A Decision to Bring Significant Change in Our Organization-

“Rimers Tea Estate”

What is Decision Making

The act of choosing between two or more courses of action.

Objective: Arriving at a solution for a certain problem.

• Previously known as “Shatgaon Tea Estate”.• Purchased the ownership of “Shatgaon Tea

Estate” in 2012.• Named it as “RIMERS Tea Estate”.• Established 250 years ago by British colony.

3 divisions are- • RIMERS Tea Estate • Makrichara Tea estate• Ichamoti Tea Estate

Organogram of “Rimers Tea Estate”Chairman

Managing Director

Director

Marketing Mana

ger

Marketing Executives

Trading

Manager

Trading

Executives

Delivery Men

Accounts

Manager

Accounts

Executives

IT Mana

ger

IT Executives

General Manager

Sales Mana

ger

Sales

Executives

HR Mana

ger

HR Executives

Logistics

Manager

Logistic

s Executives

Store Keepers

Drivers

Operations Mana

ger

Operations Executives

Workers

Problems we are Currently Facing

• Lack of co-ordination• Weak distribution channel• Low sales margin & Production• High competitions in market• Lack of awareness of labor group• Lack of motivation & Monitoring• No labor insurance

Causes of the Problems

• Growing cost of living• Higher fuel price• Better salaries offered by competitors• Management crisis due to turnover• Lack of opportunities

Our Decision

Maintain present employees, change their compensation package & balance the pay policy with present economic situation of Bangladesh.

SWOT Analysis of the Decision Taken

• Strengths• Weaknesses• Opportunities• Threats

Developed Alternative Solutions

• Maintaining present employees.• Changing their compensation

package.• Hiring more efficient sales

executives with present salary package.

Developed Alternative Solutions (Contd.)

• Use Job Rotation & Cross Function Policy.

• Job Evaluation of managers & proper training.

• Performance appraisal for employees.

Justification of the Decision

• Increase in base pay• Cost of Living• Short Term Incentives• Long Term Incentives• Income Protection• Work Life Balance• Allowances

Situation before the Compensation Package

• Poor Compensation Package

• Employee Dissatisfaction

• Poor Performance of the Organization

• Less Profit

• More Risk• High Turnover

Rate of increase in Compensation Package

Base Pay will be increase by: • Top Level: 6%• Mid Level (1st Tier): 12%• Mid Level (2nd Tier): 11%• Low Level (1st Tier): 8%• Low Level (2nd Tier): 7%

Our Revised Compensation PackageTotal CompensationCash Compensation

Base

Cost of Living

Short-TermIncentivesLong-TermIncentives

BenifitsIncome Protection

Work/LifeBalance

Allowances

Relational ReturnRecognition &Status

Employment Security

Challenging Work

Learning & Training Opportunities

Action Plan Level and Tier Current Salary Cost

(Per anum)Increased Salary cost(per anum)

Top Level : 4 persons 1,95,00,000/= 2,04,75,000/=

Mid Level (1st Tier): 7 persons 91,00,000/= 1,04,65,000/=

Mid Level (2nd Tier): 18 persons 1,56,00,000/= 1,71,60,000/=

Low Level (1st Tier): 54 persons 1,13,75000/= 1,27,40,000/=

Low Level (2nd Tier): 51 persons 4,160,000/= 44,92,800/=

Total 59,735,000/= 65,332,800/=

Extra amount needed Tk. 55,97,800/=

Transport cost per annum

Monthly rent and fuel for 2 Micro

buses (12 seated)

25 Days * 2500 Tk * 12 months *

2 = 15,00,000/=

Action Plan (Contd.)Calculate

existing salary cost

Situation after the Compensation Package

•Effective running of the organization

•More Profit

•Better Performance of the Organization

•Employee Satisfaction

•Better Compensation Package

Its all about decision making, upon which the success of an organization largely depends. We believe in ourselves, so believed in our decision….

Thank you…