“Noman

Group”

11.09.2021
Organizational
Management

TANYA AHMED (TYA)

 GROUP REPORT

Course Details
Organizational Management
Section: MGT212

Submit to
TANYA AHMED
Lecturer
Department of Management
North South University

Submitted By
Group-4
Section: 20

Date of Submission:
11TH September 2021

Group members name:

1.Morium Jahan orthi – 1931730630
2.Mamia Mehezabin -1931467027
3.Md. Farraj Zawad -2111449630
4.Mainul Hashan – 2111432630
5.A.K.M Aminul Islam - 2111524630
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1.Introduction:
Company profile:
The Noman group, which begins with the entry of Md Nurul Islam into the textile field in 1968,
has established a rich history. In 1997, the Noman Group was set up by Zaber & Zubair Fabrics
Ltd. The group is currently one of Bangladesh's largest private companies, with 33 textile
facilities and more than 50,000 employees. It is currently one of the prominent private sector
entrepreneurs in the nation and makes an essential contribution to the economy. In addition to the
entire value chain for textiles, the Noman Group also includes broad commercial housing and
immovable property interests. The Noman Business is currently a renowned vertically integrated
Bangladeshi textile group. The company started its journey by seeking its place as the world's
premier textile manufacturer. He has consistently been the #1 exporter in Bangladesh in the last
seven years. Mr. Nurul Islam, Noman Group founder, began his business trip with eight Taka
lakes in 1976. He bought 8 R-Tax machines and 22 employees from them. In 1987, he established
the Noman Group, and there are presently over 32 plants under the Noman Group, employing 65
000 people. The Asian unique group created Zaber and Zubair Fabrics Ltd, Asia's most prominent
home textile factory, in 1998 as a marvelous time for the textile business. 46 government medals
won by the Noman Group are Bangladesh's top export honors. In 2011, H&M became a gold
provider and praised the Noman Group's Excellence. The HSBC recognized the export of the year
to the Noman Group in 2012. In 2013, the Noman Group was the leading exporter in all categories
in Bangladesh. In 2014 Noman Group demonstrated its presence on my home fashion market
week and stayed involved in Heimtextil. Besides, this company represented Bangladesh at many
international fairs in the USA, Japan, Australia, Russia, etc. IKEA, H&M, Kmart, Target,
Carrefour, NIKE, DISNEY, WALMART, AMERICAN EAGLE, BESTSELLER, GIP, JCP,
LPP, ZARA, etc. are a few of the lots of international buyers of Noman Group. They export
products to many countries of the world, including the USA, Japan, Canada, Australia, and many
countries of Europe. Noman Group is an export-oriented company. However, they have some
local buyers like Dhali Textile, Jihan Fabrics, Sotota Traders, Chittagong Textile, Chittagong
Traders, HR Textile, Style Fabrics, Tasfia Enterprise, Shra Fabrics, Best Fashion, Hoque Fabrics,

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Khan Fabrics, Good Luck Fabrics, BD Tax solution, Blessing knitwear ltd, etc. In 1998, this
company formed Ismail Anjuman Ara trust foundation, which operates charity work. The
company is one of the top job-providing companies in the country. In 2018, the yearly revenue
of this company was 8400 crores BDT. Noman Group has strengthened its position as the market
leader in the Textile sector, with a continuous expansion and a growing list of global customers.
The group became one of Bangladesh's most important private companies with 33 textile grants
and over 50,000 workers. Currently, it is one of the largest private-sector employers in the country
and contributes significantly to the economy. Noman Group also has diverse commercial holdings
in housing and immovable property, apart from the complete value chain in textiles. Today, the
Noman Business is known in Bangladesh as a vertically integrated textile group. The group began
its journey with the aim of becoming the world's largest maker of textiles. In the previous 7 years,
it has continuously been Bangladesh's most significant exporter.

2. Planning:
Vision and mission of the company:
Vision:
The vision of the Noman group is to design and create the finest quality textile product
effectively and efficiently. They also act sensibly as a worldwide manufacturing company to
guarantee the well-being of their workers and their other stakeholders.

Mission:
Their mission is categorized into three major parts. They are:
The Consumer’s mission is to create, design, and supply the finest quality products and textiles
within a given timeframe.

The social mission is the performance of how the company maintains the well-being and growth
of the staff and other patrons.

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The environmental mission main emphasizes the external environments of the company such as
politicians, community leaders, and neighbors to maintain the goal of environmental well-
being.

The focus of the company:

Focus:
The 100% focus of the Noman group is to export their products and services to the international
market. In 2015 Noman group’s exportation to the international market caused a turnover of
more than 1 million USD. They have more than 33 divisions including Zaber & Zubair Fabrics
Ltd, Nice Fabrics Processing Limited, Ismail Anjuman Ara Limited, Talha Texpro Limited.

Objectives of the company:

The group aims to contribute to the national economy through mass-scale employment and
people development. As recognition of its efforts, Zaber&Zubair Fabrics Ltd (A Sister Concern
of Noman Group) achieved the National Export Gold trophy in the year 2011-12 as the highest
exporter in Bangladesh. It also received the “Exporter of the Year” trophy from HSBC Bank in
recent times for promoting the “Made in Bangladesh” mark throughout the world. Noman
Group is widely recognized for its unmatched quality, dedication, innovation, and expertise in
the textile industry.

External environment / Stakeholders:

Stakeholders:
There are many external environmental factors that play a vital part in a corporation. In our
case, any association, intuition, or other entities that have a substantial effect on the Noman
group or any individual or group that have been influenced by the Noman group personally or

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diffusely on a frequent basis are considered as the patrons of the Noman group. Stakeholders
are vital for an organization and there is no exception for the Noman group. Mostly the
customers, suppliers, financial institutions, employees, and surrounding community are
considered as our vital stakeholders and partners. The product and service range of the Noman
group is massive as they import to buyers of both national and international. They offer superior
products to their clientele and undeniable commitment. Noman group has a strong strategy in
being ecologically and socially accountable by their sincerity towards their stakeholders. The
clients of the Noman group are all over the world and they are also looking forward to
increasing their presence in the emerging market.

Planning:

It believes its first responsibility is to its buyers and end consumers who use its products.
It is paramount that it ensures the highest quality to meet their needs. As a production-oriented
business, it also needs to maintain competitive prices through cost reduction. Clients should

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always receive their desired order on time and it will always continue to maintain a relationship
with them.

It is responsible to its suppliers of raw materials, machinery, and chemicals who have
consistently supported us over the years. It will build lasting relationships with them through
best business practices. It must also collaborate with them to find innovative, cost-effective, and
environment-friendly solutions.

It is responsible to the employees who have worked diligently to take us to a commanding

position in the industry. Compensation should be competitive and fair, and working conditions
healthy and safe. Worker safety is a top concern for us, and it will never compromise its safety
under any circumstances. It will also ensure human development by meeting all their training
needs.

It is responsible to the communities in which it dwells. It is responsible for the impact its
operation has on nature and it is its duty to reduce its footprint through the use of
environmentally friendly practices. It will pay all taxes and fees in a timely manner. It should
also improve the living standards of the people surrounding its business through charity and
volunteering.
Its final responsibility is to its owners. Businesses should generate profit, but not by sacrificing
ethics. It must always encourage new ideas and innovative programs. It will continue to
purchase state-of-the-art machinery that will enable it to become more efficient and reliable.

SWOT analysis:
Strength
• Noman group of industries is currently supplying their goods and products to more
than 60 countries and are actively seeking new markets in other continents.
• The Noman group has employees of more than 50,000 in Bangladesh with diverse
backgrounds. They are proud to have very low employee turnover and they
maintain an exceptional relationship between management and workers. According
to ILO, they are the third-largest employer in Bangladesh.
• In 2012, they collectively achieved sales of over $930 million (BDT 75 Billion). In
the process, they became the highest exporter in the country. Their revenue
accounted for nearly 1% of the nation's GDP while its exports accounted for 4% of
the total.
• They have 33 subsidiaries with the most prominent one being ZABER & ZUBAIR
Fabrics Ltd. In the woven segment, Z&Z is currently the largest in the world.

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Weakness
• The production cost of the Noman group is high because they are not utilizing their
product efficiently.
• They have a centralized decision-making process which is made by the upper
management so the middle and lower management has no proper idea about the situation.
• The Noman group has a weak image in the international market because of other
countries like China and India as they offer cheap textiles to international markets than
the Noman group.
• Although, they have good product services in the national market it has a small share in
global markets due to other countries like India and China.
• They are not promoting themselves as they should through advertisements.
• They have a lack of benefits for their employees. Example: medical and transportation
service.

Opportunities
• Noman group can innovate new products such as knitwear. Their cost will be low as they
have to spend only for the manufacturing in their same plant.
• They should hire well-educated and experienced workers. Therefore, they will have the
advantages by hiring skilled and young people who will be more energetic and spirited
employees.
• They can merge or do a joint venture with other companies to capture more market areas
to make more profit.
• They should increase their productivity, quality, and design support to minimize cost and
maximize profit and export value

Threats
• They are not fulfilling the demand of the customers as the products of the Noman group
is just satisfactory compare to other competitors.
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 • Political instability (government) can affect the organization by not letting them export its
goods.
• The government is changing its policies every day so it is a significant threat for the
Noman group to survive in such a changeable situation.

SWOT MATRIX:

3. Organizing:

The organizational structure of the company:

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Top management:

Human Resource and Administration

Human resource also refers to the meaning of human capital. Because human resources are
linked with the executive management of an organization. Human resource work to recruit
workers for their organization. If I talk about the noman group they recruit employees through a
circular. This work is always done by the human resource and administration. In the process of
recruit employees, they do follow some criteria which all are required by the executive
management.

Recruitment philosophy
Noman group has its own recruitment philosophy. Their first philosophy is “unique world
view”. It means they recruit employees for their organization who have a unique worldview.
That means that person ought to know about the unique world textile views on their brain. Their
second philosophy is they recruit experienced employees. The person who wants to apply to
their circular, or has to be experienced in the textile sector. They also have another philosophy
which is commitment. That means the person who wants to work with the noman group has to
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be committed with them that they will work with them forever. Another philosophy of the
noman group is they recruit employees who are good at problem-solving and in the
organization’s demand they will provide solutions to problems. The last philosophy of Noman
Group is they always do recruit energetic employees.

Recruitment Process :
The HR department of the noman group recruits their required employee through giving
recruitment circulars in the national daily newspaper and as well as on their website.
Sometimes they recruit their staff through individual references. From those applications, they
select employee primary. From that selected employee they call them for an interview. In the
interview session, they try to check their CV and as them some questions regarding the post.
After the interview session finally, they select employees for their organization.

Training and Development:

After the final selection of employees, Noman Group tries to train their employees for better
performance. For example, if they select employees for swing purposes, they send them to
the training session to learn about Norman Group’s own designing purpose. Because this
organization has its own style and own designing style so if their employee doesn’t know
about their style or swing design, they won’t be able to cope with other employees. After
sending them to the training session the employee got developed. This is how the Noman
group develops their employee’s work by sending them to the training session.

Information Technology :
Noman group’s IT department always tries to keep their organization’s report and as well as
their developing resources. Not only that but also their IT department runs their IT-based
technologies. This is how Noman group’s Information technology gather information by
working with all the department and keep the whole organization’s work through IT-based.

Decision-Making Model :

Identifying a problem

Identifying decision criteria

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 Allocating weights to the criteria

Developing alternatives

Selecting an alternative

Implementing the alternative

4. Leading:
Directors/Top Management take final decisions, but other employees are allowed to share their
thoughts from their own perspectives. Sometimes the company forms cross-functional groups to
increase efficiency.

Motivating Employees:
Noman group has its own ways to motivate its employees. Noman group intentionally maintains
a very impersonal relationship between the managers and the employees. There is actually no
room, even for the CEO, so that the employees from the lowest to the highest level can feel they
belong to the same big family of Noman Group. All employees are welcome to just go straight
to the manager and share their thoughts on a certain matter. This is a great way to make all the
employees feel that they are important to the company.

• Payment Schemes: Noman Group pays its people basing on their value to the company.
• Bonuses and Incentive Schemes: Noman group offers various attractive packages for all
different level employees, such as:
• Noman group provides maternity benefits for its female workers and plans
to develop maternity benefit packages for their male workers as well.
• Widow allowance for any female line worker who has lost her spouse.
• A very detailed appraisal process is reflected by very low employee
turnover.
• Casual, Earned, Festival, Medical leaves.
• Holiday (e.g.: Eid-Ul-Fitr) Bonuses.
• Daycare center.
• Living facility for plant workers.

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Noman Group is also planning to take other initiatives by negotiating with food shops,
hospitals, and other service providers to provide a discount to all Noman Group employees. It is
also planning to develop a Personal Vehicle scheme under which the automobile will be partly
financed by Noman Group and then the ownership will be transferred to the employee.

Management Issues:
The biggest issue faced by Noman Group is regarding their recruitment. They still follow the
traditional way to hire new employees, such as posting ads in 3rd party job portals and notices
hung in educational institutes.

Even though Noman Group provides great facilities to its employees and it has a very different
working environment than other local companies, the freshly graduated students still don’t
consider Noman Group to be a very good career option. They find the multinational companies
and some other local companies to be way more attractive. The Manager said, “The company
faces a lack of identity among top graduate students, which is a challenge for us. What they fail
to understand is that Noman Group is not about just making fabrics. Our work is in progress to
solve this problem”

Types of teams:
Noman Group has their Project teams in under of Functional team, Cross functional team,
Matrix team, Contract team. And Operational team, Virtual teams, Self-Managed teams,
Problem solving teams, Informal teams, and also last one leadership team. They are all working
under one Noman group of company.

5. Controlling:
Company Objectives :
When we asked the assistant manager of Noman group about their planning process from the
beginning, he explained it something like that - Noman Group began its ambitious textile
journey in the 1980s to establish itself not only as the largest manufacturer in Bangladesh, but
the largest textile manufacturer in the world. The company aimed at achieving strong linkage
across all its supply chain by ensuring every stage of the textile supply chain is controlled by
the group itself. Noman Group went from a one-person trading company to a sprawling
conglomerate having 31 subsidiaries across various industries in Bangladesh.
The company’s guiding principle is that the Company operates with a consumer, social and
environmental mission and they try to set their goals according to their mission.

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He also said that Noman group maintained its high compliance standards with a production
capacity of 70 tons of terry/day, NOMAN TERRY TOWEL Mills Ltd. has displayed annual
revenue of approximately 50 million USD since its inception.

Recently, Noman Group launched NICE DENIM Mills Ltd., an initiative they hope will
establish their brand as a leading denim fabric producer in Bangladesh. Operating in Shreepur,
Nice Denim currently possesses the largest mill in the denim industry. With a production
capacity of 32 million yards per annum, Nice Denim also has a signature line of garments
featuring 100% cotton, cotton-blended poly, blended spandex, pure local, pure and bent viscose,
etc. They’ve introduced the Grenville brand in rope dyeing with a production capacity of 38
million yards per year.

We also got to know that Noman Group has a diverse portfolio with multiple functions within
the textile industry. Their businesses include 9 spinning mills, 11 weaving mills, and five fabric
manufacturing plants, among others. Noman Group’s ethos emphasizes social responsibility and
they strive to nurture their employee base to meet their goals.
Noman group launched a world-class ETP plant Facility that ensures environmental compliance
by conforming to standards set by the government. Noman Group plans to increase its
involvement in CSR activities to bring in more changes to the communities they dwell in.

The company fundamentally believes in providing the very best quality to ensure a sustainable
relationship exists between suppliers and stakeholders.

In recent years, seven to be exact, the company has consecutively been awarded the “Highest
Exporter” award and for the last decade or so, the company has consistently increased its
quantity and revenue of exports so that they remain the highest exporter company.

Their other goal is to be attractive and competitive in the market so they produced a
compensation package designed for their line workers. Now that Noman group is a successful
company, they want some young and fresh employees for them to have new ideas for their
future. They are planning some process to attract the recent graduates from top universities of
the country.

Company Standards :
Then we asked The Manager about the company standards and he said that it was determined
from the beginning of their journey. He gave us some details about it -
The lower, mid-level, and top managers had specific roles and the relationship between the
management and employees was purposefully impersonal. The company adhered to strict rules
and regulations and employees were recruited on the basis of competence and skill set.
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In recent years, Noman Group has realized the need to harness the strength of their HR
department, and slowly transitioned towards a flatter organizational structure. The rigid
company policies have been replaced with democratic ones and efficient management of work
has been at the forefront of these changes. The management now encourages function-wise
tasks that should be conducted in special assignments or projects. The company takes
inspiration from reputed organizations such as Royal Bank of Scotland (RBS), Disney, Reuters.

The manager said exactly something like that - “it’s so easy to just take feedback from DMD
(Deputy Managing Director) sir, without having to knock his door and wait for him to clear up
his schedule; I can just go up to him and ask him about the problem I’m facing and we have a
productive discussion right then and there.”

One of the earlier significant successes began in 1994 with the incorporation of ZABER &
ZUBAIR Fabrics Ltd. ZABER & ZUBAIR Fabrics has become a formidable entity, with
estimated sales revenue of 300 million USD in 2013 alone. Noman Group has two garments
production units – NOMAN FASHION Fabrics Ltd. at Pagar (Tongi), which produces tops
items (male, female, kids’ shirts) and SAAD SAAN APPARELS LTD. situated in Bhaluka
(Mymensingh), which produces bottom items (chinos, cargo, basic 5 pockets, etc.). The total
workforce of the apparel division is approximately 10,000.

Noman Group has achieved tremendous success over the last 30 years. It is on a sound financial
footing and has one of the best infrastructural systems in place covering the entirety of the value
chain. The employee benefits package on offer are attractive and the benefits package in the
pipeline is extremely ambitious and suitable for life in the city.

Noman group’s total revenue crossed the 1 billion mark in 2013 and is growing further every
year. In 1997 they started their illustrious journey. Today, they boast 18 years of solid
experience in the textile industry. Now, the company has partnered with computer technology
giant Oracle to better integrate its US-based customers.

Benchmarking:
Noman Group has strengthened its position as the market leader in the Textile sector, with a
continuous expansion and a growing list of global customers. The group became one of
Bangladesh's most important private companies with 33 textile grants and over 50,000 workers.
Currently, it is one of the largest private-sector employers in the country and contributes
significantly to the economy. Their total revenue crossed magically $1 billion mark in 2013 an
they are growing every year. They have over 60,000 employees in Bangladesh in different
sectors. They are pride on having such a low employee turnover and excellent rapport between
worker and management team.

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ISO 9001:
ISO 9001is a quality management system. This certificate means the ability and consistency
provide that meet customer need and applicable for statutory and regularity requirements’ is for
taking a systematic satisfaction approach to the valuable customer.

Conclusion:
The Noman Group began its journey with the goal of becoming the world's largest textile
company. They are always improving, yet there is no limit to progress in any organization's
area. There is always space for improvement. This scope must be utilized by every company.
The company has established itself as a reputable garment manufacturer with a client list that
includes some of the industry's biggest brands. Noman organizations have already received
numerous prizes for their achievements both internally and externally. They are worried about
their workers. They make an effort to provide them with clear instructions. They are worried
about their workers. They make an effort to provide them with clear instructions. Noman group
carefully observes their competitors' work to identify their own flaws. After identifying the gap,
they conducted a job analysis based on the needs of the employees and provided training. They
also evaluated their employees based on their job performance and provided rewards for
employee happiness and motivation. However, due to strong sales volumes in the international
market, Bangladesh's RMG sector plays an important role in the economy. However, due to the
interruption of the Generalized System of Preferences, this sector is encountering business
issues (GSM). As a result, the Noman Group is more concerned with employee job analysis and
work appraisal in order to fill in any gaps in the criteria.

Market share analysis:

Right now, Noman group is holding 4.5 percent of whole market share of garments industry in
Bangladesh.

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 Sales

Noman Group
Others

Porters five forces analysis:

Michael Porter has identified five forces that determine the state of competitiveness in a market.
The pressures also have an impact on the profitability of existing businesses in a certain
industry.

Threat of new entrants: If the entrance barriers are strong, the threat of new entrants is reduced.
High startup costs or other impediments, such as special tax benefits for existing businesses,
patents, strong brand identity or client loyalty, and high customer switching costs, are all
barriers to entry. Noman group produces yarns, fabrics, home textile, bed covers, curtain,
comforters, quilt covers, denim and towels. To establish a new company with an intention to
maintain the same way of this company will take a very high cost. In addition to that the
company has a brand identity and a loyal customer base. The switching cost for customers to
another brand will be also high because of its nature of products and services. All these factors
make the low threat of new entrants in the industry for the company.

Threat of substitution: Customers may choose to replace a company's product or service with
something else. This is not the same as changing companies to use the same product, but rather
switching products totally. Threat of substitution is very low in our assigned industry because
the products that this company offers has no replacements.re

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Bargaining power of suppliers: All companies have suppliers, whether it’s a manufacturing
company or a service company. Companies want to attain the best suppliers at the best price.
But if there is very little choice of suppliers, they will have more power over the company. In
addition, the suppliers will hold more power if the supplier switching cost is high. Suppliers, on
the other hand, cannot put pressure on a large corporation because large companies buy
frequently and in quantities. Noman believes in building strong, lasting relationships with their
suppliers. Supplier cannot create pressure over this company and thus holds a little bargaining
power.

Bargaining power of buyers: If the buyer has many choices of products and companies then
their power is high, and if buyers have high power, they can create pressure to companies, in
particular pressure to lower their product or service price. In case of Noman company, the
buyers have no other choice to switch company. As Noman launched a world class ETP plant
facility that ensures environmental compliance. Moreover, the company believes in providing
the very best quality than the price. So, again customers hold a low bargaining power.

Competitive rivalry: It mainly focuses on how many competitors a company has, is the
company getting any benefit from competitive advantage, and whether the company’s customer
base is loyal or not. No other company in the industry matches products and services like this
Noman company. Again, the company gets various advantages over its competitors due to its
size, reputation and strategies.

Competitive strategy:

Noman group mainly focuses on plan execution which led them to this height. Their success of
growth hugely depends on technology leadership and geographic expansion.

Corporate social responsibility:

Noman Group has invested over 2 million euros since 2003, in social welfare. This group has
put a huge importance to corporate social responsibilities. It has developed: orphanages,
schools, and health care services. Besides, this group also helped to improve the areas of the
factories by infrastructures, such as: bridges, road and etc.

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Strategy to be used:
The strategy is to focus on gaining faith buyers with an ambition to increase presence in the
emerging market, Hence, coming to lights means gaining international suppliers and a bright
possibility of mass production.

References:
1. OUR QUALITY POLICY | Noman Group. (2021). Retrieved 11 September 2021,
from http://www.nomangroup.com/bpage/our-quality-policy/
2. Asst. Officer/ Officer (Compliance)- Job in Gazipur- Noman Group Jobs-
Careerz360. (2021). Retrieved 11 September 2021, from
https://www.careerz360.com/bangladesh/noman-group-asst.-officer-officer-
compliance-gazipur-jobs-167106
3. Noman Group. (2021). Retrieved 11 September 2021, from
https://www.bdtradeinfo.com/company/32215/noman-group
4. Noman Group spending Tk 1,300cr on expansion. (2021). Retrieved 11 September
2021, from https://www.thedailystar.net/business/noman-group-spending-tk-
1300cr-expansion-1423753
5. MESSAGE FROM MANAGING DIRECTOR | Noman Group. (2021). Retrieved
11 September 2021, from http://www.nomangroup.com/who-we-are/message-
from-managing-director/
6. Noman Group. (2021). Retrieved 11 September 2021, from
http://www.nomangroup.com/

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Appendix:

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REPORT TITLE 21