hrm report on square

8/6/2019 Hrm Report on Square

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EXECUTIVE SUMMARY

Square Textile Ltd. started its operation in 1997. It was enlisted in Dhaka Stock Exchange &

Chittagong Stock Exchange in 2002. The business lines of Square Textile Ltd. Are

manufacturing and marketing of yarn. Its factory is located in Gazipur , Dhaka. The

manufactures 100% Cotton Ring Span Yarn or Hosiery , 100% Cotton OE Rotor For Hosiery

and Knit Fabrics for 100% export oriented readymade Garments Industry. The strategic

Goals and Objectives of the Company are to strive hard to optimize profit though conduction

and transparent business operations and to create more competitive in the internal and

external market. In home, customer of Square Textile Limited are export oriented readymade

Garments Industry. The Company also exports its products to the market of Europe & USA .

The export sells increased by 19% in 2003 over the previous year. Competition level is

increasing both in local and abroad market . Competition will be more stiff after 2005 when

multifiber agreement will be phaced out. Among the other foreign competitors Srilanka,

China Pakistan and India are prominent. Square is one of the biggest employees in

Bangladesh. It has a personnel and administrative department . The total number of

employees are 1223. For the employees there are systematic in house training in home and

abroad . The managing director, the CEO is the head of the executive management team .

Below in there are directors , executive directors and general manager. Under the direct super

vision of the general manager a number of departments are controlled. The Company is going

through continuous growth in production . The total production increased year on year basis

at the rates of 0.43% and 1.467% during 2002 and 2003 respectively . The Companys

operations are out on a aggregate basis and are managed as a single opportunity segment .

The Company uses Computer Aided Design (CAD) , Computer Aides Spreading (CAS) and

Computer Aided Manufacturing (CAM) in its plant to increase the overall efficiency and

productivity.

OBJECTIVE:

The broad objective of this report is to provide an overview of HRM practice of Square

Textiles Ltd. The specific objectives of this report are :

To provide Company overview

To provide market overview and analysis

To reveal operational, management and HRM planning.

Discuss all HRM practice


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METHOLODGY:

To prepare this report we have collected data from different published materials. Then we

have conducted a secondary study. After that we have prepared a questionnaire and took

interview one of the executive serving in this Company. 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.

INTRODUCTION:

This report is prepared as a requirement of the course Seminar in Human Resource

Management. We selected Square Textiles Ltd. Working on this organization we came to

know various Kind of HRM practice which are use here. Though it is a textile, it has proved

itself in the related industry as a major competitor. In this report we have followed the

guidelines provided by the teacher. Here we have tasked not only the HRM practice but also

the marketing, management, finance and operational area of the Company.

1.0 COMPANY OVERVIEW

1.1 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 Oeko-Tex standard 100 and ISO-9002 certificates in the year

2000. Authorized capital of the company is tk. 1000 million. Its paid- up capital is tk. 251.90

million. 1,223 employees are working in this organization. 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.

1.2 MISSION STATEMENT:

The mission statement of Square Textiles Limited is Our mission is realization of vision

through maximum production of goods and services strictly on ethical and moral standards at

minimum costs to the society ensuring optimum benefits to the shareholders and other


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stakeholders. This mission is envisioned by the concept of business which ensures well

being of the investors, stakeholders, employees and members of the society which will create

new wealth in the form of goods and services.

1.3. 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

T-shirts, Polo shirts, Tank tops, Pajamas, Sport wear, Under garments, Mens & Ladies

fashion wear , Kids wear etc

1.4 STRATEGIC GOALS & OBJECTIVES:

The company sets the following objectives for it to achieve:

To strive hard to optimize profit through conduction of transparent business operations

within the legal and social framework with malice to none and justice for all

To create more jobs with minimum investments

To be competitive in the internal as well as external markets

To maximize export earning with minimum imported in-puts

To reduce the income gap between top and bottom categories of employees.

Thus the company focuses to pole-star its mission that fulfill the objective with emphasis on

the quality of the product , process and services blended with good governance that help


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build the image of the most enable corporate citizenship at home and abroad . The company

wants to produce such society friendly goods and services that go to satisfy the wants of all

the relevant party without disturbing or damaging the socio- economic and ecological,

balance of the mother earth and the process of human civilization leading to peaceful co-

existence of all the leaving beings. The company always strives for top quality products at the

least cost reaching the lowest rungs of the economic class of people in the country. The

company values its obligation to the greater society as well as it strives to protect the interests

of its shareholders and to ensure highest return and growth of their assets.

2.0 MARKETING OVERVIEW

2.1 POTENTIAL CUSTOMER:

The target market for products produced in Square Textiles Ltd. and Square Spinning Ltd. is

Export Oriented Readymade Garments Industry. Readymade Garments exporter that is Knit

Fabrics, Sweater and Denim manufacturer. In Bangladesh Beximco Kitting, Grameen

Knitwear, Shasha Denim, Knit Concern etc are the customers. Target market for products

produced in Square Fashion Ltd. is Europe and U.S.A. Square Textiles does not direct sales

in overseas market but sometimes India, Pakistan & other countries take their yarn.


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2.2 SIZE & GROWTH OF MARKET:

The Companys marketing operations continued its emphasis on export sales over the years

as depicted below:

Year - 2006 Year - 2005 Year - 2004

(a) Quality sold (Kg)

Local sales99,800

(0.7%)

527,903

(3.7%)

539,417

(3.9%)

Export Sales14,554,342

(99.3%)

13,817,314

(96.3%)

13,129,599

(96.1%)

Total Sales14,654,142

(100%)

14,345,217

(100%)

13,669,016

(100%)

(b) Sales

Revenue ( Taka )

Local Sales9,455,588

(0.4%)

32,576,936

(1.8%)

46,956,494

(2.3%)

Export Sales2,093,214,675

(99.6%)

1,756,441,450

(98.2%)

2,029,968,545

(97.7%)

Total Sales 2,102,670,263(100%)

1,789,018,386(100%)

2,076,925,039(100%)

The above figures show that the export sales increased by 19% in 2006over the previous year

with greater exposure to international market scenario and risk.

2.3 COMPETITOR ANALYSIS:

Only in few years back textile sector in Bangladesh was left behind but current scenarios is

different. In recent years a mentionable figure of money has been invested in this industry.

Government is also encouraging this sector. Government is making some favorable policies

and minimizing the regulations, so that this sector can be grown up.

Among the domestic companies Square is one of the leading one. The other potential

competitors are Padma Textiles, Shamim Textile etc. Competition will be severe after 2005,

that is, during the post multifiber agreement period. World market will be Quota free at that

time. So Bangladesh will have to compete with countries like Srilanka, China, Pakistan,

Vietnam etc.


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3.0 OPERATIONAL PLAN:

The Companys installed capacity during the year 2006 remained at the same level of the

previous year at 59,472 spindles 768 Rotor heads with production capacity (at average

30s/10s counts) as follows:

2006 2005 2004

(1) Spindles/Rotors:

(a)Installation:

No. of Spindles

installed

59,472 59,472 59,472

No. of Rotor

installed

768 768 768

(b)Operation

No. of Spindles

operated

59,472 59,472 59,472

No. of Rotor head operated 768 768 768

(2) Production

Capacity Installed:

At Equivalent 30s Count 11,005,000 10,796,424 10,796,424

At Equivalent 10s Count 2,204,392 2,204,392 2,204,392

Total 13,209,392 13,000,816 13,000,816

(3) Operating Efficiently (%)30s output 99.26 99.02 97.49

10s output 91.41 92.36 97.41

Total 97.95 97.89 97.48

The above statistics depict a picture of continuous growth in production and production

efficiency which has been achieved by the production addicted management at the factory

level as well as the top. The total production increased year-on-year basis at the rates of

0.43% and 1.67% during the years 2002 and 2003 respectively.The Companys operations are carried out on an aggregate basis and are managed as a single

operating segment. Accordingly the Company operates in one segment of developing

manufacturing and marketing of cotton / mixed yarn for human as well as industrial use.

Besides, to increase efficiency the company uses the following methods :

Computer Aided Designing (CAD)

A complete designing section. For computer aided designing equipped with GERBER &

INVESTRONICA systems. For marker making 06 different work stations with digitizing

board and full width pattern plotter.


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Computer Aided Spreading (CAS)

Computer Aided Spreading (CAS) 03 nos. cloth spreader from GERBER & IMA , 4*30

meter long air floating table.

Computer Aided Manufacturing (CAM)

03 nos. sophisticated LASER guided cutting machine from GERBER &INVESTRONICA

systems. The Company has future plan to expand its operation plan in yarn twisting doubling.

4.0 MANAGEMENT

Management:

The entire management process comprises the following units:

4.1. Executive Management:

The Managing Director, the CEO is the head of the Executive Management Team which

comprises senior members of the Management Apparatus. Within the limits of delegated

authority and responsibility by the Board of Directors , Executive Management operates

through further delegation of authority at every echelon of the line management . The

executive Management operates within the framework of Policy & Planning strategies set by

the Top Management with periodic performance reporting for guidance . The Executive

Management is responsible for preparation of segment plans / sub segment plans for every

profit centers with budgetary targets for every items of goods & services and are held

accountable for deficiencies, with appreciation for outstanding and exceptional performances.

These operations are continuously carried out by the Executive Management through series

of Committees , sub Committees ,Committees & standing Committees assisting the line

management .

4.2.Management Committee:

Comprising top executives , deal with entire organizational matters.

4.3.Standing Committee:

Standing Committee comprises the following committee:


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4.3.1. Audit Committee:

Internal Audit Committee

ISO Audit Committee

Social / Environment Committee

Performance Evaluation Audit Committee

4.3.2. Employment Relations Committee:

Remuneration Committee

Work Environment Committee

Performance Evaluation Audit Committee

4.3.3. Management Committee:

Product Planning & Development Committee

Quality Control & Research Committee

Production & Inventory Management Committee

Export Promotion Committee

5.0 Human resource management

5.1 Human resource planning

Square has a personal and administrative Department . Square is one of the biggest employers

in Bangladesh. The total number of employers in Bangladesh . The total number of

employees is 1,223. For the employees there are systematic in house training in home and

abroad . To motivate the employees, along with salary and benefits the company provides

various facilities like free meals , free transportation , 24 hour medical center , on site sports .

Production and accommodation facilities includes full time supply of safe drinking water,

adequate lighting and ventilation facilities from sheet.

5.2 HR Practices of SQUARE textile

Recruitment

Training

Performance Management

Labor relation


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Employee relation

Job analysis

Job design

Selection

Development

Incentives

Benefits

5.2.1 Recruitment and Selection process in SQUARE

Recruitment is the process trough 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.

Source of recruitment

There are two kinds of source SQUARE uses for recruitment .They are

1. External source

2. Internal source.

We try to discuss all relative sources which are used for recruitment in SQUARE.

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.

1.1 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


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company bulletin boards or are placed in the company 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.

1.2 Departing Employees

An often overlooked source of recruiters consists of departing employees. Many employees

leave because they can no longer work the traditional 40 hours work week .School, child care

needs and other commitments are the common reason. Some might gladly stay if they could

rearrange their hours of work or their responsibilities .Instead, they quit when a transfer to a

part-time job may retain their valuable skill and training. Even if part-time work is not a

solution, a temporary leave of absence may satisfy the employee and some future recruiting

need of the employer.

2. 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:

2.1 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.

2.2 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.


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Employees referrals are excellent and legal recruitment technique, but they tend to maintain

the status quo of the work force in term of raise , religions , sex and other characteristics ,

possibly leading to charges of discrimination.

2.3 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 of

1000machines.

-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 exiting and rewarding career , send your detailed resume, quoting your

present and expected salaries to jobs.

2.4 Internet

Now today no body thinks anything without internet. So SQUARE give their advertise at

internet.

Example:

www.bdjobs.com

www.square.bd.com

5.2.2 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
http://www.bdjobs.com/http://www.square.bd.com/http://www.bdjobs.com/http://www.square.bd.com/


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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:

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.

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 job within a work unit or department. One

main advantages of job rotation is that it makes flexibilities possible in the department. When

one employee like junior merchandiser absence another merchandiser can easily perform the

job.

Apprenticeship training

Apprenticeship training provides beginning worker with comprehensive training in the

practical and theoretical expect of work required in a highly skilled occupation.

Apprenticeship program combined of the job and classroom training to prepare worker for

more than eight hundred occupation such as computer operator, sewing technician.

Length of selected apprenticeship courses of SQUARE

Occupation length (months)

1. Quality control manager 13

2. Quality control officer 15

3. Cutting Astt. Manager 7

4. Packing Astt. Manager 7


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5. Ware house Astt. Manager 5

6. Production officer 3

7. Sewing technician 5

8. Sewing Supervisor 5

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

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.

HR department is also an effective way to meets several challenges including employee

obsolescence, international and domestic diversity, technical challenges. Affirmative action

and employee turn over. By meeting these challenges the department can, maintain an

effective workforce.

Steps in the Evaluation of training and development

Evaluation criteria > pretest > trained or developed-

workers > posttest > transfer to the job > follow-up studies.

5.2.3 Performance Management

Performance appraisal is the process of assessing employees past performance, primarily for

reward, promotion and staff development purposes.


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Performance appraisal (is) a process that identifies, evaluates and develops employee

performance to meet employee and organisational 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.

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

Performance Appraisal Process

Who Appraises

Supervisors

Subordinates

Peers

Clients/customers

Self appraisal

180/360 degree approach

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:

1. 360- degree feedback

2. Experience based.

We describe those at below:


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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

questionnaire 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.

5.2.4 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.

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

5.2.5 Job analysis


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Job analysis is the procedure for determining the duties and skill requirement of a job and the

kind of person who should be hired for it .

The supervisor or HR specialist of SQUARE normally collects one of the following types of

information:

Work activities

First he or she collects information about the job actual work activities such as marketing,

sewing, production. This list also include how, why and when the worker performance each

activity.

Education and qualification

Collects the information about education background and qualification.

Experience

Experience must be needed for any job in SQUARE.

Sample of job analysis of SQUARE:

Quality control manager

Qualification

Master in any subject

Bachelor/diploma in textile and clothing or related discipline will be given preference

Must have at least 7 years practical experience experience in similar position in any garments

factory.

Cutting Astt. Manager (cum in-charge)

Qualification

Masters/ bachelor in any subject preferably commerce.



factory.

Ware house Astt. Manager

Qualification

Masters/ bachelor in any subject preferably commerce.



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factory

Production Officer (Sewing)

Qualification

Graduate /HSC

Must have at least 3 years practical experience in similar position in knit garments.

Sewing Technician

Qualification

Graduate /HSC

Must have at least 5 years practical experience in similar position in knit garments.

Experience and skill for all above jobs:

Candidate must have experience to work with world reputed buyers

Good writing and communication both in Bengali and English

Should be capable of making QA reports on daily basis

Computer literacy in MS world , Excel , e-mail etc.

5.2.6 Job Design

Job design is the process of structuring work and designating the specific work activates of an

individual or group of individuals to achieve certain organizational objectives.

The job design can generally be divided into three phases:

1. The specification of individual task.

2. The specification of the method of performing each task

3. The combination of individual tasks into specific job to be assign to individual

Organizational considerations for job design

Effectiveness

In the context of job design, to remain effective, organizations may have to redefine jobs,

monitoring, and using technology so that the firm can even compete against giant rivals.

Efficiency

Maximum outputs through minimum inputs of time, effort and other resources. In the context

of job design, efficiency in time, effort, labor costs, and training should be done accordingly.


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Technological Considerations

Task Interdependence

The dependence of one task from another is task dependence. In this context, the task

interdependence can be high or low depending on the product or service.

Technical constraints

Scarcity of machines are constraints, which in turn leads to the increase and decrease of

production.

Ergonomic constraints

Greek word where Ergo = Work & Nomos = Laws, i.e Laws of work. Optimal productivity

requires a relationship between the worker and the work, thus designing a job needs this

consideration.

Employee considerations

Skill variety

Variety refers to the use of different skills and talents to complete an array of work tasks and

activities.

Autonomy

Autonomy refers to the freedom and independence to plan and schedule the work and

determine the procedures used to carry it out.

Task identity

Task identity means doing something from beginning to end rather than just part of it.

Task significance

It is the degree to which a job has substantial impact on an organization.

Feedback

Feedback is the degree to which employees can tell how well they are doing based on

information from the job.

Environmental considerations

Social expectations

In designing jobs, the surrounding social expectations must be considered to avoid possible

worker dissatisfaction.


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Workforce availability

Job requirements should be balanced against the availability of the people who are required to

do the work.

Work practices

Work practices are set methods of performing work. These methods may arise from tradition

or the collective wishes of employees.

5.2.7 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.

Incentive Pay Categories

Individual

Group

Company-wide

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)

Group Incentive

Performance Measures

Group incentive plans

Customer satisfaction

Labor cost savings

Materials cost savings


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Reduction in accidents

Services cost savings

Company-Wide Performance Measures

Company-wide incentive plans

Company profits

Cost containment/prevention

Market share

Sales revenue

Individual Incentive Plans (Piecework plans)

Awards based on individual

production vs. company standards

Awards based on individual

performance standards using

objective & subjective criteria

Quantity and / or quality goals

Advantages and disadvantages of Individual Incentive Plan

Advantages

Helps relate pay to performance

Promotes equitable distribution of compensation

Helps retain best performers

Compatible with individualistic cultures and societies

Disadvantages

May promote inflexibility

Unrealistic standards may hamper employee motivation

Setting performance standards is time consuming

Factors beyond employees control may affect outcomes

Factors not rewarded may be overlooked

Group Incentive Plans


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Rewards employees for their

collective performance

Group incentive use has increased in industry

2 types

Team - based or small group

Gain sharing

Company-Wide Incentive Plans

Rewards employees when company

meets performance standards

2 Types

Profit sharing plans

Employee stock option plans

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

5.2.8 Benefits of SQUARE

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


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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.

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

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 +

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.


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Prescription drug costs.

Provides unlimited in-home care in certain situations.

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

Death

Workers compensation benefits

Medical services

Disability income

Death benefits

Discretionary Benefits

Discretionary benefits are judgment based benefits that the organization provides to its

employees. These benefits are not legally required benefits but enhances organizational

culture and corporate image.

Benefits include:

Protection programs

Pay for time not worked

Other services

Pay for time not worked


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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

6.0 FINANCING

6.1. Financial Result:

The Companys operating financial results, as compared to the previous year, are summarized

hereunder:

(Taka) (Taka) (Taka)

Year 2006 Year 2005 Year 2004

Turnover 2,102,670,263 1,789,018,386 2,076,925,039

Cost of

Goods Sold 1,737,055,759 1,500,281,590 1,676,690,068

Gross Profit 365,614,504 288,736,796 400,234,971

Operating &

Financial

Expenses 175,524,220 197,835,510 217,687,872

Operating

Income 190,090,284 90,901,286 182,547,099

Other

Income 225,844 663,215 912,083

Net profit

Before WPPF 190,316,128 91,564,501 1,83,459,182


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Contribution

To WPPF 9,062,673 4,360,214 8,736,152

Net Profit (BT) 181,253,455 87,204,287 1,74,723,030

Provision for

Income Tax 13,359,728 5,751,104 -

Net Profit (AT) 167,893,727 81,453,273 174,723,030

Gross Margin 17.39% 16.14% 19.27%

Net Margin 7.98% 4.55% 8.41%

Earning per

Share (EPS) 6.67 3.23 6.94

Outstanding

Shares 25,190,000 25,190,000 25,190,000

Face value

Per share (TK) 10 10 10

The gross margin rose to 17.39% from the level of 16.14% in 2006. As the operating &

financial expenses declined , net margin also rose 4.55% in 2005 to 7.98% in 2006. Net Profit

(AT) has been increased due to cost control measures , procurement strategies and favorable

export prices in the international market.

7.1 Products:

In two units of Square Textiles Ltd. The following products are produced :

In Square Knit Fabrics Ltd. Product range Engineering stripe and semi jacquard, plain, pique,

Four Neddle structure, Crepe rib, Interlock, Drop needle, Crossmiss, Milano rib, etc.

In Square Fashions Ltd. Following types of products are produced T-shirts & Polo- shirts,

Tank tops , Pajamas, Sport wear , Under garments , Mens & Ladies fashion wear , Kidswear

etc.

7.2 Price:

The unit selling prices over the years varied substantially as shown below:

2006 2005 2004

Local sales 94.75 61.71 87.12

Export Sales 143.84 127.12 154.62

Total sales (average) 143.49 124.71 151.94


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The above indicate that the local and export selling prices increased by 53.54% and 13.14%

respectively during the year 2006 over the year 2005after gradual decline during the years

2004 and 2003 over the year 2001. the increase is primarily ascribable to the international

situation.

7.3 Place :

Export oriented ready made garments industry operating in Bangladesh are the main

purchaser of products of Square Textiles Ltd. The size of export oriented RMG industry is

fairly large in Bangladesh . So there is a huge market for Square Textiles Ltd. In Bangladesh.

Moreover products of Square Fashions Ltd. Are exported to Europe and USA.

7.4 Promotion:

Square Textiles Ltd. Does not pursue any rigorous promotional activity . As most of the

purchaser are export oriented garments , they dont need to be promoted . Infact, the buyers

themselves are aware enough from where they will get quality products. So there is not much

room to pursue. For the UK and USA based market this fact is true as well .

8.0 SWOT ANALYSIS:

SWOT analysis means the analysis of strength , weakness, opportunity and threats . For

Square Textiles Ltd. It is given below:

8.1 Strength:

Square Textiles Ltd. Is a rapidly expending Company . Standing its journey in 1998 it has

already doubled the net turnover by the year of 2006. All the units of the factory enjoy highly

of machinery are imported from Germany, Switzerland , Italy & japan . As a result it can

maintain a smooth rate of production. Well trained human recourses are another strength of

the Company . They train up their key personally in the country and abroad . So that the


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Company can get some competitive advantages over the competitions. The HRM practice is

also remarkable.

8.2 Weakness:

There are too many departments under the super vision of the general manager which can

cause low productivity due to large span of super vision.

8.3 Opportunity:

There are bright opportunities for the Company in the overseas market . If is can

communicate well and capture a significant market portion in the Europe and USA market, it

can get scale of economic.

9.0 FINDINGS AND RECOMMEDATIONS

9.1 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 1997-2007. 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, Ecise, 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

2007its net export earning was taka 1021.368 million.

9.2 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.


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10.0 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.

hrm report on square

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