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