HRM ProjectonOverall HRM practices at OTOBI Bangladesh LimitedBUS-6!"ro#p-United States

Prepared $or%Mohammad &hasro Miah Prepared '(% )ameI*+ni,a Mo'in +hmed -Section% ./ !.061.66Salman +hmed -Section% ./!.061166 Tasn#va Oeishi -Section% !/ !.021666 Tan3in S#ltana -Section% !/ !.0!.416615657UTI85 SUMM+R9 OTOBI is a popular and sophisticated furniture company in Bangladesh with its various outletsall over the world. The furniture industry is growing at a high rate. Major furniture companieslike Partex !khtar Brothers "avana #urnitec and $atil all have esta%lished their %usiness inBangladesh. OTOBI has awell esta%lished$&department withits efficient and'ualifiedpersonnel. The purpose was to find out the $& strategies the company follows and other %enefitsthey offer to their employees. The company has a well defined mission and vision statements.!lso they manufacture the products at low cost with high skilled la%or force. They follow %oththe cost effective andthe differentiation strategies for the development of their products.(ifferent uni'ue marketing strategies and other promotional activities are part of the company.The well defied sales force is the asset of the organi)ation. OTOBI uses print outdoor and theelectronic media for the promotion of their products. The company has well decoratedshowrooms in all over the world. The interior designs of the showrooms are so %eautiful thatmost of the customers are attracted to %uy the products of OTOBI.OTOBI*s$&department is well organi)ed. The$&manager monitors all the$&relatedactivities like recruitment training compensation performance appraisal and others. They useproper selection method to hire the employees. Their o%jective is to find out those employeeswho have proper knowledge and skills. Most of the employees are interested to work in OTOBI%ecause of its well developed $& department. The company tries to follow the fair recruitmentsystemforitsemployees. Thecompanyconductstheperformanceappraisal processforitsemployees one time in a year. They try to follow the fair performance appraisal for its employeesso that their strong and weak performances can %e easily identified. OTOBI has various %enefitsand facilities for its employees. (ifferent facilities include gratuity medical insurance providentfund festival %onuses etc. !lso they have well esta%lished ethics justice and fair treatment fortheir employees. OTOBI is a successful company %ecause of stylish and good 'uality furniture.They focus on different aspects like value innovation and team %uilding which are considered asa competitive advantage for the company. OTOBI has a high employee*s retention rate. !lso thecompany conducts the exit interview for its employees who left the jo%. #rom this interview thecompany wants to find out whether they have any lacking or not. 2OTOBI has a transportation facility especially for its female employees which motivate them towork here. In the future the company has a plan to have $& automation in house training teamcafeteria management system for their employees. !lso OTOBI will change the performanceappraisal system. &ecentlytheyfollowthecom%inedmethodsof theperformanceappraisalsystem. !fter some years when the company will %e more matured it will follow the peer ratingalternative ranking graphing rating scales +,- degree feed%ack and others for its employees.Therefore the company has a plan to invent new products and to increase its outlets all over theworld. B+7&"ROU)* O: TH5 :UR)ITUR5 I)*USTRI5S O: B+)"L+*5SH ThefurnitureindustryisoneoftheleadingsectorsofBangladeshandit hasalargeexportpotential ./ddin 0-102. The industry has a large amount of mem%ers all over the country and itskey players are located in (haka employing around 13---- people.!lmost 413,- furnituremanufacturing enterprises are situated in all over the country. The estimated market si)es of theindustries are around B(T 1-- %illion ./5( 103- million2. These industries are growing at therate of 16.3 percent. The data of 7xport Promotion Bureau shows the impressive growth. Theauthorities hope that it will %e possi%le to earn a%out B(T 8 %illion ./5( 1-- million2 %y 0-0-from export .The Daily Star, 04 March 0-1-2. The furniture industry is considered as a thrustsector as the economy of Bangladesh is growing at a first pace. In recent time the top localfurniture firms are OTOBI Partex !khtar Brothers "avana #urnitec $atil. The largestfurniture market in the country is the Mirpur furniture market .BFID Expo 0-142.58OLUTIO) O: :UR)ITUR5 I)*USTRI5S O: B+)"L+*5SH The furniture industry was mainly developed as a cottage %ased industry. In the early nineteenthcentury thefurnitureindustriesweretransformedfromthecottage%asedtotheproductionindustries inBangladesh. #urniture %usinesses startedtogrowwithadvancedmachineriescreative designs and using a variety of materials. (ifferent categories of furniture were madefrommelamine %oard processedwood particle%oard etc. Inrecent time Bangladeshhas3%ecome popular in making a wide variety of good 'uality and international standard furniture.People are now more interested to %uy the local furniture rather than the foreign furniture. In1663 Bangladesh started to export its furniture to foreign countries .The Daily Star, 0-142. Theindustry is growing atafaster rate.Thereare 9---- enterprises and anaverageof,--workers is working in each enterprise. The furniture enterprises can %e divided into five groupslarge micro small M5M 1 and M5M 0. The micro and small furniture firms are less efficient.These firms need a high range of technical supports for their workers. The medium enterprisesare more efficient and they have the a%ility to maintain industrial standards. $owever they haveless diversified products range and have to sell their products with lower margins.Manufacturers in this industry have a large volume of profit. The increasing num%er of profit isdependent on the automation in production si)e of enterprise diversification of products andraw materials etc.Most of the enterprises are large in si)e.In 0--8 the industry has a totalproductionof ,-9million. Theindustryalsohasalargenum%er of local andinternationalsuppliers of raw materials .BFID Expo 0-142.#urniture sector is the la%or intensive sector of Bangladesh. The country has a large num%er oflowcost manpower whichis acompetitiveadvantageintheworldmarket. !lmost 413,-enterprises and two lakh people are working in this sector. !lso ,- percent of the raw materialsof the furniture are imported fromdifferent countries of the world. !mong them majorimporta%le items are wood coating materials tim%er hardware and accessories fa%rics etc. Thissector sometimes faces difficulties likepayingtheimport duties of rawmaterials. !notherpro%lem is that there is a shortage of skilled manpower to handle the modern e'uipments. Toovercome this pro%lem it is necessary to have some technical schools which will offer differentshort term trade courses. !lso government should take enough initiative to address this issue.The Daily Star, 0-142.(ifferent categories of furniture produced %y the furniture industries of Bangladesh are %ed roomfurniture officefurniture andrestaurant furniture. !lso furnitureis essentials inhospitals4hotels pu%lic halls and auditoriums.!mong these categories different products are %eds ta%leschairs dressingta%les wardro%es sofasets diningta%les etc. :raduallymodernfurnitureincluding steel metallic plastic and wooden ones %egan to %e used widely. There is a largevariation in furniture usage. S#mmar( Ta'le o$ :#rnit#re Ind#str( )ame o$ the:#rnit#re7ompan(9ear o$5sta'lishmentTotal)#m'er o$5mplo(ees7ore Prod#cts)#m'ero$O#tlets+nn#al"ro;thRateOTOBI !?!1 6@Hatil !0< !#rom the summary ta%le of the furniture industries of Bangladesh top eight furniture companiescan %e explained. OTOBI has a leading position in the furniture industry. Other than OTOBI thecompanies like $atil !khter Partexand"avana furniture are alsoinagoodpositionindeliveringdifferent furnituretothecustomers. Brothers #urnitecand;oodMarcareinamedium position in case of delivering high class furniture to the customers .The Daily Star, 10!pril 0-142.Hatilisanother furniturecompanywhichwasesta%lishedin1686. Thecompanyhas+---employees who are responsi%le for producing high 'uality furniture. The core products of thecompany are home office hospital and industrial furniture. It has 06 outlets all over the countryand has an annual growth rate of 16< .$atil BD n.d2. +,htaris the third furniture company which was esta%lished in 169,. The company has 0314employees who are responsi%le for producing high 'uality furniture. The core products of thecompany are %ed room living dining and kitchen furniture. It has 0+ outlets all over the countryand has an annual growth rate of 10< .!khtar Group n.d2. 6ParteAis the fourth furniture company which was esta%lished in 16,0. The company has 43--employees who are responsi%le for producing high 'uality furniture. The core products of thecompany are door %ed room dining and drawing furniture. It has 39 outlets all over the countryand has an annual growth rate of 03< .Partex Star Group n.d2. )avanais the fifth furniture company which was esta%lished in 0--0. The company has 43--employees who are responsi%le for producing high 'uality furniture. The core products of thecompany are home office hospital and industrial furniture. It has , outlets all over the countryand has an annual growth rate of 1-< ."avana Furniture n.d2. Brothers is the sixth furniture company. The company has 9-- employees who are responsi%lefor producing high 'uality furniture. The core products of the company are living drawing and%edroom furniture. It has 10 outlets all over the country and has an annual growth rate of 10 Bloom 1 ?anuary 16662.+)+L9SIS O: OTOBII)TRO*U7TIO) 8The o%jective is to analy)e the $& practices of OTOBI from $& perspective. !lso to find outwhat type of policies or strategies they follow in their different sections of the $& departmentlike recruitmenttraininganddevelopment compensation performance appraisals and others.The company will %e visited and will take the interview of $& manager to know a%out the $&policies and practices of the company. !lso employees of other departments will %e interviewedto know what type of $& facilities they usually get from the company. ;e have esta%lished the following research 'uestions according to the human resourcemanagement practice of the company OTOBI. ;hat human resource management strategies the companies follow for the developmentof the OTOBI products@ ;hat type of human resource management facilities and %enefits the company offers totheir employees rather than other furniture companies@ 58OLUTIO) O: OTOBI In 1693 "itun Aundu esta%lished his company a furniture store featuring his own designs calledOTOBI. $e completed his graduation from with a first class first from the Institute of #ine !rts%efore the li%eration of Bangladesh. !t first he wanted to %e a teacher. But later to support hisfamily he used his creativity and innovative spirit. $e started his %usiness with a small workshopwith an investment of B(T 3--- and a showroom in 7lephant &oad (haka .New Ae Business08 March 0--62.$owever "itun was not a professional manager and looked for help from a consultant in 1661.The consultant sketched out an organ gram policies and procedures that helped the %usiness togrow further. "itun was successful in esta%lishing its three head'uarters in !shulia 5hyampurandMirpurin(haka.The headofficeofthe companyislocated at:ulshanwith its13---employees. The country has a retail network all across the country .;ikipedia 0-102. 95ince furniture is the most important ingredients of the interior decoration of a room there is ahigh demand for the stylish furniture which can enhance the look of a room. OTOBI has %ecomeone of the top three %rands in the 5outh region. OTOBI has exotic ranges of stylish productswhich has created an excellentplatform to fulfillthe needsof the customers. OTOBI isalsoconsidered as an innovative furniture company %ut %ecause of a large num%er of competitors itis losing its market share. !nimesh sonof "itunAundu graduatedfromBornell /niversity /5! reali)edthat hischarismatic and legendary father was an artist at heart and not a proficient %usinessman. $e spenttwo years in the various departments of the company during his internship. !nimesh reali)ed thathe needed the professional help in getting the %usiness to the next level. ! headChunter %rought5a%%ir $asan "asir to the Aundu family %usiness. 5a%%ir had completed his B5c in 7ngineeringfrom B/7T .Bangladesh /niversity of 7ngineering and Technology2 and got an MB! from IB!.Institute of Business !dministration /niversity of (haka2. $e worked for different companieslike Bata Tetra Pak :olfrate in marketing operations and strategic planning sections .The DailyStar, 1 #e%ruary 0--62. In the middle of 0--, the new leadership of OTOBI took over a%out the three months %efore"itun*sdeath. "itunAunduwastheBhairmanand !dvisorofthe%oard. ;hereas !nimeshAundu was appointed as the Managing (irector and 5a%%ir $asan was the B7O of the company.The separation of ownership from management was %eneficial for the company. To %ecome theglo%al %rand the company took different initiatives like introduction of performancemeasurement tools %alancedscorecards implementationof themassiveenterpriseresourceplanning system from 5!P. The company modified their research and forecasting models. Theyalso implemented values of innovation discipline and team %uilding which %ecame the root ofOTOBI culture. They also tried to esta%lish the new technology in the %usiness. The num%er ofemployees grew more than 13--- within three years .Banladesh Econo!ic News,04 March0-1-2. 10OTOBI has the visiontodevelopintoa complete lifestyle %randofferinginnovative andinspiring space solutions. OTOBI*s range of furniture furnishings and appliances are developedand marketed to serve all ages and stages of homes industries institutions hospitals and offices.OTOBI is the market leader inthe woodenfurniture segment. The %randhas three maincategories of furniture D %asic economy and premium. !lso there is a range of leather furniturefor the drawingroom. !ll OTOBI products have features that promise tomaximi)e usersatisfaction. (ifferent productsof OTOBI are%eds computer ta%les dressingta%les diningta%les sofa sets show cases wardro%es chairs ta%les wall ca%inets etc .The Daily Star, 8 ?une0-1-2. OTOBI has a separate $& department. The company has a $& manager who is responsi%le forhandling theallthe employees inthe $&department.The company*sexclusiveproducts aremade%ythetalentedemployees. Theseemployeesarerecruited%ythe$&department. Thecompany*s$&departmentisresponsi%letoprovideeffectivetrainingtotheemployees. Thecompany has %oth the internal and external recruitment system. They recruit employeesexternally through newspaper ads andB( jo%s.#or theexternal recruitmenttheyuseemailnotice %oards etc. They try to follow the fair recruitment process through which more skilled andcreative employees can %e hired .5ourceE Interview from the $& Manager2.The company*s ?o% analysis is revised in every year. !lso they update the organ gram of thecompany.$oweverOTOBIconductsdifferent traininganddevelopment programmesforitsemployees. The employees ac'uire different skills and knowledge through these trainingprogrammes. They use different training methods like lectures presentation slides role play casestudy etc. !lso theyhavetrainingfor officemanners and%asiccommunications .5ourceEInterview from the $& Manager2. OTOBI also has performance appraisal system for its employees. The performance appraisal isconducted in one year. Through the effective performance appraisal system the company can11understandinwhichareatheemployeesneedtraining. 7mployee*stechnical a%ilitiescan%eimproved after appraising their performances .5ourceE Interview from the $& Manager2. The company has an attractive compensation and %enefits for its employees. #or the attractivecompensation package most of the 'ualified and creative employees work in the company. These employees are responsi%le for delivering the high 'uality products to its customers. !lsothecompanyhasdifferent facilitiesforitsemployeeslikemedical insurance festival %onusgratuity provident fund transportation su%sidi)ed lunch etc. #or these all facilities employeesare more motivated to work in OTOBI .5ourceE Interview from the $& Manager2.S#mmar( Ta'le o$ OTOBISo#rce% -7ho;dh#r( C Hasan= 0!/>#rom the ta%le a%ove the overview of the company can %e o%served. OTOBI esta%lished in 1693with its total workforce of 3--- employees. The company has 413 outlets in all over the world.OTOBI also has 8-< market share in the %randed furniture. The company is also successful toexport in the foreign countries. Bompany*s total export of products to the foreign country is 13