This action might not be possible to undo. Are you sure you want to continue?
Commitment level of employees A study with refrence to
Orient Craft Ltd
Submitted in partial fulfillment of PGDM program 2009-11
ANKSUH PURI IB/02/29
Mr. RAMENDRA RAMAN Senior Merchant Orient Craft Ltd.
Miss Anindita Banerjee Professor
Apeejay School of Management New Delhi
At the outset I would like to express my gratitude to the administration of ORIENT CRAFT for providing me with the wonderful opportunity of carrying out my summer internship project. I would also thank the management of ORIENT CRAFT for giving me the opportunity of being associated with them and learning the intricacies of organizational culture on a real time basis. I would also like to thank my company guide, MR Ramendra Raman Senior Mercchant And MR Vijay Govind Manager Personnel Department., Oreint Craft Limited, ORIENT CRAFT for accepting me as a trainee and for sparing his valuable time to discuss about the project. He has been responsible for all the knowledge that I have assimilated during the last three months and he has supported and helped me in completing my project successfully. My special thanks to my faculty guide ,Miss Anindita Banerjee ( APEEJAY SCHOOL OF MANAGEMENT) who has been a source of constant inspiration for me. Her confidence boosting talks and suggestions backed by her experience helped me go a long a way during the course of my project. I shall be indebted to her for her guidance, cooperation and confidence.
Securing the commitment of employees can generate a number of organisational benefits, such as reducing recruitment costs and improving interactions between customers and employees. For retailers, a loyal workforce can therefore represent a source of differentiation and competitive advantage. Despite this, few retail studies have explored employee loyalty and have instead focused upon the loyalty of customers. This quantitative and qualitative exploratory study of orient craft employees to aims to explore how employee loyalty manifests itself in a company context. It proposes that employee loyalty in this industry is multi-faceted and can be understood in relation to commitment to the retailing industry, the retailer and the store.
A famous joke tells about a pig and a chicken walking together and discussing the possibility to open a restaurant. "How shall we name the restaurant?" asks the pig. "Simple", answers the chicken "We'll call it 'Bacon and Eggs'". "I am not sure about this idea", says the pig. "It's true that we are both partners, but while you are involved in the business, I am committed". What is commitment and how should we create organizational commitment? These are the questions I would like to dwell on in this post. Thinking of organizational commitment brings to mind issues of job satisfaction, feeling part of the organization and similar concepts. All these are related to commitment, but are not identical. Organizational commitment is a psychological engagement of the employee to the organization. Why should an organization work towards such commitment? There are several reasons. First, commitment improves employee retention. We invest a lot in Knowledge Workers; we spend many hours nourishing and deepening their knowledge. An employee that is leaving forces us to re-invest. Furthermore, we depend on many of our employees. In some organizations, employees have strong relations with customers, making the personnel change unpleasant to the customers; in many organizations employees hold invaluable information, which will be lost if they leave. If employee commitment to the organization reduces turnaround, no doubt that we should encourage such commitment. We could settle for this reason, but apparently, there are other benefits to an employee that is committed to the organization. A committed worker is more productive during his working hours; a committed worker, according to studies, works more hours and has better performance. A committed worker is less absent; and a committed worker identifies with the organization and better assists in meeting its goals. In order to understand how to get employee commitment, it's important to understand the different types of commitment. Commitment can be characterized by several dimensions:
either to top management. like a high chance of not finding an alternative job or the comforts of the current job. volume of activity and personal ability to develop. teamwork and participation in decision making enhances employee commitment. verses emotional motives affecting this commitment. This can be viewed also as intellectual motives affecting commitment. whether positive (liking the people we work with) or negative (fearing from the need to get use to a new job). direct management. researches have found that older people are more committed than youngsters. . The professional aspect has great influence on the level of commitment: Job description clarity. educated professionals less committed than laymen. verses a beneficial commitment (the benefits of staying within the organization). women more so than men. In the personal level. all affect commitment level. seeing themselves as part of it and wish for its success. Yet another aspect is the subject of commitment: An employee might be committed to the profession and thus (partly) to the organization. to colleagues or to customers. We also see personal character as an influential parameter of commitment. and some employees are committed to the organization itself. The organization and its organizational culture play a major role: a culture of sharing. verses a moral commitment. or an employee might be committed to people in the organization. We can also refer to the scope of commitment: inter-personal or organizational.One dimension deals with the nature of the commitment: an emotional commitment that the employee develops.
..............................................70 9............................................15 3......................37 d.....................................................................................70 b............... Scope of the Study...............39 4......................................................... Facts and Findings..........70 ii................................................................................... Introduction to the Company ...........................37 c................................................... Recommendation.................39 g................................ Sampling Methodology .............. Research Design.............70 i.40 5..........................................................................................................................69 a.........................................................................................................................................................................1 2.....................63 7..............................................................36 a............................. Books.......................71 a........................................................................................ Objective........................................................51 6................................................................................................................................................70 c................................. Data Analysis and Interpretation .......70 d.................... Internet ......72 .............................................................. Sites........................ Title .................................................................................................................................................................................. Limitation ............................................. Conclusion .................38 f..............38 e................ Magazines............................37 b....................................... Journals............................................................................................................................................... Title Justification ... Bibliography ........66 8................................................... Significance of the study ......................................................................................................37 i............ Annexure... Introduction to the Industry ...... Questionnaire......... Search Engines ...........................................................................................................................................................................................TABLE OF CONTENTS 1...... Research Methodology..........................
INTRODUCTION TO THE INDUSTRY 1 .
Highly skilled human resources coupled with low wage structure and world class quality have transformed India into a global powerhouse in the Handicraft services and solutions sectors. Indian Handicraft exports grew by 23 percent in 2007-08.8 billion in 1994-95 to US$ 10. This shows a CAGR of around 50 per cent. • India currently exports Handicraft to around 95 countries around the globe and more than 250 Fortune 500 companies have outsourced some part of their Handicraft requirements from India. They include Microsoft. while overall exports fell down by 2 per cent. North America and Europe accounted for 86% of Indian exports in 2007-2008. Oracle. The figure below illustrates the growth of the Indian IT sector. Exim bank subsidises the cost of acquiring the quality standard by around 50%. • Many global Handicraft majors have set-up operations in India.INTRODUCTION TO THE INDUSTRY Indian Export Handicraft and Cloth The Indian Handicraft industry truly symbolizes India’s strength in the knowledge based economy. SEI CMM by providing import duty concessions. 2 . The Indian industry has grown from US$ 0. Adobe among others. The VC industry was estimated to be worth around US$ 408 million in 2000 and is expected to grow to US$ 10 billion by 2008. • The growth of India as a Handicraft hub has also been facilitated by the initiatives taken by the Union and State Governments. Similarly. • The growth of the sector has also been enhanced by a flourishing venture capital (VC) industry. Many State Governments have set up Hi-Tech Parks and implemented e-governance projects. Handicraft and services exports are expected to account for more than 50 per cent of the sector turnover in 2006-07 • Despite a slowing global economy.1 billion in 2001-02. • The government has also announced incentives for adhering to Quality Standards such as ISO 9000.
through a joint venture with an Indian company or through a wholly owned subsidiary. This is supported by a flourishing IT education market. Opportunities • Strong cost value proposition. the government is encouraging the setting up of Handicraft Technology Parks (STPs). special 10 years income tax rebates. skilled manpower resource with experience on state-of-the-art hardware and Handicraft platforms. driven by the low cost of quality manpower and high quality work delivery. STPs offer zero import duty on the import of all capital goods. • The government has announced Handicraft export sector tax incentives-setting up of STPs and a VC funds. availability of infrastructure facilities such as high-speed data communication links. • India has a large base of English speaking. 3 .Policy Initiatives • Besides Special Economic Zones (SEZs) and Export Promotion Zones (EPZs). etc. • India has a well developed infrastructure support to aid connectivity and data transfers. • Foreign companies can set-up operations in these zones either through incorporation of the company as per Indian Companies Act (with 100% equity holding). producing high quality Handicraft professionals across different areas in the field.
Indian Handicraft and service exports for the period April-December 2002 touched an impressive figure of Rs 34.000 crore 4 .Despite the global slowdown in Handicraft spend.
is estimated to grow to 5 per cent in 2002-03.'' he adds. The utilities sector. ''Handicraft and services exports are also increasing their contribution to overall exports from the country. In the ITES-BPO segment. And healthcare. Says Arun Kumar.600 crore as compared to the corresponding period of the previous year. is expected to grow to 3 per cent in 2002-03. a bulk of the growth is from IT services and business process outsourcing (BPO) activities. animation and research and development (R&D) services. which has a share of 3 per cent in 2001-02. Nevertheless.4 per cent in 2002-03. new verticals such as healthcare.9 per cent of India's export revenue in 1997. and is expected to increase to 20. contributing 36 per cent of the total exports during AprilDecember 2002. packaged Handicraft installation and support and systems integration. Indian vendors are getting into new service lines such as IT and network consulting.'' As per the Nasscom survey. the banking. Handicraft exports accounted for 4. The manufacturing vertical is expected to increase its share to 14 per cent in 2002-03. apart from consolidating their presence in traditional areas such as customer care. chairman. The retail sector currently has a share of 4 per cent in 2001-02 and is expected to increase to 5 per cent in 2002-03. In the IT services arena. Apart from growth in traditional services. 5 . finance and HR.($6. National Association of Handicraft and Service Companies (Nasscom): ''The increased interest by customers and the aggressive foray by Indian vendors led to larger offshoring contracts for India. retail and utilities in the IT services sectors will lead future growth in exports. financial services and insurance (BFSI) vertical continues to be the biggest revenue earner. The other good news is that the markets and the kind of services offered by domestic IT services and IT-enabled services (ITES) and business process outsourcing (BPO) players are expanding.9 billion). thus registering a growth of Rs 7. Indian vendors are moving up the value chain by addressing segments such as engineering design. which has a share of 2 per cent in 2001-02.
'' The survey also finds that domestic Handicraft and service companies have beefed up their capabilities . 6 . There has been good growth in volumes but profitability has been affected due to increased investment by Indian vendors in sales and marketing.Industry performance by verticals in Handicraft exports Verticals BFSI Manufacturing Telecom equipment Government Retail Utilities Transportation Telecom service providers Healthcare Others 2001-02 in % 35 12 12 1 4 2 1 3 3 27 2007-08E-in % 36 14 10 1 5 3 2 5 5 19 Says Nasscom president Kiran Karnik: ''The industry did face pressure on pricing in the first half of the financial year but this is stabilising now. But we are confident of achieving strong stable growth in volumes in the coming quarters also.external and internal . it might lead to the growth rate in rupee terms coming under pressure. it would help in strengthening the long-term prospects of the company. ''Further.to overcome the global economic slowdown. The industry is also expected to witness a rise in mergers and acquisitions (M&A) activity as players try to broaden product offerings and build scale. While this may affect the bottomlines in the short term. if the appreciation in the rupee continues in the next quarter.
with contributions growing from Rs 18.350 2006-07 16.5 2007-08 (in %) 67. meanwhile. Indian Handicraft exports: Delivery models India's Handicraft exports have continued to grow towards the high-value offshore development model. and better management of fixedprice contracts.700 1.000 34.500 Apr-Dec 2008 13.350 17. hiking the proportion of variable pay.500 36.300 19. Indian companies have looked towards building expertise through thought leadership. APAC and rest of the world.500 crore to India's export revenue during 2001-02. Rs crore Onsite Offshore Products and unclassified Total 1999-00 9. North America continues to be the prime destination for Handicraft services and segment followed by Europe.500 crore in 2001-02 and expected to reach Rs 27.0 7 .500 28.500 18. Japan.500 crore in 2002-03. Offshore activity. Onsite services.7 2.000 Indian Handicraft exports by geography According to Nasscom. gaining better customer access and key account management.In the area of marketing.500 crore in 2002-03.850 5.950 1. which contributed Rs 16. Companies have also tried to contain costs by recruiting in line with utilisation rates.7 21.150 2000-01 15.950 1.900 10.500 1. is expected to reach Rs 18.7 23.2 2. Indian companies have also invested in building global delivery models to overcome geopolitical risks. notched up a higher growth rate during the same period. Geography North America Europe Japan 2001-02 (in %) 66.
The importance of effective data collection and record maintenance further intensifies. elder care. We are a national company serving facilities in all U. if the treatment concerned is about substance abuse or psychological 8 .9 3. assisted living. when you want. There is no doubt that information about a patient and his/her past history are deciding factors for treatment. the sun never sets on a customer's request. Our customers encompass nursing homes. which allows you to implement as much or little as you want. At India Health Care. Our Handicraft suites are based on a building block process. India 's leadership position in the development of Handicraft programs for nursing homes. easily and accurately manage every aspect of your organization's clinical and business needs. retirement homes. outpatient clinics. Our people put pride in our products for those who put their trust in us. Vermont. states as well as the territory of Guam.8 5. long tem care.1 2. in the heart of the Lake Champlain Valley region. home health and other health care providers is supported by more than twenty years of experience in health care management and Handicraft development. Utilization of India 's Harmony Health Care Management System in continuum of care settings allow users to quickly. The Harmony Health Care Management System offers Handicraft Suites. And when it comes to product and system development. home care.Rest of the world Asia Pacific (excluding Japan) 4.2 India Health Care Handicraft is a national Handicraft solution provider to the healthcare industry and an IBM business partner located in South Burlington. apartments. Each suite focuses on a specific aspect of your business and can be used as a stand-alone tool or used in combination with any other Harmony Suite. and others. the lights never go out on a good idea. containing fully integrated applications. These important data processing features spring from dedication born of a strong work ethic and a natural sense of resourceful innovation.S.
in case of behavioral healthcare. an independent market analyst. Therefore. So.care. 66% healthcare providers are expected to grow their IT budgets by more than over 10% during the period of 2004-2006. Therefore. healthcare institutes are all the more keen to implement Handicraft solutions. Along with being an efficient tool for managing records. As we have already mentioned. after the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Their performance used to be hampered as there was no efficient way of collection of data. (with about 5% of healthcare firms having sophisticated electronic storage systems). Whether it is a substance abuse Handicraft. analysis and sharing within the organization that optimizes the treatment. Only then they will be able to manage the organization more efficiently. Though healthcare industry is a late adapter of technology. analyzing them and then sharing them within the organization. or an bio-psychosocial assessment solution. with the implementation of the human services Handicraft solutions. even when buying substance abuse Handicraft or social services Handicraft. Though the conceptualization of portable 9 . it is presently one of the fastest growing Handicraft sectors. they enable the behavioral healthcare facilities to perform better. doctors and healthcare organizations are realizing the need of effective social services Handicraft solutions. The latest trend in the substance abuse Handicraft or human services Handicraft industry is the application of portable PC or PDA devices. Moreover. the healthcare organizations should also look for these facilities. This feature of the healthcare application Handicraft optimizes the internal functioning of the organization. the social service healthcare industry faced the difficulties in its worst form. the social service facilities got the maximum advantage. Therefore. While the human services healthcare industry is quickly adapting to the Handicraft solutions. the technology further advances with the aim of ensuring better efficiency. the healthcare Handicraft solutions are also taking care of the administrative and financial aspect of the organizations. while providing top class treatment to their patients. According to a study conducted by Datamonitor. these Handicraft solutions are also helping healthcare organizations to maintain the HIPAA guidelines. Effective social services Handicraft ensures better data collection.
removal of restrictions on exports. reoriented export cluster development scheme and procedural simplification aimed at drastic reduction of transaction costs in order to make India globally competitive. Indian federal government has announced a comprehensive new Export & Import (EXIM) Policy 2003 within the broad parameters of Five Year export-import policy (2002-07). or PDAs or tablet PCs are excellent tools for accessing the inhouse database and sharing vital information within the organization. The portable handheld devices. so says the federal Commerce minister Arun Jaitley. "We shall strive to sustain the present rate of growth and to accelerate it through the initiatives and strategy in the Exim Policy 2003-04". major initiatives on agroexports with the basic aim of reaching the benefits of globalisation to farmers and rural sectors including facilitating association of corporates in the implementation of Agri Export Zones (AEZs). a start-up working to build a PDA) first conceived the idea. This ensures that the healthcare professionals and staffs of the healthcare institute are never far from the huge database of key information.. it seems that the wireless handheld communication devices will rule the healthcare industry in future. The DEPB (Duty Entitlement Pass Book) Scheme is being continued and a facility for provisional DEPB rate has been introduced to encourage diversification and promote exports of new products. The new policy aims at consolidating and accelerating India’s export growth by capitalising on the areas of its core competence and giving a massive thrust to services and agro exports identified as the important engines of growth. With these new improvements.the backdrop of the country crossing the US$ 50-billion-mark in merchandise exports in fiscal 2002-03. A major boost is being given to non-traditional service areas such as health care.8 percent in 10 . introduction of the technology came to the healthcare industry much recently. Provisional figures for the period April-February 2002-03 indicate that India’s exports have grown by as much as 16. incentives to status holders with premium on high growth.handheld devices dates back to 1980's when Jerry Kaplan (a veteran entrepreneur who was the founder of Go Corp. entertainment and professional services as well as traditional areas like tourism. measures to facilitate investments in Special Economic Zones (SEZs).76% in US$ terms (and 18. a more flexible and attractive Export Promotion Capital Goods (EPCG) Scheme in order to expand the manufacturing base for India’s exports including the small scale sector.
subject to actual user condition. office and professional equipments. Since many of the sectors had not even made a beginning in the direction of exports. To facilitate and promote export of services from other sectors. (However.. Indian government has decided to promote investment in Venture Capital Fund for the entertainment industry through suitable tax incentives in consultation with the federal Finance ministry. under the new EXIM policy the benefits of the advance licence scheme has been extended by allowing recognised hotels of three-star category and above and other registered service providers in this sector duty-free import of consumables and spares up to 5 percent of their average foreign exchange earnings of the previous three years. import of consumables. India today is uniquely placed to take full advantage of the growing opportunities of services exports which was clearly an important engine of growth for the economy. would be allowed up to 10 percent of the average foreign exchange export earnings in the previous three years. Appropriate incentives are being planned in consultation with the federal Finance ministry to enable 11 . In view of the paramount importance of agriculture and allied products as an area of India’s core competence the corporate sector with proven credentials would be encouraged to sponsor Agri Export Zones (AEZs) for boosting agro exports. Apart from Handicraft. imports of agricultural and dairy products would not be allowed for imports against this entitlement). India has to strive a lot to fully exploit the tourism sector. the administrative ministries concerned. subject to actual condition. Indian tourism sector already enjoys the benefit of the EPCG Scheme. financial institutions and the industry to work towards a common goal by framing Action Plans to be implemented within specified time frame.rupee terms) over the same period of last year. India’s entertainment industry was singularly handicapped by lack of investment but had tremendous opportunities for exports. spares etc. state governments. the facility would be extended to new comers also against bank guarantee to the extent of to the revenue sacrificed. To ensure that. a host of other services now provided unprecedented opportunities in global trade and with abundant skilled manpower. Sector-specific Working Groups would be set up with representatives of the federal ministry of Finance.
This would help the farmers to use the required inputs in a scientific manner to boost productivity and quality. greater flexibility for fulfillment of export obligation under the scheme by allowing export of any other product manufactured by the exporter. The status holders would continue to play a significant role in boosting exports especially from the small scale sector. Special focus would be given to certain sectors having potential for accelerated export growth. chemicals. dispensing with the existing condition of imposing an additional export obligation of 50% for products in the higher value chain. packaging. silk cocoons. allowing capital goods up to 10 years old also under this scheme. gems & jewellery. pesticides and seeds. These include allowing import of capital goods for pre-production and post-production facilities also. cotton linters. R&D.. (Export obligation would now be 8 times the duty saved). storage. and counting royalty payments received from abroad etc. fixation of DEPB rates for selected agro products would factor in the cost of inputs such as fertilisers. office equipments and consumables.investments by these corporates in infrastructure. auto components. drugs & pharmaceuticals and electronic hardware. rare earth. paddy (except basmati). as most of the small units were not in a position to directly access the international market. Besides. A series of steps are taken to make the EPCG scheme more flexible and attractive so that even the small scale sector could set up and expand its manufacturing base for exports. namely. the country’s manufacturing base would have to be built up quickly in order to sustain a high rate of export growth and that the EPCG scheme had contributed significant to exports by facilitating expansion of the country’s manufacturing base at a comparatively lower capital investment. This would be 12 . A duty-free entitlement would be given to them for import of capital goods. such as textiles (especially garments). allowing import of spares to facilitate upgradation of existing plant and machinery. agricultural extension and other facilities relating to exports in the approved AEZs. thereby taking care of the dynamics of the international market. spares. processing. etc. for discharge of export obligation under the EPCG scheme. As many as 45 AEZs have been notified so far in different parts of the country. rationalisation of export obligation by linking it to the duty saved. The new EXIM policy has also removed quantitative restrictions on export of five items. Stating that in order to be a significant player in world trade.
DGFT had already achieved a high degree of computerization. They would also be given dutyfree entitlement of 10 percent of the incremental growth in exports during the current year subject to the actual user condition. special steps were being taken to promote exports of gems & jewellery and electronic hardware from the SEZs and a comprehensive legislation on SEZs was on the anvil. a suitable fiscal package for offshore banking units set up in SEZs was being worked out. 18 SEZs have been approved and Greater NOIDA and Navi Mumbai SEZ were under active consideration. Additionally. The Minister said that though notified greenfield SEZ projects were yet to get off the ground due to delay in land acquisition. 13 . to enable exporters access to funds at international rates. regulations and procedures applicable to SEZ and EOU units and all these rules and regulations were being put in one place which would greatly facilitate both potential investors as well as the existing units.available to the status holders achieving a growth rate of 25 percent or more in the current year with a minimum export performance of Rs.25 crore. In recognition of the importance of the SEZ Scheme in the country. a major step has been taken for the simplification and codification of rules. which would help in promoting SEZs specialising in agro exports. the first new SEZ at Indore was ready for operation. The federal Commerce ministry is gearing itself to provide online approvals to exporters where exports had been effected from 23 EDI ports in the country. annual advance licence facility has been introduced for status holders so that they could plan for imports of raw materials and components on an annual basis and take advantage of bulk purchases. As part of the effort to reduce transaction cost. Further. strategy for accelerated export growth and the contribution of 100% Export Oriented Units (EOUs). agriculture/horticulture processing SEZ units would be allowed to provide inputs and equipments to contract farmers in DTA to promote production of goods as per the requirement of importing countries. Simultaneously. Sales from Domestic Tariff Area (DTA) to SEZs would be treated as exports and this would now entitle domestic suppliers to drawback/DEPB benefits etc.
the programme would now be extended to the remaining 11 countries of the sub-Saharan region where India had diplomatic missions namely. Domestic sales by SEZ units will now be exempt from SAD. This would now entitle domestic suppliers to Drawback/DEPB benefits. Egypt. 14 .In addition to the 7 countries already included in "Focus: Africa". Zambia. Algeria. Angola. Zimbabwe and six countries of North Africa namely. Agriculture/Horticulture processing SEZ units will now be allowed to provide inputs and equipments to contract farmers in DTA to promote production of goods as per the requirement of importing countries. Botswana. Foreign bound passengers will now be allowed to take goods from SEZs to promote trade. Ivory-Coast. tourism and exports. Morocco and Tunisia. CST exemption and Service Tax exemption. Sudan. This is expected to integrate the production and processing and help in promoting SEZs specialising in agro exports. Libya. Sales from Domestic Tariff Area (DTA) to SEZs to be treated as export.
INTRODUCTION TO THE COMPANY 15 .
Abercrombie and Fitch. The group exports revenues have grown at a CAGR of 15. another landmark for Orient Craft Limited is in line with the Company's business strategy towards the market expansion. Express. in the year 2003 we formed our wholly owned subsidiary "Orient Craft USA Inc. Tommy Hilfiger. Inc" has turn out to be a great tool for the parent company Orient Craft India. We create a highly proficient learning. Orient Craft in its perennial expansion stage is always looking for investing in human resource asset and charting a symbiotic growth for the employees and the organization. Michael Kors. 2004. development and growth process. which has governed the trade for the past 30 years. Today it stands strong with 21 facilities and a committed workforce of over 25 thousand producing more than 100 thousand pieces of global fashion in a day.S. Banana Republic.A. USA Since the "MFA" Multi Fiber Arrangement. In the wake of growing competition. Catering to over forty fashion brands and designers like Marc Jacobs. Marks & Spencer. Orient Craft Limited has consistently been one of India's top garment manufacture and export organizations. Our subsidiary "Orient Craft U. Polo Ralph Lauren Blue Label. for all those who have the ability to dream big and achieve bigger.39% from FY02 to FY09.INTRODUCTION TO THE COMPANY ORIENT CRAFT Set up in 1978. Ann Taylor. has expired on Dec.S. Macy's. Monsoon. 31. Establishment of Orient Craft U. Diane Von Furstenberg." in the State of Delaware.A Inc. 16 . DKNY. Orient Craft stands true to the image of being 'the name behind names'.
are heading the design studio that works with our equally efficient team of designers in India. "We are mulling an initial public offer and have appointed Kotak Mahindra and ICICI Securities to analyse the various options available to us. Mr Dhingra said would require an overall investment to the tune of Rs 2. Orient Craft has around 20 modern manufacturing facilities in and around Delhi." Mr Dhingra said. The Rs 745-crore turnover company is bullish on its future prospects and hopes to clock around Rs 950 crore turnover this fiscal. and employs over 23. 17 . New York. Banana Republic. London. he said. The exporter is also planning to set up a textile Special Economic Zone (SEZ) in Gurgaon. Paris. The top professionals in the industry. He said the company would initially invest around Rs 300 . Tommy Hilfiger. having enormous experience of American market and latest trends. is planning to invest Rs 200 crore to expand capacity at its facilities.We felt the need to establish a true presence in the dynamic American market we have been catering for more then twenty-five years. Orient Craft boasts of a long list of international clientele including Gap. In the year 2004 we setup a design studio in New York.400 crore in the SEZ and invite further investments from co-promoters. The company had earlier acquired a Levi's plant in Spain for Rs 60 crore. The proposed SEZ would be spread over 600 acres of land of which the company has already acquired 400 acres." Mr Dhingra said. "The remaining 200 acres would be acquired in the next couple of months. said. was evaluating various options to fund its expansion plans.000 people. among others. and Ralph Lauren.000 crore and would be completed in the next two-and-a-half years. "We would be requiring an investment of around Rs 200 crore in the next couple of years to further strengthen our infrastructure. The company. Marks & Spencer. We keep track of fashion trends and today we have dedicated team on board." Mr Sudhir Dhingra. We spend huge amounts of money in sending our people overseas every week to Milan. whose job is product development and product support. The SEZ. Chairman and Managing Director of Orient Craft Ltd. USA. Orient Craft a garment exporter.
within the premises of the organization. • • The employees are given the incentives on the excellent performance. • There is a staff welfare fund for the benefit of economically weak employees drawing salary less that Rs. This also enables the employees to strengthen the bond between them. • An open house session is held on the production floors t sort out the problems of the workers. • The Reward is given to the production Department as per the number of machines. We give the scholarship to the children on the workers based upon their meritorious performance in their studies from 1st to XII standard.Life at OC Unique Employee Benefit schemes: • We encourage the team members of each department go together for a day out in a month and the company reimburses the amount. at Orient craft have the KRA based appraisal system. • There is a facility of crèche for the children of working females. • We have the compensation structure for various levels comparable with the best in our industry • We design the systematic career path/plan for employees of different level based on their performance • We have the yearly training calendar which enable individuals in learning/ acquiring the competencies for success performance in their role • We have a well defined Uniform Personnel Policies at all locations/ levels 18 .per month. which integrate individual objectives with organizational objectives. which are being utilized on the floor. Major HR Practices: • We. 5000/.
perfumes. a retail chain of fashion and lifestyle products.• We have a system to ensure the full proof statutory compliance under various applicable statutory/ labour laws to have least legal issues Riding on its rich heritage of 360 degrees expertise in fashion forecasting. s. QS (Young & Trendy fashion) and Anastacia (Celebrity Inspired Fashion . for both men and women. trend pick up. flagship stores in the NCR and employing about 35. convert them into scalable & self-sustainable independent business verticals. accessories etc. one of Europe's largest clothing brand. At a later stage they may venture through small size shop-in- 19 . shoes. under the name of s. The following years would see expansion in a phased out manner from one region to the other and would include stores in malls and high streets.40 specialized staff. to move up the value chain and get into the B2C business after four decades of association with best known brands all across the globe and to harness the beckoning Retail Opportunity of India Shining Story. Orient Craft Brands would establish a retail stores network across all the metros and other major cities over a period of next five years. It has been a conscious decision of the group..Oliver. These stores would emulate European standard of store design and ambience and would offer premium European fashion and lifestyle products such as fashion clothing. After identifying the 'heterogeneous portfolio' of international brand' model strategy OCB and s.designed and endorsed by international pop star Anastacia). The Orient Craft Brands aim to harness s.Oliver (Casuals). This association would catapult Orient Craft Brands into the rapidly expanding retail industry. The first phase would include setting up management & sourcing office. has ventured into Lifestyle Retailing through Orient Craft Brands Ltd. today announced their plan to launch in India. relevant to the prevailing & futuristic Indian Lifestyle Market. Orient Craft Brands has been granted an exclusive licensing and distribution rights for various product lines.Oliver's retail expertise and Orient Craft's product & design strength. The vision of Orient Craft Brands is to create a well segmented portfolio of differentiated brands. SELECTION (Classic & Evening wear).Oliver. product development & production Orient Craft Ltd.
treating people equally. people join organizations but leave their boss. EMPLOYEE COMMITMENT AT ORIENT CRAFT As the Gallup Organizations says.Oliver Junior to the premium brands s.Oliver marks the starting of retail at Orient Craft Ltd. some 324 stores run together with partners and is represented in 1.Oliver Group also sells seven lifestyle lines that are created in collaboration with license partners. Within a few decades. the company currently has 65 mega stores under own management. which means they have more than tripled since 1995.577 shops and on 1.shops in multi brand large format retail stores. In addition to its ten brands and segments ranging from s.Oliver" line is collaboration between Europe’s' top selling artist Anastacia and s. By the end of five years Orient Craft Brands aims at to have set up around 60 . of the group operating in more than 30 countries have in the meantime climbed to euro 904 million (in 2006). . leading subordinates to increasingly excellent 20 . their people are much more likely to be engaged – and to achieve results for the organization.Oliver. including licenses.Oliver Selection women and s. In other words.Oliver Selection men and their accessories. being transparent. Overall brand sales. In practice this involves walking the talk. a manager's key responsibility is to create mutual respect and trust with the people who report to them. the company had developed into one of the leading fashion manufacturers in Germany and Europe.Oliver means first and foremost fashion and lifestyle. teaching.Oliver Bernd Freier GmbH & Co. KG began in 1969 with the opening of the first retail outlet in Würzburg (Germany) by its founder and owner Bernd Freier.80 points of sale across various formats & sizes and expects a conservative turnover figure of Euro 40 million per annum by the end of 5th year of operation.521 sales stands. Altogether. s. communicating effectively. offering fashion and lifestyle products for the whole family. The success story of s. In years to come we want to establish as the best retailing company on all parameters of Organizational Management. the s. In August 2006 a very special project was added to the mix: The "Anastacia by s. When managers lead and manage their people effectively.
Because of their “tween” position in the hierarchy. Specifically. for example. to effective support direct reports. Managers are in a better position to know. and employees are a collaborative team. But managers are often called "middle managers" for good reason: their job is to motivate and guide subordinates while they. Managers have to strategize to increase their influence through sheer numbers and by creating allies of people with greater influence and power. managers.performance – and responding to subordinates as mature individuals who are owed fairness. Performance soars when customers are enthused and stay and when executives. especially those with greater power who have access to top decision makers. and engage customers. • Communicate this message initially to people who are known to agree with this position. Since managers interact directly and frequently with subordinates they are usually more "tuned in" to how employees are feeling than are executives. You'd be wise to follows some specific steps: 1) Prepare a case documenting the major financial gains that will be achieved when employees are enthusiastic and involved. Effective collaboration doesn't always happen organically between like-minded people. at the same time. contribute discretionary effort. must also create relationships with potential allies. 21 . which includes the two or three key points they wish to make with their co-workers. managers need to: • Prepare their elevator speech. just enough allies to create real movement. when employees are feeling alienated and disengaged from their work. united in achieving common goals. • Finally. Gaining employee commitment results in greater profits because enthusiastic employees stay. the truth and recognition of their achievements. 2) Get a sufficient number of executives on board to begin taking action. which is very common today -. you need to collaborate with allies.and expensive. when trying to create the organizational changes needed to gain commitment. You don't need full-scale buy-in to get started. managers. are being judged by their bosses.
This reality is applicable to all organizations but is of particular importance to small and medium sized businesses. This requires the enthusiastic 22 . Much has been written recently about the need for improving the education and training of our workforce. Management skills which sufficed in the past are not adequate to meet the challenges facing business today. employees will simply treat their work as a job . The two keys to success in today's environment of increasing competition and rapid change are an absolute passion for. The benefits of having the best trained workers using the most advanced technology. To succeed in the face of increasing competition. As important as this is. employee commitment is crucial.positively or negatively by his or her immediate supervisor. excellence in customer service and the effective and enlightened management of our workforce. The latter breeds commitment which in turn leads to achieving the desired standards in customer service. and dedication to. In many organizations there is a growing commitment gap . Therefore the first step in building commitment is to improve the quality of management.3) Identify some initial easily achieved targets where success will energize the change process and help you gain more allies. In the absence of good management. there can be no improvement in any area of business activity. The workplace is changing dramatically and demands for the highest quality of product and service is increasing.a widening split between the expectations of employers and what workers are prepared to do. at least equal emphasis must be given to improving the quality of management if business is to succeed in achieving greater employee commitment and thereby its profitability. can be nullified by poor people management practices by managers.a 9 to 5 routine without any desire to accomplish any more than is necessary to remain employed. the most common one being a failure of management in some way or another. Employee behavior on the job is influenced directly . a business needs improved productivity at all levels. It does not take many uncommitted employees to prevent a business from prospering and thereby ceding a big advantage to its competitors. Positive influences are essential to strengthening employee commitment. There are a number of reasons for this erosion of employee commitment. To remain competitive in the face of these pressures. Without employee commitment.
They relate to them in a manner consistent with how they themselves are managed. In this way there will be consistency and equity with respect to how people are managed from the top down to the most junior employee. Failure on the part of owners or senior leaders to ensure their managers and supervisors are trained and function effectively can lead to the loss of valued employees because the best employees are attracted to employers who place a premium on good people management.its people. They will contribute willingly. one must be heard and reasonably answered by bosses. Businesses need good people to succeed. the skills of good people management must be installed in an organization so they become part of its culture. and will do more than expected if they are managed well. To have ownership of the work. So when management does the WHAT IFs above. customer service representatives. one must have ownership of the work. and drivers who interact most with the customers. It is the order clerks. To be committed to the work. 23 . Properly managed employees can be motivated to achieve excellence in any area of a business. receptionists. The second key to success. namely customer service. one must be able to influence what goes on in the workplace associated with that work.commitment of all employees which can only be achieved through better management practices. Hence the direct link between effective management of employees. And to influence the workplace. their level of commitment to the organization and the standard of customer service. It therefore follows that all organizations should give a high priority to its people management practices if they hope to success and prosper in the face of global competition and consumer demand for the highest quality of product and/or service. Extraordinary results can be achieved by ordinary people if management does its job properly. Managing a business today is difficult enough without forfeiting a competitive advantage by lack of attention to its most valuable asset . cannot be achieved without dedicated and committed employees. subordinates are in reasonable control and will develop a sense of ownership of their workplace. To be effective.
24 . applying their brainpower to every aspect of the workplace becomes a worthwhile effort for employees. The most basic reason may be that bosses have no faith or trust. Orders are a "cart before the horse" error common to many management techniques and styles. rationales. clear evidence that the boss does not consider them valued team members. but for all else the rule should be "do what you think is right unless the boss can logically convince you that a better way exists". The higher the difficulty and the lower the extent of commitment. value standards and listening. the boss allows people to resolve issues on their merits because he/she knows that authoritative declarations are self-defeating and destructive of the very commitment that gives birth to innovation and productivity. Over-direction always gets in the way of ownership and preempts commitment. In this mode of ownership. orders may be warranted.When managers take no action which might affect employees without their concurrence or at least giving them sufficient time to comment . In this mode. They are suddenly released to their own motivations and start using 100 per cent of their brainpower on the work. Superior leadership is listening to your subordinates to receive their valuable input. They don't trust juniors to arrive at reasonable conclusions and thus deny them information. the boss provides information and assistance so that each subordinate can take charge of their own work rather than sit around and wait for orders.and share with employees all knowledge about the company which might be of interest to employees. the greater the number of problems and the longer each remains before resolution. It has significant positive bottom line implications to your company! Problems and difficulties occur in any work group with a predetermined regularity dictated by the difficulty of the work and the extent to which employees are committed to the work. These bosses are greatly limiting their own success. and it is rewarded by their trust in you and their commitment to the job. In an emergency. Orders are probably the weakest action a boss can take because employees consider orders to be demeaning and disrespectful.
Gaining employee commitment is far more important than solving individual workplace problems. and besides. the more they act to find resolutions to problems. Commitment is rather a key ingredient for improving quality and productivity. Excellence is an excellent word and excellent companies strive for achieving it. You are listening to your people and since they are the ones who do your work. start asking questions to flesh out what you have heard. many more problems than you can. Pay particular attention to tone of voice and body language since these may send signals more important than the words spoken. Don't try to give a quick answer! Unless you have an answer that you know meets very high standards.Highly committed workers continually strive for excellence. so your respectful and caring questions are essential to getting a full picture. they are very important people. the less energy and thought they devote to correction and the more time they spend causing problems. reducing defects. The less committed. It is very normal for people to give you less than half of what they know about the problem. Some details about the process of listening Listening requires plenty of practice and concentration. Without commitment no company can think of achieving excellence. show great respect by being willing to go away to consider the issue. committed employees will on their own solve many. Many factors contribute to the excellence of companies chief among them is employee’s commitment. The more committed they are. Then return in a timely fashion with what you think may resolve the issue and allow the person to comment on your solution before taking any actions. Don't be distracted or be thinking about how you will respond or whether the moon was blue last night. increasing profitability and decreasing costs. Ensure that your own body language and tone of voice clearly send the message that you really care about what this person is saying. When the person stops talking. So listen with 100 per cent of your attention. ask them if they might have a suggested solution or know someone who might. and to keep yourself focused on listening take notes to record what was said. Once you understand all that they know about the problem. Listen very intently and carefully. 25 .
Managers can train employees with new skills and impart them with new knowledge but quite often than not they find it extremely difficult to effect changes in people’s attitude. MacCarthy the author of the best seller book” The Loyalty Link” most employees give 60 percent of their time and attention for their jobs. It will be necessary to mention here that one of the toughest jobs is to change people’s attitude. But to 26 . These elements are:1. From this definition we can pick up certain elements which lead to people’s commitment.However these days one of the major problems by all companies is the lack of total commitment from their employees. Commitment is an attitude:Commitment is an attitude a psychological frame of mind which motivate people to work towards certain goals. As a result of lower commitment employees leave their companies for slightly higher pay. According to Dennis G. And to cope with this problem they have adopted many programmes and strategies. which include going extra mile for achieving goals assigned to them. Xerox is now spending US $400 million a year on management programs and consultants to retrain its employees what they call “focus on commitment to the organization” DEFINITION OF COMMITMENT:Commitment may be simply defined as. In Malaysia it is a common complaint that employees are no more loyal as they used to be in the past. Negative attitude is one of the major reasons for non-committal approach. Some manager’s joke that today’s employees will leave their company even for a 50 cents increased salary offered by other companies. So for a commitment to exist in a person they must have a positive attitude. which tries to restore employees’ commitment. Use of resources:Committed people commit their total resources. It is enough to do what must be done in most cases. companies also complain of this problem. “ an attitude of people for deploying their total resources towards the achievement of certain goals”. 2. Lack of loyalty is not only faced by Malaysian companies but in other countries. For example.
For example. If the same person does not share the company’s aspirations and goals. Commitment thus means striving till the achievement of ultimate goals. so that the company will be a able to replace him and hire a better person. Consider their company as a good place to work in:Another criteria for employees’ commitment are their perception of the company they work for. OTHER QUALITIES OF COMMITTED EMPLOYEES: In addition to the three major elements that account for employees’ commitment the following other qualities are commonly found in committed employees. 27 . all that he ought to know the customer address and the number of the cartons for delivery. if an employee who drives a delivery truck. 2. Achievement of goals:The third dimension of commitment is goal orientation. share and support the company’s vision and goals and consistently try towards achieving them. 3. Positive attitude towards one’s company’s goals. If they find their company as one of the best places to work in they will be urged to work longer and stay in the company. Committed people not only work hard but also are also smart enough to know the ultimate results. 1.achieve excellence employees need to give 100% commitment. In fact it will be good for the company that he leaves the company. bosses. Understanding and total support to the company’s vision and goals:Committed employees understand. rather they will go an extra mile of helping the customer to take it inside the store. which are expected of them. That extra 40 percent effort is called discretionary effort. he can not be called a committed person. However committed drivers will not just dump them at the door step. It will be a mistake to call a person committed just because the person is staying in the company. Positive and “can do” attitude:Positive attitude is one of the greatest qualities of people as it inspires them to work harder and smarter. which can be called commitment. An ordinary driver will deliver it at the doorstep. fellow employees can also enhance a person’s commitment.
So to inspire people to achieve excellence we have to fist gain their total commitment. The main reason is their desire to complete the things they start and grow along with the company. The key to excellence:Commitment is the key for achieving excellence. without which nothing can happen. Employees must do everything to serve customers. 3. personal and other areas and without it failure and mediocrity is predictable. In essence real commitment means having a customer focus. So to make things happen a company needs employees who are committed and loyal. Non-committed people on the other hand are just killing time 28 . In fact with commitment excellence is predictable in business.3. another factor which entitle employees to be called “committed” is their desire to seek new knowledge. At the end of the day customers satisfaction counts more than any other thing and by focusing their efforts towards customers satisfaction employees can accomplish this goal. Customers focus:Customers are the most important people who should be the priority of everyone in the organization. An organization consists of its people and if people do not renew their capabilities it can lead to their demise. Leads to loyalty:Committed employees will stay loyal with the companies than those who are not committed. Make things happen:The hardest step in achieving excellence is commitment. Seeking continuos improvement:Lastly. BENEFITS OF COMMITMENTS:1. which include producing goods and services which meet or exceed customer’s satisfaction. which in turn will lead to satisfied customers. organization or person can dream of excellence without total commitment. No business. I would say that ten committed persons are better than having hundred noncommitted persons. 2. 4. skills and attitudes which help them and their companies in getting excellent results.
So when a person is committed he/she achieves better results which in then positively reinforces their ego and thus leads to job satisfaction. 2. 4. WHY PEOPLE LACK COMMITMENT:Before we suggest how to gain commitment from employees we should identify the roadblocks which hamper employees commitment. is one of the greatest reasons for employees’ de-motivation and non-commitment. The following are some of the factors which retard employees’ commitment. which does not offer opportunities for growth and promotion. 5. Dead-end jobs:Work. Poor reward and recognition:People will not feel like doing their best and will settle for mediocrity when they feel that their employers’ commitment in terms of reward and recognition is lacking. A recent study carried out by “ The Loyalty Institute “ of AON consulting in USA found out that jobs which deprive employees from self development and growth opportunities leads to high dissatisfaction and employees disloyalty. And job satisfaction is one of the key drivers for people to work harder and stay longer in their companies. These are: 1. 29 . Commitment is a mutual phenomenon when employers what to get the best from their employees and do not reciprocate it with proper reward and recognition people will not give their commitment.and the moment they spot a better opportunity elsewhere they would quit the existing company. This leads to loyal customers and loyal customers means good business. Commitment leads to better customer satisfaction:Committed employees go the extra mile to satisfy customers. And no one can achieve any good result without total commitment. Job satisfaction:One of the major dissatisfiers for people is not achieving result they work for. In fact according to a research loyal customers are more profitable than new customers.
No job security:One of the major needs of employees is job security. standardization or re-organisation effort can get any result if people are not committed to make it succeed.3. Programmes like Reengineering. If employees’ commitment play such pivotal role in the success or failure of an organisation then managers must make all out effort to gain it. Cost reduction etc have miserable failed because they overlooked the importance which people can play in the success or failure of any improvement programme. No amount of computerization. and managing them by threats. screams and embarrassment also leads to employee’s dissatisfaction. At the end of the day people want piece of mind. which in turn weaken their commitment. STRATEGIES FOR IMPROVING COMMITMENT: One of the main reasons why many companies have miserably failed in their improvement programmes and wasted millions of dollars is their fallacy to discount the importance of human resources. 5. I 30 . Negative working environment:Non-acceptance by colleagues. Managing by intimidation:Mistreating people. which if not available in the work environment will discourage them to show total support to its company. If the employee feels that he/she can lose his/her job anytime then they would not be committed towards the achievement of the company. 6. TQM. supervisors and other people in the company can also hamper commitment. McCarthty has identified managing by intimidation as one of the seven ways which undermine employees loyalty. automation. and other negative behaviors by colleagues. poor cooperation too much politics. 4. Commitment is an attitude and those who lack it will find it difficult to totally commit themselves to their jobs. Negative attitude:Some people by nature are not committed to anything and anyone and as such they would not be committed to their employer. In a best seller book “ The Loyalty Link” Dennis G.
The system should include both material as well as psychological rewards. As a result the empire created by Genghis Khan was the largest Land Empire ever created by anyone in the history of mankind. REWARD AND RECOGNITION: Top on the list of strategies for gaining total commitment from employees will be a proper reward and recognition system. is the growth opportunities provided by the company. After defeating them he would assimilate them into his army. Growth and development is an inborn need of human beings and reaching there is everyone’s desire.have developed a 10 points strategy which could result in the improvement of employees commitment. promotion. one of the main reasons being his policy to positively reward and publicly recognize those who showed better results. This is the main why everyone works and once this is properly given to an employee he will be motivated to invest more in his/her job. Employee’s perception of the reward and recognition can also affect their commitment. Indians and other ethnic races. These points are: 1. meaningful and worthwhile job. and learning culture enable employees to grow and develop. 31 . How can companies provide growth opportunities for their employee? There are many ways. Genghis Khan’s army in addition to Mongols also included Chinese. PROVIDE GROWTH OPPORTUNITIES: Another powerful weapon. Providing opportunities for assuming greater responsibility. value-added job. which a company can adopt to help its employees grow. which can cause deeper commitment among employees. 2. Reward begets commitment and the bottom-line for any employee to work is to earn proper reward and recognition. Genghis Khan one of the greatest emperors in the history is well known for effectively using this strategy even for gaining loyalty from defeated enemies. Once they recognize that the growth of the company will result in their own growth they will be more than willing to put in committed efforts. However never ever these people revolted against him. This proves that a barbarian and brutal person like Chenghis Khan also knew the importance of reward and recognition as one of the key factors for winning commitment and loyalty from others.
The company achieved enormous results. In turn they will always try to prove him right by doing whatever is necessary. They are also required to describe how they would commit themselves towards the achievement of these visions. The exercise requires the participants to write in their own words what they would like their organisation and department to become in year 2000. and using your brains for free. It is amazing to note that most of the times. People will act if they know and can visualize what they are supposed to achieve. a pacemaker manufacturing company. not only senior managers but also employees at supervisory levels come up with excellent visions and 32 . In 1989 on a consultancy assignment I was attached to Medtronic’s International Holland. PROVIDE VISION AND GET IT SUPPORTED: Commitment can not be achieved from people if they do not know the answer to the basic question “Commitment towards what?”. 4. the general manager Mr. An effective leader will motivate people by giving them a vision of what they can become.3. and how they can transform their organisations. You are very capable people because each one of you has this excellent asset. A good manager respects people at all levels and this respect communicates to them that the manager has a high opinion of them and their potential. During some of the training programmes I conduct an exercise called “Vision 2000 for my company”. Frank Sprenger addressed them and said “We are very lucky to have you in this factory paying only for your two hands. RESPECT AND BOOSTING SELF ESTEEM: Whether a person is a sweeper or a chairman they equally need respect. That time the company had initiated a major organisational improvement programme involving quality teams. In one of the meetings while talking to the factory workers who were involved as teams. We would highly appreciate if from today onwards in addition to your hands you also use this greatest asset for bringing new ideas and suggestions on how we could improve our performance” I could see the light of joy and pride in their eyes. In view organisations and its leaders must provide a compelling vision of the future for its employees. This experience exemplifies the fact that people when respected will do their best to attain success for any project or company plan. As a result they committed with their hearts and souls and did make the project a total success. They really felt great and respected.
People will give their best shots once they are clear about rewards-as they say people work for their reasons not ours. being responsible to employees needs and sharing the benefits. PROVIDE GOOD WORKING ENVIRONMENT: Today most of the working people spend their major portion of time at work. meaning something worth the extra effort and sacrifice. career advancement or shareholdings. incomprehensible by a common person is good as a showpiece on the wall. where they are happy to work with others. 5. From morning to late evening people late evening people work in their workplaces and when return to their houses they feel dead tired. It could be due to the fact that people are vision directed. cooperation. shared and supported by everyone in the company. 6. It is necessary to note that a vision is a group effort and it must be communicated. but if the achievement of results is aimed the vision should be articulated in simple terms and layman terminology. Towards this end a good manager will also try to make the company vision compatible with the employees’ individual visions and dreams in life. adequate training and other inputs needed by the people for successfully performing their jobs. They also sincerely want to achieve the attainment of the visions. This means that employers in order to expect support from employees should first initiate it in terms of leadership by example or self-commitment. A good vision should be challenging. One major factor which employees would highly appreciate is the existence of a congenial working environment. friendship with colleagues and 33 . This also means providing proper tools and equipment. MUTUAL COMMITMENT: The only way to restore employees’ commitment is to restore employers’ commitment. better working conditions. As such every organisation must provide a clear vision to its people. Teamwork. Additionally employees must be also helped to align their actions towards the achievement of the vision. Writing a vision. Challenging your employees to create new standards of excellence produces powerful and positive results.ideas. A vision should also be articulated in simple and easy to understand language. It could be done through showing employees how the achievement of the organisation will contribute to their lives in the form of increased salaries.
and mutual respect are some of the signs of a good working environment which attract employees and retain them to stay longer with a company. In order to gauge the effectiveness of such programme Hoechst carried out a survey of more than 3000 employees. authority. Hoechst Celanes USA an affiliate of the Hoechst Group one of the largest producers of pharmaceuticals have started a programme. 8. 9. WORK/LIFE BALANCE: Helping employees to achieve a better balance between their work and personal lives is another key factor most likely to encourage people to stay with an organisaiton. and do not meet the requirements of the jobs they are hired for. freedom and responsibility to carry out their jobs. which can result in better commitment and loyalty. 7. too much politicking. HIRING THE RIGHT PEOPLE: One of the worst mistakes companies make is hiring wrong people. Many other identical studies have 34 . lack job competence. and other negative practices discourage people to work with a company unless they have no other place to work in.bosses. which enable employees for balancing. work and family responsibilities have a positive impact on employees’ decision to stay with them. Wrong people include people possess negative attitudes. Empowerment leads to greater job satisfaction and sense of control. To sustain a good pool of committed employees companies need to give due diligence to recruiting new people. back biting. which binds employees together and with the organization. turf wars. This gives them a sense of control over their work and makes them feel worthy of doing things on their own. Many studies have revealed that work life balance is one of the main concerns of employees. As such good working environment will serves as the mortar. In contrast. EMPOWERMENNT: Empowerment means giving people the power. which aims at achieving this objective. Organizations. The study clearly revealed that the Hoechst programme was highly appreciated and well received by the employees and served as one of the major factors for employees to continue working with the company.
also confirmed the importance of work life balance as a factor to enhance employees’ loyalty. Like they say “A friend in need is a friend indeed”. These gestures will normally be reciprocated by employees in the form of enhanced commitment to their employers. Depending on situations things like visiting employees when they are sick. 10. 35 . are some of the out of the way things which managers could do for their employees. or support through depression etc. OUT OF THE WAY HELP: One of the highly appreciated things especially in eastern culture is the out of the way help people receive from their employers and managers. attending their relatives’ weddings and funerals.
RESEARCH METHODOLOGY 36 .
preferences of the employees and the procedure that the company offers to cater to those needs. c. i. This thesis will help to understand the commitment level of employee with respect to the needs.RESEARCH METHODOLOGY a. Objective II: To analyze the various way which orient craft increase there employee commitment level. Title: Commitment level of employees in orient craft ltd. Objective Objective I: To assess the nature of current employee engagement and commitment towards work in orient craft. demands. In this cut throat competitive era it is important for the employer to design and deliver their service very effective manner and employee is contributing most of it. Title Justification Keeping in mind the above considerations. Scope of the Study Export industry is growing at a very fast pace. Employee commitment is a human resource tool surrounded with many misconceptions and hence a employer has to create awareness. 37 . b. The thesis would highlight the problems within the industry. employer has to understand the needs of the untapped employees and there commitment level towards work. the purpose of this project report is to enable the employer to understand employee’s needs and maximise there commitment towards work taking Orient craft as a special case.
skills and abilities. from this perspective. HR Manager.d. and thus foster superior employee affective commitment due to satisfied experience with the organization. With respect to data collection. Research Design Data has been collected through one to one interaction and discussion with various people who are involved in the company of orient craft. but conversely. promotion from within. e.g. such analogy may sometimes be deceiving or unreliable. Significance of the Study This research intends to investigate the relationship between high-commitment HRM practices and affective commitment through the mediating mechanism of employees’ perceptions of high-commitment HRM practices. we reason that HRM practices in its influential process to employee affective commitment. Magazines and Journals would 38 . will first impinge on its member’s perception of organizational HRM practices and subsequently further modify or change their affective commitment towards the organization. it would be reasonable to assume that such implementation could enhance workers’ knowledge. high level of compensation. socialization. operation manager and others. employees’ individual perception plays as a critical mediator in the relationship between organizational HRM practices and the actual revelation of employee’s attitudes and behaviors. Internet. Although some employees may consider this training as helpful and acknowledge the implementation of organizational HRM practices. nevertheless. and then. other workers may perceive the program as non-effective and regard it as a burden that impede their routine work schedule. intensive training and development. Newspapers. via the implementation of highcommitment HRM practices. employees. hence brought down their satisfaction with the organization and degraded their commitment. it will make the employees be convinced that the organization’s intention conforms with their perceptions. Hence. For example. they will reciprocate with higher commitment and stronger submission to devote and contribute for the organization e. For that reason. Consequently. if an organization conducted a training program in the workplace.
39 . newspaper. Primary Data has been collected through discussions and observation of various people involved in the business whereas Secondary Data through annual reports of the company. Limitation Also for human resource Practice Company are not sharing more internal information either on internet or ready to give. Sampling chosen with the Random method Sample Size: 100 g. f. ii. magazines. Interaction with employee and HR manager during such activities would enable to understand the success ratio of such kind of activities. Orient organizes various activities to boost its employee moral and commitment. Sampling Methodology i. journals and internet.provide ample material about latest trends and practices in employee commitment.
FACTS AND FINDINGS 40 .
What is your position within the company? (a) Middle Management (Manager.) (b) Senior Management(Above than General Manager) (c) No answer (d) Other (e) Executive Grade Middle Management Senior Management No Answer Other Executive Survey Result 20% 25% 0% 15% 40% 41 . Senior Manager. General Manager.FINDING AND ANALYSIS 1.
For how long do you work for your company? (a) Less than 3 months (c) Between 6-12 months (e) Between 3-5 years (g) No answer Grade Less than 3 months Between 3-6 months Between 6-12 months Between 1-2 years Between 3-5 years More than 5 years No answer Other (b) Between 3-6 months (d) Between 1-2 years (f) More than 5 years (h) Other Duration of Tenure 17% 16% 12% 14% 28% 8% 2% 3% 42 .2.
3. How was the initial training in your company? (a) Well below expectations (c) Above expectations (e) Other Grade Below Expectations Meets Expectations Above Expectations No Training Other Training in the company 19% 28% 20% 14% 19% (b) Meets expectations (d) No training 43 .
001-30. What is your Salary monthly? (a) Between 15.000 (f) I prefer not to answer Grade 15000-20000 20001-25000 25001-30000 30001-35000 Above 40000 Not Answer Other No answer Salary 10% 9% 26% 14% 28% 8% 3% 2% 44 .000-20.001-25.000 (d) Between 30.000 (g) Other (b) Between 20.003001-35.000 (c) Between 25.000 (e) Above 40.4.
This organization has a clear focus and sense of direction for the employee commitment.5. (a) Strongly Agree (c) Disagree Grade Strongly Agree Agree Disagree Strongly Disagree (b) Agree (d) Strongly Disagree Direction of future 28% 38% 14% 20% 45 .
6. According to you working with orient craft do you have work commitment level ? (a) High (c) Moderate (b) Low (d) Very Low Grade High Low Moderate Very Low Direction of future 68% 8% 14% 10% 46 .
What type of performance appraisal system exit in your organization? (a) Confidential Report (c) DOPA (b) EPRF Grade Confidential Report EPRF (Employee Performance Appraisal Review Form) DOPA (Development Oriented Performance Appraisal) Survey Result 0 73% 27% 47 .7.
8. How do you find the work commitment of the employees in your organization? (a) Fair & Justified (c) Comforting (e) Stressful (b) Motivating (d) Biased Grade Fair & justified Motivating Comforting & Supportive Biased Stressful Work Commitment 37% 16% 26% 5% 16% 48 .
(a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Disagree Grade Strongly Agree Agree Disagree Strongly Disagree Employee Motivation 39% 40% 12% 9% 49 . In responding to Appraisal.9. the leadership team does a good job of keeping employees motivated.
Employees are actively involved in planning and implementing so as to increase commitment level of employees (a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Disagree Grade Strongly Agree Agree Disagree Strongly Disagree Involvement of Employee 28% 39% 20% 13% 50 .10.
DATA ANALYSIS AND INTERPRETATION 51 .
) (b) Senior Management(Above than General Manager) (c) No answer (d) Other (e) Executive Interpretation: Our survey result contributed out of 100 people 20 % people are working in cedar to Middle management also 25% respondent from ORIENT CRAFT working as a senior management major chuck which contributed in our survey is executive i. Other signifies a junior level of employee in ORIENT CRAFT. Senior Manager. 40% .DATA ANALYSIS AND INTERPRETATION 1. General Manager. What is your position within the company? (a) Middle Management (Manager.e. 52 .
53 .We taken this ratio because for change management decision mostly taken by the senior management and then after it adding on affect to the junior or middle management people to became a change management subject.
While 8% respondent said they working with ORIENT CRAFT more than 5 years ORIENT CRAFT is very reach in terms of the work culture .2. Adding to this 17% respondent working with ORIENT CRAFT is more than of 3 months which is basically junior management also 16% said they working with ORIENT CRAFT is more than with range of 3-6 Months.14% respondent said they working with ORIENT CRAFT last 1-2 Years. 54 . For how long do you work for your company? (a) Less than 3 months (c) Between 6-12 months (e) Between 3-5 years (g) No answer (b) Between 3-6 months (d) Between 1-2 years (f) More than 5 years (h) Other Interpretation: Out of 100 people for our survey 28% people responded that they serving to ORIENT CRAFT are more than 3 years but there work tenure is less than of 5 years. 36% people are working with ORIENT CRAFT is more than of 3 year which shows great stability among the employees.
3. 55 . How was the initial training in your company? (a) Well below expectations (c) Above expectations (e) Other (b) Meets expectations (d) No training Interpretation: Asking this question means to judge the training need in ORIENT CRAFT company . out of 100 people 20% respondent said they thing training which they got in ORIENT CRAFT is above than expectation. 19% people said the training which they got is below the expectation and 14 % respondent said they didn’t got any training in ORIENT CRAFT . And n 28% respondent said training given by the ORIENT CRAFT is meeting their requirement.
56 .4.000-20.003001-35.000 (f) I prefer not to answer Interpretation: Salary break up shows the employees which contributed in our survey at what range of their salary 28% respondent said there salary range in between of 20000250000.001-30.001-25.000 (c) Between 25. Hence ORIENT CRAFT is an average paymaster because 87% people responded that their salary is more than 10000 per month.000 (e) Above 40. and 26% respondent said there salary range is 25001-30000 also 14 % people said there salary range would be more that 30000-350000 per month.000 (g) Other (b) Between 20.000 (d) Between 30. What is your Salary monthly? (a) Between 15.
But 14 % people said they disagree with a views of ORIENT CRAFT that they has clear focus towards employee commitment but the 20% people as our respondent are strongly disagree with the statement that ask ORIENT CRAFT has a clear focus and sense of direction or not.5. According to our survey result out of 100 people which is our sample size said 28% people are strongly agree with this views that ORIENT CRAFT a clear focus and sense of direction for the future. Recommendation for ORIENT CRAFT would be the first identify 34 people who are not agree about a clear focus and sense of direction employee commitment. 57 . (a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Disagree Interpretation: This question brief us about the organization has a clear focus and sense of direction for the employee commitment or not so this determine the value of the company which says sharing thought with the employees is there or not. And 38% people agreed with this views that ORIENT CRAFT has cleared focus towards the future direction. This organization has a clear focus and sense of direction for the employee commitment.
58 . am worried about getting laid off anytime.” has been revised as “I.”. the item “Employees at this salon are worried about getting laid off anytime. at this salon. For example. According to you working with orient craft do you have work commitment level ? (a) High (c) Moderate (b) Low (d) Very Low Direction of future Very Low 10% Moderate 14% Low 8% High 68% Interpretation: This part of questionnaire mainly are derived from the “highcommitment HRM practices”. our approach is to make wording amendments in accordance to the corresponding respondent’s perspective.6.
out of 100 persons 92% says EPRF and 2 says DOPA. And percentage wise classifications are shown in following diagram 59 .7. Here. What type of performance appraisal system exit in your organization? (a) Confidential Report (c) DOPA (b) EPRF Interpretation: Above diagram shows Which type of performance appraisal system exit in orient craft.
8. 16% of the employee suggested that stressfull. How do you find the work commitment of the employees in your organization? (a) Fair & Justified (c) Comforting (e) Stressful (b) Motivating (d) Biased Stressful 16% Biased 5% Comforting & Supportive 26% Fair & justified 37% Motivating 16% Interpretation: As per our data suggested that 37% of the people said work commitment toward there work is fair and justifies while 26% of the people suggested that comforting & Supportive work culture follows by the orient craft. 60 .
the leadership team does a good job of keeping employees motivated. the leadership team does a good job of keeping employees motivated. And 40% people agreed with this views that Orient craft In responding to Appraisal. In responding to Appraisal. the leadership team does a good job of keeping employees motivated 61 . We determine what employee perception about the organisations is According to our survey result out of 100 people which is our sample size said 39% people are strongly agree with this views that Orient craft In responding to Appraisal. (a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Disagree Interpretation: This question brief us about the in responding to when Appraisal us happened. the leadership team does a good job of keeping employees motivated adding on this 9% people as our respondent are strongly disagree with the statement that when Appraisal us happened. the leadership team does a good job of keeping employees motivated But 12 % people said they disagree with a views of when Appraisal us happened. the leadership team does a good job of keeping employees motivated.9.
According to our survey result out of 100 people which is our sample size said 28% people are strongly agree with this views that ORIENT CRAFT are actively involved in planning and implementing Appraisal and people thought they involved in the Appraisals that happened.10. And 39% people agreed with this views that ORIENT CRAFT are actively involved in planning and implementing Appraisal and people thought they involved in the Appraisals that happened But 20 % people said they disagree with a views of ORIENT CRAFT didn’t want him/his actively involved in planning and implementing Appraisal and people thought they involved in the Appraisals that 62 . Employees are actively involved in planning and implementing so ti increase commitment level of employees (a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Disagree Interpretation: This question brief us about the employees of ORIENT CRAFT are actively involved in planning and implementing Appraisal so this we determine how employee contributed to the ORIENT CRAFT with their mindset And what is their involvement to formulation of any Appraisals in their organisation.
happened adding of this the 13% people as our respondent are strongly disagree with the statement that ORIENT CRAFT didn’t want him/his actively involved in planning and implementing Appraisal and people thought they Recommendation for ORIENT CRAFT would be they may continue with this management thought because more than 68% respondent is has strong believed that ORIENT CRAFT are actively involved in planning and implementing Appraisal and people thought they involved in the Appraisals that happened but ORIENT CRAFT need to focus on 33% of the respondent which says no ORIENT CRAFT doesn’t Appraisals in organization because ORIENT CRAFT leadership team is not open for different ideas and opinions issues for different level of employees 63 .
CONCLUSION 64 .
they found that the dearth of research aimed at understanding how multiple (or systems of) HRM practices impact individuals within the organization. data collected from micro/individual level (employee perceived HRM practices) but are used for generalizing/inferring to the macro/organizational level (organizational HRM practice). First. Therefore. this assumption is tenuous. Second. functional HRM research may violate the so-called atomistic fallacy. However. 1987. Following the gradual advancement in theory and empirical research.CONCLUSION Since the early 1980s. 2000). based on the deficiency of the prior research. Mathieu & Zajac. in this review paper. from the micro perspective. Wright and Boswell (2002) provided a review and synthesis of micro and macro human resource management research. but given our knowledge of individual differences. we will 65 . First. we aim to find out the “causal gap” concept by testing the cross-level mediating effects of employees’ perceptions of HRM practices on highcommitment HRM practices and employee organization commitment. the field of HRM has undergone the independent evolution of two distinct subfields. strategic HRM research assumes practices impacting groups of people rather homogeneously. the strategic-macro and the functional-micro terrain. in this study an attempt is made to make up for the past shortcoming in the causal linkage between high-commitment HRM practices and employees’ affective commitment and supplement with a more appropriate statistical method to conduct the causal reasoning. when discussing over the causal relationship between this two constructs. but such analysis results seemed exposing some deficiencies. from the macro perspective. namely. The concept of organizational commitment has been investigated and proved as consequences of HRM practices in many studies (DeCotiis & Summers. One of the possible causes to such deficiency may be due to the inadequacy of statistical method often encountered by multilevel type of researches. Interestingly. Second. This study has two purposes. past researches often approach this topic simply from the micro.or macro– only perspective.
take advantage of hierarchical linear modeling (HLM) which can provide a statistical mechanism for investigating and drawing conclusions regarding the influence of phenomena at different levels of analysis in order to make a more proper causal interpretation.
Commitment of employees plays a key role in helping organizations achieving excellence. On the other hand non-committed and disloyal employees can ruin grand plans and hamper strategies for achieving excellence. It is thus extremely important that companies give more attention to fostering commitment in their employees. By removing roadblocks which retard employees’ commitment and incorporating conditions and adopting positive strategies for instilling commitment companies can achieve great results. The ten points strategy proposed in this presentation if properly implemented and honestly deployed could prove a very powerful weapon for achieving excellence. According to the 1999 Gallup Poll, the four elements that have proven to be effective in creating employee loyalty are praise and recognition, a sense of contribution to the company, learning and development and having a best friend at work. Creating a fairy-tale work environment begins with recognition. Your employees need it more than money, perks or titles. Here are eight tips regarding recognition. Remember these, and your employees may just start whistling while they work. It is up to me. The corporate culture or financial rewards will not make your team successful. It is up to you. Recognition is one thing that is completely in your control. Strong relationships are vital in today's economy. Strengthening employee relationships is even more necessary as companies downsize and lay off. As your workforce shrinks and you need to do more with less, keeping quality employees becomes even more critical. As a manager, it is your job to bond your best people to your company through recognition. And you also must help direct and motivate your "core" performers. Simple rewards earn big returns. There are some relatively simple things you can do that will earn big returns. For example, remember your employees' birthdays and work anniversaries; find out what inexpensive rewards they value (for example, tickets to a ball game or a half day off to spend time with their kids); make the most of your formal service awards with some preparation and a group presentation; walk around your department every day and talk to your people and thank them sincerely and often.
Make it specific. Praise and recognition must be specific to have impact. General praise such as "You do great work," actually can have the opposite effect and leave your employees wondering, "Does he have any idea what I really do around here?" Specific praise links individual accomplishments to company goals. For example, "Cheryl, I noticed the way you handled that customer complaint. Great work. As you know, we value quick resolutions of problems as one of our core strategies." Ask the best to stay. Call your best people into your office one at a time. Let that bright young college graduate know you value his fresh ideas and energy. Tell the 20-year veteran how much your team relies on her expertise and organizational skills. Remarkably, a significant percent of high-impact performers report that they left their last job because, "No one ever asked me to stay." Forget cash.. Remember the saying, "Money can't buy everything?" Well, it's true. Don't wait until you can offer an employee a raise or promotion. Real thanks is its own reward. In numerous surveys of work satisfaction, top on employees' lists is "feeling appreciated." In fact, when employees feel recognized and involved, they are much less likely to keep asking about money. Recognize. Recognition means most to an employee when it is sincere and spontaneous. According to the largest study ever conducted on workplace satisfaction (Gallup, 1999), recognition should occur at least every seven days. If you wait until a year-end party or an annual review, you are waiting much too long to recognize and you probably are losing people you do not need to. Recognition works. Neglect can be a poisoned apple. Recognition is the elixir that will spark better attitudes and performance. Jeffrey Pfeffer of Stanford University says, "The returns from managing people in ways that build high commitment ... typically are on the order of 30 to 50 percent." Take a hard look in the mirror and ask yourself how you can recognize the fairest of them all. Learn to recognize your employees for their efforts, thank them often and reward their achievements. You can awaken them from their anger and apathy and they will fall in love with their jobs again. Chances are, you will work together happily ever after.
BIBLIOGRAPHY 70 .
Human Relations. 40. DeCotiis. CA: Sage.com 71 .com 2. P.W. T. Harvard Business Review c) Magazine: 1. 23(3): 267-285. S. Newbury Park. Sites: 1. b) Journal Referred to: 1.com ii.blonnet. Business World 3.S. P. & Chen. www. S. Z. & Raudenbush. 2.. S..superbrandsindia. Business India 2. T. 445-470. (2002) Trust as mediator of the relationship between organizational justice and work outcomes: test of a social exchange model. 3. X. Search Engines http://www. A. & Summers. Journal of Organizational Behavior. (1992) Hierarchical linear models. (1987).google. www. Aryee. A. Bryk. Budhwar. A path-analysis of a model of the antecedents and consequences of organizational commitment.BIBLIOGRAPHY a) Books Referred to: 1. Gloom d) Internet: i.
ANNEXURE 72 .
ANNEXURE 1.000 (g) Other (b) Between 20.) (b) Senior Management(Above than General Manager) (c) No answer (d) Other (e) Executive 2.000 (c) Between 25. This organization has a clear focus and sense of direction for the employee commitment.003001-35. For how long do you work for your company? (a) Less than 3 months (c) Between 6-12 months (e) Between 3-5 years (g) No answer 3.000 (d) Between 30. What is your position within the company? (a) Middle Management (Manager. What is your Salary monthly? (a) Between 15.000 (f) I prefer not to answer 5. (b) Between 3-6 months (d) Between 1-2 years (f) More than 5 years (h) Other How was the initial training in your company? (a) Well below expectations (c) Above expectations (e) Other (b) Meets expectations (d) No training 4. General Manager.000 (e) Above 40. 73 .000-20.001-25. Senior Manager.001-30.
(a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Disagree 74 .
Employees are actively involved in planning and implementing so ti increase commitment level of employees (a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Disagree 75 . In responding to Appraisal. How do you find the work commitment of the employees in your organization? (a) Fair & Justified (c) Comforting (e) Stressful (b) Motivating (d) Biased 9. According to you working with orient craft do you have work commitment level ? (a) High (c) Moderate (b) Low (d) Very Low 7.6. the leadership team does a good job of keeping employees motivated. What type of performance appraisal system exit in your organization? (a) Confidential Report (c) DOPA (b) EPRF 8. (a) Strongly Agree (c) Disagree (b) Agree (d) Strongly Disagree 10.