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International Journal of Research in Management & ISSN : 2348-6503 (Online)

Vol. 3 Issue 2 Apr. - Jun. 2016


Business Studies (IJRMBS 2016) ISSN : 2348-893X (Print)

Workers’ Satisfaction toward RMG Industry in Bangladesh:


A Study on Dhaka and Gazipur City
I
S.M. Akterujjaman, IIMd. Herok Ahmad
Assistant Professor, Department of Business Administration,
I

BGMEA University of Fashion & Technology (BUFT ), Dhaka, Bangladesh


II
Lecturer, Department of Economics, Asian University of Bangladesh, Dhaka, Bangladesh

Abstract
The purpose of this paper is to measure the level of satisfaction of the workers toward readymade garment (RMG) industry in
Bangladesh. The study surveyed 150 workers from 24 garment factories situated in different locations of Dhaka and Gazipur
areas to determine the key influential factors that significantly influence on their level of satisfaction. These workers were surveyed
through convenience sampling method with structured questionnaire from February to March 2016. After collection of primary
data, hypotheses were formulated and one sample T-test was used to test the hypotheses with 0.05 level of statistical significance.
For assuming the characteristics of data, demographic analysis, descriptive analysis and interpretations were drawn on the basis
of percentage frequency, calculated mean, standard deviation (SD). In addition, empirical analyses were depicted by coefficient of
variation (CV). The recommendations were provided based on the research findings and analysis.

Keywords
Workers’ satisfaction, Readymade garment (RMG), Bangladesh, BGMEA

I. Introduction city.
The readymade garments (RMG) sector is the oxygen of 3. To propose the ways to mitigate the dissatisfaction of RMG
Bangladesh economy. The RMG sector is leading foreign currency workers in Bangladesh.
earner of the country that received more than three fourth (about 4. To provide a set of recommendations and suggestions with
81.32%) of total export earnings (Bangladesh Bank, 2015). a view to improving workers’ satisfaction toward the RMG
This RMG sector is connected with the world economy through industry in Bangladesh.
export, import and commodities marketing. The RMG sector
circulates the Bangladesh economy. After the liberation period, III. Hypotheses of the Study
Bangladesh economy depended on raw jute and jute products, Research hypothesis is an unproven statement, which helps the
when jute industry fallen then RMG sector come in first place researcher to draw the Suggestion on his hypothetical assumption
by replacing jute industry. Bangladesh first exported RMG goods whether it is true or false based on some specific statistical tests
to USA in 1978; then Reaz Garments exported only US$ 69,000 (Akterujjaman, 2010). Based on the objectives of the study, the
(Latifi, 2015).These industry played the vital role in employment following hypotheses in table 1 (at 95% confidence level) are
generation and proper distribution of income. Workers satisfaction developed, which are to be tested.
means measure how the workers are satisfied toward their job and
working environments. When the workers are mentally satisfied Table 1: Developing Hypotheses for Different Factors
the company can be benefited from them. Many components are Sl. Null hypothesis Alternative
involved to satisfy of workers, if it would be properly implemented, Factors
(H0) hypothesis (Ha)
workers will be satisfied. It is also related to the co-worker,
management, attitude, working conditions, work policy, wages, 1. Work Place
x wp= 0 x wp≠ 0
holiday and so on. Bangladesh is labor intensive country, where
the low labor wage comparing with other exporting countries per 2. Working hours
month BDT 5300 (Bangladesh Govt’s additional Gazette, 2013). x wh = 0 x wh≠ 0
In Bangladesh there are 4222 garments factories and about 4 3. Holidays
million employees engaged in RMG sector, 85 percent of which x hf = 0 x hf≠ 0
is women. According to BGMEA, 30 percent capacity of RMG
4. Wage provide in
sector is unutilized due to lack of skilled labor force. Since 2005 x wprt = 0 x wprt≠ 0
Right Time
employment in RMG sector increases from 2 million to 4 million
in FY 2014. As well as number of active factories increases from 5. Provide
Incentives x =0 x pi≠ 0
4107 to 5600 in 2012-13 (Bangladesh Bank, 2015). pi

6. Meal Allowance
II. Objectives of the Study x ma
=0 x ma
≠0
The main purpose of the study is to measure the level of job 7. Provident Fund
satisfaction of workers in different garment factories in Bangladesh, Facilities x pff = 0 x pff≠ 0
whereas, the specific objectives are as follows:
8. Medical
1. To identify the factors those are affecting the satisfaction x =0 x mi≠ 0
Allowance mi
level of workers.
2. To assess the perception and satisfaction of the workers
toward the selected garment factories in Dhaka and Gazipur

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22
ISSN : 2348-6503 (Online) International Journal of Research in Management &
Vol. 3 Issue 2 Apr. - Jun. 2016
ISSN : 2348-893X (Print) Business Studies (IJRMBS 2016)

9. Discipline & Zahid (2012) examined the socio-economic deprivation and


x dis
=0 x ≠0
dis garment workers movement in Bangladesh by using both primary
10. Annual and secondary data. They looked at worker rights and fringe
Increment x ai = 0 x ai≠ 0 benefits in terms of workers job status, training facilities, form
trade unions, medical allowance, transport facilities, and maternity
11. Transport
x tf = 0 x tf≠ 0 leave. Bhuiyan (2010) focused on the increase in productivity and
Facility
profit that is bases of workers satisfaction in the garment industry
12. Housing Facility of Bangladesh. Workers participation in the decision making helps
x hf = 0 x hf≠ 0
workers to understand their goals and responsibilities in the factory
13. Training as well as its importance in operating the enterprise in the future.
Facilities on x tfj = 0 x tfj≠ 0 Akterujjaman (2013) studied on satisfaction of garment workers
Joining that is related to the productivity of the employees. He found
that when the workers are more satisfied productivity and profit
maximization will be high. As a result export performance of
IV. Literature Review RMG sector in Bangladesh is increasing which emphasis on the
Absar, S. S. (2009) found that RMG sector of Bangladesh got development of the economy.
tremendous development in the world, though the wage pattern was
not satisfactory to the employees. Though most of the employees
are women but they are working in the bottom level management V. Research Methodology
such as helpers, machinists and less frequently as line supervisor Research methodology is the most important part of any study.
and quality controllers, whereas most of the man are working in This section contains study population, study area, data collection,
the top management. Islam &Chowdhuri (2012) aimed to identify sample size, allocation of sample and calculation. The study has
the socio-economic status of the garment workers in Bangladesh been done on the basis of the following methodology:
that are related to the improvement of workers housing conditions, a. First of all, an intensive literature review has been made.
education, health and sanitation and favorable service role for the The literature included books and journals related workers
women workers. Khatun&Shamsuzzaman (2015) focused on the satisfaction toward RMG industry in Bangladesh.
job satisfaction of RMG industry in Bangladesh by reviewing on b. The total number of sample for this study was 150 which
working conditions of employees and failure of existing labor were drawn from 24 garment factories situated in different
laws. The study found that the workers in AKT group are satisfied locations of Dhaka and Gazipur area using convenience
with working environment, health facilities, female workers, and sampling technique. Dhaka and Gazipur region was selected
overtime benefits. On the other hand, workers are dissatisfied with as research area because of researchers working place is
wages, environment of present residence, behavior of immediate in Dhaka and it is convenient for the researchers to collect
superior and so on. Ahamed (2013) in his study found that the data by self-financing. Data was collected during February
working conditions of RMG sector in Bangladesh are poor and to March 2016.
facing challenges regarding social compliance. These include c. A self-constructed questionnaire was administrated to
RMG sector’s inadequate application of labor standards, and collect primary data considering the objectives of the study.
labor rights, law and enforcement, effective bargaining facilities. The respondents were personally questioned and the
His study revealed that fair labor practices and government and questionnaires wear filled in by the interviewers based on
entrepreneurs’ role in the decent work implementation is necessary. the responses of the respondents.
Ahamed (2014) discussed that job satisfaction is an important d. The following factors were related in workers satisfaction of
element in all category of businesses, such as commercial RMG industry in Bangladesh. Those are work place, working
organization, government and non-government organization, and hour, holiday, wage provide in right time, provide incentive,
private sector as well as manufacturing industries. It is observed meal allowance, provident fund facilities, medical allowance,
that satisfied worker is more likely to be creative, flexible, job termination, transport facilities, housing facilities, annual
innovative, dynamic, risk taker, and loyal to the company. So it increment discipline, and training.
can be said that it is right way needed to satisfy the employee to e. Simple statistical techniques like frequency distribution,
get the best output. Farhana, et al. (2015) studied about wages percentage frequency, mean value, standard deviation,
level, age group, gender, family life, living standard, and working coefficient of variation and hypothesis testing were used
hours of worker’s in the RMG industry of Bangladesh. Having to analyze the collected data.
high demand the garments of Bangladesh in the international
market and to capture this market, improvement is needed in VI. Empirical Findings and Analysis
some areas like labor wages, business climates, trade logistics, An analysis is generated from the questionnaire to achieve the
improvement compliance, and skills of workers. Chowdhury objectives of the study. In order to analyze the collected data
&Ullah (2010) depicted the conditions of female workers from a 5-point Likert type scale has been used, where 5 stands for
social and economic perspectives and recommended that to highly satisfied workers, 4 stands for satisfied workers, 3 stands
achieve female workers satisfaction improvement in the prevailing for neutral workers, 2 stands for dissatisfied workers, and 1 stands
socio-economic facilities is highly needed, which will bring for highly dissatisfied workers. Several judgments were made
ultimate success of RMG sector in Bangladesh. Alam& Kamal from the responses of workers to validate the objectives of
(2006) studied to measure the overall job satisfaction of female the study. The results of different tests are presented below:
workers and to identify factors contributing to job satisfaction
or dissatisfaction in the garment factories in Dhaka city. Islam

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International Journal of Research in Management & ISSN : 2348-6503 (Online)
Vol. 3 Issue 2 Apr. - Jun. 2016
Business Studies (IJRMBS 2016) ISSN : 2348-893X (Print)

1. Demographic Characteristics of the Respondents respondents are 27-32 years of age. Marital status shows that
The analyses of the demographic characteristics of the respondents majority of the respondents (66 percent) are married, on the other
are shown in table 2. hand, 34 percent workers are single who work in the garments
industry. Table 2 also reveals that 82 percent workers are in Below
Table 2: Demographic Characteristics of the Respondents SSC level of education and 9.33 percent respondents are in SSC
(N = 150) level. The highest numbers of workers (45.33 percent) are
Options/ Character- Fre- Per- Valid Per- operators, 25.33 percent workers are helper and 18.667 percent
istics quency cent cent workers work in finishing sector. The large number of workers
Sex monthly income level is 57.33 percent (5000-8000 BDT) and 23.33
percent workers earn per month (8000-11000 BDT).
Male 41 27.33 27.33
Female 109 72.67 72.67 2. Work Place
Total 150 100 100 The environment of the work place is very vital to get the best
Age output from the workers. Work place in the factory should be neat
and clean, safe and secured from any kind of hazard.
15-20 Years 43 28.67 28.67
21-26 years 55 36.67 36.67 Table 3: Satisfaction level of Work Place
27-32 Years 44 29.33 29.33 Satisfaction Fre- Per-
33-Above 8 5.33 5.33 Level quency cent Mean SD CV
Total 150 100 100 Highly
dissatisfied 3 2
Marital Status
Dissatisfied 3 2
Married 99 66 66
Neutral 26 17.3
Unmarried 51 44 44 3.946 0.809 20.501
Satisfied 85 56.7
Total 150 100 100
Highly satis-
Level of Education fied 33 22
Below S.S.C 123 82 82 Total 150 100
S.S.C 14 9.33 9.33
Source: Field Survey, February - March 2016
H.S.C 10 6.67 6.67
Undergraduate 3 2 2 Table 3 reveals that, out of 150 workers 56.7 percent are satisfied,
Total 150 100 100 22 percent workers are highly satisfied and 17.3 percent are
Worker Designation neutral regarding sufficient work place in garments industry i n
Bangladesh. So the scenery of Bangladesh RMG sectors follows
Cleaner & Security 9 6 6
the ILO rules. Maximum garments industry working place is clean
Cutter Man 3 2 2 and hygienic. Here the mean value is 3.946, which lie in u p
Supervisor 4 2.67 2.67 neutral category of workers’ responses. The standard deviation
Iron, quality & finish- (SD) and co-efficient of variation (CV) are respectively 0.809
28 18.67 18.67 and 20.501, which indicate the number of workers RMG
ing
Helper 38 25.33 25.33 sector in Bangladesh is get the proper work place. So, maximum
workers are satisfied toward their work place.
operator 68 45.33 45.33
Total 150 100 100 3. Working Hour
Monthly Income Set the work hour with all applicable International Labor
Below 5000 17 11.33 11.33 Organization (ILO) laws. Sometimes workers work in 12 to 15
hours when shipment is knocking at the door. It is the main reasons
5000-8000 86 57.33 57.33
for lack of proper planning. Usually they are neither satisfied nor
8000-11000 35 23.33 23.33 dissatisfied toward their working hours.
11000-14000 11 7.33 7.33
14000-Above 1 0.67 0.67 Table 4: Working Hour
Total Satisfaction Level Fre- Per-
150 100 100 quency cent Mean SD CV
Highly dissatisfied 2 1.3
Source: Field Survey, February – March 2016 Dissatisfied 21 14
Neutral 75 50
Table 2 shows the demographic characteristics of the 3.26 0.847 25.981
Satisfied 40 26.7
respondents. Out of 150 respondents, majority of the respondents
(72.67 percent) are female, where as 27.33 percent are male. Highly satisfied 12 8
About 28.67 percent of the respondents are in 15-20 years of age, Total 150 100
36.67 percent respondents are in 21-26 years and 29.33 percent Source: Field Survey, February - March 2016

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ISSN : 2348-6503 (Online) International Journal of Research in Management &
Vol. 3 Issue 2 Apr. - Jun. 2016
ISSN : 2348-893X (Print) Business Studies (IJRMBS 2016)
From table 4 it is found that majority of the workers (50 right time wage paid. On the table shown 20.7 percent workers
percent) were neutral and 26 percent workers were satisfied in are dissatisfied and 18.7 percent workers are highly satisfied
their opinion regarding working hour. On the other hand, only regarding wage provide in right time. The mean value is 3.26,
14 percent respondents were dissatisfied on the working hour. which is neutral category of workers satisfaction level. The value
The mean value of workers 3.56 is shown neutral position of of SD and CV are respectively 1.228 and 37.669 that indicate
workers satisfaction and the SD is 0.847, CV 25.981 respectively, the opinions of the workers are satisfied.
which indicate the option of workers satisfied toward the working
hours. 6. Provide Incentive
It is rear to provide the incentive to the workers of the RMG sector
4. Holidays in Bangladesh. The very interesting thing workers are does not
Bangladesh RMG Workers do not get holidays properly. Every about incentive. Incentive is related to production, if the factory
RMG factory do not follows ILO convention as it should be; provide incentive production will be increases and profit will
workers do not get adequate weekend, festival, government, and be maximize. So it is important factors for the RMG sector in
other holidays. Bangladesh.

Table 5: Holiday Benefits of Workers Table 7: Provide incentive


 Satisfaction Fre-  Satisfaction Fre-
Level quency Percent Mean SD CV Level quency Percent Mean SD CV
Highly dissatis- Highly
fied 17 11.3 dissatisfied 23 15.3
Dissatisfied 35 23.3 Dissatisfied 53 35.3
Neutral 31 20.7 3.087 1.198 38.808 Neutral 52 34.7
2.513 0.981 39.037
Satisfied 52 34.7 Satisfied 18 12
Highly satisfied 15 10 Highly
Total 150 100 satisfied 4 2.7
Total 150 100
Source: Field Survey, February - March 2016
Source: Field Survey, February - March 2016
Table 5 reveals that out of 150 workers majority of workers 34.7
(percent) showed their satisfied and 23.3 percent are dissatisfied From table 7, it is observed that the highest 35.3 percent workers
where the 20.7 percent workers were neutral position toward their were dissatisfied and 34.5 percent workers were neutral and 15.3
work holiday. Table shown that mean value 3.087 which is neutral percent workers were highly d i s satisfied regarding the provide
category of workers satisfaction level. Here the value of SD and incentive. The SD and CV are respectively 0.981 and 39.037,
CV represent 1.198 and 38.808 that indicate the opinion workers denotes that the opinion of the workers is dissatisfied. So, the
are satisfied. researchers can conclude that most of the time factories are not
provide incentive to workers. Workers are deprived their rights.
5. Wage Provide in Right Time So, the workers are dissatisfied regarding provided incentive to
Late wages payment is a common phenomenon in Bangladesh them.
RGM sector. As a result workers are does strike their works, but
this situation is overcome day by day. Maximum factories try to 7. Meal Allowance
provide wages in the right time. Bangladesh government play key In 5th December 2013 Bangladesh govt’s has published separate
role to provide wages in right time. Bangladesh is member of ILO wages structure for the RMG sector’s workers. According to the
and WTO, so the try follows those organization rules. gazette every factory will pay BDT 200 only per month as food
allowance. It is not enough for the workers. So, maximum workers
Table 6: Wage provide in right time are highly dissatisfied toward the meal allowance provided by the
Satisfaction Fre- Per- RMG factories.
Level quency cent Mean SD CV
Highly Table 8: Meal allowance
dissatisfied 13 8.7 Satisfaction Fre- Per-
Dissatisfied 31 20.7 Level quency cent Mean SD CV
Neutral 38 25.3 Highly
3.26 1.228 37.669 dissatisfied 53 35.3
Satisfied 40 26.7
Dissatisfied 38 25.3
Highly
satisfied 28 18.7 Neutral 34 22.7
2.3 1.278 55.565
Total 150 100 Satisfied 11 7.3
Highly
Source: Field Survey, February - March 2016 satisfied 14 9.3
Total 150 100
The above table 6 states that 26.7 percent workers were satisfied
and 25.3 percent w o r k e r s were neutral position for provide Source: Field Survey, February - March 2016

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International Journal of Research in Management & ISSN : 2348-6503 (Online)
Vol. 3 Issue 2 Apr. - Jun. 2016
Business Studies (IJRMBS 2016) ISSN : 2348-893X (Print)

Table 8 reveals that 35.3 percent workers were highly dissatisfied Table 10 reveals that 40 percent workers were highly dissatisfied
and 25.3 percent workers were dissatisfied about their meal and 30.7 percent workers were dissatisfied about their medical
allowance. On the other hand, 22.7 percent workers were neutral allowance. On the table shown 19.3 percent workers were neutral
concerning their meal allowance. The mean value is 2.3, which toward their medical allowance. The mean value is 2.006, which
less in neutral category of workers’ responses. The SD and CV less in neutral category of workers’ responses. The SD and CV
are respectively 1.278 and 55.565, denotes that the opinion of are respectively 1.033 and 51.496, denotes that the opinion of
the workers is dissatisfied. So, the researchers can conclude that the workers is dissatisfied. So, the researchers can conclude that
the garments workers of Bangladesh are not healthy because they the garments workers of Bangladesh are not medical allowance but
cannot proper nutrition. they get first aid facilities.

8. Provident Fund Facilities 10. Discipline


There is no option of provident fund facilities for the workers It is needed to have discipline in the factory to satisfy the workers.
in RMG sector in Bangladesh. Here factories does not provide If the organization does not give importance to maintain discipline
appointment letter when workers joining, so they cannot get the then the workers will not get good and acceptable working
legal rights. Maximum workers join job in oral and verbally. environment in the factory.

Table 9: Provident fund facilities Table11: Discipline


 Satisfaction Fre- Satisfac- Fre- Per-
Level quency Percent Mean SD CV tion Level quency cent Mean SD CV
Highly Highly
dissatisfied 53 35.3 dissatisfied 60 40
Dissatisfied 38 25.3 Dissatisfied 34 22.7
Neutral 34 22.7 Neutral 35 23.3
2.3 1.278 55.565 2.153 1.174 54.529
Satisfied 11 7.3 Satisfied 15 10
Highly Highly
satisfied 14 9.3 satisfied 6 4
Total 150 100 Total 150 100
Source: Field Survey, February - March 2016 Source: Field Survey, February - March 2016

The above table 9 shown 35.3 percent workers were highly The above tables 11 shown 40 percent workers were highly
dissatisfied and 25.3 percent workers were dissatisfied and 22.7 dissatisfied and 23.3 percent workers were neutral and 22.7 percent
percent workers were neutral for provide provident fund facilities. workers were dissatisfied about discipline. Here mean value is
Here mean value is 2.3 is below than the neutral position of 2.153 is below than the neutral position of satisfaction level. The
satisfaction level. The SD and CV are respectively 1.278 and SD and CV are respectively 1.174 and 54.525, denotes that the
55.565, denotes that the opinion of the workers is scattered. So, opinion of the workers is dissatisfied.
the researchers can conclude that most of the time workers are
deprive their rights. 11. Annual Increment
In Bangladesh RMG workers are deprived their proper annual
9. Medical Allowance increment. RMG workers told that there are not satisfied annual
Production depends on workers physical and mental satisfaction. increment systems. Management does not properly evaluate
RMG workers in Bangladesh get BDT 320 only per month as workers performance on the basis of annual increment systems.
medical allowance. Annual increment is predetermined just management implemented
in yearly.
Table 10: Medical Allowance
 Satisfaction Table 12: Annual Increment
Level Frequency Percent Mean SD CV Satisfaction Fre- Per-
Highly Level quency cent Mean SD CV
dissatisfied 60 40 Highly
dissatisfied 44 29.3
Dissatisfied 46 30.7
Dissatisfied 44 29.3
Neutral 29 19.3 1.033 51.496
2.006 Neutral 49 32.7
Satisfied 13 8.7 2.24 1.041 51.496
Satisfied 8 5.3
Highly
satisfied 2 1.3 Highly
satisfied 5 3.3
Total 150  100
Total 150 100
Source: Field Survey, February - March 2016 Source: Field Survey, February - March 2016

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26
ISSN : 2348-6503 (Online) International Journal of Research in Management &
Vol. 3 Issue 2 Apr. - Jun. 2016
ISSN : 2348-893X (Print) Business Studies (IJRMBS 2016)

The above table 12 shown 32.7 percent workers were neutral and The above table 14 shown 54 percent workers were highly
29.3 percent workers were highly dissatisfied and 29.3 percent dissatisfied and 24 percent workers were dissatisfied and 16.7
workers were dissatisfied for annual increment system. Here mean percent workers were neutral position for their housing facility.
value is 2.24 is below than the neutral position of satisfaction level. Here mean value is 1.733 is below than the neutral position of
The SD and CV are respectively 1.041 and 51.496, denotes that satisfaction level. The SD and CV are correspondingly 0.924
the opinion of the workers is dissatisfied their annual increment and 53.318 denotes that the opinion of the workers is highly
system in selected RMG factory in Bangladesh. dissatisfied their housing facility system in selected RMG factory
in Bangladesh.
12. Transport Facility
RMG workers of Bangladesh get only BDT 200 per month for 14. Training Facility on Joining
their transportation cost. Maximum workers were not satisfied In RMG sector Bangladesh get job oral and verbally so, they
transport facilities. Workers of RMG sectors they go to work cannot get opportunity after joining training facility. In the selected
place by bus, walk, rickshaw, tempo, and others. They told that RMG factories maximum workers were not training facility on
every day their transportation cost about BDT 40. So, BDT 200 joining job. So their productivity low.
is not enough, they want transportation facilities.
Table 15: Training Facility on Joining
Table 13: Transport Facility Satisfaction Fre-
Satisfac- Level quency Percent Mean SD CV
tion Fre- Highly
Level quency Percent Mean SD CV
dissatisfied 84 56
Highly
dissatisfied 32 21.3 Dissatisfied 24 16
Dissatisfied 55 36.7 Neutral 13 8.7
1.967 1.302 66.192
Neutral 31 20.7 Satisfied 21 14
2.453 1.115 45.454 Highly
Satisfied 27 18
satisfied 8 5.3
Highly
satisfied 5 3.3 Total 150 100
Total 150 100 Source: Field Survey, February - March 2016

Source: Field Survey, February - March 2016 The above table 15 shown 56 percent workers were highly
dissatisfied and 16 percent workers were dissatisfied their training
The above table 13 shown 36.7 percent workers were dissatisfied facility on joining job. Then 14 percent workers were satisfied.
and 21.3 percent workers were highly dissatisfied and 20.7 percent At this juncture mean value is 1.967 is below than the neutral
workers were neutral for transportation facilities. Here mean value position of satisfaction level. Then SD and CV are likewise 1.302
is 2.453 is below than the neutral position of satisfaction level. The and 66.192 denote that the opinion of the workers is highly
SD and CV are correspondingly 1.115 and 45.454 denotes that dissatisfied their training facility on joining job in selected RMG
the opinion of the workers is dissatisfied their transport facilities factory in Bangladesh.
system in selected RMG factory in Bangladesh.
VII. Hypotheses Testing
13. Housing Facility Data wear analyzed with a Likert type -5 point scale ranging
The selected RMG factories none of them do not provide housing from highly dissatisfied (1) to highly satisfied (5). In this study
facility for their workers. But they provide house rent on the basic weighted average value of 3 (test value) has been considered as
salary 40% according to government gazette 2013.In the Dhaka the optimum level for every case. One- sample t-test is done to
and Gazipur districts house rent is too high. Therefore workers test hypotheses 1 to 13.
have a demand if the factory provide more house rent they could
smoothly life lead. Workers 50% of expenditure goes to house
rent.

Table 14: Housing Facility


Satisfaction Fre- Per-
Level quency cent Mean SD CV
Highly
dissatisfied 81 54
Dissatisfied 36 24
1.733 0.924 53.318
Neutral 25 16.7
Satisfied 8 5.3
Total 150 100
Source: Field Survey, February - March 2016

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International Journal of Research in Management & ISSN : 2348-6503 (Online)
Vol. 3 Issue 2 Apr. - Jun. 2016
Business Studies (IJRMBS 2016) ISSN : 2348-893X (Print)

Table 16: One-Sample t-Test


Factors Test Value = 3
95% Confidence Inter-
Sig. Mean Dif- val of the Difference
t df (2-tailed) ference Lower Upper
1. Work Place 14.327 149 .000 .94667 .8161 1.0772
2. Working hours 3.760 149 .000 .26000 .1234 .3966
3. Holidays .886 149 .377 .08667 -.1066 .2800
4. Wage provide in Right Time 2.592 149 .010 .26000 .0618 .4582
5. Provide Incentives -6.074 149 .000 -.48667 -.6450 -.3283
6. Meal Allowance -6.706 149 .000 -.70000 -.9063 -.4937
7. Provident Fund Facilities -6.706 149 .000 -.70000 -.9063 -.4937
8. Medical Allowance -11.777 149 .000 -.99333 -1.1600 -.8267
9. Discipline -8.830 149 .000 -.84667 -1.0361 -.6572
10. Annual Increment -8.944 149 .000 -.76000 -.9279 -.5921
11. Transport Facility -6.006 149 .000 -.54667 -.7265 -.3668
12. Housing Facility -16.781 149 .000 -1.26667 -1.4158 -1.1175
13. Training Facilities on Joining -9.715 149 .000 -1.03333 -1.2435 -.8232

Source: SPSS output, compiled by the authors confidence interval lies entirely below 0.0. Thus, H0 is true. That
The test statistic table 16 shows the results of the one-sample means Ho is accepted and Ha is rejected. So, we can conclude
t test. The t column displays the observed t statistic for each that workers are not satisfied regarding provident fund facilities
sample, calculated as the ratio of the mean difference divided by elected RMG factories.
by the standard error of the sample mean. The 95% confidence In view of that the factor “medical allowance” confidence
interval of the difference provides an estimate of the boundaries interval lies entirely below 0.0. Thus, H0 is accurate. That
between which the true mean difference lies in 95% of all means Ho is accepted and Ha is rejected. So, we can conclude
possible random samples of the factors (13 factors) in the test. that workers are not satisfied regarding medical allowance by
Therefore, in support of the factor “work place” confidence selected RMG factories. Consequently, in favor of the factor
interval lies entirely above 0.0. As a result, Ha Holds true. That “discipline” confidence interval lies entirely below 0.0. Thus,
means, Ha is accepted and Ho is rejected. So, it can be H0 is correct. That means Ho is accepted and Ha is discarded.
concluded that workers are satisfied toward workplace of the So, we can conclude that workers are not satisfied concerning
selected RMG factories. discipline provided by the selected RMG factories.
Since, for the factor “working hour” confidence interval lies Accordingly, in favor of the factor “annual increment” confidence
entirely above 0.0. As a result Ha is supported. So Ha is interval lies entirely below 0.0. Thus, H0 is correct. That means
granted and Ho is not granted. Therefore it can be concluded that Ho is received and Ha is rejected. So, we can conclude that
the workers are satisfied their working hour in selected garments workers are not satisfied concerning annual increment provided
factories. by the favored RMG factories.
Hence, for the factor “holiday” confidence interval lies entirely Hence, in favor of the factor “transport facility” confidence
above 0.0. Thus, Ha is accurate and Ha is accepted and Ho is interval lies entirely below 0.0. Thus, H0 is true. That means
discarded. So, it can be concluded that RMG workers are satisfied Ho is accepted and Ha is rejected. So, we can conclude that
their holiday of the selected factories. workers are not satisfied concerning transport facility provided
Consequently, in favor of the factor “wage provide in right by the preferred RMG factories.
time” confidence interval lies entirely above 0.0. Thus, Ha is In view of that the factor “housing facility” confidence interval
established. That way Ha is accepted and Ho is rejected. So, it lies entirely below 0.0. Thus, H0 is accurate. That means Ho is
can be done that workers are satisfied in the direction of wage accepted and Ha is rejected. So, we can conclude that workers
provide in right time of the selected RMG factories. are not satisfied regarding housing facility by elected RMG
Accordingly, in favor of the factor “provide incentive” factories.
confidence interval lies entirely below 0.0. Thus, H0 is true. That Consequently, in favor of the factor “training facilities on
means Ho is accepted and Ha is rejected. So, we can conclude joining” confidence interval lies entirely below 0.0. Thus, H0
that workers are not satisfied regarding incentive provided by is approved. That means Ho is accepted and Ha is discarded. So,
RMG employers. we can conclude that workers are not satisfied concerning training
Thus, for the factor “meal allowance” confidence interval lies facilities on joining by the preferred RMG factories.
entirely below 0.0. Hence H0 is factual that is Ha is cast off.
So, it can be concluded that workers are not satisfied their meal VIII. Conclusion
allowance of the chosen RMG factories. Employees’ satisfaction is the most supremacy part of increase
Hence, in favor of the factor “provident fund facilities” productivity in any sector. It has been seen that problems in

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28
ISSN : 2348-6503 (Online) International Journal of Research in Management &
Vol. 3 Issue 2 Apr. - Jun. 2016
ISSN : 2348-893X (Print) Business Studies (IJRMBS 2016)

labor satisfaction in Bangladesh readymade garment sector. holidays to the workers.


Rotate around a number of key issues that draw back to the Wages provide in the right time: It is experienced that most
spirit employees’ satisfaction level or other. Most Bangladeshi of the garment factories do not give wages to the workers in the
garment manufacturers have disastrous to see any fundamental right time, i.e. they make unnecessary delay in providing wages
link between labor satisfaction and efficiency outcomes. As a that is fully unexpected.
result of their economic priorities, many of them have become Provide incentive: A very few times we find that the factory
virulently anti-trade union, believing that trade unions would owners provide incentives to the workers for their performance.
upset Bangladesh’s low-wage employment formation, which is But this should be regularly provided to the laborers for satisfying
essential for maintaining. Workers’ limited purchasing power and them.
poor command over commodities define and shape their access Meal allowance: In our country, most of the RMG factories
to housing, health and sanitation and transportation facilities. do not provide sufficient meal allowance to the workers. So
Lack of job security is compounded by low wages, which in turn the meal allowance should increase for the garment workers in
cause insecurity of life for women in urban areas. Still, garments Bangladesh.
employees continue to work, and the reasons for this are open Provident fund facilities: A very few RMG factories in
in the narratives. Most of the garments workers are not properly Bangladesh provide provident fund facilities to the workers. So
satisfied but this people know just bear family finance and reduce it is recommended that most of the RMG owners should provide
family problem but our survey focused on garments employees’ provident fund facilities to the workers to satisfy and motivate
satisfaction level. It is observed from the descriptive and empirical them.
analysis that in case of the workers satisfaction the RMG factories Transport Facilities: Most of the RMG factories do not provide
in Dhaka and Gazipur city were not so sincere. So, it can be transport facilities to the workers, whereas, they give a few amount
said that for increasing productivity and profitability of the RMG of money as transport allowance. Therefore, the top management
industry, garment manufacturers should give importance to their should ensure transport facilities for the workers.
workers satisfaction. Training facilities: When the workers join in the RMG sector
The findings of the study have manifest some new dimensional they do not receive any kind of training on their works. Without
knowledge for obtaining the RMG target, developing the service proper training they join as unskilled workers that are why their
style and process, and increasing workers’ satisfaction. This productivity is very low. So at the time of joining, RMG top
research has demonstrated to the government, RMG policy management should ensure proper and sufficient training facilities
makers, and top-level RMG executives to provide concrete and for the new workers.
effective guidelines for developing new area of RMG business
by satisfying and motivating the workers. References
[1] Absar, S. S. (2009). 2.7 Problems surrounding wages: the
IX. Limitations of the Study readymade garment sector in Bangladesh.  Labour and
Every research work may have, in a wide sense, some limitations Management in Development, 2.
and the completed study is not exception in this regard. There [2] Ahamed, F. (2013). Improving Social compliance in
remains ample scope of variations in the interpretation of data by Bangladesh’s Ready-made Garment Industry. Labour and
different persons if they are not aware of the background of data Management in Development, 13.
collection. So, data itself have limitations and could not always [3] Ahamed, F. (2014). Job Dissatisfaction in the Bangladesh
serve the exact purpose of the study. However, the researchers Ready Made Garment Sector-To What Extend HR/IR Practices
are hopeful to overcome those limitations with extensive efforts Can Grow Exhilaration of RMG Workers. International
and effective decision. In fact, sampling is a recognized technique Journal of Business and Management Review, 2(1), 1-12.
of conducting any research in contemporary world, specially, in [4] Akterujjaman, S. M. (2010). Problems and prospects of SMEs
social science. The study was only on 24 RMG factories of Dhaka loan management: A study on Mercantile Bank Limited,
and Gazipur city, though there are more than 5600 RMG factories Khulna Branch.  Journal of Business and Technology
in Bangladesh. The result of the study which is drowning by the (Dhaka), 5(2), 38-52.
sampling method is not cent percent rigorous and it can represent [5] Akterujjaman, S. M. (2013). Export Performance of
average output of a concerned fact. However, it is expected that Readymade Garments Sector of Bangladesh: An Analysis.
a little variation would not affect much of the overall findings of Academic Journal of Siddheswari Girls’ College, 3(1),
the study. Available at SSRN 2642828, pp. 87-100.
[6] Akterujjaman, S. M. (2016). Depositors’ satisfaction toward
X. Recommendations the services of private commercial banks and state-owned
The authors have suggested some recommendations for improving commercial banks in Bangladesh: A comparative study.
the performance of the RMG factories to increase the level of Scholar Journal of Research Review, 1(1), 9-22.
satisfaction of the workers. These are as follows: [7] Alam, S. M., & Kamal, M. (2006). Job Satisfaction of Female
Workers in Different Garments Factories in Dhaka City:
Working hour: The RMG manufacturers should give importance An Intertemporal Comparison.
to the working hours of the workers, i.e. they should be done [8] Bangladesh Bank (BB). (2015). Quarterly Review on RMG:
flexible working hours for the workers. January-March 2015. Research Department, External
Holiday benefits: Most of the government employees of Economics Division.
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the RMG workers consume a very few govt. holidays. So the decision making in RMG sector of Bangladesh: Correlation
RMG owners should provide most of the govt. and other festival with motivation and performance. Journal of Business and

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International Journal of Research in Management & ISSN : 2348-6503 (Online)
Vol. 3 Issue 2 Apr. - Jun. 2016
Business Studies (IJRMBS 2016) ISSN : 2348-893X (Print)

Technology (Dhaka), 5(2), 122-132. Authors’ Profile


[10] Chowdhury, N. J., & Ullah, M. H. (2010). Socio-Economic
Conditions of Female Garment Workers in Chittagong S. M. Akterujjaman, BBA & MBA
Metropolitan Area–An Empirical Study. Journal of Business (Marketing), M.Phil, IBA, Rajshahi
and Technology (Dhaka), 5(2), 53-70. University, Rajshahi, Bangladesh.
[11] Farhana, K., Syduzzaman, M., & Munir, M. S. (2015). Present He started his professional career
Status of Workers in Ready-Made Garments Industries in in teaching profession of higher
Bangladesh. European Scientific Journal, 11(7). educational level at early of his
[12] Islam, M. K., & Zahid, D. (2012). Socioeconomic career. He is now serving at BGMEA
Deprivation and Garment Worker Movement in Bangladesh: University of Fashion & Technology
A Sociological Analysis. American Journal of Sociological as an Assistant Professor in the
Research, 2(4), 82-89. Department of Business Administration.
[13] Islam, N., & Chowdhuri, A. S. M. M. B. (2012). Socio- Before joining at BGMEA University
economic factors of readymade garments workers in of Fashion & Technology, Akterujjaman served more than five
Bangladesh. D. U. Journal of Marketing, 15. years at Northern University Bangladesh in different teaching
[14] Khatun, R. and Shamsuzzaman, M. (2015). Employee’s Views positions. Akterujjaman already completed more than twenty
on Job Satisfaction : A Study on Garment Industry (AKH research works which outputs have been published in different
Group), Bangladesh, International Journal of Research in national and international journals and also submitted different
Management & Business Studies, 2 (2). research works in different renowned journals.
[15] Latifi, S.I. et.al. (2015). An empirical study on contribution
of readymade garment sector and human resources practices Md. Herok Ahmad, BSS (hons) &
in Bangladesh, Journal of Economics and Development MSS in Economics, Asian University
Studies, 4(1). of Bangladesh; MBA in Apparel
[16] Ministry of Labor and Employment. (2013). Bangladesh Merchandising, BGMEA University of
Gazette. Government’s additional Gazette notification Fashion & Technology, Bangladesh.
December 2013. He started his professional career
[17] Moazzem, K. G. (2013). Revision of minimum wage in in teaching profession of higher
the RMG sector in 2013: proposals as regards definition, educational level at early of his career.
method of determination and the levels. Centre for Policy He is now serving at Asian University
Dialogue (CPD). of Bangladesh as a Lecturer in the
Department of Economics

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