decision making & process of msrm textile
TRANSCRIPT
The macro economic performance of Bangladesh is heavily dependent on its Textile and Readymade Garment (RMG) manufacturing sector. And its growing in a vast way
There are some reasons lying behind our Textile & RMG sector’s success.
Flexible labor market law
Availability of raw materials
Price competitiveness
Some of the problems are slowing miserable in this sectors’ growth
Infrastructure
Political instability
Financial condition
Poor transportation
FACT SHEET
WHY WE ARE HERE?
INTRODUCE OUR COMPANY
ANALYSIS TO IDENTIFY OUR PROBLEMS
MAJOR PROBLEM AND CURRENT PROBLEMS
DEVELOPING ALTERNATIVE SOLUTION
OUR DECISIONS & SUBORDINATE DECISIONS
JUSTIFICATION OF DECISIONS
SWOT ANALYSIS
ACTION PLAN
ABOUT DECISION MAKING
Decision-making is an essential aspect of modern management. It is a
primary function of management.
Decision Making is a course of action which is consciously chosen from
among a set of alternatives to achieve a desired result.
A manager has to take a decision before acting or before preparing a
plan for execution
ABOUT COMPANY
MSRM Textile Ltd was established in the year 2002
MSRM Textile Ltd is a socially responsible business organization and is engaged in Textile
manufacturing & export business in Bangladesh.
“The Objective of the company is to provide professional service and best quality
products to ensure utmost satisfaction to our clients through unwavering commitment
to International Quality Standards in every aspect”
PRODUCTS & PRODUCTION
PRODUCT
Polyester, Polar fleece, Micro fleece, CVC fleece,
Single Jersey (Cotton, Polyester, CVC), Rib, Interlock,
Mash.
PRODUCTION
Knitting Capacity 35,000 kg
Dying Capacity 35,000 kg
Finishing Capacity 30,000 kg
PRODUCT EXPORT MAP
Exporting in 9 Countries
USA, UK, Germany
Australia, SriLanka, Malaysia
Singapore & UAE
HUMAN RESOURCES OVERVIEW
Tiers Designations Number of Employees
Top
Levels
Chairman
Vice Chairman
Managing Director
Deputy Managing Director
General Manager
Mid
Level
Factory In-charge
Manager
Deputy Manager
Assistant Manager
Line
Level
Supervisor
Production Executive
Workers
10
50
450
FINANCIAL OVERVIEW LAST 5 YEARS
64.2 63.9
60.859.1
55.3
50
52
54
56
58
60
62
64
66
2010 2011 2012 2013 2014
Company Turnover [USD Millions]
8.9 mil.
REVENUE TREND
2122
19 18.517 17.3
1415.6
1415
12.911.3
0
5
10
15
20
25
30
January February March April May June July August September October November December
Revenue Trend (In BDT Cores)
PROBLEMS | HR SURVEY REPORT
13
5
5
6
1619
23
28
29
Bribery / Gift
Image / Reputation
Conflict of interests
Personal issues
Information / Confidentiality
Misconduct / Policy violation
HR / Performance /Functional issues
Human worth / Behavioralissues
Misuse of Property / Fund /Tools
Misrepresentation / Forgery/ Fraud
PROBLEMS | HR SURVEY REPORT
Classification of Employee Termination Incidents Reported
PROBLEMS WE ARE
Company turnover decreased significantly
Revenue Trend are showing negative impacts
Company reputation in national and global market are fading
away
Employees are dissatisfied
IMPORTANCE OF DECISION MAKING
To increase production level
To increase of our profit margin
Establishing loyalty between employees and company
Revert the company reputation in RMG sector
IDENTIFYING OUR CURRENT PROBLEMS
High Rate of Lower Level Employee Turnover
Living cost and price hike in daily commodities
Salaries we are paying are not satisfactory and competitive
Low Productivity
High rate of turnover and poor job satisfaction level
Ineffective worker supervision
Management Functions are disrupted
Communication gaps among departments
Improper decision making and execution plan
IDENTIFYING OUR CURRENT PROBLEMS
Lack of Awareness of labor group
Information gap about company benefits & HSE
Lack of Motivation
Management zero tolerance mindset in quality production instead HR appreciation
Supervisor's improper behaviour
Job insecurity and less productivity.
No Labor Insurance, worker participation fund and PF benefits
Competitors are introducing attractive benefits like health insurance & WPF etc
IDENTIFYING OUR CURRENT PROBLEMS
Transportation for Mid level Managements
Distance between Home and Office
Hectic traffic jam and poor public transport
Lack of Efficiency & Effectiveness in Merchandising Department
Unable to meet the requirements of various global buyers
Following traditional communication technique
Competitive Market position
Offering competitive salaries to our existing employees
DEVELOPING ALTERNATIVE SOLUTION
Initiatives To Measure
Brainstorming Session by Top
Level Management
Analyzing through survey and
interview
Expert feedback for Developing
alternative solution
Alternative Solutions
Production oriented training
Review Salary/Incentive Structure
Implementing Labor Law Practice
Revise Benefits
Employing effective & dedicated
Merchandiser
DECISIONS WE HAVE TAKEN
Considering the facts & after analyzing the problems & the causes of the current
problems we may take some major decisions along with some other decisions
which will give us a fruitful result.
We will increase the salary for all level of employees. Here we
will follow Cost of living Adjustment method. The increment
will not be same percentage at all level considering the
market demand and competencies
Top Level 2% Mid Level 5%
Supervisor 10% Workers 12%
SUBORDINATE DECISIONS
Transportation Facility
Dedicated Transportation Facility to Mid Level Managers
Affiliation with Local Bus Transport for worker group
Providing Advanced Training
Advanced Training for Merchandising Team and Production Supervisors
Induction relevant to HR manual and work life balance for workers
SUBORDINATE DECISIONS
Employee Motivation Program
Organizing Annual Outing
Organizing Workshops Quarterly (inform & involve sessions)
S.W.O.T ANALYSIS
Strength: Internal Factors that are helpful to
achieve objective
Weakness: Internal Factors that are harmful to
achieve objective
Opportunities: External Conditions that are
helpful to objective
Threat : External barriers that are injurious for
achieving objective
S.W.O.T ANALYSIS | STRENGTH
Will be able to achieve our estimated daily sales and profit target
Will help to restore our goodwill which is under threat
Employees will be more benefited
Satisfaction level of workers & supervisors will increase
Transportation facility will ensure in-time to work properly and reduce daily hassle
Production oriented training & awareness program will make our Mid & lower
level management more efficient & effective
S.W.O.T ANALYSIS | WEAKNESS
The budget will increase and some unexpected cost will be added with yearly
expenditure
Some other factory already using such similar ideas to reduce dissatisfactions
Some de-motivation will still remain, because it’s difficult to meet all
employees expectations.
S.W.O.T ANALYSIS | OPPORTUNITY
Will be able to run our production smoothly without any interruptions, we will
be able to trade more products at a cheaper rate & in shortest time.
Many companies may be felt difficulties to invest extra budget to increase
salaries & benefits
Government will appreciate and may provide support for our company
May create attention to efficient and dedicated workers from other companies
S.W.O.T ANALYSIS | THREAT
Other companies may also follow our decision more effectively and thereby
snatch our efficient employees.
Investors & Buyers Impact on this decision.
ACTION PLAN
First we will calculate our existing staff salary cost and increased salary cost
and transportation cost and estimate the added expenditure required to
implement our decision
Level and Tire Current Salary Cost (per anum) Increased Salary cost (per anum)
Top Level : 5 persons 19,500,000 19,890,000
Mid Level 15 persons 14,700,000 15,435,000
Lower Level 25 persons 13,535,000 14,888,500
Workers ( 400 persons) 40,800,000 45,696,000
Total 88,535,000 95,909,500
Extra amount needed 7,374,500
Transportation Cost
4 Bus (50 seated) monthly rent and fuel. 25 days X 6000/= X 12 months X 4 = 72,00,000
2 micro buses (12 seated) monthly rent and fuel 25 Days X 3000 Tk X 12 months X 2 = 18,00,000
We will set new sales target that will recover our extra cost without
hampering our profit margin.
We will arrange some production oriented & awareness training
programs monthly which will cost approximately BDT 60,000
We will set controlling and evaluation mechanism to retain our new sales
and profit target.
Making a interacting system among all the supervisors
We will always keep a reserve fund & all the necessary parts
We will analyze our performance every year so that we can come to
know about the current market scenario.
ACTION PLAN
CONCLUTION
We think new decision, which came out eventually with the problems we are
facing, shall not only benefit our company but also uphold our country as well.
This is because more companies will become interested to increase salary if
they can strike the balance like we did between disciplines, giving workload,
ensuring facility for the workers and rather make more profit than loss by
utilizing the capability of our workers. May be we will need some extra money at
the beginning but after setting up we will be able to make greater profit & our
investment will be make up within a reasonable time. We will become one of the
competitive remuneration payer company in our country and thus our reputation
will go high. Efficient employees will be attracted to join our company and we
together will ensure better quality of products and services.
THANK YOU