Professional Documents
Culture Documents
12/22/2012
Submitted to:
IoBM
Submitted by:
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LETTER OF AUTHORIZATION
December, 2012
Dear Readers,
This report is to be conducted to highlight the HR problems faced by the organization and
provide professional recommendations and solutions to overcome them.
Sincerely,
Ambreen Shamshuddin
MBA (Executive)
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LETTER OF TRANSMITTAL
I feel immense pleasure in submitting the report on “Human Resource Issues at Eastern
Garments (Pvt) Ltd.” which you had authorized me to conduct at the beginning of this semester.
The report is now ready for your perusal.
This report is a brief representation of the HR Practices followed by Eastern Garments (Pvt) Ltd.
I have analyzed the factors and influencers which are very important and keen while evaluating
the HR practices.
The making of this report has been a wonderful learning experience for me and I thank you for
giving me this opportunity to avail it. I have worked attentively with my toiling deeds to provide
you a real and complete picture of the HR Operations. If you have any queries, please call me on
my number provided below. I would be glad to respond to your queries.
Sincerely,
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LETTER OF ACKNOWLEDGEMENT
Dear Reader,
It has been a great honor for me to prepare a report on “Major Problems faced by Human
Resource Department of Eastern Garments (Pvt) Ltd”,which was assigned to me by my course
facilitator of Human Resource Management, Mr. Shah M Saad Hussain, without his guidance
and support the compilation of the report would not have been possible.
I also want to express my token of thanks to Mr. Ahmed Khursand Rashid, Manager
Administrator of Eastern Garments (Pvt) Ltd, for providing the relevant and pertinent
information regarding the important HR operations of the company. Their experience and
supporting attitude benefited me a lot in compiling the report and making it worthwhile.
Thanking you,
Sincerely,
Ambreen Shamshuddin
MBA (Executive)
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Table of Contents
Executive Summary....................................................................................................................................... 7
Project Objective........................................................................................................................................... 8
Research Methodology ................................................................................................................................. 8
Industry Overview ......................................................................................................................................... 8
Company Overview ....................................................................................................................................... 9
Mission Statement ........................................................................................................................................ 9
Vision............................................................................................................................................................. 9
Introduction to Human Resource Department:.......................................................................................... 10
HR Practices at Eastern Garments: ............................................................................................................. 10
Research Findings ....................................................................................................................................... 10
Employer Questionnaire ..................................................................................................................... 10
Fish Bone Diagram .............................................................................................................................. 12
Employees’ Views ............................................................................................................................... 13
Major HR Issue Faced by Eastern Garments ............................................................................................... 13
High Expectations of Compensation ................................................................................................... 14
Inappropriate Staffing ......................................................................................................................... 15
Poor Employee – Employer Relationship ............................................................................................ 16
Lesser Chances of Development ......................................................................................................... 16
Changing Market Place ....................................................................................................................... 16
Miscellaneous Factors......................................................................................................................... 17
Impact on Organization .............................................................................................................................. 17
Recommendations ...................................................................................................................................... 18
Clearly Defined Compensation Policies: ............................................................................................. 18
Appropriate Hiring System:................................................................................................................. 18
Adjusting with Market Place ............................................................................................................... 18
Opportunities for Development ......................................................................................................... 19
Improved Employee – Employer Relations ......................................................................................... 19
Action Plan .................................................................................................................................................. 20
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Executive Summary
The purpose of this report is to highlight the critical problems faced by Eastern Garments (Pvt)
Ltd.
The report includes a brief introduction of the organizations and the problems and deficiencies of
targeted company, the sources of the problems and the recommendations for the solution of the
particular problem.
For this project I drafted a questionnaire and then interviewed the management and employees of
the organization to get the basic idea about the organization.
Report could be short of any statistical data due to confidentiality policy of the company.
However, the responses to the questionnaire helped me to a large extent in obtaining the data
regarding the targeted function.
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Project Objective
Research Methodology
The method of research used was interview and a questionnaire for employees. Mr. Ahmed
Khursand Rashid (Manager Administrator) was the interviewed person, who shared his immense
experience and knowledge related to the HR linked practices and issues. During the interview
questions were posed with reference to the course guideline and maximum portion had been
taken into account. A questionnaire also been developed to gather employees’ views and
comments.
Industry Overview
Pakistan has dynamic, vigorous and export oriented textile industry that has an overwhelming
impact on economy. Textile being largest industrial sector generates the country’s highest export
earnings of about 58%; providing the bulk of employment (39%) to largely underutilized
workforce, and contributes 8.5% to GDP.
Pakistan textile industry is facing tough competition from the regional competitors. The cost of
doing business in Pakistan is high as compared to other competitors. On account of these
reasons, the Pakistan textile industry is going through crucial calculations. But there is no denial
of the fact that there exists immense potential for growth and development of textile industry. In
view of the anticipated competition with rival countries efforts are being made to make Textile
and Clothing sector more dynamic and competitive. A number of projects inter alia Lahore,
Faisalabad & Karachi garment cities and Pakistan Textile City, Karachi have been planned in
public sector with an investment of over Rs. 3.5 billion to which multilateral institutions and
stakeholders are equity partners.
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Company Overview
Eastern Garments is a global manufacturer and exporter of private label apparel products for
men, women and children. Since its inception in 1976, the Company has continually strived to
create products that follow a body before-fabric philosophy, placing equal emphasis on comfort,
aesthetics and quality. Eastern is a vertically integrated factory with state of the art equipment in
Laboratory, Knitting, Fabric Dyeing, Printing, Embroidery, Cutting and Stitching. Each
department is managed by a team of production experts with specialist knowledge and
experience of many years in that department. All departments communicate and liaise effectively
along the sequential production process. Each department comprises of many units, which are
centrally organized to improve efficiency and reduce slack. A dedicated and responsive
organizational structure attuned towards quality as well as detailed consciousness. The
experience in management of this business continues to deliver appropriately balanced product
mix, excellence in quality at competitive prices and timely delivery of orders.
The range of products includes 140 gm/m2 to 600 gm/m2 jerseys, knit wears, sport wears etc.
The key customers include Wal-Mart, Capital Mercury, The Gap, Walt Disney etc. The company
has wide range of operations from production to export.
Mission Statement
Our mission is to provide value, brilliance, and quality through dedication and a commitment to
understand our valued customers and partners.
Vision
Responsibly delivering our products and services to all our stake holders in as well as fulfilling
our responsibilities as a responsible corporate citizen.
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Introduction to Human Resource Department:
To manage all the work and procedures, Eastern Garments is employing huge number of
employees who are managed by Human Resource Department. Since, the company has varied
operations which operates at different locations, therefore, the main HR department is broken
into it sub departments and every unit is having its own HR/ Administration department which
regulates and monitors HR activities and reports to main HR department.
The focused unit for this case is Production department which is located at the SITE area,
Karachi. The HR department working here is responsible to manage approx 500 employees
which are categorized as Permanent, Temporary, Contractual, Daily Wages and Piece Rate.
Like any progressive, growing and dynamic organization, the management of Eastern Garments
acknowledges the importance of human resource realizing their vital role in the overall
performance. The functions of Human Resource Department are personnel management and
human resources development are going side by side and it is due to the progressive approach
and dynamic philosophy of the management that Personnel Management with the latest style of
management ensuring high level of motivation and satisfaction of the work force under varied
situations. Personnel policies are kept updated and are periodically modified to respond to the
latest socio-economic changes and market trends of the country and abroad as well. Regular HR
audit also takes place to ensure the conformance of standards in order to provide satisfaction and
quality work life of employees.
Research Findings
Employer Questionnaire
Initially in first meeting, I requested Mr. Ahmed to fill up the short questionnaire regarding the
basic questions about the organization. Questionnaire (Questionnaire for the Management) is
attached for the reference. This reveals the following preliminary information:
500 workers are employed in production department, in which approx 200 women and
approx 300 men are there.
Employees are categorized according to pay patters i.e. Permanent, Temporary,
Contractual and Daily Wages.
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Work force is divided into four categories.
Unskilled
Workers
Skilled
Workers
Work Force
Middle
Management
Senior
Management
PKR 140,000
PKR 130,000 - 300,000
PKR 120,000
PKR 100,000
PKR 80,000
PKR 40,000
PKR 0
Unskilled Skilled Middle Senior Directors
Management Management
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Graphic Rating Method is used for Performance Evaluations.
HR Audit takes place annually to conform the standards of HR policies, practices and its
implementation.
Employee Inventory is maintained to ensure quality of Human capital.
Training focus is on technical staff / supervisors.
In second meeting, we have discussed about different issues faced by the HR department. HR
department at Eastern Garment appreciates that employees regardless of their position are the
vital, irreversible, irrevocable and appreciable asset for the organization which gives them the
competitive advantage. Therefore, HR personnel try their level best to ensure the development of
this asset. However, it faces problems in managing this capital as it is a free will asset although
the HR policies and procedures are renewed and implemented according to the changing needs.
The major issue faced by the Eastern Garment is Employee Turn Over which gives rise to other
minor issues as well.
Changing Market
Place Staffing Compensation
Demand of
Difference in
workers Mismatch
compensation
Employee
rate of new and
s
old employees
Increase Social
in Salary Pressure
Benchmarking of
Political salaries with that of
Pressure other organization High
Employee
Turnover
Temporary Work Career
Status Growth
Lack of Trust Rate
Training Favoritism
Health
Problems
Succession
Planning Delayed
Uncertain Feedback
city Possibilities of
conditions Development at
another job
Employee –
Miscellaneous Development Employer Page | 12
Relationship
Employees’ Views
To find out about employees perspective on HR practices and highlighted problem, I conducted a
small survey through questionnaire. Employees’ survey form is attached for reference. Following
are the extracts:
Age group which filled the form falls into 25 – 45 years old.
60% workers are satisfied with all the policies of organization.
40% workers showed mixed opinions about different HR practices.
Mostly workers showed grievances about performance appraisal methods due to which
they have low increments.
20% workers (mostly in middle management) said that are seeking for better career
options.
Since, I am working on production department, mostly workers are temporary and hence,
they have constant fear of losing job and therefore, seek another job.
As discussed above, the major problem faced by Eastern Garments is of High Rate of Employee
Turnover. There is 20% turnover in skilled workers and middle management while 8% turnover
in lower and unskilled staff. Since, being a manufacturing concern, Eastern Garments require
more technical heads, this percentage of turnover is quiet alarming for them. The constituent
factors of that are as follows:
Compensation
Employee -
Employeer Staffing
Relationship
High Rate of
Employee
Turnover
Changing
Development
Market Place
Miscellaneous
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High Expectations of Compensation
Everyone is well aware of the economic conditions of the world. The needs are increasing day by
day both in terms of monetary reward and non-monetary rewards. HR department tries level best
to compensate the employees appropriately according to the job size; skills, knowledge and
experience of a job holder, however, the expectation of employees are not met. Further,
employees compare their compensation with those of others and hence feel deprived. This
creates dissatisfaction in employees which probes them to leave the organization.
As an HR policy and practice, the compensation scale is fixed for any job. Ranges of monthly
salaries have already been shown. Monthly salary comprises of food allowance, rent allowance
and conveyance allowance. From middle management, there are added perks and benefits for
employees that include Medical Facility and Insurance Allowance etc. Eastern Garments claim
to provide the market compatible package to employees. They emphasis on quality work life of
their employees by providing them different in-house facilities and permanent job holding which
cost same as increased salaries. However, this objective is not properly communicated to the
employees that cause dissatisfaction in them. The reward system of Eastern Garments is quite
universal which is as follows:
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Rewards
Intrinsic Extrinsic
Labor Maket
Adjustment
Inappropriate Staffing
At Eastern Garments, though a proper channel of recruitment and selection is followed (the
format/ steps is attached), however sometimes it gets influenced by political and social powers
which results in a mismatch employee who is not able to fulfill the demands of the job and soon
leaves the job.
Further, there is a shortage of required technical people with certain accreditations in the market
to meet the requirement of an organization.
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Poor Employee – Employer Relationship
At Eastern Garments, company tries to follow all Labor related laws holistically which results in
NO- Strikes and Shut Downs. Management enjoys sound and smooth relation with Labor Union.
However, this smoothness is not visible in Employee – Employer immediate relationship. There
is a wide gap between the two parties due to lack of communication. Policies, procedures and
expectations are not transparently communicated top – down. Further, bottom – up
communication channel is almost closed. Employees are dissatisfied because they lack
confidence in the management. Hiring due to social and professional pressures also causes unrest
among employees. The prominent factor highlighted during survey was delayed feedback.
Almost 55% of the employees are dissatisfied because they do not get timely feedback on their
performance.
Mostly in production line, there are little chances of development for labor class. Doing same job
creates boredom in them which provokes them to shift the job.
For technical staff and middle management, there are different in-house and external trainings
for the employees but there is no proper need and gap analysis conducted before sending
employees for training. Though employees get these trainings but are not able to excel. This
serious flaw is only wasting monetary and time resources because neither an employee gets
personal satisfaction nor there is productivity for organization. Therefore, employees seek better
career moves every now and then to attain their desired levels.
Succession planning is also unstructured in the company. Minimum two successors are defined
for any top position. Further, no proper career and training path is defined for them to follow
which creates mismanagement in the organization when there is a vacant position to be filled.
World dynamics is changing very rapidly. Market conditions are very uncertain. There is a
constant need of technical and experienced heads in every organization for fast progress. Since,
there is greater demand of labor in the market; workers have varied options to fulfill their needs.
On the other hand, with technological advancement and development market place is also
undergoing many changes. Now, organizations require a complete package person to meet their
requirements. These growing challenges also constituents to rapid turnover.
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Miscellaneous Factors
Many layoffs, early retirements and job leavings takes place due to different minor issues. Some
of them are as follows:
Eastern Garments is located in SITE area of Karachi. Due to recent uncertain city
conditions, workers especially female staff hesitates in coming to the factory. Due to this
recent turmoil employee turnover rate is increased from 5% to 8% in past 2 years.
Due to poor unhygienic condition of our society, employees especially lower class faces
different health issues every now and then which makes them deprived of their job.
Maternity Leaves are granted in the Eastern Garments however management prefers to
layoff the employee on mutually agreed grounds for smooth working.
40% of the labor class is employed temporarily and 20% is on contractual basis.
Temporary workers tend to seek permanent job to secure their livelihood and therefore,
there is an increase in turnover rate.
Impact on Organization
Employee turnover is very crucial problem for any organization. Human assets need to be
managed very efficiently because they are very rich investments. If an organization losses a
single person, it losses a whole set of skills, knowledge and abilities which are associated with
that particular person. Following are the deadly impacts on organization of employee turn over:
Low Productivity:
When a employee left an organization he/she leaves a gap in the hierarchy to be filled
immediately for smooth working operations. The whole lot of experience is taken away from
the organization which leads to low productivity.
Cost of training
Every new inductee requires basic training to be well aware of the systems and procedures of
the organization. Huge amount on socialization is also invested on every employee to make
them align with organization’s culture. Therefore, a new cycle of investment and expenses
starts with every new hiring to fill the vacant position.
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Mismanagement in operations:
Every position has its own value and worth. Each position is closely linked with each other,
therefore when an employee leaves an organization it creates a mismanaged situation.
Recommendations
After having detailed discussions with Mr. Ahmed and other employees, reading different
articles on HR practices and knowledge gained during the lectures, following are the
recommendations to overcome this crucial problem.
Job analysis must be done efficiently in order to meet the requirements of the organization.
Recruiters / Interviewers must be trained for conducting the whole process fairly without
being biased.
Strict actions must be taken to avoid racialism.
HR policies must be communicated to all the stake holders and management should have to
be firm in denying the political pressures gently yet decisively ensuring that the political
powers do not harm them.
Internal hiring should be encouraged to lower the training cost.
In house employee counseling sessions should be arranged which will help organization to
retain their prospective workers for longer periods of time. These programs will not only
reduce the costs of recruitment and training but also keep the employees motivated for work.
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Eastern Garments should make attractive policies and packages to attract new talent and retain
the formers to compete in the market successfully.
Employees seek for their personal growth in every step of their life. This need is not only
beneficial for employees but it also advances the organization. As employee excels in his/her
competencies, he/she work more productively for the organization. Following steps can be taken
to cater this need:
Like any other relation, there requires a good communication between employee and employer in
order to understand each other’s expectations and fulfill their promises which will make smooth
base for undying trust.
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Action Plan
Employee
Design an Employee HR + IT
4 16 16 Counseling
Counseling Program Department
Program
Design an Employee HR + IT
9 20 20 EFS Formation
Feedback System Department
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Brief Employees
Up gradation
10 about the new 1-15 HR Assistant
(If Required)
Feedback System.
IT Employee
11 Implement EFS 1-20
Department Feedbacks
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Annexure
Questionnaire for Employer
2. Approximately how many people are employed in your HR function by your organization?
3. What is your annual turnover rate? What measures do you take to reduce it?
2. Has your HR function increased in scope and responsibilities in the last few years?
5. Can you briefly describe the role/listed functions of the HRM department at your Company?
6. What has been some of the changes that have been brought about to your particular institution
due to the HRM dept.?
7. What were things like before HRM was given as much importance as it is now?
8. Its contributions aside, could you please list some of the new issues/problems that have arisen
from a management perspective due to the HRM Dept., if they exist.
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10. What types of opportunities are available for the advancement/development of human
resources?
11. What are the criteria for the selection and recruitment for job?
12. What have been the primary factors in the changing perspective towards Human Resource
Management?
13. To what extent is the human resource staff/department involved in strategic organizational
decisions?
14. To what extent do the employees come to you concerning their problem? Mostly what
problem are they?
15. In your opinion, what are some of the most pressing human resource issues faced by the
textile industry today? Why?
16. What was the most difficult organization problem faced by the human resource department in
the last few years?
17. In terms of your workers’ training background, do you hire already trained professionals for
the most part?
18. Do you jointly fund training in those skill areas which more directly affect performance?
19. If your organization has a business strategy, and at what stage the HR function is involved in
its development (please tick only one)?
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a. From the outset, participates in the strategy formulation
20. What do you consider the three major challenges for HR in your organization today and to be
over the next few years (please indicate in order of perceived importance with 1 as most
important)?
Managing Changes
Talent Management
Organizational Development
Leadership Development
Organizational Performance
Employee Engagement
Compensation
Employee Retention
21. What do you foresee you would need to meet these challenges? (Please tick a maximum of
three and in order of perceived importance):
a. Training
b. Tools
c. HR measures
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d. Best practises
e. Consulting
22. Approximately what percentage of employees has received training within the last year?
a. External __%
b. Internal __%
c. Both __%
23. Which are the most important areas of HR training need for your organization over the next
few years?
24. How does the HR function in your organization contribute to Human Capital Development?
26. Please mention the priorities in your organization for Human Capital Development (please
tick all that apply and indicate in order of importance with 1 as most important):
a. Strategic Skills/Competencies
b. Leadership
c. Culture/Strategic Awareness
d. Strategic Alignment
e. Strategic Integration
27. Please mention the difficulties, which the organization had in previous year in recruiting
personnel with professional skills.
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Questionnaire for Employees
Strongly No Strongly
Questions Agree Disagree
Agree Opinion Disagree
My work is very meaningful
In a typical week, I often feel stressed
I am paid well for my work
Tasks assigned to me helps me grow
professionally
I get opportunities of promotions
I am satisfied by offered benefits
I am looking for another job outside the
company
The staff remuneration and benefits I receive
are attractive and competitive (benefits i.e.
health insurance, employee assistance, awards
programs etc.)
I am more efficient in my job now compared to
when I started
I could switch to another job at Eastern
Garments if I wanted
My Supervisor has taken an interest in my
career development
My Supervisor can assess the unique talents
and training of their employees
Job promotions are awarded fairly and without
bias
My Supervisor remains calm during
organizational changes
Management is able to implement a vision and
mission
The organizational culture enhances employee
commitment
I can speak freely to my supervisor on a variety
of topics
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Strongly No Strongly
Questions Agree Disagree
Agree Opinion Disagree
I am able to communicate freely with any
employee
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Strongly No Strongly
Questions Agree Disagree
Agree Opinion Disagree
I am not overworked
My Supervisor adjusts my responsibilities to
meet the needs of the organization more
effectively
I am proud to tell others I work for Eastern
Garments
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Strongly No Strongly
Questions Agree Disagree
Agree Opinion Disagree
I am happy to encourage friends and
colleagues to work at this Company
The management at Eastern Garments has a
good understand of my work environment and
processes
Managers are effective in managing human
and financial resources
Managers are effective in putting the right
people in the right places
Managers continually monitor the workforce to
ensure ongoing employee development and
process improvement
Eastern Garments maintains a competitive pay
and benefits package
I am paid fairly
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Strongly No Strongly
Questions Agree Disagree
Agree Opinion Disagree
Training is structured to meet the needs of
employees
Eastern Garments makes an extra effort to
retain women and minorities
The level of pay offered by Eastern Garments
helps to reduce turnover
The level of benefits offered by Eastern
Garments helps to reduce turnover
I plan to be working at Eastern Garments
forever
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Books:
Websites:
www.textileminstry.com.pk
www.easterngarments.com
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