North South University

School of Business

Report
On

“HR Practice at Mohammadi Group”

Prepared By

Nogmaya Habiba
073-293-060
Mahmuda Sultana
Taskina Huq 081-728-060
081-042-560

Date: 9th September, 2009

Dr. M Khasro Miah
School of Business
North South University
Bashundhara R/A, Dhaka.

Subject: Submission of HRM Report

Dear Sir,

It is our pleasure to submit the report on HR Practice at Mohammadi Group, which has been
prepared as a part of partial fulfillment of HRM 601 course. We have tried our level best to
follow the guidelines that you have provided. The whole experience of this project enabled us to
get an insight into the real life situation.

We will be always available for answering any queries on the paper. We hope you will consider
the mistakes that may take place in the report in the spite of our best effort.

Thanking you
Sincerely yours

Nogmaya Habiba
073-293-060

Mahmuda Sultana
081-728-060

Taskina Huq
081-042-560
Contents
Introduction of Organization

Demographic Information

Industries Current HRM Practices

Methodology of the Project

Integrated Model

Gaining Sustainable advantage

Recommendation

Conclusion

Implication
Chapter – 1 Introduction

1.1Statement of the Research Problem

The tremendous success of readymade garment exports from Bangladesh over the last two
decades has surpassed the most optimistic expectations. Today, the apparel export sector is a
multi-billion-dollar manufacturing and export industry in the country. One member of this
industry is Mohammadi Group of Companies (MGH). In the context of current situation, where
buyers are more concerned about the HR policies or practices in the garments industries of
Bangladesh, how Mohammadi is coping up with the current requirement of buyers?

1.2 Company Profile

Mohammadi Group of Companies (MGH), a leading, fast-growing and reputed apparel
manufacturing unit has been offering its value added products and services to leading global
apparel brands since its inception in 1991. The company is dedicated to excellence in
merchandising, product development, production, work study, supply chain logistics and human
resources development. The company has earned a reputation throughout the global apparel
industry as one of the leading, established apparel units in Bangladesh for its commitment to
quality, timely delivery and value offerings. Through its extensive sourcing network, company
has the ability to effectively procure high quality raw materials at competitive pricing. Our
customers rely on us to deliver the best quality products and superb service which enables them
to successfully compete in the global apparel market. Mohammadi has a wide range of product
development capabilities. We utilize progressive tools to meet specific price points and achieve
our high standards. Mohammadi’s management team has an extensive understanding of the
needs of companies in the West and adopts efficiency, cost competitiveness and production
capabilities of the East, enabling a viable sourcing option for its buyers.

Like any organization Mohammadi Group also believes, Employees are the most valuable asset
in the organization. Human Resources Department is responsible for the people dimension of the
organization. It is responsible for hiring competent people, training them, helping them perform

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at high levels and mechanisms to ensure that these employees maintain their productive
affiliation with the organization. Human Resources Department of Mohammadi Group is solely
responsible mainly for recruitment, training and development, ensuring compensation and
benefits of staffs, performance appraisals and rewards. With all those core functions Human
Resources Department linkage its operations meet the organization’s main objectives.

Human resources Department of Mohammadi Group is one of the most valued departments with
the responsibilities of staffing, training and development, organization development,
performance appraisals, rewarding, control and maintenance etc. With the start of Mohammadi’s
operation the Human Resources Department (HRD) was not as strong and structured as it is now.
The Human Resources Department of Mohammadi consists of nine valuable and experienced
executives to carry out the whole responsibilities. The mission statement of HR Department is;
“Employee of Choice, we will inculcate high performance culture where we will fun and pride”.

1.2.1 Existing Departments

The factory currently has 4500 employees. The employees are divided to work under separate
divisions and these divisions are regulated by HR department.

1.2.1.1 Administrative Section

This department is directly under the control of the Managing Director and includes all the
important logistic, human resource handling and other functional issues like accounting,
marketing, finance and distribution etc.

1.2.1.2 Security Department

One important functional division that the MD needs to handle by himself is the Security
department. Since garments deal with unskilled, poor labors chances of theft, pilfering etc are
very high. Due to these, tight and efficient security system to look after the raw material
inventory as well as the final product inventory is very essential.
As many as 15 to 20 employees are kept just to monitor the workers who are always tempted to
steal threads, clothes, cotton and many other things. This though seems an un-useful hierarchy in
the idealistic world; in reality, the guards have to be present to ensure proper conducts and

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efficient use of the inventories.

1.2.1.3 Pattern and Sampling Section

This department is the most important in any garments company because the entire contract
received is depended on the sample qualities and on the fashionable pattern used by the
company. In Mohammadi Group, the department takes a small portion besides cutting
department in the lower level and employs four highly skilled executive employees.

1.2.1.4 Cutting Department

There are around 20 employees working fulltime and dedicated for the cutting of the Women's
Dresses, Blouses, Skirts, Pajamas sets, etc. The electric cutting machines are automated and this
factory does not need many people to monitor those machines.
Cutting quality depends on the pattern and sampling perfections. It is actually the first step of
ready-made garments manufacturing production. One lot of cloth are cut at a time, from where
100 to 150 same pieces can be found ready to go in sewing section. Then some employees put
numbers according to the consequences of sewing style and send those to sewing section. If there
is any mistake in cutting, the whole piece of the wear will be rejected permanently. Therefore,
the supervisor, line chief and floor in charge of cutting department are always very careful about
the accurateness of their job.

1.2.1.5 Sewing Department

Ensuring high quality and strong sewing should be the competitive advantage for any garment
factory. Due to this reason, sewing has the highest priority for Mohammadi Group.

1.2.1.6 Iron, Finishing and Packaging Section

In the sixth floor, there are boilers in the backside of the floor and finishing section in the front.
Ironing, finishing and packaging are mainly done in this floor. The security office is also situated
in a corner of this floor. This section employs about 40 workers.

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1.2.1.7 Factory specifications

Millennium Garments has a factory floor space of 11,000 square feet. In addition, it has a raw
material storage and staff office space of 1,000 square feet each. So the total space is 13,000
square feet total in two floors. Millennium Garments after its establishment has installed 140
machines. Each machine has in excess of 45 square feet of workspace.
Inside the factory, there are two separate entry and exit points from each Floor as a safety
measure. In addition, the factory meets all Fire Code Regulations.

TOTAL MACHINE LIST OF THE FACTORY

Machine
type Brand Pieces
Plain Machine............................... Juki............................................................. 100
Plain with Trimmer........................... Juki............................................................. 4
Double Needle Machine................ Juki............................................................. 4
Interlock Machine......................... Juki............................................................. 12
Kansai Special.............................. Kansai......................................................... 3
Feed of Arm.................................. Juki........................................................ 5
Button Hole................................... Juki.............................................................. 6
Button Stitch................................. Juki.............................................................. 6
Bartacking Machine..................... Juki.............................................................. 1
Fusing Machine............................. Hashima...................................................... 1
Bandknife...................................... Eastman...................................................... 1
Cutting Machine............................ Eastman...................................................... 2
Collar Turning............................... Kumsung..................................................... 1
Collar Forming.............................. Kumsung..................................................... 1
Cuff Turning.................................. Kumsung..................................................... 1
Cuff Forming................................. Kumsung..................................................... 1
Collar Bottom Cutting.................... Kumsung..................................................... 1
Finishing Irons............................... Naomoto...................................................... 6
Vacuum Table............................... Naomoto...................................................... 6
Gas Boiler (10 capacity)............. Local...................................................... 1

Cutting Table................................. 77ft,width 72"

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Chapter – 2 Demographic Information

2.1 Mohammadi – At –A - Glance

• One of the largest, most successful apparel exporters in Bangladesh

–Received the Prestigious “Best Exporter Award” in 2002
• Operating since 1991
• Solid industry experience and successful track record
• Strong performance with 37% YTD growth during 20062007

The Mohammadi Group of companies is completely focused on the apparel industry. It consists
of four production units and a marketing sourcing quality control units is located in Nikunja
office in Dhaka, Bangladesh. Mohammadi’s 4,500 strong members of production and
management teams are dedicated to achieving our clients' production goals. We welcome all our
prospective customers to visit and evaluate our factories firsthand.

2.1.1 Production Units

The company has 26 production units located at its 14storied building:

 Mohammadi Apparels Ltd
 Mohammadi Fashion Ltd
 Mohammadi Clothing Ltd
 Mohammadi Denim Technology Ltd
Currently, its production units include 26 sewing lines capable of manufacturing 650,000 (SMV
22) garments/month and a compliant, standalone washing factory. The facility of khilkhet factory
is a fully owned 14 storied building employing 4,500 employees and is equipped with over 2,400
production machinery. In addition, MGH is currently in the process of launching a new State of
the Art Washing Plant and additional sewing lines at its new Kachpur facility located on the
outskirts of Dhaka. The machinery for the Washing Plant will be imported from reputed
manufacturers in Italy and Turkey, while the new sewing facility will host 40 automated
production lines (including machines made in Italy) with future expansion.
Mohammadi specializes in Woven Bottoms, with fabrication in Heavy/Light Denims, Canvas,

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Twill, Polyester, Polyviscose, Stretch Fabric, Bengaline and others. Some of Mohammadi’s In
demand Finishing effects and embellishments include Whiskers, Bleached, Distressed,
Destruction, Clean look, Vintage, Rugged look, print, Embroidery, Sequin, Beads, Rhinestone,
Attachment, Hand Stitch, Paint, Effect etc.
The Apparels team of Mohammadi has extensive experience in handling denim, canvas and twill
products with high SMV (including cargos, chinos and others) and fancy embellishments such as
embroidery, print and sequins. Mohammadi Fashion Ltd. specializes in Polyester, Polyviscose,
Bengaline, Stretch fabric based woven bottoms. In addition, Mohammadi Fashion has several
specialized departments such as a Schoolwear Team handling products such as Trousers, Pleated
Skirts, Pinafores and classic Dresses. The operators of 10 Production Lines at Mohammadi
Fashion have been carefully selected and fine tuned over time to handle handmade light weight
fabric such as Polyvinyle, Polyester, Bengaline Stertch, Polynosic etc.

2.1.2 Washing Factory

Mohammadi’s existing Confidence Washing Ltd. has over 15 years of washing experience in its
own well managed facility. The factory is capable of handling around 30,000psc of denim stone
enzyme washes. It is equipped with extensive dry process capabilities including over 80
Mannequins, Sandblasting machines, Oven, PP Spray booth and a group of expert personnel to
handle the most critical washes required in the industry. The washing plant is equipped with an
Effluent Treatment plant for satisfying strict environmental standards.

2.1.3 Marketing Sourcing Quality Control Units

Our experienced Merchandizing team in Dhaka, Bangladesh is dedicated to order/material

procurement, general marketing/communication with customers and vendors. Together with the
Production and Work Study team, Fashion team manages the central sample and pattern room
consisting of nearly fifty members and assists with the development and launch of new programs
for customers with a 310 days turnaround time depending on fabric and trim availability.

9
2.1.4 Quality Assurance

MGH is committed to providing the highest quality products. All garments pass through strict
quality control checkpoints at every stage of production. Corporate quality auditors oversee
production, work independently from floor management, reporting directly to senior
management. Mohammadi has an experienced, technically savvy Quality Assurance Team which
reports directly to Management, working alongside and indepedently from Production and
Merchandizing teams. Mohammadi is offically certified as a vendor that performs final
inspection on behalf of its major buyers, a facility its buyers may choose to leverage to reduce
their overhead as required, without compromising high standards and quality of products. At
MGH, we implement strict safety standards including strong compliance requirements for
children’s product. MGH continuously strives to ensure high quality standards, including
achieveing an AQL of 1.5 in every process.

2.1.5 Certifications

The factories of MGH have been evaluated and certified as a certified as an approved vendor
under the vendor code of conduct for:
• GAP Inc./GAP/Old Navy
• H&M
• Associated Merchandising Corporation/Target stores
• WalMart Inc.
• Kmart Corporation
• ISO 9001: 2000

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2.1.6 Future Expansion: Sweater and Sewing Facilities

Mohammadi will be launching a state of the art Washing and Sewing facilitates in the April 2008
timeframe. The new Washing Plant will utilize Industrial strength Washing machinery from Italy
(World’s leading brand, Tonello S.R.L), Turkey, as well as Garment Dyeing Machines (Tonello).
The Washing unit will also be equipped with specialized fashion finishing machinery for
Denim/Non-Denim garments including high intensity Laser machines (Whiskers), 3DEffect
machines, Grinding, Sandblasting and PPSpray machinery. The Washing unit will utilize a
biological Effluent Treatment Plant (ETP) which results in lower operational overhead while
satisfying strict environmental regulations. When operational in April 2008, the Washing Plant
will have an initial capacity of 20,000 garments/day.

Starting May 2008, Mohammadi will also be launching its new Sewing Operations leveraging
specialized, automated sewing machinery from Vi.Be.Mac S.P.A (Italy). The Sewing plant will
have an intial capacity of 130,000 5pocket Denims per month. With Future expansion, the new
Washing Unit will have a capacity of 50,000 Denim/nonDenim garments per day, while the new
Sewing Unit will have a capacity of 1,000,000 garments/month. Mohammadi will be fully
equipped and manufacture 1.8 million pcs/month with future expansion.
The new Washing Plant and Sewing units will be located at Mohammadi’s Gazipur site. The new
Gazipur Units will be conveniently located on the Dhaka-Gazipur major highway which is
expected to significantly simplify pre-shipment logistic operations.
Mohammadi intends to offer midrange to premium Denim and non-Denim apparels to its
customers based on its expansion plans currently underway at its Gazipur. The Team possesses
the vision, technical knowhow, the skilled management team and has a strong customer base
required to successfully implementing the Washing and Sewing projects.

2.1.7 Team Mohammadi

Mohammadi started as a family owned company inspired by a powerful sense of enterprise. The
commitment to purpose runs throughout the business and extends to taken care of the family.

11
Many of the employees who started with the company in 1992 have chosen to stay and grown to
become directors and partners. The Mohammadi Team members have worked hard, contributed
to the success and been encapsulated as part of the larger Mohammadi family. Through several
social and philanthropic initiatives, the Mohammadi family also reaches out to the greater
society. Mohammadi is proud of its heritage, the business it has built and its family members
who have grown with us over the last two decades.

2.1.8 Organizational Hierarchy

This is a private limited company. While, Mr. Anisul Haq is the sole owner, chairperson and His
wife Ms. Rubana Haq is the managing director of the business. To discuss the hierarchy in
general at the production level and to show the chain of command, we may state the following
chart:

Category Designation

Chairman

MD

G1 – G3 Executive Vice President

G1 – G3 Vice President

G1 – G3 General Manager

G1 – G3 Dy. General Manager

G1 – G3 Asst. General Manager

G1 – G3 Manager

G1 – G3 Dy. Manager

G1 – G3 Asst. Manager

G1 – G3 Sr. Executive

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 G1- G3 Executive

G1 – G3 Sr. Officer
G1- G3 Officer

13
Chapter – 3 Current HR Practice of company

3.1 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.

3.1.1 The Process

3.1.1.2 Personnel Requisition Process
 The Heads of the Departments are required to give their budget for personnel to the
HRD 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 HRD 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.

 HRD Department may maintain the records of all PRF’s. This will help in the
process of future budgeting and recruitment of personnel.

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15
3.2 Selection / Recruitment Process

 The HRD Department will arrange for the required resources through

 Advertisement,

 Contacts,

 External Consultants / Placement Agencies

 Campus Interviewing (if necessary)

 HRD 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
 HRD Department will shortlist the candidates to be called for interviews from the
collected 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 called by the HRD
Department. The panel should ideally comprise of at least three personnel, of which one
will be from the HRD 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.

16
I

Fig.3 : Flow Chart for Re-Employment Policy

17
3.3 Salary Fitment Process
HRD 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.

3.3.1 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.

3.3.2 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 Mohammadi Accessories and the candidate

3.3.3 New Employee Orientation

The HR Division administers comprehensive orientation programs. The programs provide
information including but not limited to policies regarding work rules and procedures,
compensation and benefits, general safety requirements, and general Company orientation such
as history, organization, and training.

3.4 Compensation & Benefits

3.4.1 Medical Benefits

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 expenditure incurred by an employee / charges
paid on conducting tests / on the purchase of medicines or aids (viz. Hearing, Visual Dental etc.),
doctor’s fees tests conducted etc. and in the hospital / nursing homes as an outpatient or inpatient

18
(excluding food and beverages expenses).For receiving the medical reimbursements, the claim
should be submitted on the prescribed form duly supported by cash memos / receipts / bills etc.

3.4.2 Provident Fund

The objective of retreat benefits is to provide social security or a safety net to an employee when
the person is superannuated. All employees of the Company in the grades of Officer and above
are eligible for this scheme. 10% of Basic (as per the Provident Fund Act) contributed monthly
by the employee and equivalent amount by the company.

3.4.2.1 Withdrawals
Loans can be availed from the Provident Fund accumulation within a limit of maximum 80% of
employee contribution.
3.4.2.2 Gratuity
A minimum of 5 years service in the company from the date of joining entitles them for gratuity.
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
= 7 x ( 1 + ¼)

 For 10 years of continuous service - 10 times of last drawn gross salary plus one half
= 10 x ( 1 + 1/2)

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3.4.3 Emergency Loan Schemes
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.

3.4.3.1 The Procedure

 An employee can take another loan only when the full and final EMI of his last
loan is paid 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 forward it to the HRD Department for
processing. The HRD Department should send the same to the MD for approval
in case it is not within the power of HRD. After approval the HRD Department
will make entries in loans account and forward the same to the Accounts
Department. The application has to be accompanied with a proof of financial
liability.

3.4.3.2 Loan Amount

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

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3.4.3.3 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.

3.4.3.4 Loan Sanction

 Heads of Departments shall initially validate the loan application of their
departmental employees. While validating the loans the HOD must evaluate the
genuinely of the case, 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 and for considering by the Head HR.

 HRD will have the authority to disapprove any such forwarded loan application.

3.5 Transportation Facility

The objective is to provide a means of transport to all the senior employees of the company.

3.5.1 Driver Reimbursement

 Driver is allotted as per grade structure

 The drivers are to be engaged by the company itself

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

3.6 Training and Development

3.6.1 Training Policy

3.6.1.1 The 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.

3.6.1.2 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

3.6.1.3 Training Process

Phase A: How To Plan Training

Phase B: Methods Of Training & Implementation

Phase C: Evaluation Of Training- How to plan 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 requires this three-phased analysis but this will definitely
benefit organizations facing human resource problems.

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3.6.1.3.1 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

3.6.1.3.1Operations Analysis
This analysis helps to identify and record the specific behavior required accomplishing various
tasks. Through this data collected it 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 (2) what skills, knowledge, abilities and attitudes need to be strengthened. This is
done with the view to bridge the gap between the desired and actual performance.
Advisory Committees are comprised of the various levels of management across different
functional areas to determine the usefulness of a particular training program pertaining to a
problem and establish training priorities

Individual analysis is done in following ways

 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.

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  Satisfaction surveys

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

 Group Discussions

This method involves meeting with employees of a specific work area with a benefit of having
their emotional commitment towards training.

 Questionnaires

The training need in the organization is identified through the responses from the questionnaires.
The questions ranging from the skill set requirement, it’s 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 behaviour to identify training needs

3.7 Performance Analysis

This is most important and regularly used method for individual analysis. A job related
performance appraisal system would highlight the strength and weaknesses in the employee
performance and eventually design a training program based on the need. Different organization
maintains detail records of employee performance on a regular basis and thereby streamline the
training programs depending upon the current trends and requirements in the organization.

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3.7.1 Exit Interviews
A high turnover rate may spell organizational problems and the need for training. The validity of
exit interviews depends on skills of the interviewers and honest feedback from the
employees.Based on the analysis of existence of any performance gap amongst the employees
and also on the basis of identified developmental needs the organization designs Training
programme. Different types of training programmes yield different results, so considerable
amount of effort is required to ascertain the type and methods of training programme required
depending upon specific requirements.

3.7.2 On the Job Training

These types of program 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.

3.7.3 Job Rotation

It refers to the placing of an employee to different similar type 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 assignments ranging few
months or more. This helps the employees to broaden their job knowledge in diverse fields.

3.7.4 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.

3.7.5 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 employee can be tested and this also acts as

25
a motivational tool for each one to perform better towards achieving the organizational goal.

3.7.6 Apprentice Training

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

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

3.7.8 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
mentor program. In case of informal mentorship it is the understanding between a senior and a
junior employee and the judgment the senior has towards the junior.

3.7.9 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, more involvement in the
issues of the management and improves the relationships among the work group.

3.7.9 Away from the job training

This involves the training programs conducted away from the employees immediate work area.
This can again be of two types

 In-house programs conducted within the organizations own training facility either by the
internal training facilitator or by external consultants

26
  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.

3.7.10 Video Tapes / VCDs

The use of videotapes is maximum due to its convenience in using and sharing ideas and
issues, especially those involving technical and behavioral skills.

3.7.11 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 lies in the fact that it is a one-way means of
communication. Though, nowadays-interactive sessions are introduced for open discussions
between the speakers and the trainees.

3.7.12 Conference/ Discussion

Organizational goals and problems towards achieving such goals are discussed in Conference /
discussions with permitting a dialogue between the trainer and the trainees, which helps in
heightening the motivational level by immediate feedback.

3.6.13 Technology based systems

The interactive video disc/ CD and other computer-based learning’s are becoming more and
more popular with improved technology and declined price. These are very cost effective and
more number of people can learn at a shorter period of time and with a steady pace. This also
has the benefit of a globalised standard across locations.

3.6.14 Case Study

A case study is a written description of a real life problem linked with the function of the

27
organization. This is a very 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.

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

3.6.16 Management Games

These are designed to replicate conditions actually exists 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 are to make the participants
learn about the group dynamics, solving problems in a group, communication patterns,
confrontation facing in implementing some ideas.

3.6.17 Assessment Center

It is a technique that requires managers to participate in activities designed to identify their job
related strengths and weaknesses. It is used as a tool to identify new managers as well as a
developmental tool for new managers.

3.6.18 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.

3.6.19 Behavior Modeling

A classroom oriented techniques generally used to teach problem solving skills to the first level
managers. In this process the topic is first introduced by the trainer a model of effective

28
leadership behavior is illustrated, the trainees discuss on the model and practice on it using role-
playing and finally received feedback from the trainers.

3.7 Training Implementation

A Training implementation brings trainees, 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.

3.7.1 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 on a four level study.

3.7.2 Participants Reaction

In the training process each employee conceive 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 their individual views regarding the content of the training program, the
relevance of the subject with the operations of the organization, the skill of the trainer. On the
basis of the overall review the programs quality is judged. This gives a very subjective response.

3.7.3 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.

29
3.7.4 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 requites time, as until and unless the
learning is put into efforts it is difficult to judge the contribution of training.

3.7.5 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, 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. To sum up it can be suggested to write down the measurable objectives
during the assessment phase and evaluate that after training has been completed.

3.8 Performance Appraisal

3.8.1 Review and Salary Increase

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.

3.8.2 Merit increase

Guidelines for administering merit increases are developed annually for all employees

3.8.2.1 Eligibility criterion for a Merit Increase

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. Where the merit increase is limited by the range maximum,

30
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.

3.8.2.2 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 promotion, 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 Accessories

31
FIG 4: HR Score Card

32
3.9 Problems in HRM policies

• Recruitment Process is not rightly followed

• Not well informed and connected to the market
• HR Policies are not updated regularly with feedbacks from employees and market
standards
• No regular training need assessment considering present and future challenges form
employees
• Inadequate HR research and development
• Loss of manpower to job creation in related industries
• Government and International buyers pre-conditions about employee concerns.

33
Chapter – 4 Methodology of the study

4.1 Methodology of the Study

The study report is a combination of both qualitative and quantitative approach. A few primary
information was collected, but the focus was more on the secondary information, which was easy
to collect. At the first instance, the relevant documents about the current situation of RMG
Garments Industry was collected from newspapers, web sites, reference section of North South
University library and some previous studies.

Then some information was sought by visiting the factory of Mohammadi Group of Companies
(MGH). Information such as, their organizational structure, hierarchy of the managers, what
sort of power the chain of command has been legitimized by the company and procedures of
manufacturing readymade garments were collected. Documents, relating the relation/ connection
between other companies were also collected from there like BGMEA Directory. Those reports
have been the base documents for gaining an insight into the objectives, strategies and planned
activities of this sector. Beside this, few opinions of some officers about the working condition
and the condition of the workers were also collected.

4.2 Limitation of the Study

Even after the best possible support and guidance received from our respective faculty, it was not
possible to put each and every information due to limited time period. For example, no
interviews of the garment workers could be carried out. The limited sources of primary
information and the controlled accessibility caused difficulty in getting the confidential
information’s. For example, detail records of wage rate compared to the current pay scale could
not analyzed. In addition, how the quality of the product is maintained, could have been a great
base for the research paper.

Regarding methodological shortfalls, the study has been mainly based on secondary information,
which was collected mainly from the company’s site. The primary information gathered through

34
meetings with few officers of Mohammadi Group of Companies. Due to such limitations, the
study aimed rather on the overall assessment of the prevailing socio-economic situations of the
Garment workers.

Our concerned organization follows below model to run its HR system:

For any social group to perform its tasks efficiently and achieve its common objectives, the
management of its most important resources - the people - is of utmost importance.

The concept of HR management has been changed the rough out the world. It is now more of
Commitment based HRM rather than control based HRM. But my organization still follow the
control based HRM.

Policy Area Control-Based HRM

Job design sub-division of work; specific job

principles responsibility - with accountability
; planning separate from
implementation

Management top-down control and coordination;

Organisation hierarchy; status symbols

Compensation fair day’s pay for a fair day’s work;

job evaluation and appraisal;
individual incentives

Employee Voice Unionised (damage control,

bargaining); Non unionised
(attitude surveys)

Labour adversarial
Management
Relations

Management the boss dictates; management

Philosophy obligated to stakeholders

Source: www.mohammadigroup.com

35
Chapter – 5 In Relation with other countries Hr Practice
Human resource management is a process of bringing people and organizations together so that
the goals of each other are met. The role of HR manager is shifting from that of a protector and
screener to the role of a planner and change agent. Personnel directors are the new corporate
heroes. The name of the game today in business is personnel. Nowadays it is not possible to
show a good financial or operating report unless your personnel relations are in order. Over the
years, highly skilled and knowledge based jobs are increasing while low skilled jobs are
decreasing. This calls for future skill mapping through proper HRM initiatives.

Indian organizations are also witnessing a change in systems, management cultures and
philosophy due to the global alignment of Indian organizations. There is a need for multi skill
development. Role of HRM is becoming more important day by day.

Some of the recent trends that are being observed are as follows:
The recent quality management standards ISO 9001 and ISO 9004 of 2000 focus more on people
centric organizations. Organizations now need to prepare themselves in order to address people
centered issues with commitment from the top management, with renewed thrust on HR issues,
more particularly on training. Charles Handy also advocated future organizational models like
Shamrock, Federal and Triple I. Such organizational models also refocus on people centric issues
and call for redefining the future role of HR professionals.

A country like Bangladesh is different from Eastern/Western countries in terms of its culture,
economic development, geographical position, etc. Bangladesh is developing country ans it has
lack of proper infrastructure and advanced technology in the garments sector. Only advantage it
has is the cheap labor. But now a day, in that sector some unrest is going on which is a vital
threat for our garments sector. To compete with India and China, we have to ensure our stable
labor market and developed infrastructure. On the other hand, the culture of our country is far

36
more different from Eastern or Western countries. In that situation, we can’t fully adapt the HR
models followed by Western countries but some partial adaption can take place. In case of
employee training, planning, to some extent recruitment their model can be used.

37
Chapter – 6 Gaining Sustainable Competitive Advantage

The strategic human resource is relatively new term in the related with business aligned Human
Resources Development (HRD) that provides superior Human Resource (HR) management and
ensures congenital atmosphere to implement fundamental components of HRD successfully. It
plays a pivotal role in compensating business changes by ensuring good HR administration. If
we do well on the analytical observation of the high-yielding industrial sectors keeping an eye on
their contributors in the economy of Bangladesh, naturally the ready made garment RMG tops
the list compared to any other industrial field. But if we desire to ensure the smooth operation of
this mammoth productive sector, what is essential is to avert any unrest and conflicting situation
that might stand as a set back to harm the sound industrial relationship. The recent labor unrest in
the sector should be resolved immediately to protect the national interest as well an augmenting
the socio-economic balance.

In the given context of Mohammadi group we should develop a remedial strategic managerial
tool, which will go a long way to patch the vulnerable the vulnerable phenomena and also assist
in ameliorating the overall condition of the worker connected with this sector.

There is a big communication gap between the workers and management/ owners, for example-
the recent unrest in the RMG sector. So, the communication gap between these two parties
should be narrowed down with the adoption of sound strategic policy. A cohesive formal and
informal communication should be developed immediately to create better relationship and
initiative to be taken by the top management and the garments owner association (BGMEA) in
Bangladesh. Participation and involvement of the senior government workers should be ensured
at BGMEA to empower them.
Currently the concept of Human resource development is not practiced fully strategic level.
Enactment of appropriate laws and ensured the enforcement of the current labor and factory laws
to prevent the unwarranted labor related problems. Legal compliance should be ensured in this
regard. Government enrolled Monitoring and audit planning relating to compliance should be
recognized as an integral part of the industry, particularly for those small and medium RFGs like

38
Mohammadi group.

Mohammadi group ahs its own unique set of capabilities and performance and with it the
requisite talent necessary for both current and future expectation. Each competing cluster of
organization adds to the intensity of managing people well or risk the consequences. Considering
this the strategic Human Capital Management for Mohammadi group is as follows:

Leveraged
organizational
architecture

Human Talen rivalry , Market/

Capital organization performance stakeholder
and competitive recognition of
HC value
advantage amongst
existing firm

Market/
stakeholder
recognition of
HC value

If we analyze the current HR model of Mohammadi group then we would see that there is no
proper recruitment and selection process there is no job analysis and design before the
recruitment. They just recruit ad hoc basis and then directly go to training and development with
out proper arrangement and selection. Where as arrangement of proper training is an essential
component to make a genuine contributing resource as multi skilled workers.

There is simply not any motivation for the Mohammadi Group. So as there is no tailor made
software to evaluate the performance and appraise the employee.

39
Where as it is mandatory to have such software to handle the bulk data in the factory. In the
workers wage scheme there is no provision of inflationary adjustment, so that the real income
and the monetary income does not worth much.

Medical facilities to the workers are also very limited and only limited to the worker not to the
family members. So, provision could be created thus buyers could add conditions and put some
financial provisions for the workers’ family’s health insurance.

There is also no job enrichment and job enlargement for workers, which is very much needed for
upgrading their working positions. There is no well designed and transparent career path for the
futuristic views and aspirations.

Observing various religious and cultural festivals to create an informal and easy relationship
among workers is also absent in the Mohammadi group. These kind of celebration are really
important for the workers and staff to rejuvenate them towards loyalty.

In our culture there is no tendency to have a “hi-hello” relationship with staff and workers so as
in the identified garments. In Mohammadi group there is no cordial and sympathetic behavior
from top to bottom is absent. So the class contrast and consciences make this as a hindrance to
get a free relationship between these two parties: workers and owners which arbitrarily are
important for management control but is absent in Mohammadi group.

Considering this the current HR model of Mohammadi group are as follows:

40
 Current Transactional HR Model OF Mohammadi Group

0 0 0 0
1 2 3 4
1
Specific Business Unit Level
Business Plan and HR Requirement

Unadjusted 0
Business C&B
Business plan & HR systems 5
Section 01 Requireme Job
Training &
nt Analysi Developmen
s t
Trainin
On-the-Job g Off-the-Job
Business Business
training training
plan & HR
Section 02 Requireme Job Design Simulation

nt
Corporat
e HR
Planning 0
by HRD 6
Business Business Performanc
Recruitment
plan & HR e
Section 03 Requireme Managemen
nt t
PM

Selection Reward & Performanc

Punishmen e appraisal
Business Business t
plan & HR
Section 04 Requireme
nt

HR with desired skill, knowledge and

ability

After analyzing the gap mentioned in HR model of Mohammadi group the proposed model are
as follows:

41
 Proposed Transactional HR Model of Mohammadi Group

01 02 03 04 05 06

Business plan &

Business Unit 1 HR requirement
Review C&B
systems
Job analysis
Develop salary Develop
scale benefit
package
Corporate Consider other
Business plan & HR allowance
Business Unit 2 HR requirement Planning
by HRD Job design TNA
Task Skill test
Analysis
Module
preparation
Business plan &
Business Unit 3 HR requirement Recruitment Traini
On-the-Job
ng Off-the-Job
training training

Simulation

Business plan & Selection

Business Unit 4 HR requirement PM
Performance Performance
planning appraisal
Reward &
Punishment

HR with desired skill, knowledge and ability

The proposed HR model is 6 step transactional model. Where 4 Strategic business unit are
proposed and each unit there is business plan and HR requirement. The provision of corporate
HR planning is also proposed. To gain the competitive advantage before recruitment it is
proposed to do proper job analysis and then suggested to go for job jib design, recruitment and
selection.

Provision of good remuneration package including the bonus, salary and others benefits are also
proposed and to increase the efficiency level of the employee performance appraisal, skill
development training and reward system is also proposed.

42
Chapter – 7 Recommendation

7.1 Recommendation
From the strategic management we know that there are five core pieces to HR function’s remit-
performance, separate compliance/ audit, HR workforce intelligence, operational infrastructure
and procurement.
To bring all the component of Mohamamdi group under one remit and working both efficiently
and effectively Mohammadi group requires one further team- a central leadership hub which
provides HR governance, a team whose remit encompasses HR strategy, value proposition,
structure capability and policy along with certain organizational deliverables, such as employer
brand.
The operating structure can be best represented as shown in the HR star delivery model:

43
 HR
performance
team

HR capital HR
measureme compliance
nt and team
HR
reporting leadership
team team
(Governanc
e)

HR HR infra
procurem structure
ent team team

44
7.2 Human Capital Performance Mohammadi group:
These teams are font line facing and staffed with mix generalist and specialist HR. To some
extent Mohammadi group is already known by this term “HR business partner”, HR managers
and in some cases HR officer. Their role in Mohammadi group would be to partner in the line in
terms of optimizing management and employee and to ensure that the organization system is full
supportive.

7.3 Human capital compliances of Mohammadi group:

This proposed team of Mohamamdi group would carried out spot checks and compliance audit to
support the performance advisory team in Mohamamdi Group in ensuring that policy and
protocol. This would be different to the day to day compliance checking in Mohamamdi Group
that the HR performance team would be engaged in as a matter of course.
In Mohamamdi Group this compliance team also would have to have the power to remit to audit
the HR functions processes and systems as part of operational excellence/ quality purpose. This
is something that the HR function has been missing something from the HR purpose.

7.4 Workforce intelligence and reporting:

Increasingly the organization and its HR function requires intelligence on people related aspects
whether it is performance or compliance related.
Mohamamdi Group needs to increase availability and right data and the need to have structured
measurement framework which would provide insightful performance analysis and culminate in
external reporting as core function of HR functions remit.

7.5 HR procurement:
In Mohamamdi group for quite some time HR functions have made use of in sourcing, co-
sourcing and outsourcing without acknowledging this discipline. HR “front office” and “back
office” deliverables, in many ways share similar characteristics to those of supply chain
management. A fair proportion of the HR procuring service of Mohammadi Group should be
vendor and contractual management in a pronounced way.

45
7.6 HR infrastructure:
This would be one of the most important role of HR in Mohamamdi group namely payroll. This
is where transactioning of Mohammadi Group would takes place and where the use of
outsourcing would take place.
However the key is the acknowledgement of potential process leaders amongst the seven
remaining core process domains-HR governance, HRMIS and organization design that includes:
 Payroll
 Resourcing
 Training and development Performance management
 Reward and benefits
 Employee communication and relation
 Health and safety

7.7 HR Governance: The heart of the star model is HR governance. This is a core function
team that addresses organizational items such as employer brand, HR policy setting, ethics and
HR functional item such as overall value proposition. The essence of this model in Mohammadi
group is value proposition, HC strategy, HC reporting, HR delivery structure and capability
between the various. HR governance of Mohammadi group requires a chief human capital officer
role which is an expanded version.

46
Chapter – 8 Conclusion
The long term development of human resources as distinct from training for a specific job is of
growing concern to HR departments of Mohammadi .Throw the development of current
employees the department reduces the company’s dependents on haring new workers .if
employees are developed properly the job openings found throw HR planning are more likely to
be filled internally promotions and transfers also show employees that they have a career not just
a job. The employee benefits from increased continuity in operations and from employees who
fail a greater commitment. HR department is also an effective way to meets several challenges
including employee obsolescence, international and domestic diversity, technical challenges.
Affirmative action and employee turn over. By meeting these challenges the department can,
maintain an effective workforce.

We got some inconsistency between practical working environment and theoretical knowledge.
Sometimes we found proper HR application managed by GM and sometimes we also found
improper applications. We found HR applications in compensation and benefits, job description,
recruitment & selection etc but not in a fashion of HRM. On the other hand improper application
in HR planning, job specification, performance evaluation etc was eye catching to us. Proper
application in such case of using techniques that correspond with theories and improper
application in such case of using techniques that not correspond with theories. We tried our best
to cope with the techniques the company is using in maintaining HR issues. We also suggested
them some factors that will help in running proper HR practices.

47
Chapter – 9 Implication

Besides our recommendations to Mohammadi Group, some logical aspects worked behind these.
Like, we felt there is no proper HR plan and if an organization wants a proper HR practice entire
the organization they must have an HR plan. We saw there are resources available for proper HR
practice and if there a plan let design for the company then the total HR department could be
more effective in determining actual number of employees needed to run operation properly.

Finally, we would like to say that this project on Mohammadi Group has increased our practical
knowledge of Business Administration sector and made our MBA education more
comprehensive and give us a first hand tour of the practical working environment. We give our
best wishes to Mohammadi Group, so that it could become the leading position among other
Garments Sector of Bangladesh in the future.

At last, We want to say that, is such an effective HR works for the company and also if a
continuous concern is given to the programs of the Mohammadi Group, it will be a sustainable
competitive advantage for them to be competitive among all the garments in the country.

48
Chapter – 10 References

Dessler, Gary. “Human Resources Management.”, 10th edition, 2005

Haider, Salman, personal communication, August 24, 2009

Hall TL. Human resources for health: A toolkit for planning, training and management. Geneva:

WHO, May 1997.

Islam, Nurul. Telephone interview. 26 July 2009.

International Journal of Human Resource Management Vol 5 pp 687-720

Ronald J. Burke, Cary L. Coope “Reinventing human resource management: challenges and new

directions”

http://www.google.com.html

http://books.google.com

http:// www.scribd.com/doc/l

http://www.oppapers.com

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