Professional Documents
Culture Documents
INDUSTRY, BECAUSE YOU HAVE NOTHING TO SELL EXCEPT FOR THE IMAGE : THE IMAGE IS
EVERYTHING” --- ELLE MACPHERSON
INDEPENDENT UNIVERSITY BANGLADESH
SCHOOL OF BUSINESS
MBA 509
HUMAN RESOURCE MANAGEMENT
SUBMITTED TO
DR. NAZMUL AMIN MOJUMDER
SUBMITTED BY
ARIFA SULTANA
ID# 1630810
DATE OF SUBMISSION
27TH NOVEMBER 2017
EXECUTIVE SUMMARY
This report is regarding to Fashion Retailing Industry in Bangladesh. This report contains HRM
problem facing by this industry and critical analysis about the HRM challenges in fashion retail industry
of Bangladesh. Bangladesh is an upcoming industry in the fashion world. There are many large and
famous boutique houses are here among them some are internationally recognized. Aarong is one of
them, which is a sister concern of Brac Organization. Rang, Shadakalo, Bibiana, Anjans, Nipun, K-
kraft, nagordola, Deshal, M-kraft, etc. are popular in this sector. Although, Bangladesh has strong
position at garments and textile sector but due to its lack of knowledge and hiring procedures, job
security, compensation and benefits, it remains a silent player in fashion industry. The report critically
discusses about different steps needed to be taken for improving performances in this industry. It also
discusses the necessary government roles and policy, which are expected to boost this fashion retail
industry in Bangladesh.
TABLE OF CONTENTS
INTRODUCTION 1-3
1. OVERVIEW 1
1.1. FASHION IN BANGLADESH 1
1.2. UNDERLYING PROBLEM FASHION INDUSTRY IN BANGLADESH 2
1.3. ASSUMPTIONS AND LIMITATIONS 2
1.4. RESPONSE AND ARGUMENTS 3
2. TOPIC OF DISCUSSION 4
2.1. FASHION INDUSTRY- TEXTILE AND APPAREL 4
2.2. HARVARD HRM FRAMEWORK FOR FASHION RETAIL INDUSTRY 6
2.3. HUMAN RESOURCE WHEEL FOR FASHION RETAIL INDUSTRY 7
2.4. JOB ANALYSIS FOR FASHION RETAIL INDUSTRY IN BANGLADESH 8
CONCLUTION 15-17
6. CONCLUSION 15
7. RECOMMENDATION 16
REFERENCE 17
Introduction
1. OVERVIEW
“Fashion is not something that exists in dresses only. Fashion is in the sky, in the street, fashion
has to do with ideas, the way we live, what is happening” (Chanel, C.). The notion of a global
fashion industry is a product of the modern age. Prior to the mid-19th century, most clothing
was custom-made. It was handmade for individuals, either as home production or on order from
dressmakers and tailors. By the beginning of the 20th century with the rise of new technologies
such as the sewing machine, the rise of global capitalism and the development of the factory
system of production, and the proliferation of retail outlets such as department stores clothing
had increasingly come to be mass-produced in standard sizes and sold at fixed prices.
Although the fashion industry developed first in Europe and America, as of 2015, it is an
international and highly globalized industry, with clothing often designed in one country,
manufactured in another, and sold worldwide. For example, an American fashion company
might source fabric in China and have the clothes manufactured in Vietnam, finished in Italy,
and shipped to a warehouse in the United States for distribution to retail outlets internationally.
The fashion industry has long been one of the largest employers in the United States and it
remains so in the 21st century. However, U.S. employment declined considerably as production
increasingly moved overseas, especially to China. Because data on the fashion industry
typically are reported for national economies and expressed in terms of the industry's many
separate sectors, aggregate figures for world production of textiles and clothing are difficult to
obtain. However, by any measure, the clothing industry accounts for a significant share of
world economic output.
The partition of British India in 1947 gave way to modern states of India and Pakistan – an era of turmoil
whereby fashion was considered, ostentatious. Hence, slightly deterred but not detached, styling, took
to its own trail. Then came 1947 and Bengal was divided into two – East Bengal (later changed to East
Pakistan) and West Bengal. Even through the separation, nothing could stop ‘the craze that is fashion’,
as it seeped through, into every household within the region. The 1970s saw the rise of Bangladesh, a
country new in its form, but quite rich in culture and heritage.
Fashion industry is a highly competitive industry in Bangladesh and around the world. Demand in
fashion very often, making it very risky area for business. Although, many companies have strengthen
their business in this industry but they have to constantly focus about changing designs, looks, focus
and keep customizing their product to continue fashion business.
Bibi Rusell is often considered as the pioneer of fashion industries in Bangladesh. During late 1990s,
she started emerging the fashion industries in Bangladesh, bringing renaissance to fashion industrial
growth in the country. It was her ideas to bring the nation together and promote the fashions retailing
emerge in the country. It was her idea to revolutionize the art of fashion in Bangladesh. Since she was
a fashion icon by herself, she took the fashion retail to next level working alongside Aarong, nurturing
the fashion industry by herself, bringing a new voice in the country, the art of fashion. She partnered
with UNESCO and brought in over thousands of weavers and artisans and raise the voice of fashion in
the country.
Role of labor is very important in the expansion of fashion industry in Bangladesh. Purpose of current
study is to explore about the role of exploitive labor in fashion industry. Skilled labor is putting their
efforts to increase the production in fashion industry. Companies are trying to use this labor for their
high quality products in minimum labor rate. Labor of fashion industry is facing different crisis and
most of the companies are not fulfilling the ethical practices in the industry. Three case studies have
been used to analyses the current practices of companies in fashion industry of Bangladesh. These case
studies are explored about the major accidents, causes and responsible of accidents. Current study found
that small and medium level factories are not considering ethical practices in their work environment.
Government is trying to implement the ethical values in fashion industry. Current study recommends
to the factory owners that they should implement the ethical values in the fashion industry and protect
the rights of workers in the work place.
Fashion retail industry is very potential industry in Bangladesh as well as in the whole world. This
industry is flourishing and creating competition in global market.
In many cases, up to date information was not published and lack of journals articles is another key
factors of limitations of this report. Time is also one of the key limitation for this report.
1.4. RESPONSE AND ARGUMENTS
In different times this sector has faced lot of difficulties like the tragedy of Rana Plaza, Tazreen
Garments incident and Mirpur Textile factory fire. These incidents make negative impact on public
mind regarding this sector. One of the main concerns after the crises is the structural integrity. The
Government of Bangladesh has made changes in this regard. Working with the ILO, the government
has upgraded the Chief Inspector of Factories and associated Establishment office to a “department”,
hired additional labor, fire, and building inspectors, implemented additional training programs for
inspectors, and created a database of all factories to facilitate inspections. Many factories have been
inspected since these changes were made, but there are still about 1,000 factories that have not been
checked either because they are not registered with any organization or they have listed the wrong
address which takes time away from inspectors.
Report Body
2. TOPIC OF DISCUSSIONS
The notion of a global fashion industry is a product of the modern age. The rise of global capitalism
and the development of the factory system of production, and the proliferation of retail outlets such as
department stores - clothing had increasingly come to be mass-produced in standard sizes and sold at
fixed prices. Our fashion designers to reach this point of glory and success that today marks
Bangladesh's fashion culture. It is not just a matter of beauty now, fashion, the word on the
street is that it is the thing that sets you apart from the crowd. Although we have taken baby
steps at a time, today the scene boasts something different altogether.
The phrase “the fashion industry” may call to mind images of Fashion Week and photo shoots. In this
era of global trade, however, the high-fashion runways are just one part of the broader textile and apparel
industry that ranges from high-end luxury brands to fast-fashion retailers and the thousands of
companies in between that produce and sell clothing, shoes, and other textile products.
Fashion Marketing works by using current trends in fashion to analyze, develop, and implement sales
strategies. Fashion marketing investigates the relationship between fashion design and marketing
including the development, promotion, advertising, and retailing aspects of the billion dollar fashion
industry. Successful fashion marketers understand that recognizing consumer trends, strong branding,
and a desirable product image are all essential elements to building an effective and meaningful
campaign.
The global apparel market is valued at 3 trillion dollars, 3,000 billion, and accounts for 2 percent of the
world's Gross Domestic Product (GDP). The fashion industry includes many sub industries, such as
menswear, womenswear and sportswear.
The womenswear industry is valued at 621 billion dollars
The menswear industry is valued at 402 billion dollars
The retail value of the luxury goods market is 339.4 billion dollars
Childrenswear had a global retail value of 186 billion dollars
Sports footwear is valued at 90.4 billion dollars
The bridal wear industry is valued at 57 billion dollars
This industry has aims for higher profit, they try to slip-out some of the factors. They do not realize
some of the key areas that may help for the motivation of their employees to increase efficiency which
helps to increase productivity. They do not provide employee benefits & compensation, has no links for
unions, but only a few has labor relations personnel, the most important factor, where they face
difficulty is at the quality work life of its employees. Because of the fact that many individuals over-
look at this industry, the companies try to skip some of the above areas. The people related to fashion
industry in Bangladesh faces immense pressure from many parts of the societies. Hence it is an
important factor for the companies to provide supporting and related attitude for the benefit of their
people, which may boost the industry further.
In conclusion, RMG sector is growing though there is a little bit slow down in last three years but it
could be enhanced to take some steps by government and others stake holders. If the country could help
bringing more investments to the sector and a strong positive reformation continues the sector would
reach its expected growth. More investment behind the human capital of the sector would be key for
coming days. To secure more value addition companies must invest behind human resource. If not full
RMG sector a portion of must be transformed into world class best performing ones.
2.2. HARVARD HRM FRAMEWORK FOR FASHION RETAIL
INDUSTRY
Stakeholders
Interest
The figure above shows the Harvard framework of human resources management in the fashion
industry. The analytical framework of the 'Harvard model' offered by Beer et al consists five basic
components:
Situation factors
Stakeholder interests
HRM policy choices
HR outcomes
Long-term consequences
Fashion industry is a very interested area for everyone, hence it contains many different types of
stakeholders and interested individuals. So the human resources in this industry has policy on its own,
whereby they select the key areas of persons from location analysts to model, makeup persons to
designers. Because it‘s a highly competitive and demanding industry, the outcomes needs to be prolific,
to motivate individuals for the success of the product.
2.3. HUMAN RESOURCE WHEEL FOR FASHION RETAIL INDUSTRY
The human resource wheel in fashion retail industry in that each area impacts on human resource
outputs, quality of work life, productivity, and readiness for change. The wheel also show the various
aspects which are expected to be met for better performances for employees, plays suitable role for
motivation theory and growth of any industry including fashion retailing industry. The fashion retailing
industry in Bangladesh is trying to set up its own infrastructure, they provides training and development
for every single employees, selects right staffs for suitable roles, does research for rightful models
information both personal and any other related factors.
The model that provided the focus was developed by the American Society for Training and
Development (ASTD). In its study ASTD identified nine most important step of human resource
management (HRM).
Traning and
Development
Union / Organizaion
Labour Development
Relations
Job Analysis
In fashion retail industry, the companies need to identify the duties & responsibilities, create necessary
job demands, use more knowledgeable tools to show the new talents about the industry and how it
works and follow relevant performance standards as a whole, thus increasing demands for prospective
applicants to enter in this industry. The physical working conditions should be compromised especially
for females, who are eager the join the industry, set flexible working hours, as it is an industry which
requires high flexibility of working hours just like entertainment world, employ relevant human
resource personnel with whom other employees can interact and boost their enthusiasm. The
requirements for joining these industry needs to be closely justified, look into individuals‘ skills,
knowledge, creativity and provide relevant suggestions and feedbacks.
3. HRM PROBLEM AND ISSUES FASHION RETAIL INDUSTRIES ARE
FACING
The fashion retail industry forms part of a larger social and cultural phenomenon known as the “fashion
system,” a concept that embraces not only the business of fashion but also the art and craft of fashion,
and not only production but also consumption. There are a number of issues involved in retail business
in India which certainly impact the growth of the sector. Undoubtedly, the fashion retail businesses
need large scale hiring and staffing. Managing part time employees is the biggest challenge for an HR
manager in the retail firm, as they work only during their shift and are not totally involved in their work.
In this area we will closely discuss job designing process and the roles of human resource managers,
blend both the sectors together under one job designing diagram. The human resource manager plays a
huge role in the fashion retail industry. His responsible is to maintain authenticity, ensure to complete
the tasks and has many duties in the industry. He needs to understand job analysis in detail, he requires
to have adequate knowledge of fashion industry, and he needs skills and should have the abilities to
improve the employees of the organizations.
The fashion industry is renowned for being highly competitive and fast changing. Today, a product at
any market level of the fashion industry must achieve the correct balance between price, quality,
creativity and wear-ability. Even with all factors considered, business have to protect themselves in the
long term from risk and operating in this market means brands can go out of ‘fashion’ just as quickly
as last season's color.
The fashion industry embraces various activities creating services and products that are related to
fashion, and every country has different categories to identify their fashion industry. This study
primarily refers to the fashion industry that is associated with textiles and apparels. Prior to
industrialization, fashion was solely the commodity of the rich. Since the industrial revolution, new
methods of textile and apparel production have been gradually evolving mass production and the
development of technology have shaped the fashion industry. As a consequence, the changes and
progress of the industry have been resulting in various effects to satisfy the increasing and uncertain
demands of the fashion market.
According to a number of researchers, the textile industry tends to develop products from low to high
adding value, with increasing technological capabilities and manufacturing know-how. Fashion retailers
must therefore consider the integrated development of all channels to enable them to market holistically,
taking advantage of all of their touch points with the consumer, including mobile devices, social
networks and interactive in-store technologies. Competitive advantage is critical to fashion retailers;
creating differentiation and correct targeting of consumer groups in order to encourage loyalty from
consumers is one of the key strategies that can lead to strong competitive advantage.
The strategic approach to human resource management in fashion retail industry includes:
Formulating the human resource strategy based on the differences between the assessed
requirements and the current inventory; and implementing the appropriate human
resource practices to reinforce the strategy and attain competitive advantage.
The worldwide currency fluctuations, the potentially huge market, the production of low labor costs all
contribute to the shift of the fashion industry to this region. There are opportunity and challenge to
produce the right quality of products in order to meet the mandatory requirement set by different new
markets. Human resources involves the strategic planning and management of employees to create a
productive and motivated workforce. The retail industry poses particular HR challenges because
employees deal directly with customers. You must consider both short-term and long-term HR
objectives when addressing these challenges.
Retail is notorious for having a high rate of employee turnover. This means employees routinely come
and go, which poses several challenges. Training and developing are difficult, time consuming and
constant if you constantly have to recruit and hire new people. It's also more difficult to build customer
loyalty if customers keep seeing a new face every time. These problems created by recruiting the right
people and building a rapport with employees. When interviewing people, make sure to ask specific
questions that relate to the type of work employees do. Informal social outings and fun games at work
can help build rapport.
A diverse workforce is typically regarded as a good thing. It helps a retailer better connect with its
marketplace and usually leads to more and better ideas and results. However, a staff of people from
widely varying demographic backgrounds might have trouble developing cohesiveness. From an HR
view of point challenge is to manage diversity to avoid major conflicts and promote a spirit of tolerance,
teamwork and collaboration. Include diversity discussions in store meetings and encourage employees
to discuss their differences. These techniques can go a long way toward building a more cohesive team.
5.3. MISCONCEPTIONS
To build a staff of competent, committed and motivated employees, retailers must overcome a number
of common challenges and misconceptions about the work environment. Common concerns include
long hours, no full-time jobs or benefits, low pay and no growth opportunities. To overcome these
challenges by going against the industry grain. Offer regular eight-hour work shifts at your retail
business. Provide competitive pay and benefits to full-time employees. Even if your starting pay is
modest, do your best to offer fast tracks to higher salaries and management positions when an employee
has established a good track record with your business.
Retailers often experience seasonal demand fluctuations. The holiday buying season, festival shopping
like Eid, Puja is well-known as the busiest shopping season of the year. Retailers often try to add
temporary staff during these times. They often wind up with fewer skilled and trained workers who
might not have the tools to best serve your customers. These workers can also alienate regular staff that
must pick up the slack. Develop a plan to assimilate temporary workers during these seasonal periods.
A store meeting at the start of the busy season is a good way to help temporary workers learn the system
and get to know the regular staff.
The Bangladeshi fashion retail industry is one of the fastest growing sectors in the Bangladeshi
economy. This sector is growing though there is a little bit slow down in last three years but it could be
enhanced to take some steps by government and others stake holders. If the country could help bringing
more investments to the sector and a strong positive reformation continues the sector would reach its
expected growth. More investment behind the human capital of the sector would be key for coming
days. To secure more value addition companies must invest behind human resource. Product and
process diversity is the key along with productivity and performance improvement. At the same time,
building proper infra-structure throughout the country and special look should be given to the
livelihoods of the workers and staffs in and around fashion retail industry.
Bangladesh has huge potential for improving its fashion industries, it has huge investments in textile
and garments sector employing more than 5.0 million people and about 80% of them are women.
Parliamentary laws and legislations will motivate many individuals to join in this sector, triggering the
fashion retailing industry at its best. With the potential, it holds, it may boost the real GDP, improving
the HDI of the economy. The industrialists, however, need strengthening their human resource
departments, motivate more professionalism, regularize the irregularities.
The success of an organization largely depends on its Human Resource. Human Resource Management
(HRM) plays a vital role in achieving the organizational objectives. The retail sector has played a
phenomenal role. Retailing sector has been observing tremendous changes with the entry of organized
retail companies. In this world of cut throat competition the need for effective HRM practices has been
increasing rapidly. In order to face this tough competition of global economy, the organized retailers
have started to realize the need for efficient manpower and hence, strengthening their business with the
help of HRM activities. The HRM practices, therefore, have become their prime concern. The present
paper is an attempt to analyze the HRM practices implemented in the organized retail sector.
The Human Resource Management practices are vital for the growth and development of and business
or sector. These practices have significantly evolved in the retailing sector also. The retailers especially
organized retailers are nowadays placing a greater emphasis on the HRM practices which includes
recruitment, selection, performance appraisal, training and development, compensation, career
planning, etc. Apart from this the sector is facing some problems relating to its human resource like
lack of skill, lack of formal education in retailing, workforce attrition, threat of poaching and
complicated human resource environment. It means that the HRM practices in the organized retail
industry needs greater attention in the near future to make it more competitive.
7. RECOMMENDATION
Although fashion retailing industry in Bangladesh is growing, but it seems that it requires more
attention. The media moguls of Bangladesh need to focus more in this area. The companies related to
this industry needs to focus further, get more professional human resource managers, look at the giants
like – GAP Inc., Levi‘s, etc. The fashion industrialists needs to cater for more fashion designers, invest
more to motivate people in this area. The government of Bangladesh should invest more in this sector.
Industrialists should create more opportunities for upcoming stars to cater in this field. More motivation,
creativity, fashion awareness and fashion schools are needed. The media should organize more talent
hunts, training and courses in this upcoming field, immense amount of fashion shows are necessary.
Everyone and every individual’s needs to understand about its growth and its positive effect in the
society.
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“Fashion is the armor to survive
the reality of everyday life.” —
Bill Cunningham