Assignment On Decision Making Process 73r68

MSRM Textile Mills Ltd

United International University Prepared For Course Instructor : Prof. Md. Salim Bhuiyan Course Title : Management & Organizational Behavior EMGT-506 Section-A Spring 2015

Prepared By Md Moniruzzaman Monir, ID – 113143007 A F M Rubayat Ul Jannat, ID – 113151004 Md Mahabbat Ali, ID – 113143005 Mrs. Salma Jahan, ID – 113143002.

Date of Submission : 17.05.2015

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MSRM Textile Mills Ltd May 17,2015. Prof. Md Salim Bhuiyan Adjunct faculty School of Business & Economics United international University House – 80, Road – 8/A, Satmoshjid Road Dhanmondi, Dhaka 1209. Subject : Letter of Transmittal Dear Sir We are submitting you the report, due on May 17,2015, that you requested. The report is entitled MSRM Textile Mills Ltd, The purpose of the report is to inform you the decision making process that has grown after completing the Management and Organizational Behavior(EMGT 506). The content of this report analyze the management crisis of the company that fell impact on the profit & yearly turnover and how a decision making could help the top management to overcome the problem. We really appreciate the efforts and the assignment that helped all of us to synchronize altogether and learn the decision making process practically by analyzing every situation and learnt how to overcome management crisis in real life. Sincerely Md Moniruzzaman Monir, ID – 113143007 A F M Rubayat Ul Jannat, ID – 113151004 Md Mahabbat Ali, ID – 113143005 Mrs. Salma Jahan, ID – 113143002. Section A EMBA, Spring 2015.

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MSRM Textile Mills Ltd

1.1

EXECUTIVE SUMMARY

The macro economic performance of Bangladesh is heavily dependent on its Readymade Garment (RMG) manufacturing sector. After the failure of jute sector, the demand of RMG has dramatically risen. The RMG sector alone does export worth $21.5 billion a year, which is 79 percent of the total export earning of our country. Currently some of the leading companies of Bangladesh in garments sector are Ha-Meem groups, Squire fashion limited, Mohammadi group, Habib group ltd etc. They have some common departments for smooth functioning their production. RMG has a tremendous effect in our society. Women empowerment has established and increased, job sources have been created, population growth rate has been fallen but it has also promoted child labor. RMG has improved the economic sectors like agricultural, industry as well as GDP of Bangladesh. More jobs have been created. More people have been employed and have also developed the GDP of the country. The fact that the RMG sector has responded to calls for taking initiatives to improve the wellbeing of its workers by means of opening up health and recreational facilities is helping to improve its image as a responsible sector to foreign buyers. It is not only the Scandinavians who have faith in Bangladesh’s potential to become the country of choice for sourcing different types of garments but also other big guns like USA have facilitated our RMG sector. Bangladeshi RMG is growing in a vast way. Expanding RMG sector has to face some competitors. One of the major competitors is Vietnam which is proved a challenging competitor for our RMG sector. There are some reasons lying behind our RMG sector’s success. Flexible labor market law, availability of raw materials, price competitiveness is one of them. But some of the problems are slowing down our RMG sectors growth just like infrastructure, political instability, poor transportation system etc.

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MSRM Textile Mills Ltd

Contents:

Page no

1.1 Executive Summary …………….. ………………………3 1.2 Assignment Topic…………….………………………….5 1.3 Decision Making…………….…………………............5-7 1.4 Company Overview……………………………….……7-8 1.5

Company Objective…………………………………….8

1.6

Products & Production capacity………………………..8

1.7

Manpower Status……………………………………….9

1.8

Financial Statement…………………………………10-13

1.9

Current problem that we are facing ……………………14

2.0

Importance of our decision making ……………………14

2.1

Identifying the causes of current problem…………….14-16

2.2

Developing alternative solutions………………………17

2.3

Our Decision to Solve the Problem and Justification…18-21

2.4

SWOT Analysis……………………………………….21-23

2.5

Action Plan…………………………………………….24-25

2.6

Conclusion…………………………………………….…26

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MSRM Textile Mills Ltd

1.2 Assignment Topic Assume that you are the top executive of an organization. Now think of a decision which will bring significant change in your organization. Justify why do you want to take such a decision & how will you implement it.

1.3 Decision Making Decision-making is an essential aspect of modern management. It is a primary function of management. A manager’s major job is sound/rational decision-making. He takes hundreds of decisions consciously and subconsciously. Decision-making is the key part of manager’s activities. Decision is important as they determine both managerial and organizational actions. A decision may be defined as “a course of action which is consciously chosen from among a set of alternatives to achieve a desired result.” It represents a well- balanced judgment and a commitment to action. It is rightly said that the first important function of management is to take decisions on problems and situations. Decision-making pervades all managerial actions. It is a continuous process. Decision-making is an indispensable component of the management process itself. Means and ends are linked together through decision-making. To decide means to come to some define conclusion for follow-up action. Decision is a choice from among a set of alternatives. The word ‘decision’ is derived from the Latin words de ciso which means ‘a cutting away or a cutting off or in a practical sense’ to come to a conclusion. Decisions are made to achieve goals through suitable follow-up actions. Decision-making is a process by which a decision (course of action) is taken. Decision-making lies embedded in the process of management. A manager has to take a decision before acting or before preparing a plan for execution. Moreover, his ability is very often judged by the quality of decisions he takes. Thus, management is always a decision-making process. It is a part of every managerial function. This is because action is not possible unless a firm decision is taken about a business problem or situation. 5

MSRM Textile Mills Ltd

This clearly suggests that decision-making is necessary in planning, organizing, directing, controlling and staffing. For example, in planning alternatives plans are prepared to meet different possible situations. Out of such alternative plans, the best one (i.e., plan which most appropriate under the available business environment) is to be selected. Here, the planner has to take correct decision. This suggests that decision-making is the core of planning function. In the same way, decisions are required to be taken while performing other functions of management such as organizing, directing, staffing, etc. This suggests the importance of decision-making in the whole process of management. Planning the Decision Decision will get four benefits out of planning: 1. Planning give chance to the establishment of independent goals. It is a conscious and directive series of choices. 2. Planning provides a standard of measurement. It is a measurement of whether you are going towards or further away from your goal. 3. Planning converts values to action. You think twice about the plan and decide what will help advance your plan best. 4. Planning allows for limited resources to be committed in an orderly way. Always govern the use of what is limited to you. (e.g. money, time, etc.) Decision-making is one of the defining characteristics of leadership. It’s core to the job description. Making decisions is what managers and leaders are paid to do. Yet, there isn’t a day that goes by that you don’t read something in the news or the business press that makes you wonder, “What were they thinking?” or “Who actually made that decision?” That’s probably always been the case, but it seems exponentially more so in the opening decade of the new millennium where everything seems marked with, “too big, too fast, too much, and too soon.” The reality seems to be that most organizations aren’t overrun by good decision makers, yet alone great ones. When asked, people don’t easily point to what they regard as great

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MSRM Textile Mills Ltd

decisions. Stories of bad decisions and bad decision-making come much more readily to mind. Some of that is due to our tendency to notice and recall exceptions vs. all the times things go as planned. For example, you’ve walked along side buildings more times than you could possibly count. Yet you vividly the one time you got nailed by a pigeon overhead. That’s how we are about bad decisions. We’re also that way because the really bad ones tend to really hurt. It’s not that people don’t have the capacity to make high-quality decisions in them. Decision-making is a distinctly human activity. It’s what that great, big frontal lobe is for. We all make decisions all the time. But the fact that we’re hard-wired to make decisions doesn’t by itself make us good decision-makers. That takes discipline: discipline to do at least four things all the time and well. 1. Realize when and why you need to make a decision. 2. Declare the decision: decide what the decision is, how you’ll work it, and who should be involved. 3. Work the decision: generate a complete set of alternatives, gather the information you need to understand the possibilities and probabilities, and ultimately make a choice that best fits your values. 4. Commit resources and act.

1.4 Brief Overview of MSRM Textile Mills Ltd MSRM Textile Mills Ltd is a socially responsible business organization and is engaged in Manufacturing & Export business in Bangladesh. Our vision is to provide the utmost satisfaction to our clients through unwavering commitment to International Quality Standards in every aspect of our business. We achieve our vision on the strength of our highly motivated employees in a caring and safe work environment. MSRM Textile Mills Ltd is opposed to any form of slave, child or prison labor, whether domestic or international. We expect our clients to share these same ethical standards. We provide employees with a safe & healthy workplace, that they will not use force or other compulsory labor that they 7

MSRM Textile Mills Ltd

adopt nondiscriminatory principles, limit working hours and pay fair wages. We do not use child labor under the age of 18 regardless of the Law of the country of origin. MSRM Textile Mills Ltd was established in the year 2002 and our associated factories were established in 2003 to face the challenge of open market competition in Quality & delivery schedule for International Fashion and Buying Houses. We are fully committed to our clients no matter small or big in Fashion industry. We provide our best effort to our valued customers with total commitment in order to achieve AQL 04 standards.

1.5 Company Objective 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 of our business. The objective is perused keeping in mind the respect for the customer needs and satisfaction. We are always transparent & positive in fulfilling the Buyer’s requirements as well as our commitment.

1.6 #

Products & Production capacity Products(100% Export) : *Polyester, *polar fleece, *micro fleece, *CVC fleece, *single jersey (cotton, polyester, CVC), *Rib, *Interlock, *Mash.

#

Production Capacity:# # #

Knitting Capacity: 35,000 kg/day. Dying Capacity: 35,000 kg/day. Finishing Capacity: 30,000 kg/day.

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MSRM Textile Mills Ltd

MSRM Textile Mills Ltd Manpower Status as on 17.05.2015 S/N

1

2

3

4

Level

Top Level Management

Mid Level Management

Lower Level Management

Workers TOTAL

1.8

Designation

Existing Manpower

Chairman

1

Vice Chairman

1

Managing Director

1

General Manager

1

Chief Executive officer

1

Factory Manager

1

HR Manager

2

Compliance Manager

2

Security Manager

2

Fire & Safety Manager

2

Maintenance Manager

2

Utility Manager

2

Production Manager

2

Supervisor

10

Floor Manager

3

Section Head

7

Line Manager

5

Workers

400

Remarks

445

Financial Statement: BALANCE SHEET AS ON 31

ST

DECEMBER, 2012

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MSRM Textile Mills Ltd

CAPITAL & LIABILITIES AUTHORISED CAPITAL: 10,00,00,000 Ordinary Shares of Tk. 10/= each ISSUED, SUBSCRIBED & PAID UP CAPITAL: 10000,000 Ordinary Shares of Tk. 10/= each

AMOUNT (TK) 1,000,000,000

FIXED ASSETS (Schedule-A):

289,371,526

SECURITY & ADVANCE

6,874,848

PRELIMINARY EXPENSES 492,862,680

EXPORT BILLS NEGOTIATION (IDBPP Loan)

340,112,909

L/C LIABILITIES

AMOUNT (TK)

100,000,000

BANK LOAN (CC & TR)

HIRE PURCHASE LOAN

PROPERTY & ASSETS

4,900,950

180,645

DEFERRED REVENUE EXP.

1,379,070

BILLS RECEIVABLE

590,764,766

124,119,779 MARGINAL DEPOSIT

TAX HOLIDAY RESERVE BILLS PAYABLE PROFIT & LOSS APP. A/C

24,066,000

12,363,813 159,097,151

CLOSING STOCK

538,853,736

112,198,608

FORCED LOAN

99,159,234

ADVANCE TAX

5,051,795

OTHER LIABILITIES

17,804,287

CASH & BANK BALANCES

9,354,747

S PAYABLE

3,277,772 1,465,897,133

1,465,897,133

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MSRM Textile Mills Ltd

PROFIT & LOSS APPROPRIATION FOR THE YEAR ENDED 31ST DECEMBER, 2012 DR. PARTICULARS

AMOUNT (TK)

PARTICULARS Balance as per Last A/C

Balance Transferred to Balance Sheet

112,198,608

Net Profit Transferred from Profit & Loss

112,198,608

CR. AMOUNT (TK) 110,703,080 1,495,528

112,198,608

PROFIT & LOSS FOR THE YEAR ENDED 31ST DECEMBER,2012 DR. PARTICULARS Salary & Allowances Other Allowances Bank Charges & Interest Interest on CC loan Interest on Hire Purchase Interest on IDPB Loan Insurance (Fire) License Renewal & Fees Postage & Courier Newspaper & Periodicals Traveling & Conveyance Interest on Forced Loan Sample Charge Audit Fees Office Rent Telephone Bill, Fax & Internet Carriage Outward Electricity Donation & Subscription Entertainment Form & Fees Stationery Performance Award

AMOUNT (TK) 36,761,611 281,462 2,372,750 20,998,164 2,407,411 50,659,631 3,172,077 152,210 109,800 2,882 427,702 5,525,355 1,276,100 5,000 1,920,000 1,143,258 345,650 571,329 6,500 425,122 1,027,765 1,208,590 2,000

PARTICULARS Gross Profit Transferred from Manufacturing & Trading A/C

CR. AMOUNT (TK) 134,195,365

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MSRM Textile Mills Ltd General Expenses Rates & Taxes Depreciation Net Profit Transferred to P/L Appropriation A/C

503,294 233,388 1,160,786 1,495,528 134,195,365

134,195,365

MANUFACTURING & TRADING FOR THE YEAR ENDED 31ST DECEMBER,2012

PARTICULARS Consumption of Raw Materials Wages

AMOUNT (TK) 947,333,486

2,532,485

Bank Charge & Interest

8,831,719

Interest on Trusty Loan

79,832,263

Gas Bill

46,272,600

Non- Judicial Stamp Forms & Fees Carriage Inward

189,543 26,850 1,027,765 312,293

Fuel & Lubricant

8,228,954

Repairs & Maintenance

2,180,217

Water Treatment Chemical

4,183,676

Medical Aid

99,002

Tiffin Bill

229,751

Packaging Charges

672,633

Testing Charge

3,057,989

Fooding

1,477,902

Loading & Unloading Depreciation

AMOUNT (TK) 1,341,953,654

43,912,172

Labor Charge

Insurance (Marin)

PARTICULARS Export Proceeds

640,675 56,716,014

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MSRM Textile Mills Ltd Gross Profit Transferred to Profit & Loss

134,195,365 1,341,953,654

1,341,953,654

STATEMENT OF FIXED ASSETS AND THEREON DEPRECIATION FOR THE YEAR ENDED 31ST DECEMBER,2012

PARTICULARS Building

Open. Balance as on 01.01.12 93,330,192

Addition during the year

Balance as on 31.12.12 93,330,192

Rate of Depreciation 20%

Depreciation Dur. The Year 18,666,038

W.D.V. as on 31.12.12 74,664,154

137,122,138

20%

27,424,428

109,697,711

2,821,169

10%

269,417

2,551,752

Plant & Machinery

137,122,138

Furniture & Fixture

2,694,169

Electric Installation

11,780,744

11,780,744

15%

1,767,112

10,013,633

Gas Installation

12,249,786

12,249,786

15%

1,837,468

10,412,318

Deep Tube well

5,665,292

5,665,292

15%

849,794

4,815,498

Led Way Software

1,853,277

1,853,277

15%

277,992

1,575,286

Crockery & Cutleries

166,837

166,837

10%

16,684

150,153

Hardware & Sanitary

4,220,281

4,220,281

10%

422,028

3,798,253

301,327

301,327

10%

30,133

271,194

Electric & Sub Station Office Equipment Spare Parts Total Amount in Tk.

127,000

1,746,655

206,950

1,953,605

10%

174,666

1,778,940

61,410,420

14,373,257

75,783,677

10%

6,141,042

69,642,635

332,541,119

14,707,207

347,248,326

57,876,800

289,371,526

Allocation of Depreciation: 56,716,014 Manufacturing & Trading A/C: Building Plant & Machinery Electric Goods Gas Installation Deep Tube well Electric Sub Station Spare Parts Profit & Loss A/C:

18,666,038 27,424,428 1,767,112 1,837,468 849,794 30,133 6,141,042 1,160,786 269,417 277,992 16,684 422,028 174,666

13 57,876,800

MSRM Textile Mills Ltd

Furniture & Fixture Led Way Software Crockery & Cutleries Hardware & Sanitary Office Equipment Total Tk-

1.9 Current Problems we are facing: As we have the latest data base of all production, cost, sales & marketing perspective which is monitored by our higher management & our Work study Group. According to the status of last five years production status we see the graph is going down as the productivity has also been decreased drastically. After analyzing the financial statements we could measure that approximately 10% of our profit margin has been decreased. The annual turnover which was 64.2 million USD in 2010 & the annual Turnover of 2014 was 55.3 million USD.

2.0 Importance of Decision Making: As top level executives we should always try for the higher productivity which will definite has a hand in the incensement of our profit margin as well as yearly turnover. As the current problem is hampering the financial gain, so we need to take a decision that would bring significant change in our productivity & profit which will definitely reflect a good impression in the Human Resources arena. It is said that management involves 6 Ms that is Man, Materials, Machine, Method, Money & Market. Among these 6 Ms Man(Human Resource) creates major problem for a manager as well as for the organization. So an effective decision making has a significant role in this regard.

2.1 Identifying The causes of current Problem: a.

High Rate of Lower Level Employee Turnover

High labor turnover may cause reduction in labor productivity and increase in costs. In Bangladeshi economic condition, living cost and price hike in daily commodities has reached beyond the limit. The salaries we are paying to our labor are not satisfactory. Beside it for present market scenario, we 14

MSRM Textile Mills Ltd

have to produce RMG products to meet the demand of international market. That’s why; each worker has to do extra time duties. For these reason Supervisor are in pressure to motivate workers for overtime duties with in budgeted overtime payment, that’s why relationship between workers and supervisor are not that good. So our labor is recently leaving our organization, and the ratio getting higher day by day. After doing HR survey it is observed that for the salary & benefit issue, the dissatisfaction rate has been increased. b.

Low Productivity

We are facing low productivity and outcomes because of high rate of turnover and poor job satisfaction level due to non-satisfactory remuneration and benefits. On the other hand, Ineffective management practices decreased our company's productivity in several ways. c.

Management Functions are disrupted

After doing survey it is observed that that there was several dissatisfaction among the employees regarding the system of management functioning of our Mid Level management. Usually workers at all level found difficulties while communicating with the mid level management. It is because the order ing & execution channel has not worked well. Difference between the execution of decisions were disrupted as they were not maintained a similar mind in developing the solutions of the problems. d.

Lack of Awareness of labor group

Most of our labor doesn’t know about the benefits we are providing as well not aware of the companies’ HSE. Because of the knowledge gap 10-15% of labors getting less productive and dissatisfied, its results turnover finally. e.

Lack of motivation

As we are mainly focus on product quality, management has zero tolerance mindset in quality product. So, supervisors are in pressure to follow up and care about the product instead of motivating them to do the best. And because of recent turnover incidence, labors are afraid of doing their best which cause job insecurity and less productivity.

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MSRM Textile Mills Ltd

f. No Labor Insurances, worker participation fund and provident fund benefits At present, we do not have any insurances, workers participation fund and provident fund that’s why our labor & staff getting dissatisfy, tendency of shifting to other organization is increased day by day. As most of the new organizations are introducing attractive benefits like health insurance & WPF etc and they are following labor law properly. g.

Transportation for Mid Level Management:

As fuel price has increased employees are to spend more than their conveyance. Again hectic traffic and poor public transport facilities are restricting them to come to work on time and to concentrate in work properly. That has put impact on their productivity. h.

Health, safety and environment

Now a days, health, safety and organizational environment becomes major factors for the workers. Some recent tragedies, marks our labors concentrations about such important issue. So we are facing some challenges to make feel our labors fearless while working. Proper training and initiative are not taken to make them aware of health & safety. i. Lack of efficiency & effectiveness among Marketing & Sales Department: Most of our marketing & Sales people of our organization are following the system of 1980s-1990s for marketing & sales. For that reason they usually don’t understand the new requirements of Various Buyer accordingly & they fall back in maintaining a similar pace with the latest requirements. As we know with the age of time there are a lot of requirements which all are new & innovative. So for the lack of training & development has got a major effect on this issue. j.

Competitive Market Position:

Our competitor companies are offering competitive remuneration package to some of our efficient mid & lower level managers. As a result the migration ration of Mid-Lower level managers has gone high. 16

MSRM Textile Mills Ltd

2.2 Developing Alternative Solutions: We know that our problems have got some alternative solutions. To develop alternative solutions we have used the available resources. Those are: 

We had a brainstorming session involving top level executives like our Chairman, Managing Director, CEO & general Manager.



We have interviewed some of our Mid & Lower level managers & employees. We have taken consent of some of our ex-employees who left the organization recently.



We hired a consultant to analyze and review the problems and to propose alternative solutions for us from a third party view so that the alternative solutions become neutral.

With the short term research carried out by our consultant & after compiling both views, we came up with the following solutions after analyzing the situation and these are : @ Develop the Mid & Lower level managers with some interactive production oriented training & awareness program. @ We may review the salary structure of Mid & Lower level managers & also for the employees. @ We may go for some declaration of Incentive Bonus thus gaining a positive competitive mentality among all. @ We may review the common benefit for the workers as per Bangladesh labor Law 2006.

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MSRM Textile Mills Ltd

@ For the Mid & Lower level managers we may give some benefits like Transportation, Tiffin, Special Lunch & annual picnic etc. @ Hiring more efficient sales & Marketing executives with attractive salary packages to put an impact on the market and maintain the profit.

2.3 Our Decision To solve the Problem & Justification: Considering the facts & after analyzing the problems & the cause of the current problems we may take some major decisions along with some other decisions which will give us a fruitful result. We strongly believe that our employees & Mid & Lower level managers are our assets and they can definitely contribute to our profitability if they are 100% motivated & productive by getting good facilities. Major Decision: We will increase the salary for all level of employees. Here we will follow Cost of living Adjustment (COLA) method and would also consider the market demand and competencies of our employees. So the increment will not be same percentage at all level. So the increment would be as follows: Top Level : Mid Level : Low Level : Workers :

2% 5% 10% 12%

Respective Justification: Based on our review result, we have found that: a.

The present salary structure is not competitive and do not match with the market demand. So turnover rate is high among our most efficient workers. They are keen to switch organization if they get

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MSRM Textile Mills Ltd

good offers from other organizations. It has direct impact on the low productivity & sales. b.

In case of Mid & Lower level managers, who are mediocre and not getting good offers from other organizations & dissatisfied with current salary structure becomes frustrated and de-motivated and as a result they have lost interest in their works. It has direct impact on the low productivity & sales.

c.

For the last few years the cost of living has gone up significantly in Bangladesh that caused the mid-income group to fall under a threat. Majority of our mid and low employees’ income is spent for buying regular food items, house rents and conveyances.

d.

So our decision of increasing salary would bring significant change in our company by motivating the employees providing incentive to them.

e.

As top level employees are already highly paid, their increment is the lowest. Our efficient mid level employees are keen to switch job, so incentive is the highest to retain them based on market demand analysis. Our low level employees play key role in production and are given incentive as per market demand analysis.

Subordinate Decision No 01 Since every problem has got more than one solution so we will also take some additional motivational decisions phase by phase, which also act to satisfy our employees especially who are based in Dhaka and having transportation problem.

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MSRM Textile Mills Ltd

 We will provide transportation facilities to our Workers by providing Bus service & for the Mid level managers we will provide Micro Bus service on monthly basis. Respective Justification Based on our review result, we have found that: a. As fuel price has increased, employees& staffs are to spend more on their conveyances. Again hectic traffic and poor public transport facilities are restricting them to come to work on time and to concentrate in work properly. That has put impact on their productivity. Providing transport to work would solve the problem and would maintain in-time to work properly. Subordinate Decision No 02 We will arrange some interactive production oriented training & awareness program for the mid & lower level management. Respective Justification Based on our review result, we have found that: If we can provide some interactive production oriented & awareness training for the mid & lower level managers, they will be quite efficient & effective in motivating the workers & with the knowledge of the training they will be able to increase the standard of working technique of the workers which will have a direct effect on the productivity. Subordinate Decision No 03

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MSRM Textile Mills Ltd

We will announce the annual picnic for all employees which will also have some cultural activities. Respective Justification Based on our review result, we have found that if we announce & organize annual picnic with cultural activities for all the employees, this will definitely have a great effect on the interaction with Top, Mid & Lower level management. They will be able to share their views & this will have a direct effect on their productivity.

Subordinate Decision No 04 We will announce the following benefits by mentioning the time frame when we will be able to provide.  We will make a contract with some private hospitals for the yearly check up of our Mid, Lower level managers & also for the workers with a discounted price from 2016.  We will provide the Health insurance for the workers from 2018.  We will provide provident fund for all the workers including Mid & Lower level managers from 2020. Respective Justification Based on our review result, we have found that if we announce the above benefits, workers along with the Mid & Lower level managers will be motivated. It is because they will have a target at which time they will get what extra benefit. The migration rate will drastically decreased. This will have a direct effect on their productivity.

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MSRM Textile Mills Ltd 2.4

SWOT Analysis

As top level executives we cannot take a decision, which will satisfy all the concerned people. There are merits and demerits of our decision. While taking decision we have to comply with both the merits and demerits of our decision. Here we have mentioned the Strength, Weakness, Opportunities and Threats of our decision. 1) Strengths The attributes of the decision that is helpful to achieve the company objective is called the strengths. a. We will be able to achieve our estimated daily sales and profit target again after implementing our new decision as it will motivate our employees and their productivity will increase. b. This decision will help to restore our goodwill which is under threat now. c. Employees will be more benefited as well as the company. Better employees would ensure better service. d. Satisfaction level of workers & Mid & Lower level managers will increase and thus we will be able to increase the productivity rate. e. Transportation facility will ensure in-time to work properly and reduce daily hassle of the employees. f. Production oriented training & awareness program will make our Mid & lower level management more efficient & effective & thus helping in

motivating the workers & with the knowledge of the training they will be able to increase the standard of working technique of the workers which will have a direct effect on the productivity. 2) Weaknesses

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MSRM Textile Mills Ltd Attributes of the company those are harmful to achieve the company objectives is called weakness. a. One major concern is the cost of extra budget which was not included in financial year so some unexpected cost will be added with yearly expenditure. b. May be some other factory already using such similar ideas to reduce dissatisfactions. c. Since we cannot provide their expected salary in line with the actual inflation rate so may be some de-motivation will still remain after implementing the decision all types of decisions. 3) Opportunity Opportunities are those external conditions that are helpful to achieve the objective. So in order to make our roots deeper into the market, we will get those opportunities in future. a. Since we will be able to run our production smoothly without any interruptions, we will be able to trade more products at a cheaper rate & in shorter time. b.

Many companies may be unable to be so much courageous to invest huge amount of money to increase salaries & take the benefit of such decision.

c. Government will appreciate and may provide for our company. We may get strong financial response from other financial organizations if we want to extend. d.

We might draw more efficient and dedicated workers from other companies as we will offer competitive packages and transportation facility after implementing our decision.

4) Threat 23

MSRM Textile Mills Ltd Threat means external barriers for a new product or service. a. Other companies may also follow our decision more effectively and thereby snatch our efficient employees.

2.5

Action Plan – How to Implement the Decision

A plan may sound very high but it will not bring any result unless it is implemented. Plans are to be implemented. So we should make a realistic & logical action plan & act accordingly to reach our objective. Action plan 1. 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

Top Level : 5 persons Mid Level 15 persons Lower Level 25 persons Workers ( 400 persons) Total Extra amount needed

Current Salary Cost

Increased Salary cost

(per anum)

(per anum)

19,500,000/= 14,700,000/= 13,535,000/= 40,800,000/= 88,535,000/= Tk. 7,374,500/=

19,890,000/= 15,435,000/= 14,888,500/= 45,696,000/= 95,909,500/=

Transport cost per annum 4 Bus (50 seated) monthly rent and 25 days X 6000/= X 12 months X 4 = fuel. 72,00,000/= 2 micro buses (12 seated) monthly 25 Days X 3000 Tk X 12 months X 2 rent and fuel

= 18,00,000/=

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MSRM Textile Mills Ltd 2. We have to make plans on how to recover the cost of our new decision. We will set new sales target that will recover our extra cost without hampering our profit target. As shown the calculation above, this investment will bring a significant change of workers working behavior with a very small investment. If we can achieve our monthly sales target, then it would not be a problem to recover the extra cost. Ultimately their job satisfaction will make them to do their job more effectively. Per day sales will be high and this extra sales profit will be given them as new increased wages and also accommodate the transportation cost. 3. We will arrange some production oriented & awareness training program monthly which will cost approximately 60,000/=(Annually 7,20,000/=) which will definitely cover up by the profit. 4.

We will set controlling and evaluation mechanism to retain our new sales and profit target. o We will make a networking system among all the supervisors, so that we can sense any human resource related problem time before hand. o We will always keep a reserve fund & all the necessary parts ready so that we can use them whenever we need. o We will analyze our performance every year so that we can come to know about the current market scenario.

5. We will include the Medical facility expenditure in the 2016 budget by making a contract some of the private hospitals for the yearly check up

of our Mid, Lower level managers & also for the workers with a discounted price. 6. We will include the Health insurance & provident fund issue in the Board meeting agenda so that these two should be noted in the future

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MSRM Textile Mills Ltd

plan of minutes of the Board meeting which will communicated to Head of Welfare.

2.6

Conclusion

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 our company and we together will ensure better quality of products and services.

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MSRM Textile Mills Ltd

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