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The history of power driven modern textiles in Bangladesh dates back to the beginning of the twentieth century.

Before 1947, modern textiles were only the composite textile mills having spinning and weaving facilities. Added later were activities like specialised textile weaving, knitting and hosiery, and dyeing-printing-finishing. At Partition of 1947, there were about 11 composite textile mills in East Pakistan with 1.1 million spindles and 2.7 thousand looms. Spindles grew to 3.2 millions in 1956 but declined to 0.8 million in 1972 as worn-out obsolete spindles went out of operation. In 1972 large-scale manufacturing units including textile mills were nationalised. After 1982, state owned spinning mills were gradually denationalised. By 1999, spindles installed were 2.4 million in the private sector as compared to 0.4 million in the public sector. Most spinning mills of Bangladesh produce low-grade yarn. The existing capacity is not enough to produce good quality combed yarn and polyester/cotton blended yarn for meeting the requirement of Garment Industry. The products of the spinning sub-sector are cotton yarn of different counts, polyester, synthetic yarn, woollen yarn and blended yarn mixed of cotton and polyester. Yarns are being used by the weaving sub-sectors like specialised textiles, handlooms, and knitting and hosiery. In 1999, yarn production of 112 million kg satisfied only 22% of total yarn requirement of the country. The growth of mill weaving loomage capacity was slow (2% annually) during 1947-56 but was faster (4.6% annually) during 1957-72. Like the spinning mills, the weaving mills with 6.8 thousand looms, which were in composite mills, were also nationalised in 1972. Loomage capacity was more or less the same until 1983 when privatisation of nationalised mills was undertaken. Loomage capacity reduced to 3.9 thousands in 1999 from 6.3 thousands in 1983 as the old obsolete looms went out of operation. The products of modern weaving are cotton fabrics used as sari, dhoti, lungi, blouse, shirting, drill, long cloth, poplin, saloo, grey markin, etc. These fabrics are woven in narrow strips and in addition, they can not be used in the garments industry because of their low quality. In 1999, fabric production of 25 million metres cannot even meet 1% of the domestic fabric requirement. The specialised textiles sub-sector, loomage capacity of which varies from 10 to 50, started in mid-seventies. In 1976, it had 800 looms with annual production capacity of 15.6 million metres of fabrics. Its loomage capacity rose to 3,500 in 1983 indicating a 23% annual growth rate. Its yearly growth rate was slower (about 16.5% annually) during 1983-99. Fabrics produced in this sub-sector are mostly cotton, polyester and cotton-polyester blended types. Main products are

nylon saris, household linens, curtains, shirting, suiting, nets, pocketing fabrics, velvet cloth and fabrics for draperies. Knitting and hosiery units catered to the domestic need with 3,000 machines in 1952 and 1,562 machines in 1976. Only after the 1980's, the products of this sub-sector gained access to export market. The annual growth of machine capacity satisfying domestic market was about 5.3% for the period 1976-83 and only 2.1% for the period 1983-99. In this period, 1,390 circular knitting machines were added to the capacity to satisfy the export demand. However, the situation on the knitting side looks better than in weaving. The main products of this sub-sector are vests, underwear, T-shirts, polo shirts, ladies undergarments, socks, mufflers and sweaters. During 1956-76, modern dyeing facilities were limited to composite mills and traditional hand-dyeing facilities to handloom industry. Automatic and semi-automatic dyeing-printing-finishing facilities were set up in the private sector after 1976. The annual growth in the semi-automatic dyeing and finishing units was 17.4% during 1976-83 and only 1.9% during 1983-99. It was 6.3 and 7.7% for automatic dyeing and finishing units for the two periods respectively. Manual dyeing still exists in the handloom sub-sector. The overall growth performance of modern textiles excepting the export-oriented garments industry has been very poor with only very limited investment taking place in weaving subsectors and relatively more new investment in the spinning sub-sector. Modern textiles have developed in a haphazard and footloose manner with little balancing among spinning, weaving, and dyeing-printing-finishing sub-sectors. Most mills are unbalanced with their own structures, and suffer from technological and production shortcomings. Over the years the links between the downstream textiles and garments sub-sector remained weak. Bangladesh entered into export market of readymade garments (RMG) in 1977. Exports of RMG grew at a very fast rate during the last two decades. But this growth has not been supported by a growth of the backward linkage facilities. The RMG industry has to depend upon imports for 85% of fabrics and 40% of yarn required for this expanding export market. As of 1999, the textile sector of Bangladesh may be characterised by the following facts: there were 2.8 million spindles with an annual production capacity of 200 million kg of thread; the total number of looms were 3,900; 1,200 in private sector and 2,700 in public sector and the annual production capacity was 66.9 million metres of cloth. All the specialised textile mills were in the

private sector and they had 40,500 looms producing annually 69 million metres of cloth. The number of body machines/circular machines in knitting and hosiery sector was 8,884, of which 5,753 operated for export market. There were 250 dyeing and finishing units - 175 semiautomatic and 75 automatic and the number of export oriented RMG manufacturing units was 2,650 having an annual production capacity of 1,8 billion pieces. The total demand-supply gaps of fabric and yarn for 1996-97 were 2,433 million metres and 429 million kg respectively. These gaps would increase to 3,717 million metres and 639 million kg respectively by 2002. This speaks of this textile sector as an important area for potential investments. The investment in this sector is also attractive because of low wage ($40-70 dollar) per month, and relatively low cost of infrastructure required for setting up textile mills. In an international environment cost of capital and labour in Hong Kong, Korea, Singapore and Taiwan etc are rapidly increasing. The government policy also encourages private investment, especially foreign investment in the textile sector by allowing special facilities such as (a) tax holiday for five, seven, nine and twelve years for industries set up in the developed, less developed, least developed, and special economic zones respectively, (b) tax exemption on royalties, technical know-how and technical fees, (c) tax exemption on interest on foreign loans, (d) tax exemption on capital gains, (e) avoidance of double taxation, (f) exemption of income tax for foreign technicians for a period of up to 3 years; (g) remittance up to 50% of the salary of the foreigners employed in Bangladesh, (h) facilities for repatriation of invested capital, profits, and dividends abroad, and (i) provision for treating reinvestment of repatriable dividend as new foreign investment. Bangladesh is a member of the World Trade Organisation and its exports of RMG products are benefiting from the Most Favoured Nation status including the post-Uruguay Round tariff rates and reductions in them made by all major developed nations. Bangladesh is a favoured partner in the Generalised System of Preferences of the EU. It is also a signatory to the Uruguay Round Agreement on Textiles and Clothing. It concluded bilateral Multifibre Agreement (MFA) on trade of textiles and clothing with Canada, EU and USA. MFA restrictions on textiles and apparel trade will be withdrawn in phases by 2005 creating a more competitive environment when access to export market will not be as assured as under the current quota system.

Recruitment Criteria in Textile Industries in Bangladesh Recruitment criteria 1971-1980 Overall Industries 1 Advertisement in the media Advertisement in the notice board Employment agencies Head hunting Professional associations 5 6 7 8 Recommendations Employee referrals Curriculum vitae Internet 9 N/A N/A N/A Sometimes Sometimes Received by mail National Newspapers N/A N/A N/A 1981-1990 Overall Industries National Newspapers N/A N/A N/A Textile Recruitment Agency Sometimes Sometimes Received by mail 1991-2010 Overall Industries National Newspapers & Internet N/A N/A N/A Textile Recruitment Agency N/A N/A Received online or by mail bdjobs, JobsA1, prothom-alojobs, Company website After the independence of Bangladesh National Dailies were the only media of circulation for recruitment but with the inception of internet it gained a major focus in this purpose. A number of sites such as bdjobs, JobsA1, prothom-alojobs, Company website serve this purpose. Moreover CVs are today accepted through internet. We found during the study that there was no role of employment agencies, notice board and head hunting in recruitment in textile sector. Influences of personal references has been curtailed during 1991-2000

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Selection Criteria

1971-1980 Overall Industries Selection criteria

1981-1990 Overall Industries Done Via Textile

1991-2010 Overall Industries TRA, IBA, BUET and the Textile itself Personality Test, Job Fit Written Test Board Interview Civil Sergeant & its own physician Crime Record Check through Local Authority, Reference Check

Initial Screening

Done by own Person Job Fit written Test & viva Board Interview Civil Sergeant Crime Record Check through Local Authority, No Reference Check

Recruitment Agency (TRA) Person Job Fit Written Test & viva Board Interview Civil Sergeant Crime Record Check through Local Authority, No Reference Check

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Employment Test Interview Medical Check Background

Investigation and Reference Check

Textile Recruitment Agency (TRA) is an autonomous body that gives professional service in recruitment process in Textile Industries. Moreover BUET and IBA give professional assistance in the recruitment process. Before 1991 Companies did not have their own employed doctors. Being attacked with massive competitive pressure after 1991 they ensured physical fitness of their employees trough employment of full time doctor Before 1991, reference was not a crucial factor. But after this year companies began to have a close attention on this aspect.

Training Development Criteria 1971-1980 Overall Industries 1981-1990 Overall Industries 1991-2010 Overall Industries

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Training criteria On-the-job training Classroom lecture Conference

N/A N/A Annual General Meeting

N/A N/A Annual General Meeting

90 days orientation program N/A Semi Annual & Annual General Meeting Multimedia Use with Appropriate Software Frequently Frequently Rotating employees at different workstation with changing responsibilities Yes

Audiovisual technique N/A N/A N/A Frequently Rotating employees at different workstation with changing responsibilities Yes

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Simulation exercise Programmed instruction Job rotation

N/A N/A Rotating employees at different workstation with changing responsibilities N/A

Role playing

Before 1991 there was no on the job training in this sector. All were pushed for work. Hence there was chance of inefficiency in production. Companies introduced a 30 day orientation program in 1991 to minimize this inefficiency. Moreover, audiovisual training and simulation exercises gets used frequently as training development criteria. Role playing gains significant importance after 1981 and the Managers becomes role model to the employees. Promotion Criteria 1971-1980 Overall Industries Promotion criteria 1981-1990 Overall Industries 1991-2010 Overall Industries

Length of service

based on the seniority instead of merit

based on the seniority instead of merit Important Important Important Important Important Important N/A

Length of Services gets less importance Less Important Very important Very important Very important Very important Very important N/A

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supervisor Based on merit Right attitudes and values Knowledge and skill Record of training Performance evaluation Party membership

Important Important N/A Important N/A Important N/A

At the first and second phase seniority was the most important force as determinant for promotion. But after 1991 seniority gets less importance. Instead, merit, attitude, knowledge and skill gets more importance. The importance of performance evaluation increases with each phase whereas party membership remains all the time as negligible force. Recommendation of immediate supervisor gains less importance after 1991.

Performance Appraisal Criteria

1971-1980 Overall Industries Performance appraisal criteria Essay Appraisal No Graphic Rating Scale No Behaviorally Anchored Rating No Scale

1981-1990 Overall Industries No No No

1991-2010 Overall Industries

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No No No

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Field Review Simple Ranking / Rating Forced Choice Rating Critical Incident Appraisal Management by Objective ACR (Annual confidential report)

Yes Yes No No No Yes

Yes Yes No No No Yes

Yes Yes No Yes Yes Yes

There was no significant change in methods using performance appraisal. Management by Objective and Critical Incident Appraisal was introduced in 1991 and

Compensation Criteria 1971-1980 Overall Industries 1 2 3 4 Compensation criteria Employees performance Skill-based pay Sweet-will of the employer Pay structure government 5 Bangladesh Pay structure of self of Most important N/A N/A the N/A of Maintained Maintained Maintained 1981-1990 Overall Industries Most important N/A N/A N/A 1991-2010 Overall Industries Most important N/A N/A N/A

organizations in the 6 industry compensation outstay benefit for Provided Provided Provided

Compensation system in Textile Industry is mainly based on the guideline made by the BGMEA. Employees claim that though with intensive global pressure they are taking increased responsibility, they are not compensated accordingly. Their compensation system did never change except some revisions.

Benefits & Services Criteria 1971-1980 Overall Industries 1 2 3 4 5 6 7 8 9 10 Benefits & services House rent allowance/Rent N/A free accommodation Car/ Conveyance N/A allowance Medical allowance Telephone allowance Entertainment allowance Bonus N/A N/A N/A Equivalent to the 1981-1990 Overall Industries N/A N/A N/A N/A N/A Equivalent to the Basic Salary N/A N/A N/A N/A 1991-2010 Overall Industries N/A N/A N/A N/A N/A Equivalent to the Basic Salary N/A Yearly Tour N/A N/A

Basic Salary Leave with pay N/A Recreation allowance N/A Childrens education N/A facility Home furnishing allowance N/A

11 12 13 14 15 16 17 18

Electricity expenses Company

and products

Gas N/A at N/A Annually 15 days 3 Months N/A N/A N/A N/A

N/A N/A Annually 15 days 3 Months N/A N/A N/A N/A

N/A N/A Annually 15 days 3 Months N/A N/A N/A N/A

subsidized price Sick leave Maternity leave Paternity leave Marriage leave Compensation for shortterm disability Compensation for longterm disability

There in no clear guideline on benefit and service area in Textile Industries of Bangladesh. There is no guideline for compensation of any sort of disability of the employees either the disability be short term or long term. Employees do not get any sort of compensation for amenities such as gas and electricity. Moreover they do not get medical allowances. They only get a gross salary. Companies only maintain the competitive range.

Industrial Relations 1971-1980 Overall Industries Industrial relations criteria The labor union is highly trusted Yes by members of the company Labor union in this company No more politically active Labor union in this company is Moderately working hard with management to solve problem at the work place 1981-1990 Overall Industries Moderate No Moderately Low No No 1991-2010 Overall Industries

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Labor union is no longer trusted by members of the company. Though the union is not involved with politics, it lost its desired effectiveness by the lack of consciousness of the leaders toward the overall employees. Labor union in this industry could not negotiate with management to solve problem at the work place

Company Performance Organizational criteria Overall 1 2 3 4 5 6 7 8 Industries Market share increases N/A Growth in sales Company product diversification Employees new skill Development Development of employees moral Profitability of the company Company s growth in numbers of employees Quality service to customers Overall Industries N/A Overall Industries performance 1971-1980 1981-1990 1991-2010

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Conclusion An effective approach to recruitment and selection can help an organization to maximize the competitive advantages by choosing the best pool of candidates quickly and cost efficiently (Kleiman, 2005). Though successful recruitment and selection can be costly and timeconsuming still, recruitment and selection is crucial for a business, because unsuccessful recruitment and selection can be responsible for the failure of the business. The textile and garment sector in Bangladesh fulfils a crucial role in the countrys economy. In the 2006/07 fiscal year (July 2006-June 2007), it accounted for as much as 76% of the countrys total exports. And in 2006 it provided jobs for 4.5 mn people, accounted for 10.5% of the countrys GDP, and contributed 40% of its manufacturing output. Exports have been growing at an impressive rate in recent years. In 2006/07 alone, they increased by 18.2% to reach US$9.6 bn, a record level for the fifth consecutive year. Looking ahead, Bangladesh has an excellent opportunity to boost exports of garments to the USA and EU countries where demand for low cost apparel is increasing. The introduction of quotas restricting EU and US imports from China in 2005 and 2006 respectively has already provided it with a breathing space in which to gain market share. So has the EUs Generalised System of Preferences (GSP) scheme, which provides garment manufacturers in Bangladesh with duty-free access to the EU marketsubject to certain conditions relating to the origin of the materials used in the manufacture of the garment. In respect to such problems and prospects if we cannot manage our human resource at proper direction by comprehending their needs all the hopes will be nipped in the bud. Hence Government and executive bodies should take necessary steps to solve the problem as soon as possible.