HRM Practices and Policies in AJI Group

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HRM Practices and Policies in AJI Group

The Organization

2.1 Background of AJI Group:

AJI Group of concerns saw her emergence in the horizon of Readymade Garments Manufacturer in Bangladesh in the Year 1993 through creation of a small sewing unit called AJI Apparels Ltd.

Through hard toil and perseverance, AJI managed to survive the difficult times in the early years. Amidst the constant battle for existence, AJI nonetheless stuck with her originally adopted principles of honesty, integrity, moral scruples and business ethics. And that probably had helped AJI ease gently through the perilous path toward success and stability in the subsequent years.

Never missing to realize the future challenges that lay ahead, AJI always had put her efforts and means to master the best practices in all her manufacturing units in order to achieve professional competence and reliability.

It has been the policy since inception that AJI would always offer more to her customers than could be expected for her. To fulfill this commitment AJI has been acting as not only a trusted supplier of readymade garment but also a benevolent partner toward all he buyers and customers.

As a result, meet meeting the extraordinary requirements of her customers has become a custom in this business house and a matter of pride for the group.

Quick adoption of some of the other very important policies like getting accreditation of ISO and Oeko-Tex Quality standard practice, ensuring total compliance of various Code of Conduct requirements of prestigious Buyers across the world, prioritizing the need for creation of ideal work conditions for the workers and ensuring proper health care & safety for them etc. has awarded AJI a respectable position the top echelons of the RMG manufacturers in Bangladesh.

AJI is committed to make excellence in the field of business by consistently maintaining high quality products and services for the ultimate satisfaction of our customers.

Now AJI introduce herself as on the leading Knit, Dyeing, Printing, Embroidery, Washing Garment and buying services operating from Bangladesh sourcing latest range in Knitwear & Woven garment in man’s, woman’s & Kids of verity T-shirt, Pajamas, Active Wear, Polo’s Ladies tops with Sequins, Embroidery, Latest Prints, Stone and Stud works, Nightwear’s and all other exclusive garments.

2.2 Mission Statement:

“To maximize profit while creating an environment in which we can provide the best value and the best service to our customers, while developing ourselves to our maximum potential in a pleasant, clean and professional atmosphere.”

2.3 Goal:

“Outsourcing, Manufacturing and Design, Vendor Consolidation, Cost reduction, Solving Technical Challenge, Quality Improvement, Inventory Reduction, and Service Improvement.”

2.4 Strength of AJI:

All the units are being controlled from corporate office located at groups own building in Hemayetpur near the capital city Dhaka of Bangladesh.

Each unit has its own factory management setup to perform from a sampling to finishing of the products.

The issue like Environment, Occupational Health & Safety has duly taken care of while designing the building. Medical centre are available in the official hour and providing free medical treatment with the medicine for the employee.

The issue like working for the Social Welfare AJI Group is a step ahead then any other companies in Bangladesh. There is Child Care Centre for the employee’s children. Children can play and learn free of cost.

Ethical Principles are applied for all products of AJI Group made for export to foreign countries.

AJI Group recognizes that there are legal and cultural environments in which facilities operate. These ethical principles set forth the basic requirements of AJI factories in order to do with its customers abroad.

AJI makes ceaseless efforts to promote best practice and continuous improvement of ethical issue in all its manufacturing units. For easy access to the issue, the AJI management has posted contents in the notice boards of factories in both Bangla (local language) and English.

AJI woven units have become complete code of conducts of SRG Imports Limited of UK, Rajan Imports of UK, Jordache Incorporation in USA. Polo Assan. In USA.

2.5 Name of the Units:

AJI Apparels Industry Limited
FRM Fashion House Ltd.
Polo Composite Knit Industry Ltd.
Polo Knitting Unit
Polo Dyeing Unit (Open Width and Tubular)
Polo Washing Unit
Polo Skin Print Unit
Polo Embroidery Unit
Polo Flat Bed Print Unit

2.6 Working Space:

Building# 01 : 90,000 Square Feet

  • Underground is for Fabric Store
  • Ground floor is for reception, medical treatment, security department.
  • First, Third and Fifth floor is for sewing.
  • Second floor is for finishing.
  • Forth floor is for cutting.
  • Sixth floor is for Corporate Office.
  • Seventh floor is for Dining & Café.

Building# 02 : 92,000 Square Feet

  • Ground floor for finishing fabric store, grey fabric store, chemical store, yarn store.
  • First floor is embroidery.
  • Second floor is for printing.
  • Third floor is for cutting.
  • Fourth floor is for finishing.
  • Fifth & Sixth floor is for sewing
  • Seventh floor is for dining & café.

Building# 03 : 25,000 Square Feet

· Ground floor is for child care, security camp, and ware house.

· First floor is for ware house

· Second floor is for finishing

· Third floor is for Production Control Department, Accounts Department and Compliance Department.

· Fourth Floor is for Accessories store.

Building# 04 : 27,500 Square Feet (Shade)

  • Dyeing Plant
  • Washing Plant
  • Fabric Finishing Unit
  • Laboratory Unit
  • Production Control Office
  • ETP Plant

Building# 05 : 22,500 Square Feet (Shade)

  • Circular Knitting Unit
  • Flat Rib
  • Twill Tape
  • Yarn Store
  • Grey Fabric Store

2.7 Production Section:

2.7.1 Knit Section:

  • Pique
  • Lacost
  • Single Jersey
  • Rib
  • Interlock
  • Fleece
  • Collar & Cuff etc.
Machine Brief
SL# Name of Machine Country of Origin Machine DIA Gauge Feeder Needer Qty Machine Qty Remarks
1 Fukahama Taiwan 19 inch 24 G 57 F 1440 2
2 Fukahama Taiwan 20 inch 24 G 60 F 1500 3
3 Fukahama Taiwan 21 inch 24 G 63 F 1584 3
4 Fukahama Taiwan 22 inch 24 G 66 F 1654 3
5 Fukahama Taiwan 23 inch 24 G 69 F 1728 3
6 Fukahama Taiwan 34 inch 24 G 102 F 2544 4
7 Fukahama Taiwan 40 inch 18 G 84 F 2252 1
8 Pailang Taiwan 19 inch 24 G 57 F 1440 1
9 Pailang Taiwan 24 inch 24 G 72 F 1800 2
10 Pailang Taiwan 26 inch 24 G 78 F 1944 1
11 Pailang Taiwan 30 inch 24 G 90 F 1440 1
12 Pailang Taiwan 36 inch 24 G 72 F 1440 2
13 Pailang Taiwan 38 inch 24 G 72 F 1440 2
14 Pailang Taiwan 25 inch 24 G 75 F 1440 1
15 Pailang Taiwan 32 inch 24 G 96 F 1440 1
It has Sufficient Slender Yarn Guide Lyera Attachment Fleece Making Yarn Rib etc.
16 Smart Taiwan 30 inch 24/18 96 F 1
17 Fukahama Taiwan 34 inch 24/18 96 F 1
18 Fukahama Taiwan 36 inch 24/18 76 F 2
19 Fukahama Taiwan 38 inch 24/18 80 2
20 Fukahama Taiwan 40 inch 24/18 84 1
21 Fukahama Taiwan 40 inch 24/18 80 1
22 Smart Taiwan 42 inch 24/18 84 1
23 Smart Taiwan 44 inch 24/20 132 1
24 Wellrun Taiwan 36 inch 24/20 180 1
25 Wellrun Taiwan 40 inch 24/20 200 1
26 Smart Taiwan 42 inch 24 252 1
27 Tien Yang Taiwan 36 inch 24/20 42 1
28 Tien Yang Taiwan 40 inch 24/20 48 1
29 Tien Yang Taiwan 42 inch 24/20 54 1

2.7.2 Dyeing Section:

It is one of their big plants of textile with 14000 to 15000 production capacity per day.

SL No Description Kgs Country of Origin.
1 Beneks High temperature 25 Kgs Turkey
2 Canlar high temperature 50 Kgs Turkey
3 Canlar high temperature 450 Kgs Turkey
4 Canlar high temperature 150 Kgs Turkey
5 Canlar high temperature 900 Kgs Turkey
6 Canlar high temperature 600 Kgs Turkey
7 Canlar high temperature 1200 Kgs Turkey
8 Beneks High temperature 750 Kgs Turkey
9 Sample dyeing machine 1 nose Bangladesh
10 Beneks fabric reversing machine 1 nose Turkey
11 Canlar squeezer machine 1 nose Turkey
12 Beneks High temperature 1 nose Turkey
13 Canlar squeezer machine 1 nose Turkey
14 Dryer machine Entema 1 nose Turkey
15 Compacting Tubetex 1 nose USA
16 Soft Seting calendar 1 nose Turkey
17 Fabric Inspection 1 nose Thailand
18 Gas generator 600 KV 1 nose UK
19 Gas generator 380 KV 1 nose UK
20 Gas boiler loos 1 nose Germany
21 Air Compressor DALGAKIRAN 1 nose Turkey
22 Water Treatment plant Turkey
23 Effluent Treatment plant Turkey
24 10 Kg Dyeing 10 Kg Turkey
25 10 + 15 Kg Dyeing 25 Kg Turkey
26 200 Kg Atta Dyeing M/C 200 × 2 kg China
27 400 Kg Atta Dyeing M/C 400 × 2 kg China

Machine Brief

2.7.3 Printing Section:

  • Discharge Print
  • Rubber Print
  • Pigment Print
  • Flock Print
  • Puff Print
  • Foil Print
  • Plastic Soul Print
  • Reflective Print
  • High Density Print

2.7.4 Embroidery Section:

It can provide all kinds of Embroideries because of computerized system with 24 machine having 20 frames. Those are working for 24 hours non stop.

2.7.5 Sewing Section:

  • T-shirt
  • Sweat Shirt
  • Polo Shirt
  • Woven Shirt
  • Active Wear
  • Fleece Jacket

2.8 AJI Show Room:

AJI have a large show room provided with its all newly invented attractive designs along with the previous charming designs hanging decently in the rails. Buyers can easily locate their own chosen designs from there.

2.9 Production Capacity:

Sections Quantities
Knitting 15,000 to 16,000 kg per day
Dyeing 14,000 to 15,000 kg per day
Flat Bed Print 4,500 kg per day
Peached Fabric 4,500 kg per day
Cutting 48,000 to 50,000 per day
Printing 28,000 to 30,000 pcs per day
Sewing 4,400 to 4,500 pcs per day
Washing 30,000 to 35,000 pcs per day
Finishing 45,000 to 46,000 pcs per day
Packing 44,000 to 45,000 pcs per day

2.10 Annual Turn Over:

AJI Group Total Turn Over $ 46.51 Million

Company Name Unit / Plant Name Million
AJI Apparels Industry Ltd. Garment Unit 5.28
FRM Fashion House Ltd. Garment Unit 8.73
Polo Composite Knit Industry Ltd. Knitting and Dyeing 14.40
Printing 0.36
Embroidery 0.42
Garment 11.14
Washing 0.18
Flat Bed Print 6.00
Total = 46.51

2.11 Management:

The entire management is run by AJI’s Managing Director and the Chairman of AJI Group. That is the reason to make AJI different then any other group. AJI can make quick decision and do the work faster maintaining quality.

AJI’s Managing Director has unique knowledge and extreme capacity on knit and garment division. These makes AJI’s Managing Director have superb knowledge regarding this business.

AJI has maximum employee of young age. They are modern and have the capability to except new things as AJI in fashion business. AJI are superb running with current affair.

2.12 Management hierarchy of AJI Group:

Managing Director
Deputy Managing Director
Technical Director
Executive Director
General Manager
Deputy General Manager
Assistant General Manager
Senior Officer
Assistant Officer
Trainee Officer

2.13 Organogram:

2.14 Compliance:

AJI Group is fully functioning with the compliance. AJI has already achieved the following compliance:

Security Compliance:

· Jordache In Co., USA (US Polo)

Social Compliance:

· Wallmart, USA

· Sears and K-Mart, USA

· Walt Disney, USA

· Inditex Group (Pull and Bear), Spain

· Arcadia Group (Burton), UK


2.15 Mother & Child Care:

There is a separate building for the Doctor and Child. Doctor is always available in the office hour. So any kind of medical emergency of treatment required is giving free to the employee.

For women employee when they get pregnant are getting full treatment free and also getting maternity leave for 16 Weeks with payment. For the employee’s kids are taken care of by the child care. The employees’ kids whose age is less then a year gets opportunity for 15 minutes on every two hour time to breast feed the baby after every two hour. More then one year kid stay on child care and feed by the nurse.

2.16 Prevention of Child Labor:

AJI strictly not provide any option to get employee below 18 years. Testimonial is attached with the application.

2.17 Insurance:

All the employee of AJI is ensured by the BGMEA & BKMEA providing by the AJI group. Employee gets benefit if he/she gets expired as an employee of AJI’s Group is having fire insurance, any disaster insurance with Rupali Insurance Company Limited to avoid kind of risk.

2.18 Corporate Information:


Factory and Office: 226, Singair Road, Hemayetpur, Saver,

Dhaka, Bangladesh.

Contact Telephone, Fax & Email:

Phone: +88-02-7741 540

Fax : +88-02-7713 898

Email :


Bank Information:

Mutual Trust Bank

Panthapath Branch

Chandrashila Suvastu Tower

69/1, Panthpath

Dhaka, Bangladesh

Phone: +88-02-862-468


3.1 General Responsibilities:

Responsible for performing a variety of duties to support the Human Resource Division function of Head office; coordinating work within the departments, as well as with other departments; reporting pertinent information to the immediate supervisor; responding to inquiries or requests for information.

3.2 Essential Duties:

Performs a variety of duties to support the HR Division functions of head office of which the following are illustrative:

  • Recruit the workers.
  • Train theme about rules and regulation of company.
  • Train theme about leave as how they will get it or what is the procedure to get leaves.
  • Arrange the ID card.
  • Train theme about resign.
  • To maintain personal file.
  • Maintains the leave application copies and give input of these tracks.
  • Completes the documentation works of employees personal.
  • Complete the salary updates and analyze the papers of the sheets.
  • Engaged in distributing the salaries of the casual stuffs of head office.
  • Monitor all of the working floors.
  • Make the counseling with the workers to find out the problems to build the close relationship with workers.
  • Arrange the meeting between top level management and workers.
  • To maintain workers group insurance.
  • To maintain the cases from workers against company.
  • To maintain the communication with the BGMEA and BKMEA for different purpose.
  • Face the audit.
  • Coordinates specific work tasks with other personnel within the department as well as with other departments in order to ensure the smooth and efficient flow of information.
  • Abides by the current laws and organizational policies and procedures designed and implemented to promote an environment, which is free of harassment and other forms of illegal discriminatory behavior in the work place.
  • Cooperates with, participates in, and supports the adherence to all internal policies, procedures, and practices in support of risk management and overall safety and soundness and the organization’s compliance with all regulatory requirements, etc.
  • Reports pertinent information to the immediate supervisor as requested, or according to an established schedule; compiles information as necessary or as directed and provides data to appropriate garment personnel.

3.3 Critical Observations:

During my intern period, I found some problem. Firstly, in HR Division, there are few employees so one employee has to do huge volume of works. The working space of HR Division is not enough. Because they have to maintain a huge amount of papers documents and files which needs a huge space. Some times I did not implement my ideas for their rules. On that time I thought it too much difficult to adjust myself in this sector

Bangladesh Garments Industry

4.1 Market Structure of Bangladesh Garment of Industry:

Textile Sector in Bangladesh is predominantly made of natural fiber using cotton. This sector is broadly classified into the following stages/sectors based on the value addition.

Each of the above sectors is analyzed to generate an overall perspective on the industry. Apparel is the high Growth Sector of garments sector. The liberalization of industrial policy of Bangladesh along with development of export processing zones at Dhaka and Chittagong, attracted investment in the Ready-Made Garment (RMG) industry in Bangladesh to set up large plants working on higher economies of scale. This enabled Bangladesh to achieve a phenomenal growth in export of RMG. The export of RMG from Bangladesh increased from a meager US $ 7 million during 1981-82 to about US $ 1.95 billion during 1995-96. The RMG Sector achieved a growth of 20% per annum over the past ten years. Such high growth was catalyzed by the low wages along with Multi fiber Agreement (MFA) on textile quotas principally with U.S.A., Canada and European countries. The Generalized System of Preferences (GSP) provided import tax breaks worth about 15% of the import valuation, giving Bangladesh’s RMG export a considerable advantage in these markets. In addition to the above, the financing arrangements created through a system of back- to-back Letters of Credit (LOC) covering imported inputs and finished exports, greatly contributed to the accelerated growth of RMG sector. The above factors enabled Bangladesh to become the fifth largest exporter of RMG to the European Union and Sixth largest to the USA. The apparel industry in Bangladesh is broadly classified into Knitwear, RMG, specialty/linen including terry towels and others. The total export of apparel was about Tk 105.87 billion during 1995-96. The share of RMG export in this sector is above 75%. The composition of export of apparel by type is indicated in the following chart:

The further break-up of main items of knitwear and RMG export is provided in the following charts:

Value of RMG Export: Taka 79.7 Billion KNITWEAR

(Approx. US $ 2 billion)

Break-up of main items of export

in apparel sector of Bangladesh

The quality of fabric produced domestically in Bangladesh is not up to the standard required for the production of export quality garments. Therefore, exporters of garment, largely have to depend upon import of quality fabric. There are about 26 weaving mills in Bangladesh reported as in 2000, with a total of 7,179 looms. About half of these mills are government owned. There are also another 515 thousand hand looms in the country apart from about 488 hosiery units. About 30 per cent of these hosiery units produce export quality knit fabric. The local fabric production is reported to be about 915 million meters during 1995-96. The total demand for fabrics against this production level is estimated to be about 3155 million meters (approximately 3.45 billion yards) during 1995-96. Hence apart from the quality considerations mentioned earlier, domestic production is inadequate to meet the fabric demand. The composition of demand of fabrics for garments for domestic market and garments for export market is illustrated in the following chart:

Composition of Demand for Fabric from Garment Sector

Fabric Sector in Bangladesh during 1995-96

Million Meters Total Market Segment
Domestic Export
Demand 3155 1325 1830
Production 915 915
Import 2240 410 1830

The above chart indicates the importance of export market for textile sector of Bangladesh. The local demand for fabric, which is reported to be about 1325 million meters, is largely met by the traditional hand looms, small power looms and textile mills in the government and private sector. However as domestic production falls short to meet even the domestic demand for fabric, about 410 million meters is imported during 1995-96 to meet the short fall. The overall scenario of fabric sector in Bangladesh is indicated in the following table and chart: The following chart illustrates the interpretation of above table in graphical form.

The above chart indicates that about 82% of the fabric imported is consumed in the production of garments for export, while the balance 18%, is consumed to meet the domestic demand, which by itself is about 30% of the requirement of domestic market. This emphasis is the need for investment in textile/weaving segment in Bangladesh. After assert assigning the need for setting-up a weaving unit, the following parts investigate the prospects and key success factors for such weaving mill: Yarn is the primary input to the weaving mill. Yarn is spun in a spinning mill using spindles. Bangladesh has about 118 spinning mills. About 25% of these mills are owned and managed by the government. It is reported that about 45% of these spinning mills are out dated and run at a loss. The production of yarn in Bangladesh is reported to be about 100,000 tons during 1995-96. The demand for yarn is, however, as high as 470,000 tons. Hence the domestic production meets only about 21% of the domestic demand for yarn. The huge deficit in production of yarn to meet its demand in Bangladesh is met through imports. Bangladesh sources its requirement of yarn mainly from countries like India. Pakistan apart from China, Korea, Singapore, Thailand, USA, Canada, Egypt, etc. It is estimated that about 116 additional spinning units with a capacity of 25,000 spindles each are required to meet the demand-supply gap for yarn

4.2 Recent Performance of the Apparel Export Sector:

In a liberalized trade regime, competition among textiles and clothing exporting countries is likely to become intense. The objective of this paper is to identify the prospects of RMG industry after the MFA phase out by analyzing the current scenario along with different policy measures and the available options in order to be more competitive in the new regime. The export made by Garments Industries of Bangladesh is improving year after year except some of the year. Strike, layout, shutdown of company, political problem, economic problem, inflation etc. are the prime cause of decreasing export in this important sector. But above it, Readymade Garments Industries is the leading sector in export sector.

Year Export (in US $ million) Percentage change
1996 – 97 2228.35 43.47
1997 – 98 2547.13 14.11
1998 – 99 3001.25 17.83
1999 – 00 3781.94 26.01
2000 – 01 4019.98 6.29
2001 – 02 4349.41 8.19
2002 – 03 4859.83 11.74
2003 – 04 4583.75 5.68
2004 – 05 4912.12 7.21
2005 – 06 5686.09 15.83

Year Export by the garments industries (in US $ million)

Average Quota Prices of Selected Garments Items Exported by Bangladesh, 2006

Table: Exports of Knit and Woven Garments to the United State

4.3 Recent Growth Performance:

Bangladesh Bureau of Statistics:

Sector Average


1995/96 1996/97 1997/98 1998/99 1999/00a
Agriculture 1.55 3.10 6.00 3.19 4.77 6.43
Crops & horticulture -0.43 1.74 6.44 1.05 3.16 6.13
Animal farming 2.38 2.51 2.58 2.64 2.69 2.74
Forest & related services 2.82 3.46 4.03 4.51 5.16 5.16
Fishing 7.86 7.39 7.60 8.98 9.96 9.50
Industry 7.47 6.98 5.80 8.32 4.92 5.55
Manufacturing 8.20 6.41 5.05 8.54 3.19 4.25
Construction 6.27 8.50 8.64 9.48 8.92 8.00
Services 4.63 4.29 4.91 4.77 4.90 4.97
GDP 4.39 4.62 5.39 5.23 4.88 5.47

Chapter – 5


5.1 HRM Operations:

At a general level, it is important to analyze training needs against the backdrop of organizational objectives and strategies. Unless you do this, you may waste time and money on training programs that do not advance the cause of the company People may be trained in skills they already possess the training budget may be squandered on rest and recuperation sessions, where employees are entertained but learn little in the way required job skills or job knowledge, or the budget may be spent on glittering hardware that meets the training director’s needs but not the organization’s.

It is also essential to analyze the organization’s external environment an internal climate. Trends in the strategic priorities of a business, judicial decisions, civil rights laws, union activity, productivity, accidents, turnover, absenteeism, and on the job employee behavior will provide relevant information at this level.

However, assessing the needs for training does not end here. It is important to analyze needs regularly and at all three levels in order to evaluate the results of training and to assess what training is needed in the future.

  • At the organizational level, senior managers who set the organization’s goals should analyze needs.
  • At the operations level, the managers who specify how the organization’s goals are going to be achieved should analyze needs.
  • At the individual level, the managers and workers who do the work to achieve those goals should analyze needs, keeping in mind that performance is a function of both ability and motivation.

5.2 Human Resource Planning:

Human resource planning is all about measuring the organization need to identify the numbers of employees and skills required to do those jobs. Further, an understanding of available competencies is necessary to allow the organization to plan for the changes to new jobs required by corporate goals.

At AJI Group, major changes according to economic and social environments are required purchasing new and additional office equipment to enhance efficiency e.g., computer hardware or software, coping with the recall of a defective product and dealing with the need for a new design e.g. new automatic rotary machine.

This suggests several specific, interrelated activities that together constitute a human resource planning system.

They include:

  • A talent inventory to assess current human resources and to analyze how they are currently being used.
  • A human resource forecast to predict future HR requirements.
  • Action plans to enlarge the pool of people qualified to fill the projected vacancies through such actions as recruitment, selection, training, placement, transfer, promotion, development and compensation.
  • Control and evaluation to provide feedback on the overall effectiveness of the human resource planning system by monitoring of HR objective.

5.3 Structure of the HRM Department:

5.3.1 Number of Employees working in HRM Department:

Now I will discuss the personnel management of AJI Group under various steps of Human Resources Management AJI Group also knows this fact and has personnel department right at the entrance of main gate of mill. Personnel Department of AJI Group can be critically analyzed on the basis of various steps of human resources management process.

First I would like to describe the ware bouts of department. Department is situated in an old building which was constructed at the time of establishment of AJI Group and department was named as labor department. Recently three or four years ago name of department was changed to personnel department. There are only 5 personnel who actually handle the department’s affairs and about 4500 employees are working. There is great work that is to be done by 5 persons and they feel burden on themselves.

5.4 Functions of the HRM Department:

5.4.1 Major Functions:

Every organization whether it is a multinational conglomerates a small business, a religious institution or a government agency depends on people. Appropriate candidates for each job from chairman of the board to night shift janitor must be located either inside or outside the organization and they must be convinced by pay benefits and working conditions to take and keep the job. They must also be trained and motivated. Handling these functions is part of human resources management’s job. They feel burden on themselves… There are five steps are:

5.4.2 Standard Operating Procedure:

5.5 Training Need Assessment:

5.6 Conceptual Framework:

5.6.1 Manpower Planning:

The penalties for not being correctly staffed are costly.

· Understaffing loses the business economies of scale and specialization, orders, customers and profits.

· Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate because of modern legislation in respect of redundancy payments, consultation, minimum periods of notice, etc. Very importantly, overstaffing reduces the competitive efficiency of the business.

Future staffing needs will derive from:

· Sales and production forecasts

· The effects of technological change on task needs

· Variations in the efficiency, productivity, flexibility of labor as a result of training, work study, organizational change, new motivations, etc.

· Changes in employment practices (e.g. use of subcontractors or agency staffs, hiving-off tasks, buying in, substitution, etc.)

· Variations, which respond to new legislation, e.g. payroll taxes or their abolition, new health and safety requirements

· Changes in Government policies (investment incentives, regional or trade grants, etc

5.6.2 Recruitment and selection of employees:

Recruitment of staff should be preceded by:

An analysis of the job to be done (i.e. an analytical study of the tasks to be performed to determine their essential factors) written into a job description so that the selectors know what physical and mental characteristics applicants must possess, what qualities and attitudes are desirable and what characteristics are a decided disadvantage;

· In the case of replacement staff a critical questioning of the need to recruit at all (replacement should rarely be an automatic process).

· Effectively, selection is ‘buying’ an employee (the price being the wage or salary multiplied by probable years of service) hence bad buys can be very expensive. For that reason some firms (and some firms for particular jobs) use external expert consultants for recruitment and selection.

· Equally some small organizations exist to ‘head hunt’, i.e. to attract staff with high reputations from existing employers to the recruiting employer. However, the ‘cost’ of poor selection is such that, even for the mundane day-to-day jobs, those who recruit and select should be well trained to judge the suitability of applicants.

5.6.3 Employee motivation:

To retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise.

Basic financial rewards and conditions of service (e.g. working hours per week) are determined externally (by national bargaining or government minimum wage legislation) in many occupations but as much as 50 per cent of the gross pay of manual workers is often the result of local negotiations and details (e.g. which particular hours shall be worked) of conditions of service are often more important than the basics. Hence there is scope for financial and other motivations to be used at local levels.

As staffing needs will vary with the productivity of the workforce (and the industrial peace achieved) so good personnel policies are desirable. The latter can depend upon other factors (like environment, welfare, employee benefits, etc.) but unless the wage packet is accepted as ‘fair and just’ there will be no motivation.

5.6.4 Employee evaluation:

An organization needs constantly to take stock of its workforce and to assess its performance in existing jobs for three reasons:

  • To improve organizational performance via improving the performance of individual contributors (should be an automatic process in the case of good managers, but (about annually) two key questions should be posed:
  • ** What has been done to improve the performance of a person last year?
  • And what can be done to improve his or her performance in the year to come?).
  • To identify potential, i.e. to recognize existing talent and to use that to fill vacancies higher in the organization or to transfer individuals into jobs where better use can be made of their abilities or developing skills.
  • To provide an equitable method of linking payment to performance where there are no numerical criteria (often this salary performance review takes place about three months later and is kept quite separate from 1. and 2. but is based on the same assessment).

5.6.5 Industrial relations:

Good industrial relations, while a recognizable and legitimate objective for an organization, are difficult to define since a good system of industrial relations involves complex relationships between:

(a) Workers (and their informal and formal groups, i. e. trade union, organizations and their representatives);

(b) Employers (and their managers and formal organizations like trade and professional associations);

(c) The government and legislation and government agencies l and ‘independent’ agencies like the Advisory Conciliation and Arbitration Service.

5.6.6 Provision of employee services:

Attention to the mental and physical well-being of employees is normal in many organizations as a means of keeping good staff and attracting others.

The forms this welfare can take are many and varied, from loans to the needy to counseling in respect of personal problems.

Among the activities regarded as normal are:

· Schemes for occupational sick pay, extended sick leave and access to the firm’s medical adviser;

· Schemes for bereavement or other special leave;

· The rehabilitation of injured/unfit/ disabled employees and temporary or permanent move to lighter work;

· The maintenance of disablement statistics and registers (there are complicated legal requirements in respect of quotas of disabled workers and a need for ‘certificates’ where quota are not fulfilled and recruitment must take place);

· Provision of financial and other support for sports, social, hobbies, activities of many kinds which are work related;

· Provision of canteens and other catering facilities;

· Possibly assistance with financial and other aid to employees in difficulty (supervision, maybe, of an employee managed benevolent fund or scheme);

· Provision of information handbooks,

· Running of pre-retirement courses and similar fringe activities;

· Care for the welfare aspects of health and safety legislation and provision of first-aid training.

The location of the health and