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, GermanyAustralia, SriLanka, MalaysiaSingapore & 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

50450

FINANCIAL OVERVIEW LAST 5 YEARS

8.9 mil.

REVENUE TREND

PROBLEMS | HR SURVEY REPORT

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 SolutionsProduction 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 19,890,000Mid Level 15 persons 14,700,000 15,435,000Lower Level 25 persons 13,535,000 14,888,500Workers ( 400 persons) 40,800,000 45,696,000Total 88,535,000 95,909,500Extra 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