approval of the MD and Head
of HR.
2.2.2.2 Decruit
KDS Garments also takes the downsizing process when any oversupply of employment
observed. KDS maintains skills banks to find the internal candidates because employees’
specific skills are included here. And they also prefer succession planning.

2.2.2.3 Source of Employee

KDS Garments maintain both internal and external sources of employee for their
employment need. There are several methods to determine the supply of inside
candidates. KDS Garments uses the computerized information system to forecast the
supply of inside candidates because all information of employees is included here.

In case of outside recruitment, they use various sources such as, newspaper ad, HR
Consultancy Firm. They give ad in the newspaper because it emphasizes creative ad to
make it more attractive. They usually like to attract the attention & interest of the
candidates by their exclusive ad. They use employment agencies because of their job
posting facility, CV posting facility & conducting screening & other facilities.

Approximate percentage of employment recruited from external and internal sources:

From the above data, it is found that although internal candidates typically stay in
positions and are more successful than external candidates, KDS Garments fill positions
with external candidates, more often than internal candidates. Because they believe that
external candidates have the potential to be high performing employees with the ability to
drive forward the company’s business.
2.2.3 Employee Selection
2.2.3.1 Selection Policy
From the long selection process KDS Garment usually follow only the following steps:
a. Initial screening
b. Completing application form
c. Comprehensive interview
d. Conditional job offer
e. Permanent job offer

They do not use some other steps for time saving in the selection process & for minimizing
cost of the organization.

2.2.3.2 Selection Process

The HR Department will arrange for the required resources through
• Advertisement,
• Contacts,
• External Consultants / Placement Agencies, or
• Campus Interviews (if necessary).

HR Department will also ensure that opportunity is given to internal candidates first based
on
• Approval by Immediate superior
• Profile fit in the existing vacancy
• Credibility in the present job

HR Department shall shortlist the candidates to be called for interviews from the
database. The short listing will be done in consultation with the respective Heads of the
Departments.
• All candidates coming for interviews will have to fill an “Application Form” (refer
Annexure).
• An Interview Panel will be formed for interviewing the candidates shortlisted by
the HR Department. The panel should ideally comprise of at least three personnel,
of which one will be from the HR Department. For Manager Levels and above
(senior levels), the MD will also form a part of the panel.
 • The panel will give their recommendations. An “Interview Evaluation Sheet” (refer
Annexure) shall be filled for all the persons short-listed.
• The panel will take final decision after the interviews are over, on the basis of the
Interview Evaluation Sheet.
• In case a candidate is selected, the MD directly or on the recommendations of
panel will give the approval, on the Interview Evaluation Sheet.
• The HR Department will conduct a minimum of two “Reference Checks” (refer
Annexure) and record the feedback in the specified format. The offer of
employment is subject to receipt of satisfactory references.

2.2.3.3 Salary fitment process

• HR Department will then prepare a “Fitment Sheet” on the basis of the Company
Policy to ensure internal parity in terms of compensation and benefits to be
offered to the selected candidate.
• Salary Fitment would be based on internal comparisons and job value.
• The MD will approve the Fitment Sheet.

2.2.3.4 Job Offer

• The “Offer Letter” (refer Annexure) will be sent to the selected candidates on the
basis of the approved Fitment Sheet.
• The offer will be clearly explained to the candidate.
• A confirmation will be obtained from the candidate about acceptance of the offer
through his/her signature on a duplicate copy of the offer letter.

2.2.3.5 Appointment
• At the time of joining the employee will receive the “Appointment Letter” (refer
Annexure), which will include details of his Terms and Conditions for employment.
• In case of a Contractual Agreement a Contract will be signed between KDS
Garments and the candidate

2.2.3.6 Turnover Rate

KDS Garments is very conscious to maintain their employee turnover rate. They have very
low rate of employee turnover which is less than 10%. To maintain this rate they always
look after empowerment needs and they try to make the job is desirable to the candidate.
 Chapter 3
Employee
Development
(Employee Socialization, Training &
Development, Performance Appraisal)
3.1 Theoretical Framework

3.1.1 Socialization
Socialization is a process of adaptation that takes place as individuals attempt to learn the
values and norms of work roles. Socialization/adaptation is required when we - begin a
new job, accept a lateral transfer or get a promotion. This adaptation is required, because
of i) Different work activities, ii) A new boss, iii) A different group of coworkers and iv)
Probably a different set of performance standards etc.

3.1.1.1 New Employee Orientation

The activities involved in introducing new employees to the organization and their work
units. An orientation program should include:

* Familiarize the new employees with the organization’s objectives, philosophy,

procedures and rules
* Communicate relevant HRM policies such as work hours, pay procedures, overtime
requirements and company benefits
* Review the specific duties and responsibilities of the new member’s job. Provide a
tour of the organizations physical facilities. Introduce the employee to his or her
members, and coworkers.

3.1.1.2 Employee Training and Development

Training refers to the methods used to give new or present employees the skills they need
to perform their jobs. Training is hallmark of a good management, and a task, managers
overlook at their peril. Good training is vital.

Training program consists of five steps:

1. Needs analysis step: identifying the specific job performance skills needed.
2. Instructional Design: preparing the training program contents including workbooks,
exercises, and activities
3. Validation Step: The bugs are worked out of the training program by presenting it
to a small representative audience.
4. Implement the program: proving actual training to the targeted audiences.
5. Follow up step: the Managers assess the program’s success or failures.
3.1.1.2.1 Analyzing Training Needs
Analyzing training needs depends on whether the company is training new employees or
current employees.

Training to the new employees: - Determine what the job entails and to break it down into
subtasks, each of which is then taught to the new employee.

Training needs to the current employees: - It is more complex. Because here the company
has to identify whether the weak performance is due to lack of skill, right attitude or
something else. Performance may hamper for lack of motivation, unclear standers etc.

Task analysis and performance Analysis are two main ways to identify training needs.

Task analysis
Task analysis is a detailed study of the job to determine what specific skills the job
requires. Job descriptions and job specifications are helpful here. Some employers
supplement the job descriptions and specifications with a task analysis record form. This
consolidates information regarding required tasks and skills in a form that’s especially
helpful for determining training requirements.

Performance Analysis
Performance Analysis is the process of verifying that there is a performance deficiency and
determines if such should be corrected through training or through some other means.
Methods to identify a current employee’s training needs:

• Supervisor, peer, self and 360-degree performance reviews

• Job related performance data including, productivity, absenteeism and tardiness,
accidents, grievances, product quality, customer complaints etc.
• Observation by the supervisor or other specialists,
• Interview with the employee or his supervisor
• Tests of job knowledge, skills etc
• Attitude survey and
• Questionnaire survey etc.
3.1.1.2.2 Different methods of training are

• On-the-Job Training
On-the-Job Training (OJT) means having a person learn a job by actually doing it. Every
employee from clerk to Company President gets on-the-job training when he or she joins a
firm.

• Apprenticeship Training
A structure process by which people become skilled workers through a combination of
classroom instruction and on-the-job training. It is widely used training method. It
traditionally involves having the learner/apprentice study under the tutelage of a master
craftsperson.

• Informal Learning
Informal learning is any learning that occurs for which the learning process is not
determined or designed by the organization. About two-third of industrial training isn’t
formal at all rather it takes place informally through the interaction in between the new
worker and his or her colleague.
Even though, it is informal, the organization may ensure it by creating a learning
environment in the organization. For example, North Carolina, places tools in cafeteria
areas to take advantage of the work related discussions taking place.

• Job Instruction Training

Job Instruction Training is suitable for the jobs that consist of logical sequence of steps. It
involves listing each job’s basic tasks, along with key points, in order to provide step-by-
step training for employees.

• Lectures
It is a simple and quick way to provide knowledge to large groups of trainees.

• Job Rotation
A management training technique that involves moving a trainee from department to
department to broaden his or her understanding of all parts of the business and test
his/her abilities.

• Coaching/Understudy Approach
Here the trainee works directly with a senior manager or with the person he or she is to
replace. The latter is responsible for the trainee’s coaching.

• Action Learning
A technique by which management trainees are allowed to work full time analyzing and
solving problems in other departments. Trainees meet periodically in four-or five-person
project teams to discuss their findings.

• The case Study method

A development method in which the manager is presented with a written description of an
organizational problem to diagnose and solve in a discussion with other trainees.

• Management Game
A development technique in which teams of managers compete by making computerized
decisions regarding realistic but simulated situations.

• Role Playing
A training technique in which trainees act out parts in a realistic management situation.

• Behavior Modeling
It Involves:-

 Modeling: First, the trainees watch films or videotapes that shows the models
behave effectively in a problem situation.
 Role Playing: Next, the trainees are given roles to play in a simulated situations;
here they practice and rehearse the effective behaviors demonstrated by the
models, and
 Social Reinforcement: The trainer provides reinforcement in the form of praise and
constructive feedback on trainee’s performance.
 Transfer of training: Finally, trainees are encouraged to apply their new skills
when they are back on their jobs.

3.1.1.2.3 Evaluating the training Effort

After trainees complete their training the firm evaluates the program to see how well its
goals have been met and whether it is the best method for reaching the goals. One can
measure the following four basic categories of training outcomes:-

• Reaction: Evaluate trainee’s reactions to the program. Did they like the program?
Did they think it worthwhile?

• Learning: test the trainees to determine whether they learned the principles, skills
and facts they were supposed to learn.

• Behavior: Ask whether the trainee’s on-the-job behavior changed because of the
training program.

• Results: What final results were achieved in terms of the training objectives
previously set? Did the number of customer complaints about employees drop? Did
the reject rate improve? etc. If the program doesn’t produce result then it
probably hasn’t achieved its goals. To evaluate the result, the Management may
consider control experimentation. It is a formal method for testing the
effectiveness of a training program, preferably with before-and-after tests and a
control group. A controlled experiment uses both a training group and a control
group that receives no training. Data (for instance, on quantity of sales) are
obtained both before and after the group is exposed to training and before and
after a corresponding work period in the control group. This makes it possible to
determine the extent to which any change in performance in the training group
resulted from the training rather than from some organization-wide change like a
raise in pay that would have affected employees in both groups equally.

3.1.1.3 Performance Appraisal

Performance Appraisal means evaluating an employee’s current or past performance
relative to the person’s performance standards.

• Appraisal provides information upon which managers make promotion and salary
decisions.
 • They provide an opportunity for managers and subordinate to review his or her
work related behavior. It also helps initiating corrective measures should there be
any deficiency.
• It provides an opportunity to review the person’s career plans in light of his or her
strengths and weaknesses.
• Appraisals help managers better manage and improve firm’s performance.

3.1.1.3.1 Steps in the Appraisal Process

i. Defining the Job: It means that the manager and the subordinate agree on his/her
duties and job standards.
ii. Appraising Performance: Measuring the subordinate’s actual performance and
comparing it with the standards.
iii. Proving feedback: Manager and subordinate discuss about the performance and
progress, and make plans for any development required.

3.1.1.3.2 Appraisal problems

• Unclear Standards: Generally the traits that are included in the appraisal are
unclear and the evaluation varies form person to person. To solve this problem it is
better to develop and include descriptive phrases that define each trait
• Halo Effect: In performance appraisal, the problem that occurs when a supervisor’s
rating of a subordinate on one trait biases the rating of that person on other traits.
Being aware of this problem is a major step toward avoiding it.
• Central tendency: A tendency to rate all employees the same way, such as rating
them all average. Ranking employees rather than rating can reduce this problem
• Leniency or strictness: The problem that occurs when a supervisor has a tendency
to rate all subordinates either high or low. Ranking also may help reduce this
problem. However, if the rating scale must be used, it is better to impose a
distribution, for example, about 10% people should be rated “excellent”, 20%
“good” and so forth.
• Bias: Appraisee’s personal characteristics like, age, sex, race etc can affect
ratings.

3.1.1.3.3 Who should do Appraising?

 • The Immediate Supervisor: Supervisor’s ratings are the heart of most appraisals.
He/she is, in fact, in the best position to observe and evaluate the subordinate’s
performance.

• Peer Appraisals: The appraisal of an employee by his or her peers is becoming more
popular.

• Rating Committee: Many employers use rating committees. These committees

usually contain the employee’s immediate supervisor and three or four other
supervisors.

• Self-ratings: Evaluation by employee himself. The basic problem is that employees

usually rate themselves higher than they are rated by their supervisor or peers.

• Appraisal by Subordinates: More firms today let subordinates anonymously rate

their supervisor’s performance, a process some call upward feedback. The process
helps top managers diagnose management styles, identify potential “people”
problems, and take corrective action with individual managers as required.
Subordinate’s ratings are especially valuable when used for developmental rather
than evaluative purposes.

• 360-Degree Feedback: Ratings are collected “all around” an employee, from

supervisors, subordinates, peers, and internal or external customers.

3.2 Practices in the KDS Garments

3.2.1 New Employee Orientation

The HR department of KDS administers comprehensive orientation programs. The programs
provide information regarding work rules and procedures, compensation and benefits,
general safety requirements, and general company orientation such as history,
organization, and training. They provide orientation guide to all new employees and in the
first day of joining employee has to fill a joining form. Orientation guide and joining
format are attached in annexure. They also take around the new employee to oversee the
physical facilities of the company as well to all departments to orient them with the old
employee.
3.2.1.1 Induction

Purpose
To ensure the smooth induction of a new employee into the organization and to assist
him/ her with the preliminary joining formalities. The objective of this policy directive is
to ensure that employees while joining new in the organization are provided with an
appropriate orientation. It is also the objective of this policy directive to ensure that
orientation is provided in a consistent and timely fashion across all the new employees and
Head of HR are aware of their orientation responsibilities.

Span
This guideline / policy is applicable for all new joiners in the company.

Responsibilities
The Head of HR along with MD is responsible for developing and implementing the
Orientation Policy .Head of HR has the full responsibility of implementing the said policy.

Procedure
The following provides an outline of orientation activities for employees who have been
newly appointed to KDS Garments:

• Provide information on terms and conditions of employment

• Provide information on standards of conduct and ethical behavior
• Explain the significance of the Contract of Employment
• Provide the name, location and work telephone number of the HR personnel
• Provide information on maintaining a workplace free from harassment or
discrimination
• Provide information pertaining to pay, leave entitlements, medical, health and
employee services
• Explain how the company is structured
• Provide a brief history and the mission and vision of the company
• Provide information on workplace programs
• Explain the duties of the employee’s position and the requirements of the job
• Describe the probationary period
 • Identify the contribution or results expected of the employee
• Provide information on work procedures relating to the operation and
administration of the workplace including hours of work and attendance reporting
requirements
• Explain safety and health procedures and emergency preparedness
• Introduce the new employee to colleagues at the workplace and give a brief
explanation of their roles
• Ensure that the employee’s work station is ready prior to the employee’s first day
on the job including telephone and computer connections; (wherever applicable)
• Ensure that the employee receives a box of visiting cards (if eligible) on his first
day on job
• Explain employee development and career development opportunities
• Provide details pertaining to social, recreational and other facilities or activities
available to employees.
• The new candidate is given a CD which contains details of KDS Garments and it’s
Group Companies by means of a power point presentation.

3.2.1.2 Joining docket

On the day of the joining, the employee will be given a “Joining Docket” which will
contain the following:

 Welcome Letter from MD;

 Vision Handbook;

 KDS Garments Brochure;

 Employee Handbook;

 Joining Forms;

 Confidentiality Agreement;

 Appointment Letter;

 Joining Report; and

 Personal Information Form.

On the day of joining of any new employee, the HR Department will open a Personnel File
for the employee. This file will contain all the documents related to the employee.
3.2.2 Training and Development

Purpose
To provide opportunities for and encourage all employees to participate in activities,
which will enhance their specific job skills and their overall professional strengths, as well
as their personal development. A training objective is the specific knowledge, skills, or
attitudes that the trainees need to gain from the training initiative.

3.2.2.1 Technical Skills /Conceptual Skills and Behavioral Skills:-

Technical skills or the Conceptual skills include job knowledge, methods and technologies.
These skills are a must for each and every employee for successful completion of his/her
job. Behavioral skills encompasses the area like ability to communicate, the interpersonal
abilities, and the capacity to build relationships with clients as well as people within the
organization.

Span
The training policy applies to all employees of KDS Garments.

3.2.2.2 Training Process

Phase A: How to Plan Training

Phase B: Methods of Training & Implementation
Phase C: Evaluation of Training

Every organization should know how it should perform in order to be successful. Only then
an organization can impart relevant training to its employees to fulfill its needs and
realize the goals.

In any organization needs identification is the first step in the training systems model and
can be conducted at three levels. Organizational Analysis, Operation Analysis, Person
Analysis. Training programs in all organization require this three-phased analysis.

Organizational Analysis
This involves identifying and gathering information regarding the operational activities
within the organization, analyzing them and successive reporting of that to the training
decision maker. The main purpose of doing this is to disclose major problem areas within
the organization that may indicate a need for training.

Operations Analysis
This analysis helps to identify and record the specific behavior required to accomplish
various tasks. This form of data collection enables the training personnel in creating
programs focusing on the right way to perform a job.

Individual Analysis
Individual analysis refers to identifying the characteristics and capabilities of the
employees, collecting, synthesizing and analyzing data and finally reporting the findings to
the decision makers and the training designers. The purpose of such analysis is two fold (1)
Who currently needs training; and (2) what skills, knowledge, abilities and attitudes need
to be strengthened. This is done with the view to bridging the gap between the desired
and actual performance.

Data collection methods for Individual Analysis

• Advisory committee
Advisory Committees are comprised of the various levels of management across different
functional areas to determine the usefulness of a particular training programme pertaining
to a problem and establish training priorities.

• Assessment Centers
This is primarily used for selection process and requires the participants to go through a
series of tests both technical and behavioral to determine their knowledge base and for
the purpose of ascertaining their strengths and weaknesses.

• Satisfaction surveys
These surveys are used to determine the satisfaction level within the organization and
help in identifying the training need areas.

• Group Discussions
This method involves meeting with employees of a specific work area with an objective of
getting their emotional commitment towards training.
 • Questionnaires
The training needs in the organization are identified through the responses from the
questionnaires. The questions range from the skill set requirements to their usefulness and
the employee’s perception of training.

• Skills Test
In skill oriented jobs test of skills are required to identify training needs. These tests are
job related and measure those skills and abilities required for successful job performance.

• Observation of behaviors
Trainers or supervisors may directly observe employees behavior to identify training
needs.

• Performance Appraisal
This is the most important method of individual analysis. A job related performance
appraisal system would highlight the strengths and weaknesses in the employee
performance and eventually lead to the design of a training program based on the
identified needs.

Organizations maintain detailed records of employee performance on a regular basis and

thereby streamline the training programs depending upon the current trends and
requirements in the organization.

• Exit Interviews
A high turnover rate may help in identification ofl organizational problems and the need
for training. The validity of exit interviews depends on skills of the interviewers and
honest feedback from the employees.

3.2.2.3 Different methods of training & implementation

Based on the analysis and identification of any performance gap amongst the employees
and also on the basis of identified developmental needs the organization designs Training
programs. Different types of training programs yield different results, so considerable
amount of effort is required to ascertain the type and methods of training programs
required depending upon specific requirements.

• On the Job Training

These types of programs involve job related instructions from the seniors, or an
experienced coworker. This involves Job Rotation, Lateral promotion, Enlarged and
enriched job responsibilities, Apprentice Training, Coaching, and mentoring and
Committee assignments. This is applicable to employees of all levels.

• Job Rotation
It refers to the placing of an employee in different types of jobs for a certain period of
time. Duration of time will depend upon the level of the employee, for junior level it may
cover a short period of few weeks while for the seniors it can be some definite assignment
for a few months or more. This helps the employees broaden their job knowledge in
diverse fields.

• Lateral promotion
Employees in middle to senior level management experience job rotation in the form of
lateral promotion, which means a shift of responsibilities lasting one or more years. This is
done with a view to expose the senior employee towards general management and
competency development.

• Enlarged and Enriched Job Responsibilities

An employee learns more about the job and cultivates his / her sovereignty through added
job responsibilities. With an increase in the work area an employees’ skills and knowledge
can be tested. This also serves as a motivational tool for each one to perform better
towards achieving the organizational goal.

• Apprentice Training
This is a combination of classroom and on the job training.

• Coaching
In an organization the supervisors may assume the role of a coach to the employee by
providing information on the organizational roles, the means towards achieving them and
through constant feedback on the gap if exists in achieving such goals.

• Mentoring
It refers to an exceptional manager providing guidance to the juniors in their professional
development. Mentorship can be both formal and informal. Many organizations have
formal mentoring programs. In case of informal mentorship it is based on the
understanding between a senior and a junior.

• Project Teams / Committee assignments

Committees are formed to solve certain problems, plan for the future and discuss on the
issues critical to the organization. An employee serving in a committee enhances his / her
participating and decision making abilities and widens up the organizational vision,
through greater involvement in the issues of the management and improving the
relationships among the work group.

• Away from the job training

This refers to training programs conducted away from the employees’ immediate work
area. This can again be of two types:
o In-house programs conducted within the organization’s own training facility
either by the internal training facilitator or by external consultants
o Off- site programs held outside; conducted and organized by a professional
organization or a training firm.

A variety of training methods are used for imparting such type of training.

• Video Tapes / VCDs

The use of videotapes is high due to the convenience it introduces to using and sharing
ideas and issues, especially those involving technical and behavioral skills.

• Lecture
This is an important and popular means of delivering training to a large group of people on
a specific topic in a timely manner. It’s shortcomings lie in the fact that it is a one-way
means of communication. Though nowadays interactive sessions are introduced to
facilitate open discussions between the speakers and the trainees.

• Conference/ Discussion
Organizational goals and problems towards achieving such goals are discussed in
Conference / discussions by permitting a dialogue between the trainer and the trainees,
which helps in heightening the motivational level through immediate feedback.
 • Technology based systems
The interactive video disc/ CD and other computer-based learning tools are becoming
more and more popular with improved technology and declining price. These are very cost
effective and more number of people can learn in a shorter period of time and with a
steady pace. This also has the benefit of a globalized standard across locations.

• Case Study
A case study is a written description of a real life problem linked with the function of the
organization. This is a widely-accepted method as the trainees can analyze the problem
and can present their own recommendations, thereby enhancing their problem solving and
analyzing skills. They also become exposed to the group decision-making effort and the
group dynamics.

• Role-playing
Participants play the role of the people involved in a particular organizational problem,
with certain data that is provided to them in the beginning. The primary objective of this
is to analyze interpersonal skills and human relationship management. Attempts must be
made to make the situation realistic.

• Management Games
These are designed to replicate conditions actually existing in an organization and usually
involve competitive terms among the participating teams in planning and control on
matters related to sales, finance, strategies, etc. The ultimate objective of such games is
to make the participants learn about the group dynamics, solving problems in a group,
communication patterns, and dealing with confrontation in implementing ideas.

• Membership in professional Organization/ Association

Membership in professional associations develops employees in various ways through the
participation in monthly meetings, conventions, etc. by means of exchange of ideas, and
discussing common problems.

• Behavior Modeling
A classroom oriented technique, generally used to teach problem solving skills to the first
level managers. In this process the topic is first introduced by the trainer and a model of
effective leadership behavior is illustrated. The trainees then discuss the model and
practice on it using role-playing and finally receive feedback from the trainers.

• Subscription to Professional Periodicals / Journals

The Library should contain Professional Periodicals/ Journals which may be used by
employees for updating their knowledge in respective areas/ general management.

• Open House Presentation

The employee of second/ third levels should be encouraged to make presentations related
to their areas to Staff across the functions, as a mode of training and bringing in better
Communication Skills and Articulation.

3.2.2.4 Training Implementation

A Training implementation brings trainees and the trainer together. It is constructed to
design the Training plan for a particular subject during a certain time frame. More and
more precision on the topics and the time taken will result in a successful Training
program. A detailed co-ordination is required with the trainers for a full proof plan.

3.2.2.5 Evaluation of Training

The Training program is required to be evaluated to determine whether the purpose with
which it was imparted was accomplished. This is a very important task as it has the
involvement of both time and money and the employees who get the training are expected
to perform in a desired fashion.
Training evaluation can be done at the following four levels as suggested by Kirkpatrick:

3.2.2.6 Participants Reaction

In the training process each employee conceives opinions and attitudes towards the
overall effectiveness of the program. At this level a Feed Back questionnaire is filled up by
each and every participant stating his/ her individual views regarding the content of the
training program, the relevance of the subject with the operations of the organization and
the skill of the trainer. On the basis of the overall review the program’s quality is judged.
This gives a very subjective response.
 • Learning Curve of the Participants
This level is assessed by testing an employee simultaneously before and after the program,
with the expectation that his / her knowledge base will be higher after the program. If it
is possible to conduct a test on the subject matter of the training then such an evaluation
is possible otherwise this process is not valid. In case of training in different behavioral
skills it is difficult to ascertain the effectiveness through a test.

• Change in the participant’s behavior

Participants are expected to learn a skill or knowledge that results in a positive change in
his job performance. But unlike the other two processes this level requires greater time
commitment, as until and unless the learning is put to effort, it is difficult to judge the
contribution of training.

• Effectiveness in organizational goals

Training is subject to result in a better and more effective organization. This level
ascertains the impact of training on the overall productivity, development of a better
work place, better achievement of the organizational goals in terms of values and mission,
decrease in manpower turnover and many others. In practical terms it is very difficult to
associate the organizational goals to the acquired learning of an individual.

KDS Garments has a nice training facilities and well defined policies to conduct training
for new and old employee. They almost conduct all types of training for developing
employee skills and knowledge. But resource persons of KDS Garments informed due to the
production load and buyer requirement they are not able to follow through all the training
they conduct properly. As it is a labor intensive industry so they give importance on on-
the-job training. But still they could not prepare proper training module for every training.
The turnover of this industry is very high due to the low wage scale. Due to this factor
they could not identify training needs of an individual in a prescribed form which they
formulated. To evaluate the training they also have a training evaluation form. Their
training need identification format and evaluation form are attached in the annexure.
These are the training lacking of KDS Garments. They also informed they have a training
manager who is now working on these training short comings to compete their human
resources globally.

3.2.3 Performance Appraisal

Purpose
To enable our officers to set ambitious targets and to appraise them on achievement of
these targets in a fair and objective manner.

Span
All KDS Garments employees at supervisor and above levels.

Responsibilities
The Departmental Heads are responsible for implementation of the performance policy in
their departments.

Procedure
KDS Garment’s Performance Review System integrates the organizational vision to its
strategy, goals and their achievement. It is an all-pervading system, which facilitates
linkages to sub processes like culture, values, the way we work and the core HR processes,
that move the review system from evaluation-oriented to developmental.

For this purpose we follow a process based on objective performance planning and target
setting.

• Performance planning will be done by the officer to set targets against his Key
Result Areas (KRAs) at the beginning of the assignment along with his department
head.

• The performance plan must have direct linkage with the Corporate Plan of the
department (Balanced Scorecard) and each target must have a date by which it
must be achieved.

• Action plans for achieving the target by the set date must be developed and
included in the performance plan.

• The officer will be judged on the basis of achievement of his targets.

• The assessment will have a provision for a mid term and yearly review.
• The performance of the officer will be rated and this information will be used for
promotional and developmental decisions
 • The Departmental Heads will prepare their performance plan according to their
Departmental Scorecards in consultation with the MD.

KDS Garments follow two performance appraisal formats for his two levels of employee
which is attached with this report. For junior level they measure performance out of
five scales and for seniors they measure out of four scales. Junior levels are up to shift
in charge and senior level starts from assistant manager and up. They do not have any
performance measurement standard for worker level. KDS officials said as turnover of
worker level is very high so they do not measure their performance. They also
informed in future they will implement performance measurement system for all level
of employee.

With the performance measurement system they evaluate employee for their promotion,
training and pay raise. In performance appraisal procedure they have two levels of
judgment one is appraisal and another is reviewer. But the official of KDS Garments
informed everybody is not properly trained with evaluation process. Thereby the objective
set by the supervisor still not task oriented. They are in a process of formulating job
description for all employees. Once it is finished they are hopeful that their performance
measurement process will be more refined.
 Chapter 4
Compensation and
Benefits
4.1 Theoretical Framework

4.1.1 Employee Compensation

Employee compensation refers to all forms of pay or rewards going to employees and
arising from their employment. It has two main components:
• Direct financial payments-Wages, salaries, incentives, commissions, and bonuses.
There are two ways to pay directly:
- Time based pay: Daily, hourly, weekly, biweekly or monthly wages and
salaries
- Performance based pay: Ties compensation directly to the amount of
product the worker generates.
• Indirect payments-financial benefits like employer-paid insurance and vacations

Factors influencing the design of compensation plan

• Legal considerations in Compensation: various laws specifying things like minimum
wages, overtime rates, holidays and benefits significantly influence the
compensation plan of an organization.
• Union Influences on Compensation Decisions: Trade Unions periodically negotiate
terms and conditions of employment and compensation package of the workers
with the management. So they play a major role in designing the pay plan of an
organization.
• Company policy regarding the issues like,
 being leader or follower regarding pay
 Seniority based or performance based payment]
 Pay cycle, weekly, biweekly, monthly etc.
 Salary increases
 Overtime payment
 Salary Compression
 Dislocation
 Expatriate’s compensation etc. also affects the pay plan of an organization.
• Equity consideration: The management must ensure that the pay rates are
equitable both internally and externally.

4.1.2 Establishing pay rates

Step-1 - The Salary Survey: A survey aimed at determining prevailing wage rates. A good
salary survey provides specific wage rates for specific jobs. Formal written questionnaire
surveys are the most comprehensive, but telephone surveys and newspaper ads are also
sources of information.

Step-2 - Job Evaluation: A systematic comparison done in order to determine the worth
of one job relative to another.

Job Evaluation methods:

1. Ranking: Involves ranking each job relative to all other jobs, usually based
on overall difficulty. There are several steps in this method:
• Obtain job information for each job
• Rank jobs by department or in clusters
• Select just one compensable factor
• Rank jobs
• Combine ratings
2. Job Classification: Categorize jobs into groups
3. Point Method: A number of compensable factors are identified and then the
degree to which each of these factors is present on the job is determined.
4. Factor comparison: Ranking jobs according to a variety of skill and
difficulty factors, and then adding up these rankings to arrive at an overall
numerical rating for each given job.

Step-3 - Group Similar Jobs into Pay Grades: A pay grade is comprised of jobs of
approximately equal difficulty.

Step-4 -Price each Pay Grade-Wage Curves: This curve shows the relationship between
the value of the job and the average wage paid for this job.

Step-5 -Fine-Tune Pay Rates: A series of steps or levels within as pay grade usually based
upon years of service.

4.1.2 Incentive Plans

Because of overriding influence of Human relations movement, the
financial incentive declined in popularity. But due to recent
competition and turbulence in the business, this system of incentive is
making a comeback. Incentive plans can be classified in several ways.
• Individual Incentive plans.
• Group Incentive Plans
• Profit sharing plans
• Variable Pay plans.

4.1.2.1 Incentives for Operations Employees

4.1.2.1.1 Piecework Plans
A system of pay based on the number of items processed by each individual worker in a
unit of time, such as items per hour or items per day. There are many variations of
piecework plan.

• Straight piecework: An incentive plan in which a person is paid for each item he or
she makes or sells with a strict proportionality between rewards and results.
However, payment should not be less than the minimum wage fixed by the
government.

• Differential Piece rate (Also called Taylor Plan): It uses two separate piecework
rates: one for those who produce below or up to a standard and another for those
who produce above standard. This system was designed to reward the highly
efficient worker and penalize the less efficient.

• The Standard Hour Plan: A plan by which a worker is paid a basic hourly rate but is
paid an extra percentage of his or her base rates for production exceeding the
standard per hour or per day. It is used to save on time or perform more in a given
time period.

4.1.2.1.2 Team or Group variable pay Incentive Plans

Team or group incentive plans pay incentives to the team based on the team’s
performance. There are different approaches:
 • Set work standard for each team member and then calculate each member’s
output. Members are then paid based on one of three formulas:
o All members receive the pay earned by the highest producer
o All members receive the pay earned by the lowest producer
o All members receive pay equal to the average pay earned by the group.
• Set an engineered production standard based on the output of the group as a
whole: all members then receive the same pay, based on the piece rate for the
group’s job.

4.1.2.2 Incentives for managers and executives

4.1.2.2.1 Short-Term Incentives: Annual Bonus
Most firms have annual bonus plans aimed at motivating the short-term performance of
managers and executives. There are three basic issues to consider: Eligibility, fund size,
and individual awards.

4.1.2.2.2 Long-Term Incentives

• Stock Option: A stock option is the right to purchase a specific number of shares of
company stock at a specific price during a specific period of time.
• Performance plans: Stock options often don’t build in any real risk for the
executive, so the executive’s and the shareholders’ interest could diverge.

4.1.2.2.3 Organization-wide Variable Pay Plans

4.1.2.2.3.1 Profit Sharing Plans
A plan whereby employees share in the company’s profits. There are several types of
profit sharing plans.
• Cash plans: the firm simply distributes a percentage of profits (usually 15% to 20%)
as profit shares to employees at regular interval.
• The Lincoln Incentive Plans: profit is distributed as a percentage of net income
(after tax, certain percentage of dividends, and reserve) to the employees based
on their merit rating.
• Deferred Profit-sharing plans: The firm places a predetermined portion of profits
in each employee’s account under a trustee’s supervision. There is a tax advantage
here, since income taxes are deferred, often until the employee retires and the
money is taxed at a lower rate.
4.1.2.2.3.2 Employee Stock Ownership Plan (ESOP)
ESOP is a company-wide plan in which a corporation contributes shares of its own stock –
or cash to be used to purchase such stock – to a trust established to purchase shares of the
firm’s stock for employees.

4.1.2.2.3.3 Gain sharing Plans

Scanlon Plan is rather an old version of Gain sharing plan. Gain sharing plan is an incentive
plan that engages employees in a common effort to achieve productivity objectives and
share the gains among the employees and the company. Steps in implementing a Gain
sharing plan.

1. Establish general plan objectives. Theses might include boosting productivity or

lowering costs.
2. Choose specific performance measures. For example, labor hour per unit produced,
return on net assets etc.
3. Decide on a sharing formula. What portion of the gains will employees receive?
4. Decide on a method for dividing and distributing the employees’ share of the gains.
5. Make the disbursement significant enough to get participants’ attention and to
motivate their behavior.
6. Choose the form of payment. Cash or stock.
7. Decide how often to pay bonuses. Usually financial performance measures annually
and productivity measures quarterly or monthly.
8. Develop the involvement system.

4.1.3 Benefits
Indirect financial and non-financial payments employees receive for continuing their
employment with the company.
• There are several types of benefits:
• Supplemental Pay Benefits
• Insurance Benefits
• Vacations and Holidays
• Sick Leave
• Parental Leave and Family Leave
• Medical Leave
• Retirement Benefits
4.2 Practice of the KDS Garments

4.2.1 Compensation
4.2.1.1 Salary structure
The Company's salary structure is designed to attract and to retain highly qualified
employees. It is competitive with the salary structure of comparable companies within
Bangladesh. The Head of HR along with the MD are responsible for framing the policy.

Procedure
• Elements of the Salary Structure
The salary structure consists of the salary ranges for every job classified in each
salary code. The salary ranges have spreads designed to recognize differences in
qualifications, job performance and length of stay in a job salary code. The salaries
in each salary range recognize higher levels of duties and responsibilities as the job
salary codes go higher. Each salary range has a minimal, a maximum, and a
midpoint.
• Classifications of Jobs
Jobs are classified through job evaluation. Jobs with similar content are classified in
the same salary code and have the same salary range.
• Periodic Review of Salary Structure
The Company reviews the salary structure and salary ranges periodically to keep them
competitive with comparable companies within Bangladesh.

4.2.1.2 Hiring Rate

These policies provide guidelines for hiring rates, which attract qualified candidates. The
Head of HR along with the MD are responsible for framing the policy.

Procedure
Guidelines for computing hiring rates are as follows:
• Below minimum salary range: Is offered to candidates who do not meet the
minimum requirements of the job. This should be limited to exceptional cases.
Primarily the objective of KDS is to recruit the right person for the right job.
 • Minimum of the range: Is offered to candidates who meet the minimum
requirements of the job.
• Above minimum of the range: Is offered to candidates who exceed the minimum
requirements of the job.
• Above mid-point of the range: Is offered to outstanding candidates whose
qualifications substantially exceed the minimum requirements of the job.

The salary rates on these four attributes shall be finalized by the Head of HR based on the
pre-determined manpower budget. Salary offers must have the prior approval of the Head
of HR, the HOD and the MD.

4.2.1.3 Review and Salary Increase

These policies provide guidelines for planning salary increases.
Performance Categorization
Management reviews the performance of each employee assigned to a whole job at least
once a year to determine his/her performance category. The review considers job
performance, and potential for promotion. This review is used in planning the merit
increases for the following year.

4.2.1.4 Merit Increases

These policies provide guidelines for planning merit increases. Guidelines for
administering merit increases are developed annually for all employees.

Eligibility criteria for a Merit Increase

• The employee holds a permanent job;
• The employee's performance category conforms to the Merit Increase guidelines;
• The amount of the merit increase plus the base salary will not exceed the
maximum of the salary range. The merit increase is limited by the range maxima;
• The employee is not scheduled for voluntary or involuntary termination or
retirement within three months of the effective date of the merit increase, with
the exception that an employee leaving the Company due to a Company-initiated
age 58 separation is eligible for an earned merit increase in accordance with
normal guidelines, provided the separation is not scheduled within one month of
the merit increase effective date.
Factors influencing merit increase
• Performance, as indicated by an employee's relative ranking versus peers with the
same performance category rating.
• Pay for the job, as indicated by the position of the employee's salary in the range
and pay versus peers with more or less experience and higher or lower
qualifications.
• Plans for promotions, which reduce the need to adjust merits as an employee's
salary approaches the maximum of his current range.
• Economic and business conditions, the business scenario of the economy as well as
the business performance of KDS Garments

4.2.1.5 Salary Payment Dates

These policies provide guidelines for payment of salary. Salary is paid on the 7th of every
month. In a situation when 7th is a holiday the payment date would be 10th.

4.2.2 Benefits
KDS Garments provides different attractive amount of benefit to their employee. The
authority of KDS Garments gives priority to employee preference and setup strategy to
retain highly qualified employees

4.2.2.1 Medical Benefit Schemes

The objective of the Scheme is to provide financial assistance to meet the medical
expenses of the employees / dependants. All confirmed employees of the Company
covered under this Manual are eligible for Medical benefits. The Head of HR after
consulting with the MD is responsible for developing and implementing the Medical Benefit
Schemes as per the Income Tax norms.

Benefits in certain cases

For new entrants who join in between the year, this Scheme will be applicable from the
date of confirmation. The Medical Benefits, in their case will be worked out
proportionately. It is done on the basis of annual basis quota allotment. The employee
leaving the company during the year due to any reasons will be entitled to proportionate
medical benefit up to the last day of service. The employee, if any, will refund the over-
utilized amount.
Medical Benefits
Medical benefits under this Scheme will include:
• The expenditure incurred by an employee / charges paid on conducting tests, or on
the purchase of medicines or aids (viz. Hearing, Visual Dental etc.), doctor’s fees,
etc. and expenditure incurred in the hospital/ nursing homes as an out-patient or
in-patient (excluding food and beverages expenses) .
• Medical expenses will be borne by the company to the extent the incumbent is
eligible as per the salary structure.

General
• For receiving the medical reimbursements, the claim should be submitted on the
prescribed form duly supported by cash memos / receipts / bills etc. Employees
can claim Medical Reimbursement as per bills submitted. This supersedes all
circulars / schemes / rules on the subject.
• On the day of occurrence of any accidents within the factory premises the entire
cost of treatment is borne by the company. (This clause is solely under the
discretion of the management.)
• Billing period will be considered as the calendar year for all payments.

4.2.2.2 Retiral Benefits

The objective of Retiral benefits is to provide social security or a safety net to an
employee when the person is superannuated. The Head of HR after consulting with the MD
is responsible for developing and implementing the Retiral Benefit Schemes as per the
Income Tax norms.

Eligibility conditions for gratuity

• A minimum of 5 years service in the company from the date of joining.
• It is entirely funded by the company.

Benefit
On retirement or separation, an eligible employee gets gratuity
• For 5 years of continuous service - 5 times of last drawn gross salary
• For 7 years of continuous service - 7 times of last drawn gross salary plus one
fourth of last drawn= 7 x (1 + ¼)
 • For 10 years of continuous service - 10 times of last drawn gross salary plus one
half of last drawn= 10 x (1 + 1/2)

Forfeiture of Gratuity
• Gratuity is also wholly forfeited in case of termination of services by the company
for riotous or disorderly conduct or any act of violence on the part of the
employee.
• In case of termination of service for any act, willful omission or negligence of the
member causing any damage or loss to or destruction of the property belonging to
the company, gratuity payable under the scheme shall be forfeited to the extent of
the damage or loss so caused.

4.2.2.3 Staff Emergency Loans Scheme

To help the employee meet financial constraints in the following circumstances:
• Marriage of self / Son / Daughter / Sister.
• Death/Prolonged illness of dependants.
• Any other unforeseen eventuality, the genuineness of which has to be established
to the satisfaction of the Management.
Disbursement of the loan will be the sole discretion of the management and shall depend
on financial health of the Company and the availability of the corpus earmarked for this
purpose.

Span
All confirmed employees are covered under this policy. Employee must have completed at
least one year of service. No previous loan should be outstanding against the employee on
the date of application for the second loan. Though the employee can apply for a loan a
maximum twice in a financial year.

Procedure
• An employee can take another loan only when the full and final EMI of his previous
loan is paid by him/her.
• All employees need prior recommendation for their loan from their Department
Head on the Loan Application Form and must forward it to the HR Department for
processing. The HR Department should send the same to the MD for approval in
case it is not within the power of HR. After approval the HR Department will make
 entries in loan accounts and forward the same to the Accounts Department. The
application has to be accompanied with a proof of financial liability.

Loan Amount
Entitlement shall not be automatic but shall be at the sole discretion of the management;
the loan amount would largely depend upon financial position of the company and shall
not exceed 2 month’s gross salary.

Recovery of Loan
• The loan will be adjusted in monthly installments of Tk 500 (Or at 5% of the loan
amount, whichever is higher
• The deduction of EMI will be from the month next to the month in which the loan is
given.

Loan Sanction
• Heads of Departments shall initially validate the loan application of their
departmental employees. While validating the loans the HOD must evaluate the
genuineness of the case while complying with the above mentioned conditions and
should be very discreet in sanctioning the loans.
• If there is any requirement for a loan that does not fall within the above criteria,
the same may be forwarded by the HOD, with recommendations and specific
requirements for making exception, to the HR department for considering by the
Head of HR.
• HR will have the authority to disapprove any such forwarded loan application.

General Guidelines
• Loan is to be applied for in the prescribed form only.
• The approval will take a minimum of 7 working days.
• Applicant employee will provide the guarantee of two confirmed employees for the
repayment of loan. In the event of an employee leaving the organization without
fully/ partly repaying the loan amount, the guarantors will pay back the loan
amount in installments, as per the management’s decision.
• The management reserves the right to amend/ discontinue the scheme or decline
the application without assigning any reasons.

4.2.2.4 Company Cars Allotted to Employees

The objective is to provide a means of transport to all the senior employees of the
company. Company Car allotment is made as per grade structure and on MD’s approval.

Driver Reimbursement
• Driver is allotted as per grade structure.
• The drivers are engaged by the company itself.

Fuel Reimbursement
Fuel is paid at actual as per the limits assigned for each grade.

Repair, maintenance & other periodic expenditure

• Accessories, batteries, upholsteries etc. will be replaced as and when required.
• The HR department will arrange for the annual renewal of the tax token, insurance
etc. of the company owned/ leased cars.
• Monthly car expenses statements covering fuel consumption, repair, maintenance,
etc. should be submitted to the HR department and HR will have the right to allot
money based on Grade and also on the basis of requirement.

4.2.2.5 Advance Against Salary

To assist the employee in meeting unforeseen expenditure and other exigencies that may
arise in daily life.

• All confirmed employees.

• The maximum amount that can be taken as advance is one month’s payable net
salary. Advance against salary as stated above can be availed only once in a
calendar year.

All employees need to take an approval for advance from their Department Head and
forward it to the Human Resources Department for necessary action. The advance has to
be adjusted in full against the salary due for that month.

4.2.2.6 Company Telephones at Residence / Mobile Phones

It is recognized that due to exigencies of work, employees may need to be contacted at
any point of time after office hours. For the benefit of the company and the employee,
this facility is provided to key personnel in the company. This policy also includes the
Mobile Phone allocation to employees.
Procedure
• Key employees are provided with Mobile phones. Periodic/ monthly phone rentals
for residential telephones / Mobile phones will be paid directly by the Company,
subject to the limits as prescribed from time to time.
• Where employees have their own / alternate telephone arrangements at residence,
for them, payment will be made against bills and details filled in “Telephone
Reimbursement Form”.
• The company shall pay the rentals charges for the telephone, STD / ISD calls duly
approved and made on behalf of the company for GM’s and above based on the
limits under each Grades structure.

4.2.2.7 Marriage Gift Policy

This benefit motivates all the employees and to make them feel part of the organization.
All the employees are entitled to get Tk. 5000 on the occasion of his / her marriage.
(Ernst & Young Note: To be finalized after discussion with the Head of HR).

4.2.2.8 Out Of Country Assignments

Company business and operational requirements may direct temporary or permanent
changes in employee work assignment locations. The Company covers employees'
reasonable additional expenses, which it determines appropriate for the assignment
duration and location, incurred beyond normal expenses and resulting from the work
location change.

Business Assignments
For Business Assignments outside Bangladesh for more than 60 days, the employees
receive:
• Reimbursement for actual and reasonable expenses for lodging, food,
transportation and incidentals.
• In lieu of reimbursement of actual transportation expenses, employees may elect
to receive a non-accountable transportation allowance to cover round trip travel
expenses.

When requested and authorized in advance to entertain Company guests, the employee
may be reimbursed, based on the following:
 • An unaccountable allowance per guest (including employee) in accordance with
those amounts specified in travel rules.
• Actual and reasonable expenses as supported by original receipts and other
supporting documentation.

Compensation & Benefits

Bangladesh based employees on Business assignments overseas receive the same salary,
and benefits plan participation which the employee receives in Bangladesh. The employee
remains on the KDS payroll. Documented emergency medical treatment is reimbursed.

Family Accompaniment
Accompaniment of family members is as per the following guidelines.

Spouse Accompaniment
The Company may approve spouse accompaniment on a Business assignment at Company
expense. Application is made to MD and he has the authority to approve such a request.

The spouse may accompany an employee on a Business assignment once in a twelve-month

period (12 months must have passed after the end of the last spouse accompanied trip)
when:
• Employee has completed three (3) Business assignments within the past twelve (12)
months; and
• Employee's Business assignments outside Bangladesh reach a cumulative of thirty
days, excluding this trip and travel days within the past twelve (12) month period.

Children Accompaniment
The Company does not pay for children to accompany an employee on Business
assignment, except in conjunction with repatriation vacation.

Expenses for Lodging, Meals and Miscellaneous

• Employee's Expenses
The Company reimburses employees for necessary and reasonable expenses incurred.

• Spouse's Expenses
 If the spouse is authorized to accompany the employee, the Company reimburses
expenses within established procedures, including authorized stopover expenses for
the spouse who travels separately. When the spouse accompanies the employee, but
the employee is subsequently assigned to another location, the Company reimburses
the spouse's actual expenses for lodging, meals and miscellaneous expenses. They must
be separately identified on the expense report.

• Children's Expenses
In those extraordinary circumstances where the Company authorizes children to
accompany the employee, only transportation and visa fee reimbursement are
provided. No living expenses or baby-sitting costs are covered.

Company Subsidized Credit Cards

For employees who regularly take business trips, the Company may reimburse the basic
annual membership fee (excluding spouse’s fees or any other charges above basic
membership fee) for their personal credit card.
No other maintenance charges will be covered. The Department Head must concur and
attach the fee stub to the first expense report covering Company business travel after
payment of the annual fee.

An Employee is eligible for reimbursement if:

• Employee has made three or more business trips outside the area of permanent
assignment within a twelve-month period; or employee is normally assigned thirty
days or more in a twelve-month period outside the country of permanent
assignment.
• When the employee has a subsidized credit card, the amount granted as a cash
advance should normally be limited to Travelers' Check fees for Business
assignments.
• Traveler's Check fees are reimbursed to employees through expense report
procedures.

Travel Days
The number of travel days approved by the employee’s organization may be influenced by
the destination and work requirements of an assignment. The urgency to conduct business,
need for rest, traveling conditions, etc., influence the travel days required. The maximum
number of travel days in each direction is either one (1) or two (2) days.
KDS Garments has given priority to their valuable employee’s interest. HRD of KDS
Garments always concentrates on this issue. The authority believes that if company
sacrifices some benefit for their employee then employee will give hundred percent
efforts for the company.
Chapter 5

Conclusion
5.1 Recommendations

Following recommendations can be adopted to overcome the shortcomings in terms of

adequate HR practices in the organization:

 TNA based training system to be implemented which will give better scope of
developing skills.
 Training module to be prepared & updated for imparting smooth training
 Performance appraisal system need to be task oriented
 Every employee should undergo performance appraisal process.
 Adequate employee development program to be formulated & implemented
 Safety ,Health & Environment practices in the organization to be ensured &
follow up regularly
 There should be a concrete Human Resource planning for the benefits of both
employee & company

5.2 Conclusion

At the fag end it can be mentioned that overall “HR Practices in KDS Garments
is commendable & appreciable which tries to keep pace with the labor law of
Bangladesh. The company always tries to maintain HR practices & stick to it in
each & every respect in spite of being certain limitations. This report will best
tell how KDS Garments are operating their business through maintaining legal
compliances & HR practice as part of core HR activities in the organization.
While making this report we observe HR practices in organization through
having effective initiation & efforts by the company despite of certain lacking
of HR areas which becomes visible to the reporters.

So it’s a pleasant to make report on the topic which is getting popular & being
practiced in organization gradually like KDS Garments. Last but not least this
report is a comprehensive picture through which we can get view of how HR
practice is observed & followed, what it’s importance & also it can be a set
example of HR practice to other companies who are still also lagging behind to
this issue & intend to incorporate HR practice in their organization.