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Human Resource Policy of Garments Sector of Bangladesh

Part-I

Purpose of the Report:

The main purpose of this report is to learn the practices of human resource policies
in Garments sector (Large, Medium) in Bangladesh. We have also some specific
objectives such as;

 Whether RMG is maintaining any written human resources policies

 Whether there is any discrimination in their function of HRM.

 Are they playing fair rule in the process of recruitment, selection, and
performance appraisal.

Limitations:

Basically, in preparing this report we didn’t experience any significant type of
limitations. Because, our honorable teacher Dr.Mr. Md. Abdul Hannan Mia, who
provided us the necessary guidelines that helped us a lot to prepare this report. He
also gave us sufficient time to finish the report. Side by side we got a great deal of
support and information from the top management of various RMG companies
especially from Managing Director Mr. Abdus Salam of Nightingale Fashion. No
significant amount of cost was incurred in preparing this report.

But in preparing this report the only limitation that we have faced is our lack of
experience in conducting such an extensive and formal study.

Procedures of Gathering Information:

In order to gather the required information for preparing the report we have made
an extensive interview with the top management of various RMG companies. For
this purpose we made an appointment with Directors of those companies. From this
interview we have gathered the raw data regarding various functional, business and
corporate level strategies. After collecting this raw information, we have interpreted
these data and finally tried to find the HR policies and also their practices in RMG
sector of Bangladesh.

Sources of Information:

The main source of information for preparing this report is the top management of
Nightingale Fashion and other companies. We have also gathered some information
from other sources.

General Plan for the Report:

In order to prepare this report, we have followed a sequential process.

Step 1: We have gathered necessary guidelines from our honorable teacher Dr. Mr.
Md. Abdul Hannan Mia to develop the structure of the report.

Step 2: We have studied our textbook “Strategic Human Resource Management” by
William p. Anthony. Pamelal. Perrewe. k. Michele Kacmar and “ Business Research”
by Donald R. Cooper and Pamela S. Schindler in details.

Step 3: Based on this study we have prepared a detailed questionnaire on which we
have made an extensive interview with the top management of Nightingale Fashion
and others.

Step 5 After conduction the interview, we have interpreted various information and
finally find out HR Policies and practices that are followed in various companies in
RMG sector.

PART – 2:

1. Garments Industries of Bangladesh:

At present Garment is the main industry of Bangladesh now. This sector have
developed here rapidly because of it is a labor intensive industry, ordinary
technology, cheap labor and small capital. Before liberation in 1970, in Bangladesh
there was only one garment factory. In 1977, the number rose to 8. In 1984, the
number was 587. In 1998, the number stood at 2650 and now the number of
garments in Bangladesh is 3300.

In Bangladesh garment factories are situated in Dhaka, Chitagong, Narayangong,
Savar and Tongi-Gazipur (see Map of Bangladesh). The Number of Garment workers
in Bangladesh is 1.6 million. Number of woman workers is 1.320.000 and men
280.000.

Seventy Six percent of total export of Bangladesh is garment oriented. Mainly
Bangladeshi garments products are exported to the USA, Canada, and European
Union and Caribbean countries. Recently Bangladesh started export to Japan,
Australia and some other countries in small scale. Bangladesh exports 63 items of
garments products. Main raw materials of garments — mainly fabrics come from
other countries.

Here we are going to present our RMG sector’s contribution in Bangladesh Economy
& Their Human Resources Practices with their Operation as a productive sector of
the country.bution of RMG in Our Economy:

2. Contribution of RMG Sector:

RMG is the leading industrial sector in Bangladesh. With sales abroad estimated at
4.3 billion dollars a year, of which 44% exported to the United States alone, it

represents 76% of Bangladesh’s exports. The sector employs approximately 1.5
million workers, mostly young women from underprivileged social classes. Many
have left rural areas to come work in the textile factories of Dhaka and Chittagong,
akin to the “American dream” of poor villagers. The clothing sector is the driving
force of this poor country’s economy, with export figures that have risen
spectacularly in the last decade as shown by the following table (data provided by
BGMEA):

Exports of garments rose by 502% between 1990-1991 and 1999-2000 and by
14,000% if the current amounts are compared with those of 1983-1984. The world’s
leading brands do their buying in Bangladesh: Levi Strauss, H&M, Marks & Spencer,
Wal-Mart, The Gap, Nike, etc.

3. BGMEA:

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is the
only recognized trade body that represents the export oriented garment
manufacturers and exporters of the country. Ready-made Garment (RMG) emerged
as a promising export earning sector of the country by the year 1983. Bangladesh
at that time lacked a sect oral trade body, non-government in nature, free from
traditional bureaucracy, to help the sector to boost up the country’s foreign
exchange earnings. Entrepreneurs and the government in the post independence
years felt and emphasized the urgent need to develop non-traditional items of
export for helping the struggling economy. As a result, 1977 marked the birth of
Bangladesh Garment Manufacturers and Exporters’ Association (BGMEA). Since its
humble inception with only nineteen (19) garment manufacturers and exporters,
BGMEA has grown into a strong and dynamic body. Today it proudly declares
registered membership of more than 2700 garment manufacturers and exporters.
Of the total 2700 units, about 1932 garment factories are located in Dhaka while
about 1 55 and 415 factories are located in Naryanganj and Chittagong respectively.
Factories are located in Dhaka while about 1 55 and 415 factories are located in
Naryanganj and Chittagong respectively. These 2700 garment factories having
about 1.5 million workforces is earning 73% of the country’s total foreign currency.
About 1 5 million people are directly dependent on this sector.. The following are the
regular activities of BGMEA for its members, owners, apparel buyers and other
partners.

1. Organizing members to hold or to participate in apparel fairs at home

2. And abroad; (For further information, any interested party can use BGMEA’s
web page at http://www.agn i.net/batexpo).

3. Establishing and promoting contacts with foreign buyers, business
associations, chambers etc.

firms engaged in manufacturing of garments. 6.Contributing financial aid for the victims in case of casualty in fire accidents in member-factories. 11.Ensuring adoption of Safety Measures in order to avert fire accidents in factories. fairs and disseminating the relevant information through its Computer-Network-System linked with various online data sources in the USA and the EU. 9. 5.Helping disposal of stock-lots of fabrics. 12. 7.Issuing Utilization Declaration (U/D). Helping in Government’s textile quota negotiation with USA and Canada.Recommending for correct utilization of fabrics/yarn/acrylic/wool. 17. 10. 8. apparel buyers and other information users with various related data. 14.Giving permission for Inter bond sub-contract of bonded warehouse goods. 15. companies. Export Orders for clearance of raw materials imported by member-factories. 19.Monitoring implementation of Mau on child labor elimination from the export oriented garment sector of Bangladesh. Helping to resolve trade disputes between the members and the buyers. allied industries and exporters of ready-made garments. 20. 16. Organizing seminars and symposia on current trade issues to develop awareness and consensus among the members and other related parties. Narayangonj and Chittagong. 18.Publishing a monthly magazine styled “BGMEA Newsletter” that provides updated information about the garment sector. . Monitoring international apparel trade and trade.4. Encouraging co-operation between industries. 13. Providing the members.Having regular co-ordination with the labor organizations in the garments sector to resolve labor related issues and establish cordial employer-worker relationship.Maintaining computerized membership information and providing information on quota matters.Educating the displaced workers below the age of 14 years and the children of the workers through setting up of school-cum-health centers in different zones of Dhaka.

Aims and Objectives 1. 3. Savar and Tongi.100 and Non paying: 14. social security & insurance coverage. Struggle for a democratic. developed and progressive society. Establish the Workers Rights and Human Rights. The federation was established on 1984. 4. 23.Co-sponsoring with GOB. Main Activities 1. the federation is involved in all the important movements including several countrywide strikes in the garment sector. transportation. From 1984. B. ILO and UNDP for implementation of welfare measures for garment workers in broader areas of primary health care. 2. Improve the working condition and environment in working places. There are 28 registered trade unions (plant unions) affiliated with the NGWF. Beside these.000 paying member: 5. Unite the garment workers. housing and skill training. Ensure fair wages. 22.900. . Formation of plant level unions. the federation has 1016 factory committees. Central Office of the federation is at 27/11/1 Topkhana road. 3. Initiate and Conduct the countrywide movements for the betterment of garment workers. There are 3 others branch offices of the federation in Chitagong. 2. Ensure the equal wages and equal rights for the women workers. Democratic and Progressive Trade Union Federation of garment workers in Bangladesh. 5. National Garments Workers Federation: National Garments Workers Federation is a countrywide registered Independent. A. Dhaka-1000. The federation is run by its written constitution and participations of its members in a democratic way. 4.Giving legal assistance to member-units through our Legal Adviser as and when required.Creating awareness of the member-units on labor matters by giving expert advice as and when required. Total membership of the federation is: 20. 21.

13. 11. demonstrations. Support. The RMG industry is thrusting our economy towards development with a contribution of about 70% in the national income and by employing over 1. 12. 4.Support and participate in the movements of other sectors. Awareness building among the garment workers. Industry-An Overview: In the open market economy. Publicize the workers and other materials for the garment workers in local and easy language. Legal aid for the members and garment workers.5 million are female workers. 8.Express and show solidarity with international trade union movements. . spurred by the quotas imposed by major importing countries under the Multi fiber Agreement (MFA). cooperate and conduct the factory base movements. ò Increase of Export trade. Special training and education for the woman workers. 5. 9.6 million workers of which over 1. 10. Training and education for the garment workers. 5. processions. the ready-made garment industry (RMG) is the prime industry in Bangladesh. 6. RMG sector is the largest contribution to the National income and exports of Bangladesh. democratic movements and women movements. The progress of RMG sector has opened up a wide road towards vast opportunities and development propositions. The RMG sector in Bangladesh has largely grown.Organize meetings. 7. democratic movements and women freedom movements. The RMG industry of Bangladesh supplies a good portion of the total needed supplies of ready made garments throughout the world. seminars and symposiums for the garment workers.Awareness building for health and environment and to provide health facilities. RMG sector has brought a stream of development in the following areas along with its own.Cooperate to get new jobs for the unemployed and dismissed workers. 14.

dying. 1300 of our garment industry will close forever. If we cannot establish the backward linkage industry within this time period. USA imported 50 percent of our total garment export. enthusiastic. ò Development packaging industry. 6. finishing and printing etc. Thus the present world economy posses a great deal of challenges for the ready made garment industry of Bangladesh. such as weaving. The development of RMG sector also brings up benefits to some other areas such as. They also imported 37 percent of total export of our country. Garments sector industry we have certain advantage of export.ò Creation of employment opportunities. spinning. ò Development of relevant Industry. – Financial Sector – Insurance companies – Introduction of new technology – Infrastructure development – Reputation in the world market. knitting. ò Creation of new. Condition of Garments Workers in Bangladesh: In reality the condition of garments workers in Bangladesh is very bad. trade union movements. Bangladesh is enjoying the most favored nation (MFA) or quota system from USA and generalized system of preferences (GSP) from European Union. European union important 46 percent of our total export goods because the importers of European Union are enjoying 12 and half percent tax reduction But after the year of 2005 these above system will not exist. ò Greater utilization and revenue earning from the port(s). government and BGMEA. ò Development in transportation sector and roads & highways. dynamic entrepreneurs. and Social pressure . There are some changes due to the labor unrest. The ensuring describes the major challenges implications and the strategic responses under taken by the stakeholders.

Even in some cases they work the whole night. But the women workers are bound to work until 10 pm or 11 pm. Most of the cases the workers cannot enjoy the weekly holiday. the minimum wage is supposed to be revised but it is not followed in the all sectors. Most of the cases. 930/ per month (1) for the unskilled workers and Tk. Some times they threaded the workers and even close down the plant for the formation of trade union. In 1994. But in most of the cases workers are forced to work 14 to 16 hours per day. women work is prohibited after 8 pm. identity cards and service books. Women workers faced rape and sexual harassment out side the factories and some times inside the factories.and for the pressure of developed countries consumers. Management do not allow the workers to join the trade union or formation of trade union though the workers have the trade union rights according to the labour law and ILO conventions. There are scopes to fix the minimum wage in sector based: In every 3 years. Till now. In some cases there are no sufficient and pure drinking water and toilets for the workers. Even till now. Health- safety and security condition are not sufficient. Labor relations The process of dealing with employees when they are represented by a union b. Most of the cases there is no transportation facilities. Equal dignity. Management fires the workers if he/she joint in the trade union. 800/ per month. According to the Labor Law. social security. gratuity or provident fund for the garment workers. Collective bargaining the process of agreeing on a satisfactory labor contract between management and a union . But till now Living standard of workers is unacceptable There is no law for the national minimum wage. sufficient light and ventilation. Most of the garment factories do not follow the labor law and ILO conventions. management do not pay the monthly wage and overtime payment within 7th of the next month. Most of the factories do not have the day care centers. the minimum wage of 1994 was not implemented in the whole sector.1 Trade Union Movement in Garments Sector: a. Most of the cases maternity leaves is absence. Some times they work whole night. There is no Job security. there is no doctor. Most of the cases the management do not provide appointment letters/ contract letters. 6. Overtime work is compulsory and forceful. According to law. In many cases monthly wage and overtime payment is out standing for 2/3 months. Most of the cases. first aid. Most of the cases maternity leaves is absence. Women workers are deprived from Equal wage. This minimum wage was not revised till now. Management does not ensure the security of the women workers. There is not housing facilities from the owners. the maximum working hour per day is 10 including the 2 hours overtime. There is other form of sex discrimination. the minimum wage for the garment workers was fixed at Tk. Equal rights and Equal promotions. in many cases the unskilled workers receive Tk. 2300/ for skilled workers.

Even it is weaker than other sectors. Another 5 registered federations are combined with Jute. on- call workers. Categories of contingent workers include Independent contractors. Bangladesh Garments Workers and Employees Unity Council. (Bangladesh Coordinating Committee.2 Reasons of the Weakness of Trade Union Movement in Bangladesh: Main Reasons of the Weakness of trade union movement of garment sector in Bangladesh are: 1.C. Textile and leather Sector. Absence of Job security. Low wage. Major Challenges Facing the RMG Sector and its Implications: . Migration from factory to factory. B.c. 4. Bangladesh Garments Workers Unity Council. Disunity and division of organizations. Apart from these. 3. temporary employees (usually hired through outside agencies). Another category is part-time workers. 2. Majority of women. Unlimited and long working hours. 9. Trends in Contingent and Temporary Employment In recent years. There are 8 country wide registered trade union federations. There are 3 alliances in the garment sector.C. Grievance procedure The means by which a labor contract is enforced d.N. 3. These are: 1. Contingent and Temporary Workers e. Unemployment of the country. affiliated with (ITGLWF). the number of contingent workers in the workforce has increased dramatically. Trade Union movement in garments sector is very weak. Elite class ownership. 2. and contract and leased employees. Absence of weekly holiday and other holidays. State policy. 8. 6. There are 9 federations registered as division based. 5. 7. there are 6 unregistered federations in this sector. 6. 7. 10.

especially the quota and MFA agreement.2 percent of the total world exports while Bangladesh’s textile shares only 2. It is feared that. 7. Due to the effect of globalization.7. access of china into the WTO it would crowd out other developing country supplies.4 Observance of Rights of Workers ò The “Cheap labor” ideology (have negative wage rates). This growth trend has continued until the September-11 occurrence and the threat of phasing out of the MFA. China is expected to gain most from the implementation of the ATC. The Positive & Negative trend of globalization on RMG sector: The RMG sector has the largest contribution to our national income. especially in textiles and apparel to the countries of Africa and Caribbean Basin. when quotas are eliminated countries like Bangladesh may be neglected and production shifted to locations like China. There are factual indications that. ò BGMEA’s response to statutory issues. followed by India and South Korea. Since the independence of the country the RMG industry has been rising. this sector has achieved tremendous growth after the mid 80s. ò Lack of Non-wage benefits.1 Integration of MFA into WTO-ATC Bangladesh will face open competition with other developing countries. US Trade and Development Act (TDA 2000) The TDA 2000 provides preferential trade (duty and Quota free) accesses. 8. GSP preference for the developing countries like Bangladesh is the near future (2004).2 The Global recession The global economic environment puts a sustained impact on the Bangladesh economy and the economic of Bangladesh has been integrating into global economy. 7. ò No appointment contract. . ò Long working hour and no leaves maintained.3China’s WTO Entry China’s clothing exports is 16. ò Workers health and insecurity. 7.1 percent.

Year of establishment Number of Firms 1975-76 01 1985-86 601 1990-91 934 1997-98 2150 1999-2000 3500 The Terrorist strike of September-11 2001-2002 2200 This chart can be shown in a diagram below : The trend line clearly shown that. The phasing our of the Quota system (Dec. has to directly fight against the more developed and sophisticated industries throughout the world. b. But due to the recent global economic recession and events like September-11 the growth trend of RMG sector of Bangladesh along with other developing countries has substantially fell (from 3500 firms in the year 2000 to 2200 firms in year 2002).From the chart below we can see the number of firms that have been established since the mid 70s till date. The RMG industry of BD. 2004) due to the phasing out of MFA (GSP) for countries like BD. Strategic Response: Price & quality these will be the two most effective weapons against this threats by globalization. . : – In Brief -: a. Challenges: The major threat of globalization process on the RMG sector of BD. is the greatest challenged of all. So it can be said that in the present global economic condition the impact of globalization is not so good for the developing countries specially Bangladesh. and eventually on the firm (Chaity Group) is the open market strategy initiated by WTO. since the mid 80s till the late 90s the impact of globalization on the RMG sector has been positive & benefiting to the national economy.

5 Cutting Department Quality Control: Final patterns are checked thoroughly against measurements provided to control spec deviation. A separate Q..1 Child Labor: They employ only workers who meet the applicable minimum legal age requirement or are at least 18 years of age. 9. not on the basis of their personal characteristics or beliefs. One of the latest strategy by BGMEA is the inclusion of large international buyers and the buying houses in the member list of BGMEA and putting the indirect pressure on them of being stake holders of this sector.3 Discrimination: They employ workers on the basis of their ability to do the job. including those relating to labor. 9.c. 9. Random sampling is done prior to cutting to determine shrinkage and any other characteristic that may exist in the fabric. whichever greater.4 Piece Goods Quality Control: Approx. Rolls are segregated shade wise prior to spreading. Defect classification list has been set up to simplify the language and judgment used to make visual fabric evaluation. Ply numbering. of Bangladesh along with BGMEA are engaged in continuous lobbying for the extension of the preference of quota with the international communities. 9.A.2 Work Environment: They encourage developing lawful workplace apprenticeship programs for the educational benefit of their workers. 9. 9. Four point system is followed to classify defects. 9. and the environment. Written quality standards are set up to lay emphasis on critical operations.6 In-Process Quality Control: In line audits are carried out by qualified inspectors to correct the problem at the sewing level rather than after the garment has been completely assembled. stickers and bundling is followed to control shading within lots. . Rounds of Negotiations are being undertaken. rules and regulations. Code of Conduct: The group operates in full compliance with the applicable laws. 10% -20% inspections of all piece goods prior to spreading. worker health and safety. Initiatives: The govt.

9. Their dedicated work force.0 AQL presently. 10. They are seeking to attain 2.C’S.11 Working Conditions: They treat all their workers with respect and dignity and provide them with a safe and healthy environment.9 Wages and Hours: They set working hours. wage and overtime pay in compliance with all applicable laws. a final audit is carried by their professional Q. 9. one of the largest contributors of the RMG industry. . skilled professionals and groomed management are committed to take the new challenge of up-to-date styling and fashion from global market. In order to sustain quality they work with respective buyers quality control manuals as required.7 Random Final Statistical Audit: After merchandise has been duly checked / inspected by the finishing section. and Finishing & Printing & Garments Industry for production of Knit Fabrics & fashionable and basic knit Garments. 9. They do not force any worker to remain in employment. 9. They work hard to produce quality garments consistently. for any period of time against his or her will.5 AQL in the near future. They comply with all applicable laws and regulations regarding working conditions. 9. The ensuring discusses the challenges and strategic response to those challenges at the operative levels of the firm.Team independent of production has been appointed to evaluate the quality of merchandise being sewn.12 Quality Assurance: All the garments produced are subjected to strict quality assurance checks and inspections.10 Medical Facilities: They provide free medical facilities & consultancy to workers. Dyeing. has its own global challenges and strategies to respond to those challenges as it is a part of the industry. Merchandise are audited at 4.8 Forced Labor: They don’t use involuntary labor of any kind. It is an export oriented composite Textile. Case Study: Nightingale Fashion Limited. 9.

The circular Knitting machines of different from 17” to 36” are of FALMAC brand fitted with 4 treck cams. Checking of all gray fabrics is dined before dying. The average monthly production capacity of fabrics is about 150 Tons List of fabrics that can be produced:- Type of fabrics GSM Quality  Single jersey  130-240 100% cotton /65% Polyester 35% cotton  Pique  180-250 “  Lacoste  180-250 “  1×1 rib  160-240 “  Draw needle rib  180-250 “  French terry fabric  200-300 “  Lycra single jersey  180-300 95% cotton 5% lycra  Lycra rib  200-300 “ . Melange Fabrics.The factory is located in the front of BSCIC Industrial Estate. A group of experienced Knitting operators are working under an experienced Knitting Engineer having all the sophisticated test equipment. There is a 7-storied building of 50. The factory is fully equipped with brand new highly sophisticated modem high-speed machineries. Finishing. Nightingale Fashion Ltd is a member of BGMEA (Bangladesh Garments Manufacturer and Exporters Association) TEXTILE UNIT This unit is equipped with modern machinery’s to produce different types / designs of knit fabrics. Ft. Our expert and trained professionals and technicians are working for its effective & efficient management and production. The Company office is also situated at Dhaka Metropolitan area Malibagh Moor which continuous supervision & immediate decisions of the management could easily be given for information of production and correspondence. for its Knitting. French Terry in different weights. Strip Fabrics. Rib Fabrics. Konabari Gaziputr.000 Sq. are producing Single Jersey/ Pique / Laquest fabrics of weight 135 to 300 GSM(finished). printing and Garments units owned by the company. Moreover also producing Lycra(S/J and Rib) Interlock Fabrics. Dyeing. Semi Jacquard Fabrics.

Also installed High Temperature Winch which done TC fabric dyeing. The selection of machines is done such a way to cover most the stitching facilities for Knit Garments.  Interlock  180-300 100% cotton or P/C DYEING UNITR The unit is equipped with modern machinery of brand Woo Yang. Dongnam & Hanseong are done solid color dyeing as per duyer requirement. The finishing of garments is done by Full Steam Irons pressed on vacuum Ironing Tables. photo samples are produced in this section. Pegasus. Kansai Special. Pattern making also done here. sketches. All collection samples for different seasons. GERMENTS UNIT This unit is equipped with modern machinery of Juki. We keep the schedule that in time delivery for vendor. All the garments are passing through thread sucking machine. different types of stitching and fabrics. Siruba & K. The sample making section: this section is headed by an experienced in charge capable to understand any kind of styles. 1st Inspection are done during stitching in production floor.M. then after completion of and stitching and finally after ironing works before packing. The machine operators of the section can operate all kinds of sewing machines. We do 100% inspection before export.000 Doz/month. supervisors and floor in charge are working in this unit under an experienced Production Manager.000 to 45. The efficient workers. fitting samples. Kyung Hoon. Average production capacity of garments is about 40.(of basic item) Presently producing following garments: Description Fabrics  Infant dress S/J/Rib/Anti pilling polar fleece / Toweling fleece  Children tops (Long/short sleeve) “  Boys T – Shirt “  Boys tank top “  Boys shorts “ .

Moreover NIGHTINGALE FASHION LTD. separate stair case etc. o Floors are fitted with ceramic tiles so that it remains very clean. has the following facilities for smooth operation: o Own stand by Generator to run full factory(450 K V A) o Own Power Substation (GEC) o Fire fighting equipments including fire extinguishers.  Boys jogging set “  Ladies lycra legging S/J or Rib Lycra Fabrics  Ladies lycra short “  Ladies T-shirt “  Ladies vest “  Ladies pullover Rib/Interlock/Anti pilling polar fleece/  Ladies sweat shirt Toweling fleece  Men’s basic T-shirt S/J/Pique/Lacoste  Men’s short sleeve polo shirt “  Men’s trousers “  Men’s tank top “  Men’s sweat shirt “  Men’s shorts / Jogging set etc. o Sufficient Tube Lights are provided in all the working areas. o Sufficient Ventilation is provided by installing ceiling fans. “  Men’s Women’s & Children’s Night Wear. o Sufficient volume of water reservoir at under ground & overhead. exhaust fans& large windows . . During winter season worker can walk bare footed with any difficulties. smoke detectors. o Toilet complexes at each floor separately for male & female workers. o Factory premises is always kept nest & clean.

K 09 SRG U. 10.1 Structure of the Organization: Challenges & Strategies The organization is headed by the Managing Director (MD) who is followed by the Executive Director (Finance) & Executive Director (Operations). List of the Buyers.K 11 Ever good Canada 12 ZERO Germany 13 Asia Germany 14 Casino France 10. – The Human Resources of the organization is so allocated that ensures the Management of the firm is competent enough to endure the fierce competition both at the national and International level.K 10 Peacocks U. to whom NIGHTINGALE worked so far: SL Name of Buyer Country 01 Carrefour France 02 Lindex Sweden 03 Mim France 04 Auchan France 05 N-Joy Fashion Netherlands 06 Youngo Europe Netherlands 07 Opera France 08 Linmark U. – Executives are engaged in motivating the employees to bring out the maximum productivity of the work force.2 Strategies / Policies in this regard are – Top Management is involved in frequent supervision of quality of product.We do not have any child labor. .

3 Procurement of Raw Materials The company has a stubborn quality control policy. – The company does not usually deploy external expertise without some obvious exceptions. Executives are trained. It is obvious that a firm has overcome these primary level problems by . 10. Over the past 20 years the quality control view has changed. [A Machinery list can be found on the company profile] – Firm uses some special advantages by using machines like CAD. either on the premises or at the BGMEA training centre. Now-a-days the QC officers are concerned with the ‘jump-stitch’ or ‘joint stitch’ problem rather than will the ‘open sum’ problem. The company posses almost all latest machinery and equipment needed by a firm to complete globally.– Job description. recruitment and lay off policy. salary and incentive are pre decided and well enunciated. the material may also provided by the customer. Knitting and Woven facility. – Clients these days are not that much concerned with the stitch and oil mark problems. – Sub contracting is a common scenario within the Industry these days. the firm sources it’s material from China. – Backward linkage industry is also used for production. 10. – Importing. Singapore. which are available only in few other Bangladeshi firms.4 Production Process The company has a formidable infrastructure and equipment to meet the quality level desired by the customer. India. – As it is an order-supplying company.5 Product & Quality Firm follows a stringent quality control policy. Thailand and other respective countries according to the material requirement of the production process. it has its own Textile Mill. 10. In the process of procurement of Raw Material the company uses the following sources: – Backward Linkage Industry. printing and packaging factory. – The employees at the root level are given training before being engaged into the production. specification. Marker Paper etc. It is using 1509002 as a quality measurement standard. if needed.

10.6Marketing Aspects Just 20 years ago.S. They try of fulfill their assignment is that they can get that quota the next year. – Now a quota of RMG product that can be exported to US market is given by the U. – The Export Processing Bureau [EPB] thus allocates the total quota among the firms of the industry. The firms within the industry thus are usually among themselves trying to fulfill the delivery assigned to them by the quota. These firms usually do not engage in a battle to capture market. government. – In this respect it can be said that due to globalization the production and selling capacity of a firm is controlled by the International bodies and government of the country.8 Inter industry conflict & settlement The export oriented readymade garment industry of Bangladesh is dependent on the quotas allotted by the US government. Though Bangladesh firm are assigned with the order of [C-grade] ready made Garment products. 10. If there are any conflicts among these firms. 10. But now due to quota the marketing structure changed. These trends managing the work force is an obvious outcome of the globalization process. the firm can deliver ever higher grade product order. Thus very high level lobbing may be exerted by these firms. They added only government policy and the assistance of International bodies is needed to deliver a quality output. that lies only in terms of quality and price if their . exercising human rights and social responsibility of the firm. Still there is a battle going on to get the excess quota that is at the will of Export Processing Bureau (EPB) for allotment. the RMG sector of BD was like a sellers market where buyers came and chose. – The quality control process involves creating commitment in the employees providing them with proper environment.using more modern technologies that has been possible for the globalization process.7 Technical Aspects The company personnel mentioned that they have a well trained work force and the required technical aspects including machinery that can met the customer satisfaction. they argued that with their present level of technical expertise.

As for the RMG industry of Bangladesh it accounted for great loss of the economy. – Bureaucratic system and political lobbing and political instability about which govt. – Cancellation of large orders by the US and the EU. – Reluctance of Govt. – Putting bars to import threads. such as: – Slashing of cash subsidy to the garment & textile industry. which eventually putting our industry in a less competitive position in the world market. And these areas along with many other Govt.10 Government Policies and their effects Government policy directly affects all the industry within the country. is not an exception. As a result there is now- – No or less order for garment product – Refusal / rejection of accepting previous order. – Stop of payment for the orders already delivered. Due to the September. textile items and other related apparels. in this case. 10. to set up modern telecommunication technology and no positive step to improve the existing infrastructure. – Inability of the Govt. 11 occurrence the world economy experienced great recession.11 The fall of World trade center and its after effects The destruction of the world trade center is not only the destruction of the center itself but also the greatest catastrophe of the global business world. policies which do not seem to cooperate with the RMG industry. 10. Policy undertaken by the Govt.product. The RMG sector world wide has not been spared. policy regarding the latest change in the global market place. RMG industry. – Restructuring and bringing dynamism in the banking and financial sector. – No recent reforms in Govt. – Stoppage of the tax holiday previously enjoyed by this sector. Conflict resolutions may take the form of negotiation either face to face or by the intermediary of BGMEA. to set up backward and forward linkage industry to support this sector. is quite slow to respond. .

price is another important shield for the firm to fight the new challenge. the firm has to differentiate its products and be more innovative if it has to complete with other firms within the nation and outside the nation. for the omission of the Multi fiber Agreement (MFA) by the year 2004. A good relationship has to be built with present has to be built with present clients and potential clients. 10. in the open market economy (2005) the firm will have to face fierce competition from around the world. – Capacity factor. Our corresponding form has put forward some policies to face the challenges of open market. The area of export should be spread outside the USA. firm personnel depict his desire to enhance the production capacity of the firm. – Time & productivity. So. – Price factor. we can say that some of the companies in RMG sector are used to follow their own rules and regulation which are not fully alike with the standard rules and regulations provided by the authorities of BGMEA and other associations. the firm has to look for new customers and new markets. – Market expansion. This is very important for luring customers who prefer dynamism.– Closing of about 1300 firm out of 35000 firms. So the firm has taken the policy of maintaining and even bettering their product quality to complete the world. in the global open market economy the firm may require to supply huge quantity of products. – The quality aspect. The firm wishes to provide highest quality product with lowest possible price. EU and Canada. revenue. And most of the companies in RMG-sector are totally . Time delivering of consignment is a must for a firm. to fight the global challenges the firm must achieve high productivity and cost reduction aspect is one of the important factor of productivity. without the quota facility on. time will be an important issue in the future. – Result of the closing is high employment and low govt.12 Policy Recommended by the firm The RMG industry of the developing countries is at stake. – Cost reduction. 11. Gaining the desired productivity out of the work force is another important criterion of the firm to be able to complete in the open market. The RMG industry of Bangladesh is aware of this threat. Australia and Japan would be a good market. Our personal view on RMG – Sector: From the analysis of these companies. – Product differentiation.

you must also review the organization. norms and management style of the organization  Organization: the structure. . develop and retain staff to compete effectively? In order to answer these questions four key dimensions of an organization must be addressed. Typically. career development. values. In just the same way a business requires a marketing or information technology strategy it also requires a human resource or people strategy. [Source: Information by interviewing the company personnel] 12. In developing such a strategy two critical questions must be addressed. rewards.unaware about the HRM policies and its practices. If you require an organization which really values quality and service you not only have to retrain staff. They are used to control their workers and employees of their own guided policies. and appraisal and communications systems. job roles and reporting lines of the organization  People: the skill levels. These are:  Culture: the beliefs. etc. staff potential and management capability  Human resources systems: the people focused mechanisms which deliver the strategy – employee selection. companies reorganize their structures to free managers from bureaucracy and drive for more entrepreneurial flair but then fail to adjust their training or reward systems. communications. reward. training. Guidelines for Developing a Human Resource Management Strategy: Faced with rapid change organizations need to develop a more focused and coherent approach to managing people. When the desired entrepreneurial behavior does not emerge managers frequently look confused at the apparent failure of the changes to deliver results. Frequently in managing the people element of their business senior managers will only focus on one or two dimensions and neglect to deal with the others. The fact is that seldom can you focus on only one area. What is required is a strategic perspective aimed at identifying the relationship between all four dimensions.  What kinds of people do you need to manage and run your business to meet your strategic business objectives?  What people programs and initiatives must be designed and implemented to attract.

If you then seek to develop a company which emphasizes the product’s quality you must change the pay systems.  Recommendations of government and industry training organizations. clerks. legislative.1Employee education. work systems. task requirements and changes in job content will require workers to be prepared. training is the systematic development of the attitude.g. records. knowledge. health and safety). Sources of inspiration include:  Common sense – it is often obvious that new machines.). and behavioral failures revealed by absentee figures. unit costs. as apprentices.).  Meet legislative requirements (e.  Inform people (induction training. skill pattern required by a person to perform a given task or job adequately and development is ‘the growth of the individual in terms of ability. 12.The pay and reward system is a classic problem in this area. ) The diagnosis of other than conventional needs is complex and often depends upon the intuition or personal experience of managers and needs revealed by deficiencies. performance indices.  Forecasts and predictions about staffing needs.  Provide the conventional training of new and young workers (e. Meeting these needs is achieved via the ‘training loop’. . pre-retirement courses. Within an organization all three are necessary in order to:  Develop workers to undertake higher-grade tasks. (Schematic available in PDF version.  Inspiration and innovations of individual managers and supervisors. training and development: In general. lateness. Otherwise you have a contradiction between what the chief executive is saying about quality and what your payment system is encouraging staff to do.g. etc. From time to time meet special needs arising from technical. etc.  Raise efficiency and standards of performance. Frequently organizations have payment systems which are designed around the volume of output produced. education is ‘mind preparation’ and is carried out remote from the actual work area. understanding and awareness’.  Shortcomings revealed by statistics of output per head. and knowledge need changes. sickness etc. etc.

to identify needs to modify or extend what is being provided.. work-study staff and management services personnel).  The suggestions made by specialist (e.  Discovery as the result of working party. etc. observation exercises and inspection and reporting techniques.  Learning via involvement in research. So far as group training is concerned in addition to formal courses there are:  Lectures and talks by senior or specialist managers. achievement is a matter of the judgment of senior staffs. Designing training is far more than devising courses. The latter may not be easy to ascertain where results cannot be measured mathematically.  Undertaking planned reading. project team membership or attendance at meetings.g. Exact validation might be impossible but unless on the whole the .  Receiving coaching from seniors. Evaluation of the effectiveness of training is done to ensure that it is cost effective. In the case of attitude and behavioral changes sought. it can include activities such as:  Learning from observation of trained workers. panel ‘games’. drive and ambition fostered. quizzes.  Inspirations prompted by the technical press. training journals.  Job swaps within and without the organization. to reveal new needs and redefine priorities and most of all to ensure that the objectives of the training are being met. reports of the experience of others. safety engineers. or follow from the use of self teaching texts and video tapes.  Briefing by senior staffs. education and training officers. group forums.  Role-playing exercises and simulation of actual conditions.  Video and computer teaching activities. leadership abilities.  Discussion group (conference and meeting) activities. report writing and visiting other works or organizations.  Case studies (and discussion) tests.

 Fewer accidents both personal and to property.  Improvements in the qualifications of staff and their ability to take on tougher roles. efficient. etc. planned staff movements. of existing employees) and then to adjust this for 1. Thus the first step is to take a ‘satellite picture’ of the existing workforce profile (numbers. consultation. Staffing level planning requires that an assessment of present and future needs of the organization be compared with present resources and future predicted resources.  Fewer requirements to implement redundancy (by retraining). ages. character. experience. Appropriate steps then be planned to bring demand and supply into balance. in line with the business plan for the corresponding time frames. and it is costly to eliminate because of modern legislation in respect of redundancy payments. Better employee loyalty to the organization with more willingness to innovate and accept change. (This. flexibility. Overstaffing is wasteful and expensive. requires a great deal of .  More effective or efficient use of machinery. The result should be a series of crude supply situations as would be the outcome of present planning if left unmodified. Understaffing loses the business economies of scale and specialization.2 Manpower planning: The penalties for not being correctly staffed are costly. overstaffing reduces the competitive efficiency of the business. flexible employees. minimum periods of notice.judgments are favorable the cooperation of managers in identifying needs. equipment and work procedures. etc. skills. In making their judgments senior managers will question whether the efforts expended have produced:  More effective. etc. retirements. 3 and 10 years ahead by amendments for normal turnover. potential. clearly. orders. customers and profits. Corporate Cultural Awareness Training and Assignment Performance: 12. Very importantly. if sustained. sex. releasing personnel and assisting in training ventures will cease. forecast capabilities.  Faster results in making newcomers knowledgeable and effective than would follow from experience.

 Changes in employment practices (e.) What future demands will be is only influenced in part by the forecast of the personnel manager. classification and statistical analysis as a subsidiary aspect of personnel management. Future staffing needs will derive from:  Sales and production forecasts  The effects of technological change on task needs  Variations in the efficiency. etc. use of subcontractors or agency staffs. regional or trade grants. payroll taxes or their abolition.information accretion. The comparisons will then indicate what steps must be taken to achieve a balance. 12. retraining. work study. flexibility of labor as a result of training.g.)  Variations. That. substitution. Basic financial rewards and conditions of service (e. etc. new health and safety requirements  Changes in Government policies (investment incentives. hiving-off tasks. etc. whose main task may well be to scrutinize and modify the crude predictions of other managers.g.) What should emerge from this ‘blue sky gazing’ is a ‘thought out’ and logical staffing demand schedule for varying dates in the future which can then be compared with the crude supply schedules. organizational change. which particular hours shall be worked) of conditions of service are often more important . in turn.g. e. buying in. new motivations.3 Employee motivation: To retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise. which respond to new legislation. not just as a one–off but as a continuing workforce planning exercise the inputs to which will need constant varying to reflect ‘actual’ as against predicted experience on the supply side and changes in production actually achieved as against forecast on the demand side. will involve the further planning of such recruitment. working hours per week) are determined externally (by national bargaining or government minimum wage legislation) in many occupations but as much as 50 per cent of the gross pay of manual workers is often the result of local negotiations and details (e. labor reductions (early retirement/redundancy) or changes in workforce utilization as will bring supply and demand into equilibrium.g. productivity. training.

The latter can depend upon other factors (like environment. The former demand better-educated. As staffing needs will vary with the productivity of the workforce (and the industrial peace achieved) so good personnel policies are desirable. etc. It may be a matter of drawing the attention of senior managers to what is being achieved elsewhere and the gradual education of middle managers to new points of view on job design. than the economically dependent employees of yesteryear. Hence while the technicalities of payment and other systems may be the concern of others. Hence human resource management must act as a source of information about and a source of inspiration for the application of the findings of behavioral science. but (about annually) two key questions should be posed:2. work organization and worker autonomy. but because of the changing mix and nature of tasks (e. participation. employee benefits. To improve organizational performance via improving the performance of individual contributors (should be an automatic process in the case of good managers. 12.) but unless the wage packet is accepted as ‘fair and just’ there will be no motivation.  . o What has been done to improve the performance of a person last year? o And what can be done to improve his or her performance in the year to come?). to recognize existing talent and to use that to fill vacancies higher in the organization or to transfer individuals into jobs where better use can be made of their abilities or developing skills. welfare. the outcome of them is a matter of great concern to human resource management. Hence there is scope for financial and other motivations to be used at local levels.than the basics.e. To identify potential. more service and professional jobs and far fewer unskilled and repetitive production jobs). mobile and multi-skilled employees much more likely to be influenced by things like job satisfaction.4 Performance appraisal: An organization needs constantly to take stock of its workforce and to assess its performance in existing jobs for three reasons:  1.g. Increasingly the influence of behavioral science discoveries is becoming important not merely because of the widely-acknowledged limitations of money as a motivator. involvement. etc. i.

for example:4. if there is a vacancy. To provide an equitable method of linking payment to performance where there are no numerical criteria (often this salary performance review takes place about three months later and is kept quite separate from 1.  3. (Lack of confidence in their own ability to handle situations of poor performance is the main weakness of assessors. and 2. o Explaining how to quantify and agree objectives. o Defining targets for achievement. reminding managers of their responsibilities. Publicizing the purposes of the exercise and explaining to staff how the system will be used.)  6.  2.  5. Most managers approve merit payment and that too calls for . o Introducing self-assessment. o Eliminating complexity and duplication. not personnel management staffs. The personnel role is usually that of:  1.  3. Basically an appraisal scheme is a formalization of what is done in a more casual manner anyway (e. Developing systems appropriately in consultation with managers. but is based on the same assessment). Assistance in the setting of objective standards of assessment. Monitoring the scheme – ensuring it does not fall into disuse. following up on training/job exchange etc. carry out appraisals. Advising top management of the principles and objectives of an appraisal system and designing it for particular organizations and environments. Organizing and establishing the necessary training of managers and supervisors who will carry out the actual appraisals. Securing the involvement and cooperation of appraisers and those to be appraised. supervisors and staff representatives. Not only training in principles and procedures but also in the human relations skills necessary. Full-scale periodic reviews should be a standard feature of schemes since resistance to appraisal schemes is common and the temptation to water down or render schemes ineffectual is ever present (managers resent the time taken if nothing else). discussion about internal moves and internal attempts to put square pegs into ‘squarer holes’ are both the results of casual appraisal). recommendations. On-the-spot managers and supervisors.g.

13. 13.6 Expensive Orientation Programs Needed: This is not as much of a problem for large international business enterprises as it is for small and medium size companies that compete in the global arena. it aids the development of talent. 13. very expensive incentives. 13.appraisal.8 Very Expensive Incentives Required: To get these highly qualified people to accept a assignment. Smaller companies often do not have the financial means to establish such programs. such as much higher salaries and benefits. warns the inefficient or uncaring and can be an effective form of motivation. 13. are often required. This lack also impairs performance. but this is also costly.4 Lack of Motivation: Our RMG employees are reluctant of getting adequate motivation from their employers for improving themselves 13. small firm’s expatriates are likely to make costly blunders in conducting business can sometimes overcome this difficulty by entering into a partnership with a capable firm in the foreign market. Made a standard routine task.5 Work under pressure: Workers have to meet demands whenever they have to produce for export shipping as their top management’s orders to do in a limited time. without such training. Smaller companies can send their expatriate candidates to a private training institution. . Yet. Problems of Garments Sectors: 13. 13.7 Communication Problems: The worker may encounter communication problems in the hierarchy.2 Lack of HRM policies and practices: Companies are unwilling to follow the proper HRM policies and programs to develop their workers and employees 13.1 Lack of training and development: Lack of sufficient training and development programs in RMG sector.3 Lower Compensation Package: Our Garments Sector are getting very cheap rate labor & they are very much ignored about facilitate them with sound salary & benefit packages.

Conclusion: From above discussion we can see that today multinational company’s competitor increase and to achieve competitive advantage they need to expand their business and then they use malleable cheap rate employees. so these things should be taken care of for the betterment of our RMG Industries productive development as well as their people’s improvement of livelihood & increase efficiency & effectiveness. 7. in that case they most of cases don’t provide transport facilities or paying an extra amount for convenience. 15. Communication should be always with immediate superior who will recommend his/her superior. 6. we find it very lower tolerances for their employees. Provide transport facility for technical employees or provide housing facility. 14. each and every company in garments sector should have proper and well planned SHRM policies and their practices in their every functional level of operation. Provide sound Compensation Package 2. 5. Part – 3: APPENDIX: Questionnaire: (Available upon request). Though it’s a larger contributing sector of our economy. Recommendations: 1. Making people understand that they are part of the production process. Orientation Programs needed by immediate superiors not with much broader side. Provide appropriate Motivation 3. . On the other hand. That means maintaining hierarchy.13. Making Work environment more friendly to work happily under pressure 4.9 Location: Sometimes technical workers as well Companies also face problems to hire them if they situated at different location. so they are very important to Organization & Economy of Country for taking from them the best performance. Then we can ensure to get a more developed & economically strong country of us.

Mahbubur Rahaman. RMG Sector and Its Future. 2000. Abdul Hannan Mia. (A Strategic Approach) By William P. List of Garments Companies from which we collect data. Michele Kacmar.N. Anthony. Scientific method and Social Research – B. Md. Cooper. Pamela L. Business Research Method by W.(Available upon request) .Ghosh.Zinkmund. Perrewe and K. By Donald R. Business Research Method.Schindler. Article of Dr. FCMA. Human Resource Management.Bibliography / Reference: Class lecture – Dr. and Pamela S.