FASHION

INDUSTRY
SHANGU TEX. LIMITED

TERM PAPER 2022

GROUP 2 | SECTION B
HUMAN RESOURCE MANAGEMENT
HRM 3101
 GROUP MEMBERS
IBTESHAM IFTEKHAR
ID 2023011010

FAREIA KHAN MIM

ID 2023011018

FAHIM SHAFAYET
ID 2023011034

ARNAB SAHA
ID 2023011088

FAYEZA FAHMIDA
ID 2023011092

FARAH FIROZ PIU

ID 2023011094

SUBMITTED TO
Maj Gen Alauddin M A Wadud (Retd.)
Adjunct Professor
Department of BBA General
Faculty of Business Studies
Bangladesh University of Professionals (BUP)

GROUP 2 | SECTION B
Course: Human Resource Management
Code: HRM 3101

Date of submission: 18.05.2022

Page | 2
In the background section we have tried to give an overview of the past state of Bangladesh in this
matter of discussion. Next, we have stated what our key focus is. Basically, we have done a core problem
LETTER OF TRANSMITTAL
identification. Following the core issue, we have jotted down the questions that will help us approach to
a conclusion in a constructive manner. The objective of the paper is set in accordance to our research
questions.
18.05.2022
For the literature review, we have gathered as much scholarly paper as we could to get a hold of the
Maj that
work Genhas Alauddin M A done
already been Wadud (Retd.)
on the stated topic. We have also tried to bring out the loopholes in the
Adjunct Professor
past papers that has guided us to further breakdown our findings and literature review.
Department of BBA General
We were heavily dependent on secondary data and other research sources. We have tried to collect as
Faculty of Business Studies
much discreet data as we could. However, we have faced resource and time constraint. Besides that, our
Bangladesh University of Professionals (BUP)
sample size wasn’t adequate.
Mirpur Cantonment, Mirpur, Dhaka 1216
For the findings section we tried to interpret the data found in your literature review. Our main focus
was to create a connection between macroeconomic management and fair income distribution. Also, we
Subject:
focused Letter
on the of Transmittal
key changes and reforms already adopted in Bangladesh to fight against the obstacles
faced to fully implement fair income distribution. Furthermore, we brought down a few other burning
issues that was correlated to the core issue.
Respected Sir,
Lastly, our recommendations suggest how to better the system in a whole.
It is indeed a great pleasure for us to be able to hand over the result of our hardship
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through the lens of technology as a front liner in determining the ultimate success of a
questions.
company in the long run.
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sample size wasn’t adequate.
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For
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errors.
was to create a connection between macroeconomic management and fair income distribution. Also, we
focused on the key changes and reforms already adopted in Bangladesh to fight against the obstacles
Sincerely,
faced to fully implement fair income distribution. Furthermore, we brought down a few other burning
issues thatIbtesham Iftekhar
was correlated Fareia Khan Mim
to the core issue. Fahim Shafayet
ID 2023011010 ID 2023011018 ID 2023011034
Lastly, our recommendations sug

Arnab Saha Fayeza Fahmida Farah Firoz Piu

ID 2023011088 ID 2023011092 ID 2023011094

gest how to better the system in a whole.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ........................................................................................... 6

CHAPTER ONE: Introduction and Background ..................................................... 7
Company Overview ................................................................................................. 7
CHAPTER TWO: Interview Takeaways ................................................................. 10
Challenges Faced ................................................................................................. 10
Overall Prospect: Covid-19 and the employees’/workers’ mentality...................... 11
Career Progression: Communicational barriers faced .......................................... 12
Workforce Diversity and Promoting Inclusion: The company’s view ..................... 12
Upskilling Programs For Female Workers ......................................................... 13
Employee Evaluation: Performance and Turnover Rate ....................................... 14
ERP (Enterprise Resource Planning) ................................................................ 14
Company’s Take on Mental Health ....................................................................... 15
Further Tangible and Intangible Benefits .............................................................. 15
CHAPTER THREE: Literature Review ................................................................... 17
Effects of Fast Fashion on Bangladesh Women ................................................... 17
Recent Trends and Effects of Fast Fashion on the Economy of Bangladesh ....... 18
Future Prospect of The Fashion Industry of Bangladesh ...................................... 19
Mental Health & HRM ........................................................................................... 20
CHAPTER FOUR: Findings .................................................................................... 22
Job Analysis Process: What the job entails........................................................... 22
For Workers ....................................................................................................... 22
For Administration/Managers ............................................................................. 22
Recruitment: Blend of experience & ideas ............................................................ 22
Blue Collar Employees (at least 18)................................................................... 22
White Collar Employees .................................................................................... 22
Average Cost Per Hire .......................................................................................... 23
Sources of Recruitment ........................................................................................ 23
For Blue Collar Workers .................................................................................... 23
For White Collar Employees .............................................................................. 23
Redesigning Task: Making the job interesting....................................................... 24
Anti-discrimination & Non-discrimination policy: No Discrimination, that’s what
Shangu about........................................................................................................ 24
Dissolving Bridges of Language Barrier ................................................................ 24

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 Employment Agencies and Shangu ...................................................................... 24
Personality test and Cognitive Test at Shangu Tex. Limited ................................. 25
Management Assessment Center at Shangu Tex. Limited ................................... 25
Career Growth Opportunities ................................................................................ 26
Pay Plan and Policies ........................................................................................... 26
Internal and External Equality Based on Pay ........................................................ 27
Factors of Market Competitive Pay Plan ............................................................... 27
CHAPTER FIVE: Recommendations ..................................................................... 28
Evaluative Measurement of Organizational Culture .............................................. 28
Personality and Psychological Evaluation for Blue-Collar Employees .................. 29
Maintenance of Employee Equality on the Administration Level ........................... 29
Reduction of Reference Bias in Upper Management Placements ........................ 29
Prioritizing Employee Mental Health ..................................................................... 30
Greater In-house Hygiene Facilities ...................................................................... 30
CHAPTER SIX: References .................................................................................... 31

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 EXECUTIVE SUMMARY

This paper is an investigation into the recruitment process, job analysis, performance
evaluation approaches, career progression, labour union management and
organizational behavior of Shangu Textile Limited's employees and workers. This is a
readymade garments company with 25 product lines. The organization and its top
management are discussed in the paper. There is a glimpse of production capacity,
financial data, and export numbers. The paper identifies issues and challenges faced
at Shangu Tex. Limited that affect both employees and workers. The majority of these
issues arose when the pandemic hit the economy last year. The RMG industry was
one of the first to be impacted by the pandemic's economic woes. The majority of the
employees were in danger of losing their jobs. This presents a challenge for
ShanguTex management in terms of keeping employees motivated and financially
secure. We aligned these issues with the specific HRM issues that have been
academically proven in organizational management systems. We talked about some
of the organization's actions and how they affected the ground level workers. We also
discussed the impact on employees and their career advancement within the
organization. The paper also considers how open the organization is to diversity. The
paper demonstrated how management evaluates the performance of workers and
employees. The paper examines the effect of workers' and employees' mental health
on organizational success. Then we attempted to make some recommendations
based on the problems and possible solutions based on the HRM concepts. Based on
Bangladesh's socioeconomic situation, we discussed some of the potential barriers
and obstacles that exist. We also attempted to incorporate some of the feedback
provided by our client, ShanguTex's management.The feedback sheds light on the
viability of our ideas and validates the discussion. We hope that this paper will assist
any management dealing with workers and mass production in understanding the
workers' wants and needs. Finally, employee satisfaction is the path to a positive work
environment and company growth.

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 SHANGU
TEX LIMITED

FASHION INDUSTRY
SHANGU TEX. LIMITED
IBTESHAM IFTEKHAR | FAREIA KHAN MIM | FAHIM SHAFAYET
ARNAB SAHA | FAYEZA FAHMIDA | FARAH FIROZ PIU

CHAPTER ONE
INTRODUCTION AND BACKGROUND

COMPANY OVERVIEW
Shangu Textile Limited is a Garments manufacturing company formed by an
entrepreneur and is dedicated to manufacturing garments. It is established in 2001
following the idea of inspiration that a river near port city Chittagong opens the door of
opportunity to its neighbor. Shangu group is a family-owned company that consists of
different units with a long tradition and heritage of craftsmanship and superior
customer service.
The factory initially consisted of only 5 production lines, focusing on woven tops. The
company has been maintaining a constant production for more than 19 years. Shangu
Group is a fast-growing readymade garments both in the sectors of Woven and Knit
manufacturing alongside the top exporter and sourcing agent here in Bangladesh. The
headquarters of Shangu Textile Ltd. Is in Dhaka, Bangladesh. Shangu Textile Limited
is one of the pioneering trailblazer garments exporters in Bangladesh. Equipped with
modern machinery, the total number of machineries are above a thousand and
increasing. The company is deemed with the honor of working for and alongside many

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International fashion brands, like Volcom, Pierre Cardin, Muji, Vertbaudet, Atlas,
Coleman, Monoprix, Ellos, Bel&Bo, Mcs, Jeans Fritz, Ebound, House, TXM, My Wear,
Stripe, and Cotton & Silk and so much more.

SHANGU TEX. TEAM

DEPUTY MANAGING DIRECTOR DIRECTOR

MAHEER MANNAN ENG. MD YUNUS ALI
2019 2010
MANAGING DIRECTOR
HASINA MANNAN
JANUARY 2010
Mrs. Hasina Mannan came into active duty
as Managing Director in January 2010
because of the untimely demise of our
Chairman. Under her leadership, Shangu Tex
ADVISOR EXECUTIVE DIRECTOR MARKETING DIRECTOR
Limited has expanded from 11 Production
MD. NURUL HUDA MOHAMMAD NAZAM UDDIN RASHID AHMED
lines to 26 Production Lines.
2009 2001 2008

Figure: Shangu Tex. Team

Figure 2. 1
The company was formed by Mr. Mannan. He navigated Shangu Textile’s success
through the competitive garment manufacturing business of Bangladesh, securing its
position as a manufacturing powerhouse in woven
Figure 2. 2garments in 2001. 2010 was a quite

an unfortunate session for Shangu Textile because the foundation of driving force
behind the success, Mr. Mannan, passed away. He suffered from a heart attack in
Guangzhou, China whilst on a business trip. Mrs. Hasina Mannan came into active
duty as Managing Director in January 2010 because of the unexpected death of the
Chairman and the founder of the company. Under her leadership, Shangu Tex Limited
has expanded from 11 Production lines to 26 Production Lines. The leadership is a
strong and core aspect of Shangu Textile Ltd. That is why the appointments of the
company is held by a number of wise, experienced and intellectual individuals. The
team is very diversified in every dimensions. As of present Deputy Managing Director
position and director position is held by Maheer Mannan and Md. Yunus Ali
respectively. On the other hand, the Advisor, Executive Director and Marketing
Director positions are held by Md. Nurul Huda, Nazam Uddin and Rashid Ahmed
respectively.
The success of Shangu Textile Limited is noteworthy. As mentioned before, it has one
highest production lines of garments inside the borders of the countries. Apart from a
constant production from 26 production lines, the company manages a Current

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production capacity of nearly 750,000 pieces per month with a daily production
capacity of 28,000 pieces. This exerts an annual revenue of $35-40 million. By the
dints of providing the best service with advanced garments equipment and other
technologies to its customer since its inception, Shangu group is now one of the
leading garments manufacturer in Bangladesh. It is rewarded by WRAP, BSCI, K-
MART, OEKOTEX, TAKKO, NEXT, SEARS and ICS by taking care of every elements
of compliance issue.

25 28,000 $ 35-40
PIECES PER DAY MILLION

25 production lines. Current production capacity of nearly The annual export is in the
750,000 pieces per month with a daily range of
production capacity of 28,000 pieces . $35-40 million

Figure: Current financial and production state of Shangu Tex.

Figure 2. 3

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 CHAPTER TWO
INTERVIEW TAKEAWAYS

Challenges Faced

Despite being an employee friendly company and taking steps to address any issue
that arise in the company, the management department still feels there lies sectors
that need more attention. We took and interview of Maheer Mannan, Deputy
Managing Director and Tushar Ahmed Nishu, Production and Merchandizing
Manager of Shangu Tex. who gave us in depth idea of the positives and not so
positives of the company. We asked them questions regarding many vast issues.
Where some questions had broad ranges of possibilities and others were brought to
address more core issues.
The interview evolved around many crucial concepts that we have so far learned in
our Human Resource Management course. We have tried to cover concepts related
to

• The changes that occurred during the pandemic, both in the administrative and
manufacturing level
• How the company has tried to ameliorate the adversity of the situation when
the country was facing high lay off rate amidst Covid-19.
• Is the company accepting towards promoting diversity and inclusion in the
workplace?
• If the company faces issues related to labour union and how badly it affects the
whole workforce productivity rate
• Steps take by the organization to tackle these issues and further motivate the
employees and workers
• How does the company evaluate performance of the workers and employees?
• Internal and external communication policies
• What are the initiatives taken by the company to ensure the overall well-being
of the workers?
• What is the pay plan and the policies followed in remuneration of employees in
shangutex?
• What does ShanguTex do to maintain internal and external equity based on
pay
• What are the added financial benefits and incentives offered by ShankguTex?
• How does Shangu Tex conduct their Job evaluation?
• What factors are considered while developing a market competitive pay plan?
• About Employment Policy, Anti-Harassment and Non-Discrimination Policy,
Employment Classification
• How did this firm face challenges in language as a barrier?

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 • How do they conduct job analysis?
• How do they redesign jobs to make the tasks more interesting and less
monotonous?
• What is their cost per hire recruitment?
• What is their offer acceptance rate?
• What internal and external hiring sources do they use?
• Do they use the help of any employment agency to recruit employees?
• Do you consider taking personality and cognitive test during employee hiring?
• Do you organize management assessment centres? If you do, what kind of
assessments do you offer?
Each of the topics where deeply scrutinized to better understand the main drawbacks
of the company. We didn’t want to end up any anchoring biases so, we tried to have
both open ended and close ended choices to each of our core concepts intended to
be discussed.

Overall Prospect: Covid-19 and the employees’/workers’ mentality

During the initial stage, the company faced extremely low productivity rate. Many were
skeptical of the safety measures that had been taken and how effective they are. The
new virus circulating everywhere and increased concerns of the workers safety had
pulled down the level of productivity that existed in the pre-pandemic time. Also, many
other companies in the industry were laying off employees in an escalating rate that
made the workers very apprehensive of their job security. Many were looking for
alternative choices back in their home as the lockdown was announced. Even after
the lockdown was lifted the workers were taking an extended amount of time to get
back to their workplace pushing back the work deadlines to many folds and the
productivity rate kept on declining.
As a result, the company was left behind with a lot of empty positions. However, they
quickly adopted the required safety measures and revamped the whole work from
home/office policies. The company initiated few strict measures along with providing
the workers with justified incentives to keep them motivated. The changes in the
worktime policies:

• 3-Day Rotation
In order to maintain social distancing effectively.
• Free Hand Wash & Sanitization At Critical Places

• Other safety measures

The company started regular temperature checks and mandatory mask
wearing alongside granting sick leaves immediately if someone exerts
minimum covid symptoms.

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Moreover, they adopted all the possible measures to get the workers vaccinated as
soon as possible. Right after the lockdowns were listed the company adopted full force
employment activities and got the company back to pre-pandemic productivity level in
no time.
Besides the safety protocols during the pandemic the company also looked after the
financial security of the workforce. When the whole country saw news of employees
being laid off in an escalating scale Shangu Tex. stood by their workers.

• Continued payments
• On time payments
• Zero salary cuts/ discounts
• Free supply of food and other resources

As Mr. Tushar Ahmed, Production and Merchandizing Manager of Shangu Tex. said
in the interview, “We tried to give all-out support to our workers because otherwise it
would be very hypocritical of us to claim Shangu Tex. as an employee friendly
company.”

Career Progression: Communicational barriers faced

Despite the positives, there were few things on the downside. Lack of clear
communication media caused crisis during the pre pandemic to ongoing pandemic
transition. A lot of confusion brewed with no system in place. When people got used
to the work from office concept, the strict official protocols started running smoothly.
However, unofficial communication was hampered and raised quite a few concerns
among the workforce.
Career progression has a lot to do with the amount of facetime one person gets with
the upper-level management. Many felt left out as their work was no longer being
evaluated directly. Some felt that their opinions and strategies in the official matter is
not being heard or reaching to the top management. The barriers were tried to be
minimized with technology but the facetime clicks in conversation were missing and
hard to be mend. This raised a little disappointment among the employees who were
eager for sharp/quick changes in their stairway to promotion. Matters came a little
under control as majority of the positions were required to visit office quite frequently
since on-site presence is highly required in a manufacturing company.

Workforce Diversity and Promoting Inclusion: The company’s view

Shangu Tex. has taken up many initiatives to empower women right from the root
level. The company has many programs to facilitate higher participation of women in
supervisory roles. The programs upfront encourage and train women to acquire the

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skillsets required to take up more responsibility and further managerial roles. Shangu
tex. believes that as the company has 80% women concentration in the workforce so,
it’s high time for them to empower the women as much as possible. For this they have
introduced the:

Upskilling Programs For Female Workers

Here, the main goal is to transform the women workers into supervisors. Before due
to being workers they had access to only street language. Now, they are equipped
with more technical knowledge. Their previous thought process of working with
intuition is currently channelled into more math-based logical thinking. For gaining
more comprehensive understanding over the whole production system they are
introduced with advanced technology and provided with formalized training. Later on,
they are rewarded with promotion in accordance with progress. To equip them with
the whole production cycle and increasing decision making skills the women workers
are given training on LINGO. It is a advanced technology that teaches how to conduct
the whole production procedure more effectively. The women workers can number up-
to 60% to 90% of the workers population, yet they are lagging in case of supervisory
roles. Thus, Shangu Tex. pays special attention to this matter and provides specialized
training to them and upskilled them.

UPSKILLING PROGRAMS FOR WOMEN 1 Introducing to LINGO

Goal: Make the supervisors
2 Shift from INTUITION TO MATH
Need: Comprehensive understanding
3 Street knowledge to TECHNICAL
Benefit: Formalized training
KNOWLEDGE
Reward: Promotion in accordance with progress 4 LINE BALANCING

Figure: Upskilling programs for women by Shangu Tex.

Figure 4. 1
The women workers are taught how to handle the production floor with better vigor
and efficiency. This in-turn upscales their worker performance and production
capacity. They are introduced to logical decision making processes and Line
Balancing, where a greater line is broken down into smaller segments and each
segment is dealt with a supervisor along with a supporting supervisor for assistance.
From then till the next one week they spend a probation period after which feedback
is provided. After the first probation period further training is given if needed. Now,
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according to progress promotion is given that motivates the workers to join more in the
training programs.

Breakdown a Supporting Feedback after 1 week Further training

longer line supervisor of probation period as per feedback

Figure: Line balancing taught by Shangu Tex.

Figure 4. 2

Through this the workers are familiarized with advanced technology that upskills then
helps in an harmonious production system and creates ease in communication in the
whole production floor. This generates a motivation in the workers’ mentality, and they
have better commuting capabilities while dealing with the critical tasks. The harmony
is only possible due to the adoption of the advanced technologies introduced through
the upskilling programs by Shangu Tex.
However, the company lacks in women representation in the top management level
roles. The company has seen fair involvement of women empowerment in the
supervisory roles, but the company has very limited women representation while going
upwards in the company hierarchy.

Employee Evaluation: Performance and Turnover Rate

Monitoring is a very crucial department for the company. Shangu Tex.

• Follows an hourly basis performance evaluation

• Integrated ERP (Enterprise Resource Planning) system
• Manual recording of KPIs
Mr. Tushar states that the performance evaluation methods are still very ‘Old-School’.
The chances of infiltration and loopholes remain as the KPIs are evaluated manually.
However, the ERP system in force has lessened the loopholes and increased the
efficiency rate.

ERP (Enterprise Resource Planning)

Shangu Tex. has an extensive use of ERP (Enterprise Resource Planning) system
which tracks and reports the whole cycle of production from start to finish including all
the interdepartmental communication required in between. Enterprise resource
planning (ERP) refers to a type of software that organizations use to manage day-to-
day business activities such as accounting, procurement, project management, risk

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management and compliance, and supply chain operations. ERP systems tie together
a multitude of business processes and enable the flow of data between them. By
collecting an organization’s shared transactional data from multiple sources, ERP
systems eliminate data duplication and provide data integrity with a single source of
truth. ERP is mainly a category of business management software—typically a suite
of integrated applications—that an organization can use to collect, store, manage, and
interpret data from many business activities. The use of ERP widely improved flow of
communication and raises the bar of efficiency and productivity within the workplace.

The turnover rate has always been low for Shangu Tex because of the following points:
• No delayed payments to workers/employees
• No discounts/deductions were made in the salary
• Even took high amount working capital loans at high interest rates from bank to
ensure on time payments for the employees (employee friendly workplace)
• Completely formalized the payment system; brought all employees under the
banking system (faced some technical difficulties related to paperwork initially)

Company’s Take on Mental Health

In words of Mr. Tushar, the concept of mental health is still very new here. Moreover,
it isn’t considered a critical issue. Although they have a doctor acting, the importance
of mental health and trauma recovery period is a lacking department. Shangu Tex.
considers mental health a personal matter should be dealt personally.
The interviewee thinks that as the management level positions are filled with people
with age seniority is still a new age concept for them. Although the management is
open to change, the gravity of the changes is very slow paced. Only severe cases (eg.
Death of family member) are taken into consideration for taking leave. The company
has a long time to go before such matters will be discussed openly and taken more
seriously.

Further Tangible and Intangible Benefits

The company offers many training and development programs besides the on-the-job
training facilities.
The disadvantaged compatriots of our country have access to almost no financial
facilities. Such infrastructural constraints create a major barrier for them which results
from their lack of communication skills. Shangu Tex. has taken this into account and
given many financial program trainings to the workers.

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 BEFORE
Physical cash 1

Private credit unit 2

AFTER
Saving schemes 3 1 Introducing to govt. schemes

2 Basic financial planning knowledge

3 How to channel right

Figure: Financial programs by Shangu Tex.

Figure 4. 3
Previously, the workers had access to only the private cash units and could only
control their physical cash. This hardly gave them any financial security. Often, the
female workers could face difficulty in keeping their finances safe as it would be
mistreated by their spouses. Some had facilities of private saving schemes, but they
would not provide any guarantee of money retrieval in case of emergency. But now,
the workers are introduced to more government schemes that give a concrete platform
to keep their money safe. The workers are imparted with basic financial planning
knowledge that would give them better financial literacy and help the assist their
finances. Moreover, the women are taught how to channel their money and other
financial belonging, so that they can stay safe.
Thus, the financial security and literacy provided will help them gain better control on
their lives and work better in the organization.
Furthermore, there are other benefit offered.

• Over time payment: 1.5 times the basic hourly rate

• Eid bonuses on both the Eid i.e. 100% of their salaries
• Attendance bonuses: for no late days on the month
• Permanent employee bonuses: employed for more than 12 months. Get a
permanent increase in their salaries

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 CHAPTER THREE
LITERATURE REVIEW

Effects of Fast Fashion on Bangladesh Women

Economic globalization has been the stimulus for developing work for women in free
trade zones and world market manufacturers. Employment options offered to women
in the garment sector of Bangladesh has enhanced gender equity and the economic
circumstances of families (Akhter, et al., 2019). (Akhter, et al., 2019). The economic
side of globalization has allowed many women in underdeveloped nations an
opportunity to earn income and escape conventional patriarchal institutions, yet those
job options promoted to women are badly compensated, hazardous, and demeaning
. Throughout the fast fashion textile sector, Bangladesh has become the largest
employer of women. Feminists look at the effects of economic globalization on women,
and they find that in places like Bangladesh, those effects are detrimental. For women,
the effects of neoliberal policies include high levels of exploitation and poor pay
(Parekh & Wilcox, 2014). In addition, a study by Sikdar et al. (2014) found that medical
and housing facilities, as well as secure workplaces, are all lacking for Bangladeshi
women. It has been observed that women have been participating in the labor force,
but their participation has not led to equitable distribution of household, childcare, and
domestic responsibilities, as well as they are still disadvantaged in terms of their lack
of access to social security which is a result of neoliberal policies .
The structure of gender contribution to the economy witnessed a huge transformation
with the rapid expansion of the garment industry in Bangladesh, which provided
women the opportunity to become financially independent and providers for their
families. Due to their low socioeconomic standing, the majority of the industry's female
employees are classified as "unskilled labor," which contributes to their poor pay.
Certainly, women's liberation has come at a price. More than eighty-five percent of
Bangladesh's garment workers are women, yet they toil seven days a week for 20
hours a day for wages that rarely rise above 20 cents. In addition to being overworked
and underpaid, Bangladesh women in apparel factories are not protected from
calamities. In 2013, an eight-story structure in Dhaka, Bangladesh collapsed and killed
around 1,127 women who were working in the textile industry called Rana Plaza. This
fall indicates that factory owners in developing economies generally emphasize
maximizing profits, in which international trade regulations encourage, regardless of
the work and safety conditions. Furthermore, because western consumers have grown
accustomed to cheap and rapid fashion, they are unwilling to pay extra for products
sewn by fatigued women who are exploited for their labor. Rana Plaza's demise was
a foregone conclusion because to the lack of regard for the working women's safety
and the shortened deadlines imposed by excessive consumer demand.

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Recent Trends and Effects of Fast Fashion on the Economy of
Bangladesh

As a result of the demand for low-cost, fast labor, garment factories can experience
horrific disasters. Sixty-four people were killed and more than 100 injured when a
garment factory collapsed in Dhaka in 2005. More than 100 people were injured and
26 were killed in a factory fire in Bangladesh in 2010. In another blaze that year, 112
people lost their lives and more than 150 were injured. The Rana Plaza building
collapse in Dhaka, which housed five garment factories exporting to countries in North
America and Europe, was the most tragic garment factory disaster. More than 2,600
people were injured when the building collapsed, killing 1,138 people (Rahman. Z,
2011). The incident exposed the horrifying reality of the dangers faced by Bangladeshi
garment workers who are paid less than the minimum wage.
Aside from major catastrophes, 1.4 million workers are injured each year in garment
factories. Subcontractors are often employed by western corporations to run their
factories, leaving little or no trace of the parent company. In this way, brands can avoid
responsibility for subcontractors' conditions by pointing the finger at them.
Bangladeshi garment workers make between $25 and $75 a month, according to
various estimates. Dhaka, Bangladesh's largest city, is awash in garment factories,
making this a near-impossible wage to make a living on (Rashid, Taib, Zien Yusoff
and Ahmad, n.d.). For Nazma Akter, who began working in factories at the age of 11,
being a cheap laborer is what makes her afraid; she says, "We need money to
survive." For those who earn too little to live on, their lives are also unsatisfactory.
Human rights abuses have far-reaching financial ramifications. Few citizens can afford
to invest in Bangladesh, spend money to stimulate the economy, and assist in lifting
the country out of poverty because of the large percentage of the population that lives
on so little. As the low wage continues to decline, fast fashion plays an important role
in keeping Bangladesh impoverished.
Last but not least, the COVID-19 pandemic ravaged Bangladesh. When store closures
began in March 2020 across the United States and Europe, there was a significant
impact on retail. Major clothing retailers like Zara and H&M have all canceled their
orders. Clothes worth $2.81 billion were canceled in March 2020 alone, with 864,17
million garments from Bangladeshi factories. The workers were left without
compensation, employment, or assistance as a result of this.
To expose the clothing brands that cancelled their orders of Bangladeshi garments
without compensating factories and workers, the petition #PayUp began trending
worldwide. Despite this, a large number of well-known companies have yet to make
their payments. Sheikh Hasina, the Bangladeshi prime minister, announced a $590
million bailout to be used solely for factory workers' salaries and benefits in response
to the crisis.

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Future Prospect of The Fashion Industry of Bangladesh

As one of the world's largest RMG producers, Bangladesh's garment industry is well-
positioned to continue its spectacular trajectory of expansion and improvement
(Exhibit:1). The country's garment industry, on the other hand, is facing challenges
and will need to make changes in various areas if it is to survive and thrive. Competing
without privileged trade access; dealing with declining demand from old client areas;
and shifting to a more sustainable sourcing model are just some of the problems it will
face.

Customers from other countries tell us the industry is moving too slowly toward this
goal. Others are more optimistic, believing that Bangladesh's resilient and adaptable
RMG industry would be able to negotiate the necessary transformation, despite the
unavoidable structural changes that will occur.
Preferential access to European and other markets will be open for negotiation as
Bangladesh rises from a low-income economy to a middle-income one. For the RMG
industry, higher tariffs would be disastrous, but bringing the RMG market on a par with
its rivals could inspire more attention to productivity and investments in digitalization,
automation, and sustainability.
Specific global CEOs are lowering their sourcing from Bangladesh as their
dependency and supply-chain risk on the country (which is further heightened by the

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pandemic) and due to a loss of competitiveness in some product categories have
reached a tipping point. There has also been a growth in the use of nearshoring as a
means of increasing flexibility and speed. But the larger and more advanced suppliers
in Bangladesh might gain from improvements in flexibility, productivity and digitization
and environmental sustainability and worker welfare and innovation. Speed is
becoming increasingly crucial, but just a few Bangladeshi manufacturers are aware.
Many suppliers will need to invest in upskilling, vertical integration, digitization, and
automation to unlock speed and transparency in order to remain competitive.

Increasing customer demand for environmentally friendly products and worries about
climate change and social justice have made sustainability an increasingly prominent
issue. As of 2020, Bangladesh ranks 87th in the World Economic Forum's Energy
Transition Index; converting the Bangladesh RMG sector into a carbon neutral
business will require huge investment in renewable energy and the infrastructure.
Even in the EU, there will be regulatory adjustments to deal with. There will be a need
for more product innovation, as well as an emphasis on sustainability, to ensure that
suppliers are able to keep up with the demand for new products and materials. We've
seen a trend in past sourcing surveys toward consolidating providers that can provide
both flexibility and sustainability. Since the introduction of COVID-19 (Exhibit 2),
Bangladeshi factories have been consolidating at an alarming rate, making it more
difficult for the entire industry to change.

Mental Health & HRM

In the context of Bangladesh, mental health is considered such a stigma even in the
21st century that seeking help for mental health issues is not normalized yet.

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According to an article, there are only 260 psychiatrists for over 166 million people in
the country (The Financial Express, Oct, 2020). The conventional idea about mental
health topics being redundant is an alarming issue. Mental health problems contribute
to less productivity, more absenteeism and reduced OCB (organizational citizenship
behaviour) among employees.

In Shangu Tex, the managers and executives have a very different idea about the
issues at hand than the younger employers. As most of the managerial posts are filled
by senior members of the organisation, the concept of mental health awareness is a
very new concept to them. However, while interviewing one of their employees, Mr.
Tushar Nishu Production and Merchandizing Manager, concerns about a lack of
proper mental health monitoring and training were stated. Shangu Tex, being a
garment manufacturing company, deals with both white and blue-collar employees. A
cross sectional survey conducted at a Thai beverage factory, indicated that more than
33.5%, which was 1/3rd of the workers, had poor mental health (K Janyam. The
Influence of Job Satisfaction on Mental Health of Factory Workers). Moreover, the
devastating effects of COVID-19 in 2020 has left the workers with even more stress,
depression and hopelessness.

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 CHAPTER FOUR
FINDINGS

Job Analysis Process: What the job entails

For Workers
Most employees at Shangu Tex Ltd are blue collar employees i.e the garments
workers directly connected to the production line. While interviewing the Managing
Director, Maheer Mannan, we came to know about job analysis done by their HR
department.
Shangu Tex uses Skill metrics to evaluate their workers working in the production
area. The skill metrics determine the number and amount of processes a single worker
can cover. They evaluate the grading system using these metrics and sometimes it
assists in the pay scale.

For Administration/Managers
Shangu Tex has set an efficiency limit that has to be met within a certain period. The
factory managers have a target to meet 65% efficiency in 2 days. This motivates the
managers to work efficiently in order to meet their target. Sometimes they face worker
limitations which test their efficiency.

Recruitment: Blend of experience & ideas

Blue Collar Employees (at least 18)

• Shangu Tex recruits workers with a minimum educational qualification
(SSC/HSC)
• They believe that young minds can be the best fit for them.
• Skill Metrics and recommendations are two determinants in this regard.
• A worker can see career growth depending on their performance. They have
an opportunity to get a promotion to helper, supervisor, junior operator, senior
operator etc.

White Collar Employees

• Shangu Tex gives key emphasis on age and mindset while recruiting
employees for the administration wing.
• There is a beautiful blend of experience (old employees) and ideas (young
employees) at Shangu Tex due to their emphasis on the mindset and age.

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 • Handling workers requires a lot of motivation. The company looks for highly
motivated and driven young people for the job to manage the smooth
operations.
• Career growth opportunity again lies on the performance of the employees.
They get promotions and join the head office if they are deemed fit for the job.

Average Cost Per Hire

For blue collar workers, the average cost per hire is less expensive as applications are
always coming in. Usually there are 12-20 applications each day. The average cost
stands to $ 10-12.
In the case of the white collar employees, the average cost per hire is expensive as
the process is longer. There are 2-3 rounds of interviews and orientation takes time
and money. Usually Shangu Tex spends about $20-30 behind each interview. So, the
average cost per hire stands to around $ 400-500.

Sources of Recruitment

For Blue Collar Workers

• Nearby Factories
Factories around Ashulia are their main source of recruiting garments workers
as Ashulia is one of the best belts of production.
• Posters
Shangu Tex uses posters to attract eligible candidates to join their production
team.
• Polls using PA system
In case of increase in production line and capacity, they open a poll in the
production PA system (relatives of the workers) to recruit employees. This is an
internal source that they use to get eligible workers.

For White Collar Employees

• Referrals
Higher emphasis is given to reference-based approach at Shangu Tex as they
believe that their existing employees know best as to what they require and find
the right person for the right job. This happens in case of older posts like
incentives handling.
• Social Media Post
One of the sources that Shangu Tex uses is social media portals. They share
recruitment posts on facebook, Linkedin etc to attract eligible candidates.

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Redesigning Task: Making the job interesting

It is extremely difficult to make tasks in a garments factory more interesting and less
monotonous due to the focus on specialization. The tasks are repetitive and it's more
about being faster and more efficient. However, Shagu Tex tries to bring in job variety
and give opportunities to learn different production processes and ways of handling
fabrics by bringing in orders of different types of products.
Moreover, Shangu Tex arranges yearly picnics, mezban etc to satisfy the workers and
increase job commitment. This also motivates the workers and refreshes their minds.
They also try to incentivise the employees through different gamification related to the
production process like employee of the month, best line competition etc.

Anti-discrimination & Non-discrimination policy: No Discrimination,

that’s what Shangu about

75% of the workers at Shangu Tex are female. The company follows a no tolerance
policy. But, like any other garments company, they do have to comply with policies of
the labor union. So initially they issue warning letters if any mishap arises, but after 3
warning letters, the HR department takes immediate actions by dismissing or
terminating.

Dissolving Bridges of Language Barrier

As most employees are citizens of Bangladesh, there is not much of a language

barrier. However, employees who deal with foreign merchandisers and clients do need
to have proper English speaking skills which the HR department ensures by recruiting
the right candidate and assigning that task to someone with better communication
skills. But, the information tripled down to the workers looking after the minute
production task is communicated in Bangla as it is easier for everybody to understand
the task.

Employment Agencies and Shangu

An employment agency is a company that connects employers and employees. They

find out what employment openings are available and who would be the greatest
candidate to fill them. They offer assistance to both candidates and clients. However,
Shangu believes in finding people their own way.

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Shangu Textile uses an in-house recruitment approach. Using internal resources to
recruit new talent can be quite effective. The cost of hiring with recruitment agencies
can be expensive as placement fees are usually a percentage of the candidate's
remuneration. Moreover, briefing headhunters about your requirements both in terms
of skill sets and company culture can take a large amount of time which could be saved
if you had your own in-house recruiters.
When you are seeking for specialty roles, despite spending time creating job
descriptions and briefing recruiting agencies on your criteria, recommended applicants
may not always be relevant for your job and organization. And workers keep switching
a lot. For the managerial positions, Shangu is more comfortable on the references and
online circulars.

Personality test and Cognitive Test at Shangu Tex. Limited

Personality test tracks a person's state, which varies depending on mood and
circumstance, rather than personality qualities that remain constant. A cognitive test
examines your mental abilities (how your brain processes thoughts). Answering easy
questions and executing simple tests are part of the test.
Shangu Tex looks for personality more than cognitive sense as it’s a place led by the
mindset. A personality test can help them find garment workers that are easy to be
around, work with others on the team, and don't use violence to tackle problems , and
improve upon criticism. As Shangu staffers range in age from 25 to 35. These people
can understand the larger picture and aspire to be Bangladesh's best manufacturing
unit. It also looks for factory workers that are stable and dependable, have a positive
public perception of your firm, are willing to cross-train, and are willing to stay with you
in the future. Because Shangu already has all of the certifications needed to
manufacture for the decent and high-end companies out there, they are looking for
employees with a progressive attitude who are eager to learn and aid colleagues. Age
is another important factor because it allows Shangu to determine if employees are
open-minded or confined. Shangu also employs a variety of software, therefore they
will need to be able to adjust to the adoption process in the future.

Management Assessment Center at Shangu Tex. Limited

A management assessment center is a set of exams, interviews, simulations, and
exercises used to forecast how well a candidate for management will perform in a
certain capacity. The potential manager is put through a series of activities and
circumstances at the assessment center, and their responses are graded. It not only
aids in the selection of the best candidate for the job, but it also broadens the
participants' knowledge, improves their thinking process, and increases their

Page | 25
productivity at work. Because the assessments are similar to the role, it offers
candidates a greater understanding of the position they have applied for.
But at Shangu Tex there are no management assessment centers. Managers are
evaluated based on their target achievement annually. Every year, the assessment is
conducted to keep track of the manager's performance, particularly where they have
put in extra effort and the tasks they have completed. This evaluation results in a
promotion, increment in salary, or a review of their pay scale (Shangu Tex ensures
that people get what they deserve).
Another reason for not conducting management assessment is that those who receive
a low evaluation may feel demotivated and lose faith in their skills. It's also quite
expensive and time-consuming. Each assessor will spend at least three days at the
assessment center: one day for training, one day for assessing, and one more day for
making a judgment.

Career Growth Opportunities

The garment sector offers a wide range of professional opportunities. The following
career opportunities are available based on educational qualifications. Shangu Tex
wants fresh graduates and also provides internship programs. Otherwise, one can
approach organizations directly for a job. A new candidate, like those in other
businesses, may have difficulty finding their first position, but once hired, there are
several prospects for advancement. Choose from the options below based on your
skill level and interests.
Many of the people that worked here are now production floor supervisors or even
production managers. Shangu Tex believes that in the long run, they must train their
own staff because loyalty is very important in this business. Shangu Tex prefers to
hire people who are eager to learn.

Pay Plan and Policies

On January 13, 2019, Bangladesh revised the new salary structure for readymade
garment workers. The government has made revisions to six of the seven classes in
the new pay system, and wages have been modified to account for the yearly 5%
increase (Textile today, 2019).
The redesigned structure saw a large increase in gross compensation of Tk747 in the
first grade, but only a Tk15 to Tk20 increase in the 5th and 6th classes. In the second,
third, and fourth classes, the amounts of rise are TK786, Tk255, and Tk102,
respectively. The new wage board went into effect on December 1, 2018 and will be
updated in February 2019.

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Shangu Tex follows the updates gazette to maintain a standardized pay plan. In
addition, hourly pay with bonuses and incentives based on performance.

Internal and External Equality Based on Pay

Bangladesh is a diversely populated country. In the garment industry, workers from all
religions and cultures work under the same roof. Bangladesh has gained a reputation
for being a leader in the fight for gender equality. Rapid progress has been made in
the face of widespread poverty and interconnected forms of social disadvantage,
political instability, and underdevelopment, all of which have been exacerbated by
ongoing 'classic' forms of patriarchy. Since its inception in the late 1970s, mass
employment of women and girls in the country's hallmark export sector, readymade
garments (RMG), has been one of the most apparent and conspicuous developments
in women's lives.
In addition to the standardized compensation plans provided by the Bangladesh
government and related ministries, Shangu Tex offers attendance bonuses, various
festival bonuses, and incentivizes their employees to work more effectively. Provides
both financial and nonfinancial incentives.

Factors of Market Competitive Pay Plan

Bangladesh's garment sector has grown by 79 percent in the last seven years, from
$19 billion to $34 billion in yearly revenue. This makes Bangladesh the world's second
largest exporter of garments, accounting for 80 percent of the country's overall export
revenues.
Shangu Tex makes sure that foreign payments received per unit of production stays
correlation to the amount of expenditure. Pre and post pandemic things have changed
a lot. Currently direct labour and material is more expensive. There’s a shortage of
workers as well as they have moved back to their villages. Shangu tex tries to find the
sweet spot between valuing the work of their people and the money received from the
exports done. Moreover, they try to keep the system similar to the BGMEA and labour
unions.

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 CHAPTER FIVE
RECOMMENDATIONS

From our findings and or evaluation of the processes in Shangu Tex limited, we came
up with the following recommendations

Evaluative Measurement of Organizational Culture

Due to relatively frequent changes in the blue-collar employee base and high turnover,
establishing a constructive organizational culture has been a challenge for Shangu
Tex. In light of this, a proper evaluation and measurement of the organizational culture
is necessary to understand the workforce and their workplace behavior and attitude.
The use of the Organizational Culture Inventory can help with insight into the employee
behaviour and interpersonal interactions and their attitude towards the workplace and
the organiation as a whole. It uses the (Human Synergetics) Circumplex Model which
measures 12 different behavioural norms which are subcategorized into three culture
types: Constructive, Passive-Defensive and Aggressive-Defensive

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The OCI works through 2 different steps

• Questionnaires
• Unit Profiles
Questionnaires are used individually or in groups. All the relevant and required
questions will be provided for each employee to answer. The data will then be put in
the Curcumplex model for evaluation of their behaviour, theirs norms and standards
etc.
Next, Unit Profiles are made specific to different levels, departments and groups.
These profiles give insight in the differences between departments and groups in the
organziation reveal any subcultures present inside the organization. The model
provides a huge database that can be used to determine the methods of achieving an
ideal OCI and a constructive organizational culture.

Personality and Psychological Evaluation for Blue-Collar

Employees

The majority of the base level work, especially in production, is done by the blue-collar
employees of Shangu Tex. As these employees are many in number and there is a
requirement of sufficient cooperation and cohabitation in the workplace, there is a
significant necessity for personality and psychological evaluation and support for these
employees.
Based on psychological profiles, employee placement in the workplace, as well as
their jobs, should be allocated. Allocations will be based on compatibility between
employee personality and psychology and the nature of the job and job requirements.

Maintenance of Employee Equality on the Administration Level

Although at the production level there is a high inclusion of women in the employee
ranks, in administration there is a lack of sufficient recruitment and placement of
female employees. With more female blue-collar workers, especially those from
conservative households, more presence of female employees and supervisors in the
administration would bring about a better floor for communication and interaction in
the workplace.

Reduction of Reference Bias in Upper Management Placements

Being an organization originally established by members of the same household, most

of the upper management of SHangu Tex Limited is recruited based on references

Page | 29
from the existing management. The bias towards referrals can be reduced and the
positions can consider candidates from external sources. This will widen the candidate
pool for the positions and increase the probability of finding suitable and more efficient
individuals who’ll be suitable for the job role and its responsibilities.

Prioritizing Employee Mental Health

Employee mental health is a key element in ensuring an efficient and ideal workforce.
Mental health can seriously affect employee performance, behaviour as well as the
overall working environment. Shangu Tex has insufficient initiatives in managing
employee mental health, the inconsideration of which will directly affect operations of
Shangu Tex.
The implementation of different EAPs (Employee Assistance Programs) can create a
platform that directly deals with the mental health needs of the employees in the
organization.
EAPs primarily focus on many different matters, mental health being primarily one of
them. Counseling, referrals, and follow-up services are commonly used to provide
assistance in such programs. Workplace stress can result in major mental health
issues like depression and anxiety. Encouraging employees to take a mental health
screening can assist assess if what they are experiencing is the beginning of a mental
health problem. Treating a mental health condition early on helps reduce suffering
while also saving money on therapy and sick days.

Greater In-house Hygiene Facilities

Due to the high engagement of employees in the factories of Shangu Tex, it is very
necessary to increase the in-house hygiene facilities. A hygienic work environment is
highly important, especially when the workplace houses a significant amount of
employees. On top of that, more promotion of female hygiene and support in such
cases is required by providing female hygiene products, greater awareness etc.
Increase in the facilities already provided is also required to reduce insufficiency in
time of need. On top of that, regular health check-ups for the employees should be
ensured too in order to identify and prevent potential illnesses.

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 CHAPTER SIX
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