2011

Term Paper on:

HRM Practice in Square Textiles Ltd.

Prepared for Lt. Col Md. Mahmud Hassan, psc Faculty Member, FBS Bangladesh University of Professionals Mirpur Cantonment, Dhaka-1216.

Prepared by Group - 08 Robal Chandra Chowdhury [Roll # 31] Md. Sazzad Parvez [Roll # 03] Md. Shadiqul Hasan [Roll # 06]

Md. Rashedul Hasan Khan [Roll # 30]

EH 702: Human Resources Management EMBA 4th Batch [December 01, 2011] 1

Introduction
1.1 Origin of the report:
This report is prepared to fulfill the partial requirement of the term paper for Human Resources Management (EH-702) program as subject of the EMBA program of The Banagladesh University of Professionals. In today's highly competitive global business environment, organizations need to aggressively compete for new markets, products, services, and top human talent in order to develop and sustain competitive advantage in the business world. As a leading textile manufacturing company Square Textiles Ltd has proved itself in the related industry as a major competitor. In this report we have found and analyzed various HRM policies practiced in Square Textiles Ltd following the guidelines provided by the teacher.

1.2 Objective of the Report:

To fulfill the partial requirement of the Managerial Economics program as subject of the EMBA program. To provide an overview of HRM practice of Square Textiles Ltd. To reveal operational, management and HRM planning. Discuss all HRM practice

1.3 Scope of the report:

This report covered the overall HRM policies practiced in Square Textiles Ltd. and also includes the relationship of the employees within the organization as well as the principals of HRM policies covered.

1.4 Source of Data: Both primary and secondary data have been collected. WE have gathered primary data by personal interview of the Executives of HR Department of Square Textile Ltd. Mainly we have discussed with them verbally over telephone. We collect information from them and from their official websites. We used journals, brochures, manuals and several books on Human Resources Management to prepare this report. 1.5 METHOLODGY of the report: To prepare this report we have collected data from different published materials. We also collect data from internet. This way we collected primary data. Thus we have used both primary and secondary report to prepare this report. 1.6 Data Analysis Method: We analyzed the data to find out the required information. We used Ms-Word or any required computer program used to present the data. Informative data and based on this data analysis the final report was prepared. 1.7 Limitation of the Report: It is an uphill task to study the whole HRM Policies Practice scenario in by analyzing one organization in Bangladesh and compared to the courtiers in the world, so the report was completed under certain constrains which were: Difficulty in gaining accesses to financial sector. Non-availability of the most recent statistical data.
As we are executive student it is not possible for us to collect all the

necessary information.
We had to complete this report within a very short span of time that was not

sufficient for investigation. Lack of Experience.

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Company Overview
2.1 About Company: Square Textiles Ltd. started its journey by establishing the first unit in 1997. One year later the second unit was established. Square Textile is a subsidiary company of Square Group. The Company was incorporated as a public limited company in the year of 1994. The operation was started in 1997. It was enlisted in Dhaka Stock Exchange & Chittagong Stock Exchange in 2002. Within a very short time of span the company achieved some significance success. Square Textile receives OekoTex standard 100 and ISO-9002 certificates in the year 2000. Authorized capital of the company is Tk. 3000 million. Its paid- up capital is Tk. 974 million. The business lines of Square Textiles Limited are manufacturing and marketing of yarn. The factory is located in Saradaganj, Kashimpur, Gazipur, Bangladesh. Its office is located at Uttara in Dhaka. 2.2 Mission & Objectives:

To establish ourselves as a one stop source for the Global Knit Apparel market. To satisfy and meet customer's expectation by developing and providing products and service on time, which offer value in terms of Quality, Price, Safety & Environmental impact.

To assure complete compliance with the international quality standards. To provide the employees internationally acceptable working condition /standards. To promote the development and best use of human talent & equal opportunity employment. To procure the most advanced & sophisticated technology suitable for producing desired product. To attain highest level of competence through continuous development of the professional management system and to ensure complete transparency in all aspects of business.

2.3. KEY PRODUCT / SERVICES: As stated earlier the business line of the company is manufacturing and marketing of yarn. It manufactures: 100% Cotton Ring Span Yarn for Hosiery. 100% Cotton OE Rotor Yarn for Hosiery. Knit Fabrics for 100% export oriented readymade Garments Industry. It also performs the following services: Dying & Post Mercerization. Fabric Dying The final output is marketwise by Square Fashion Ltd. In Square Textile Limited two types of products are produced in two different units. These are as follows: Unit 1: Combed and Carded Yarn from a count range of Ne.10 to Ne.80. Unit 2: Combed Ring Yarn from a count range of Ne.20 to Ne.40. In Square Spinning Ltd. 100% Cotton Carded and Combed Yarn in the count range of Ne.16 to Ne.30 are produces. Finally in Square Fashions Ltd. Readymade Knit Apparels like Tshirts, Polo shirts, Tank tops, Pajamas, Sport wear, Under garments, Mens & Ladies fashion wear, Kids wear etc

Recruitment Process of SQUARE Textile

3.1 Recruitment and Selection process in SQUARE Recruitment is the process through which the organization seeks applicants for potential employment. Selection refers to the process by which it attempts to identify applicants with the necessary knowledge, skills, abilities and other characteristics that will help the company achieve its goals, companies engaging in different strategies need different types and numbers of employees. The strategy a company is pursuing will have a direct impact on the types of employees that it seeks to recruit and selection. 3.2 Source of recruitment There are two kinds of source SQUARE uses for recruitment .They are External source Internal source We try to discuss all relative sources which are used for recruitment in SQUARE. 3.2.1 Internal source SQUARE thinks that current employees are a major source of recruits for all but entry-level positions. Whether for promotions or for Lateral job transfers, internal candidates already know the informal organization and have detailed information about its formal policies and procedures. Promotions and transfer are typically decided by operating managers with little involvement by HR department. 3.2.2 Job-posting programs HR departments become involved when internal job openings are publicized to employees through job positioning programs, which informs employees about opening and required qualifications and invite qualify employees to apply. The notices usually are posted on company bulletin boards or are placed in the company
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newspaper. Qualification and other facts typically are drawn from the job analysis information. The purpose of job posting is to encourage employees to seek promotion and transfers the help the HR department fill internal opening and meet employees personal objectives. Not all jobs openings are posted .Besides entry level positions, senior management and top stuff positions may be filled by merit or with external recruiting. Job posting is most common for lower level clerical, technical and supervisory positions. 3.3 External source When job opening cannot be filled internally, the HR department of SQUARE must look outside the organization for applicants. We discuss all the external source of recruitment at bellow: 3.3.1 Walk-ins and Write-ins: Walk-ins are some seekers who arrived at the HR department of SQUARE in search of a job; Write-ins are those who send a written enquire .both groups normally are ask to complete and application blank to determine their interest and abilities. Usable application is kept in an active file until a suitable opening occurs or until an application is too old to be considered valid, usually six months. 3.3.2 Employee referrals: Employees may refer job seekers to the HR department. Employee referrals have several advantages. Employees with hard to find job skill may no others who do the same work Employees referrals are excellent and legal recruitment technique, but they tend to maintain the status of the work force in term of raise, religions, sex and other characteristics, possibly leading to charges of discrimination.

3.3.3 Advertising Want ads describe the job and the benefits, identify the employer, and tell those who are interested how to apply .They are most familiar form of employment advertising .for highly specialist requites, ads may be placed in professional journal or out of town newspaper in areas with high concentration of the desired skills Example: General Manager- production (ref: PM) -Age: 28-35 years; Graduate with specialization in garment mfg technology from NIFT or equiv. -Minimum 10 years experience in similar position of a unit with a minimum of1000machines. -Must have detailed hands on knowledge of industrial engineering. We offer competitive salary which is commensurate with experience and qualification. If you aspire to an exciting and rewarding career, send your detailed resume, quoting your present and expected salaries to jobs. 3.3.4 Internet Now today nobody thinks anything without internet. So SQUARE give their advertise at internet. Example: [Link], [Link]

Training and Development program of SQUARE Textile

Training is a process of learning a sequence of programmed behavior. It is application of knowledge. It gives people an awareness of the rules procedures to guide their behavior. It attempts to improve their performance on the current job or prepare them for an intended job. Development is a related process. It covers not only those activities which improve job performance but also those which bring growth of the personality; help individuals to the progress towards maturity and actualization of their potential capacities so that they become not only good employees but better men and women. In organizational terms, it is intended to equip person to earn promotion and hold grater responsibility. There are many types of method practices in SQUARE. We discuss that method at bellow: 4.1 On the job training: On the job training is a training that shows the employee how to perform the job and allows him or her to do it under the trainers supervision On the job training is normally given by a senior employee or a manager like senior merchandiser or a manager. The employee is shown how to perform the job and allowed to do it under the trainers supervision. 4.1.1 Job rotation: Job rotation is a training that requires an individual to learn several different some in a work unit or department and performer each job for a specified time period. In job rotation, individuals learn several different jobs within a work unit or department. One main advantages of job rotation is that it makes flexibilities possible
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in the department. When one employee like junior merchandiser absence another merchandiser can easily perform the job. 4.2 Off the Job training As the name implies, off-the-job training is the training done on behalf of employers, usually away from their premises. It can involve both theory (background knowledge) and practical training and may include assessment and examinations. Although usually delivered on the premises of the provider it may involve online learning in the workplace and visits from provider staff to the employer in order to deliver aspects of training. 4.2.1 Classroom training Classroom training is conducted off the job and probably the most familiar training method .It is an effective means of imparting information quickly to large groups with limited or no knowledge of subject being presented. It is useful for teaching factual material, concepts principle other theories .portion of orientation programs, some expects of apprenticeship training and safety programs are usually presented utilizing some form of classroom instruction. More frequently however, classroom instruction is used for technical, professional and managerial employee 4.3 Development of the human resources The long term development of human resources as distinct from training for a specific job is of growing concern to HR departments of SQUARE .Throw the development of current employees the department reduces the companys dependents on haring new workers .if employees are developed properly the job openings found throw HR planning are more likely to be filled internally promotions and transfers also show employees that they have a career not just a job. The employee benefits from increased continuity in operations and from employees who fail a greater commitment.

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4.4 Steps in the Evaluation of training and development Evaluation criteria > pretest > trained or developedWorkers > posttest > transfer to the job > follow-up studies.

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Performance Management of SQUARE Textile

5.1 Performance Management Performance appraisal is the process of assessing employees past performance, primarily for reward, promotion and staff development purposes. Performance appraisal (is) a process that identifies, evaluates and develops employee performance to meet employee and organizational goals. Performance Appraisal doesnt necessarily use to blame or to provide a disciplinary action. Previous management theories used to view performance appraisal as a stick that management has introduced to beat people. Performance appraisals are now more clarified and they concentrate on developing organizational strengths and employee performance. 5.2 Purpose of Performance Appraisal in SQUARE To review past performance To assess training needs To help develop individuals To audit the skills within an organization To set targets for future performance To identify potential for promotion To provide legal & formal justification for employment decision To diagnose the hidden problems of an organization 5.3 Performance Appraisal Process Who Appraises Supervisors Subordinates
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 Peers Clients/customers Self appraisal 180/360 degree approach 5.4 Approaches to measuring performance in SQUARE textile There are various kind of method for measuring performance appraisal. But we get information that SQUARE uses only three type of performance method. These are at below: 360- degree feedback Experience based. We describe those at below: 1. 360-degree feedback One currently popular methods of performance appraisal is called 360-degree feedback. With this method managers peers, suppliers or colleagues are ask to complete questionnaire. The questionnaires are generally lengthy. 2. Experience based SQUARE measure the performance of employee by experience. For example MR. X has been working in SQUARE for three years and MR. Y has been working in SQUARE for two years. So SQUARE favor MR. X for his more experience. 5.5 Employee relation Employers and employees each have their own sets of needs and values, and successful relationship between these two sides requires that some sort of balance be struck. This balance often takes the form of a psychological contract, an understood agreement between employer and employees that defines the work relationship. This contract with or without support of a formal collective bargaining, agreement influence the outcome achieve by each side.
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SQUARE group the various into three channel categories those are 1. Employee safety 2. Employee health 3. Employee working condition 1. Employee safety SQUARE provide the employee safety .It ensure the all kinds of job safety such as insurance of each employee not this it provide insurance to the labor. 2. Employee health Free medical checkup, provide health card and also provide necessary medical facilities for each employee. 3. Employee working condition The working condition of employee is very hygienic SQUARE is ISO 9001-2000 Certified company 5.6 Incentives Compensation fluctuates according to A pre-established formula Individual or group goals because group goals are different from individual goals Company earnings

Incentives adds to base pay. It controls costs because the employee is being paid for his/her extra effort and for the benefits brought to the organization. Motivates employees 5.6.1 Incentive Pay Categories
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Individual Group Company-wide

[Link] Individual incentive plans Quantity of work output (How many units produced) Quality of work output (What was the quality of the product or service being produced or served) Monthly sales (How much sales was generated) Work safety record (How many hazard or errors are being reduced. Work attendance (If the absent is reduced or attendance is good) [Link] Group Incentive Performance Measures Group incentive plans Customer satisfaction Labor cost savings Materials cost savings Reduction in accidents Services cost savings Company-Wide Performance Measures Company-wide incentive plans Company profits Cost containment/prevention Market share Sales revenue [Link] Group Incentive Plans Rewards employees for their collective performance
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 Group incentive use has increased in industry 2 types Team - based or small group Gain sharing [Link] Company-Wide Incentive Plans Rewards employees when company meets performance standards 2 Types Profit sharing plans Employee stock option plans [Link] Competitive Strategies Lowest - cost Lower output costs per employee Individual & group incentive plans Behavioral encouragement plans Differentiation Unique product or services Creative, risk - taking employees Long - term focus Team - based incentives

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Benefits of SQUARE Textile

Employee benefits & services were formerly known as fringe benefits and these benefits were primarily the in-kind payments employees receive in addition to payments in the form of money. In addition to paying employees fairly and adequately for their contributions in the performance of their jobs, organizations assume a social obligation for the welfare of employees and their dependents Employee benefits are usually inherent components of the non-compensation system are made available to employees that provide: Protection in case of health & accident Income upon retirement & termination These benefits are components that contribute to the welfare of the employee by filling some kind of demand. 6.1 Legally required benefits of SQUARE Social Security Social security benefits include the general benefits like unemployment insurance & benefits, old age insurance, and Medicare facilities. Workers Compensation Workers compensation includes the compensation when an employee becomes injured or disable due to extreme working conditions or while working at the job site. Family & Medical Leave Family leave includes the compensation continuation during the family leave such as maternity or paternity leave and other family leave. Old age, Survivor, Disability Insurance requirements for getting compensation: Earn 40 quarters of credit, or
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 Be employed for 10 years Be age 62 for partial benefits Be age 65 for full benefits Now the age has been extended to age 67 because more and more workers are retiring late. Widow aged 60 + 6.2 Medicare Depends on the countrys policy, medicare facilities are generally government services to citizens. Organizations add some value to medicare facilities. In some countries medicare is financed together by employees tax, employers and the government. Provided insurance coverage for Hospitalization - Covers inpatient & outpatient hospital care & services. Major Doctor bills Charges of visiting a doctor or specialist. Prescription drug costs. Provides unlimited in-home care in certain situations. 6.3 Workers Compensation Workers compensation is a legally required benefit is included in the compulsory disability laws of many countries. Mostly, employer is seen liable regardless of the fault. Objectives of Workers compensation: Provide income & medical benefits Reduce litigation Eliminate legal fees & time Encourage employer safety Promote accident study & avoidance Workers compensation claims Injury Occupational disease
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 Death Workers compensation benefits Medical services Disability income Death benefits 6.4 Discretionary Benefits Discretionary benefits are judgment based benefits that the organization provides to its employees. These benefits are not legally required benefits but enhance organizational culture and corporate image. Benefits include: Protection programs Pay for time not worked Other services Pay for time not worked Holidays Vacations Funeral leave Marriage leave Sick leave Stress leave Blood donation or welfare work Personal leave Sabbatical leave/ For Muslims, leave after death Other religious leaves such as pilgrimage or preaching

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Concluding Remarks
7.0 FINDINGS AND RECOMMEDATIONS Findings: Textile industry is a comparatively new in our country. The size of the industry is still growing. Square Textiles Limited is one of the first movers in this sector. Starting only in 1997, it has managed to be grown up as one of the countrys leading Textile Company. Its increase turnover has been significantly increasing, since 1997-2010. It is providing employment to a large number of skilled and unskilled people all over the country. The Company contributed an amount of taka 37.892 million to the national exchequer in different forms like Cooperate Income Tax, Advance Income Tax, Vat, Import Duties, Taxes, Government Taxes , Stamp Duties, License Fees etc. The Company contributed substantially to the Foreign Exchange Reserve of the country through its export marketing operation. In 2010 its net export earning was taka 1021.368 million. Recommendations: From the analysis with the organization structure we have seen that its span of super vision is too large. A number of departments report directly to the general manager. If the number were less the efficiency and productivity of the organization might be increased. Quality control department should remain prompt always. So that it can maintain a certain level of standard as per the market demand to capture the foreign market share it should strive more. CONCLUSION: The flourishment of any industry requires combined efforts and co-operation from several parties. Social, political and macro economic environment play pivotal role in this regard. Though Square Textile is a newly Ventured Company in the respective sector, its growth and expansion is praiseworthy. Its contributing the country and serving the nation in different ways. If it can up hold its much toward advancement, it will be able to set a role model in our country.

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