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Project Paper on Shwapno

Submitted to,
Md. Tamzidul Islam
Senior Lecturer
BRAC Business School

Submitted By,

Name

Student ID

Inzamam Azad
Susmita Gupta

12304020
12104140
12104207

Shams Jarin Aurpa


Md.Mahbubur Rahman
Md. Neamat Ullah

12304066
11104083

Principals of Management
Section: 05
Date of Submission: 1st April 2014
1st April ,2014
Md. Tamzidul Islam
Senior Lecturer

Course Title:
MGT
211
Course
Name:

BRAC Business School


BRAC University
Dear Sir,
Sub: Letter of transmittal
With due respect, we have the pleasure to submit our project work on Shwapno as a part of MGT211 course to partially fulfill the requirements under your supervision. It has been an excellent
experience for us to work in the Project as it helps us to know and realize different management
theories, function, and motivation of an organization. So, this project work will help us a lot in our
higher level courses.
In Our report, we have used both primary and secondary data and have tried to prepare the report
according to your instructions. We also confess that this report has some limitations as well because
we got limited resources. So we hope that you will be kind enough to consider the limitations of this
report.

So, we would like to thank you for your encouragement and support which inspired us to work
enthusiastically. It would be our pleasure to clarify any discrepancy that may arise or any
clarification that you may require regarding our project work.
We are really glad that we got the opportunity to have such wonderful and educative experiences.
Thank you,
Yours sincerely,

Name
Inzamam Azad
Susmita Gupta
Shams Jarin Aurpa
Md.Mahbubur Rahman
Md. Neamat Ullah

Student ID
12304020
12104140
12104207
12304066
11104083

TABLE OF CONTENTS

Parts
PART-01
1.1
1.2

Topics
Acknowledgement
INTRODUCTION
Abstract
Origin of the report

Page Numbers
06
07
07
07

1.3
1.4

Objectives & scope of the studies


Methodology

07
08

PART-2

Section-01

09

2.1

Nature of Business

09

2.2
2.3

Customer & competitors


Other Stakeholders

09
10

2.4
2.5
2.6

Measuring Effectiveness & Efficiency 10


Skill requirement
10
Environmental Factors
10

PART-03

Section 02

11

3.1

Intensive Growth strategies

11

3.2

Integrative Growth Strategies

13

3.3

Downsizing of growth Strategies

15

3.4

Decision making Model

16

PART04

Section 03

17

4.1

Division of work

18

4.2

Departmentalization

18

4.3

Hierarchy

19

4.4

Suggestion towards organogram

20

4.5

Responsibilities and Accountabilities

20

PART 05

of different position
Section 04

22

5.1

Motivational drives

22

5.2

Financial Motvators

23

5.3

Non financial motivators

24

5.4

Motivational program

26

5.5

Maslows Hierarchy of needs theory

26

5.6

Adams Equity theory

5.7

Vrooms expectancy theory

28
29

Acknowledgement
This term paper would not have been possible without the support of many people. Thus, we
would like to express our deepest appreciation to all those who provided me the possibility to
complete this report. At first, we are very grateful to our honorable course instructor
Mr.Tamzidul Islam for his continuous guidance henceforth. His guidance and instructions about
preparing this report has been of extreme help. We are also gratified for all the times we seek
advice from him and he answered with the paramount patience and perseverance. We are also
thankful to him for giving us the opportunity to learn through this project how the theories in the
book could be executed with the in real world.
Moreover, all of our group members are helpful and co-operative to complete this project work.
Every members of our group give their best effort to make the work successful and they
contribute a lot whenever they require.
Furthermore, we would like to express our gratitude to Md.Amirul Islam, Operation Manager,
Retail Sales of Shwapno for giving us his valuable time by sharing his experiences and
knowledge and made it possible for me to finish the project paper. We also admire the warm
welcome of all the Shwapno office staffs that they had given us whenever we went to their
office. A special thanks to all the fellow class mates for their appropriate suggestions and help
during preparing the project work.

Part 1 : Introduction
1.1 Abstract:
Shwapno is one of the most popular super shop in our country. Shwapno is operated by ACI
Logistics limited. They have a very large number of outlets in different parts of our country.
They have more than 79 outlets and about 700 employee all around the country. Shwapno apply
and implement different management theories and function in their organization. While we are
preparing the report we found that they evaluate the performance of their employees, develop
motivational program and other various strategies that are related with management a lot. So, by
preparing this project work we come to know that how different theories of books are
implemented in real organization.
1.2 Origin of the Report
Our group has been privileged to work on this project which has been assigned by our honorable
course instructor Md. Tamzidul Islam in the class of Principles of Management (MGT 211) in
section-05. Our report is based on the nature, competitors, customer, different skill, relevant
growth strategies, decision making model, division of work, hierarchy, departmentalization,
motivational program and performance evaluation of a well-recognized company in the apparel
industry called Shwapno. We basically tried to cover all the things that is required by our
course instructor.
1.3 Objectives & Scope of the Study
Broad Objective
To study and analyze how different management function affects an organization in the practical
world.
Specific Objective
The goal of working on the project is to learn how an organization manages all the department,
division and how they develop relevant growth strategies, decision making process, and
motivational program and evaluate the performance of the employees. So it creates a bridge
between our academic study and real life situation.
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Scope
Our group got an opportunity to know the details management functions of Shwapo. We got the
scope to understand the various management strategies of the company. When we took an
interview and researched on Shwapno, we came to know the strengths and the weakness of
Shwapno and how it is performing in this arena of competition

1.4 Methodology
We divided the work among ourselves and then prepared individual questionnaire for the purpose
of interviewing the personnel of Shwapno. Then, combining all the information we made this
descriptive report.
Sources of data collection
Primary Source: The primary information is gathered through informal interviews of the
employees and operation manager working over there under management level, their
salesman who are directly involved with selling product and also observation while
physically visiting the office premises.
Secondary Source: Secondary sources had also used to collect information. Secondary
sources include:
Features and articles published in newspapers and other journals
Website of Shwapno super store and many other related WebPages
Data Collection Technique

Questionnaire: Unstructured and open-ended questionnaires were asked to the different


people and customer of different areas where the Shwapno super store is located to find

overall information of Shwapno.


Observation: We visited West Kazipara, Mirpur branch of Shwapno for an interview to
an Operation manager. We also observed the shops environment as well as customer

perception towards them.


Secondary Informations: Secondary information has collected by reviewing websites,
journals, brochures and some other relevant documents.

PART 02:
7

2.1 Nature of business


With a vision to change the lifestyle of Bangladeshi consumers Shwapno is a newdimensional
superstore in Bangladesh, a retail establishment selling goods to customers on the premises.
Opening their first outlet in Postogola Dhaka, in 28 October 2008, Shwapno is growing rapidly
by recently running 59 outlets in 16 districts to serve maximum customers. Selling goods that are
expected to have a short life for personal or household use in a price that is similar to the open
market. It is a self-service shop offering a wide variety of food and household products organized
into aisles, comprising meat, fresh produce, dairy along with shelf space reserved for canned and
packaged goods. Even though the super-shop or super-market industry has not yet fully
flourished in our country Shwapno has already made its own place in the industry with their
unique marketing strategy
2.2 Customers and competitors
The target market or customer for Shwapno is middle-class and upper middle-class people.
Specially, nuclear families with service holding parents who barely have time to go from shop to
shop to bargain and purchase daily groceries. Other than that, Shwapno tries to capture not only
urban dwellers but also the people living in suburban areas, establishing outlets in Feni, Sylhet,
Moulvi bazar, Bogra, Nator, Rangpur, Khulna etc.
Agora, Mina Bazar and Nandan are the super shop that provide similar services for similar
group of people and is considered as competitors of Shwapno. Furthermore, the upcoming super
shops that are about to start their business on the same industry also possesses threat. Shwapno
should convert the competition into a strength by providing more facilities to the customers.

2.3 Other Stakeholders


The stake holders of Shwapno are the customers and consumers, its staffs, producers or farmers
(as Shwapno buys directly from the farmers), and the overall business environment.
8

2.4 Effectiveness and Efficiency


Over times Shwapno has been successful in taking and executing effective business ideas.
Recently Shwapno has launched their own clothing line named Shwapno Life which has
gained much popularity and has brought huge success for them. The idea behind Shwapno Life
is to provide trendy, fashionable clothes in the lowest possible price range. On the contrary, the
idea of buying product directly from the farmer is undoubtedly the most efficient decision as it
enables them to skip the middleman which is both less time and cost consuming. Shwapno
usually buys the product in a much higher volume than the small grocery shops that enables them
to sell at a lower price and still make profit.
2.5 Skills required
Shwapno has a large number of employees. To signify any task, Shwapno plans report, targets
practical report. After a certain time, Shwapno matches or combines target report with the
practical report. Then the company can easily show the success and failure of the company to its
workers and tries to realize them the significance of their task. It is really inevitable for achieving
success in a company. The Administrative authority of Shwapno usually seeks inter-personal
human management skill while hiring an employee. Other than that, the Accounts counter
requires accounting and financial skills.
2.6 Environmental factors
Globalization is the main element for modern business without practicing which no organization
can function properly. Globalization affects the business environment of Shwapno by bringing
new opportunities for them. As an example, Shwapno has most of its outlets outside of Dhaka
including Narayangong, Mymensing, Chittagong, Barishal etc. and that has become possible
because of the better infrastructure and transportation system which is a result of globalization.
But, globalization has its dark side as well. It has brought new competitors and threats for
Shwapno.
PART 03

As the business has started, now we are facing more competition in the market. Many new
entrants are offering the similar product with low price and as a result we are losing market share
and revenue share. Furthermore, recently we have found that our service level is also degrading
and as a result receiving customer complaints. So, in these circumstances we are trying to follow
the growth strategies. Among the intensive, integrative, diversification, downsizing growth
strategies; we are going to figure out that in which situation, which growth strategies are going to
be appropriate in this situation, and which we will apply into our business. We will establish our
decision by the rational decision making process.

3.1 Intensive Growth Strategies


Expanding the business always involves risk. There are essentially two ways to do so: intensive
growth strategies and integrative growth strategies. In the former category, we have to identify
further growth opportunities within existing businesses. In the latter category, we will look
at building or acquiring businesses that are related to your current businesses.
Each strategy has a degree of risk but the level of risk varies per strategy. High risk activities or
strategies, if implemented successfully, can result in high growth. Low(er) risk activities or
strategies may on the other hand have a higher chance of succeeding but have a lesser quickgrowth impact. The most common ways to expand a business are listed below (in order of lowest
risk to highest risk). Each business is different and you will have to create the growth strategy
that best suits your business.
Market penetration
Market penetration is, simply put, how can you sell more of the same product to the same
customers? For example, rather than selling individual LUX soap, we will sell them in a pack of
6, with all the different flavor of LUX soap. In departmental shop businesses, this may be easier
to do in some sectors with some products than in others. It is unlikely that we will be able to use
a 6-pack strategy in the case of a new soap box with different packaging. If this technique is a

10

chipper, then we may be able to get away by batch sales. This strategy has the lowest risk.
Market Development
Developing a new market for the existing company product is called market development
strategy. This is the process of finding new market for the new customer to increase company
performance by increasing sales and profits. Companies can develop market on geographical
such as city, country, region, state etc and demographical such as age, sex, gender, class etc. In
this strategy we are looking at ways of how we can offer our product in adjacent markets. For
example, we have a current customer base in Dhaka and you are looking at ways to expand to the
Chittagong.
Product Development
Product development strategy is aimed at developing new products to sell to your existing
customer base as well as a new customer base. This may be difficult to achieve sometimes.
Ideally, the new product is attractive to both. If you have the choice to develop a product that is
attractive to the existing customer base or a product for a new market, go for the former. Why?
Developing a new product is risky business as it is. Exploring and penetrating a new market at
the same time brings extra risk to the activity. Unfortunately, you are not always given this
luxury choice. Sometimes, market conditions dictate that we must create new products fornew
customers.

Diversification

11

Growth strategies in business also include diversification, where a small company will sell new
products to new markets. This type of strategy can be very risky, according to gaebler.com. A
small company will need to plan carefully when using a diversification growth strategy.
Marketing research is essential because a company will need to determine if consumers in the
new market will potentially like the new products. If we do develop a new product and aiming to
target a new market, we are essentially diversifying your product portfolio. This is the most risky
of the intensive strategies. A solid existing product with a solid existing customer base is
essential to keep your business afloat as you invest in this strategy. For example, Shawapno has
started garments product business.
Identifying Alternative Channels
We can also identify alternative channels. This strategy involves pursuing customers in a
different way such as, for example, selling our products online. This works well for consumer
products and, in some cases, also for business-to-business (B2B) products. Alternative channels
for B2B can be special exhibitions or fairs such as an annual electronic fair. But also scientific
conferences can sometimes be alternative channels to promote your product. Hospitals
sometimes organize special events for their clients to demonstrate their newest products.

3.2 Integrative Growth Strategy


Integrative strategies are usually considered when the intensive growth strategies have been
exhausted and consist of M&A activities. They are high risk and costly undertakings whereby
75% of all acquisitions fail to deliver on the value or efficiencies that were expected. These are
therefore activities that need to be thought through carefully. Nevertheless, there are three
categories of integrative growth strategies: forward integration, backward integration and
horizontal integration.
Forward integration
In this growth strategy, we acquire or merge with companies that are part of our distribution
chain. This can be a distributor or a retailer. The advantage of this strategy is that it reduces the
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number of distributors or retailers for the competition. In addition, a reduction in cost and/or
increase in efficiency can sometimes be achieved as well.
Backward Integration
In this growth strategy, we acquire or merge with companies that are part of your supply chain
i.e. a supplier. Similar to the forward integration strategy, this type of growth can reduce costs
and/or increase efficiency. However, not all backward integration acquisitions lead to a
competitive advantage or increase the value of the business. For example, some suppliers
provide for many different businesses. Because of this, they can upscale and therefore offer
inputs at a lower cost than if they were integrated with only one manufacturer.
Horizontal Integration
Horizontal integration is when you acquire or merge with a company that is at the same level of
the value chain. The company that is to be acquired does not necessarily need to be in the same
industry. Because the two companies are at the same level in the value chain, they could share
certain resources. If the company to be acquired is in the same industry, it would be regarded as a
merger of competitors. Another advantage of horizontal integration is that is offers a way to
expand into foreign markets.

3.3 Downsizing of growth strategy:

13

Companies develop different strategies for growth and downsizing. The present market is full of
competition and hectic. Therefore companies work out for different strategies to have a growth in
the market. The company's objective stays for "Profitable Growth". Hence the strategies that
companies use are Market Penetration, Market Development, Product Development, and
Diversification.

Market Penetration is a strategy used by the companies to tap the market or to increase sales with
the current product without any changes or modifications. Most of the companies look at low
pricing strategies to penetrate into the market. Then looking at Market Development where the
company tries to find out new market locations and takes action to develop that market for the
current products of the company.

Then it's about Product development where the company works on to develop the product
without modifying the marketing strategies. Here the company introduces a new or modified
product to the current market segment. Then the company looks to diversify its business, where
the company works on other business or products which may or may not be related to the core
business. Then comes Downsizing, where the company cuts down the unnecessary products or
units which are not making any return on investment.

Hence these are the few strategies on which the companies work to retain profits and have a
growth path. These strategies are developed according to the market situation and competitive
analysis. These strategies work out for most of the companies. Hence these strategies help the
company to look at their growth.

3.4 Decision making:


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To find out the solutions of our problems we have to go through the Rational decision making
process. Rational decision making is a multi-step process for making logically sound decisions
that aims to follow the orderly path from problem identification through solution. This process
begins with formulating a goal(s), analyzing the problems, identifying the criteria for making the
decision, identifying alternatives, and a final decision.
Identifying and analyze problems
Problems that are visible tend to have a higher probability of being selected than ones that are
important.
1. Easily to catch a decision makers attention.
2. Decision maker want to appear competent and on top of problems.
This desire motivates DM to focus on problems that are visible to others.
If a decision maker faces a conflict between selecting a problem that is important to the
organization and one that is important to the decision maker, self-interest tends to win out. This
tendency also is related to the issue of visibility. Its usually in a decision makers best interest to
attack high-profiles problems. It conveys to performance is later reviewed, the evaluator is more
likely to give a high rating to someone who has been aggressively attacking visible problems
than to someone whose actions have been less obvious.
Verifying, defining & detailing the problem (problem definition, goal definition, information
gathering). This step includes recognizing the problem, defining an initial solution, and starting
primary analysis. Examples of this are creative devising, creative ideas, inspirations,
breakthroughs, and brainstorms.
The very first step which is normally overlooked by the top level management is defining the
exact problem. Though we think that the problem identification is obvious, many times it is not.
The rational decision making model is a group-based decision making process. If the problem is
not identified properly then we may face a problem as each and every member of the group
might have a different definition of the problem. Hence, it is very important that the definition of
the problem is the same among all group members. Only then is it possible for the group
members to find alternate sources or problem solving in an effective manner.
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Developing and evaluate alternatives:


This step encloses two to three final solutions to the problem and preliminary implementation to
the site. In planning, examples of this are Planned Units of Development and downtown
revitalizations.
This activity is best done in groups, as different people may contribute different ideas or
alternative solutions to the problem. Without alternative solutions, there is a chance of arriving at
a non-optimal or a rational decision. For exploring the alternatives it is necessary to gather
information. Technology may help with gathering this information.
Since decision makers rarely seek an optimal solution, but rather a satisfying one, we should
expect to find a minimal use of creativity in the search for alternatives. And that expectation is
generally on target. Efforts will be made to try to keep the search process simple. It will tend to
be confined to the neighborhood of the current alternative. More complex search behavior, which
includes the development of creative alternatives, will be resorted to only when a simple search
fails to uncover a satisfactory alternative. Decision maker avoid the difficult task of considering
all the important factors, weighing their relative merits and drawbacks, and calculating the value
for each alternative. Instead, they make successive limited (incremental) comparisons. This
branch approach simplifies decision choices by comparing only alternatives that differ in
relatively small degree from the choice currently in effect. This approach also makes it
unnecessary for the decision maker to thoroughly examine an alternative and it is consequences;
one need investigate only those aspects in which the proposed alternative and its consequences
differ from the statuesque. It acknowledges the non-comprehensive nature of choice; in other
words, decision makers make successive comparisons because decisions are never made forever
and written in stone, but rather they are made and remade endlessly in small comparisons
between narrow choices.

Choosing the best alternative and finalize (choosing decision) :

16

This step comprises a final solution and secondary implementation to the site. At this point the
process has developed into different strategies of how to apply the solutions to the site.
Based on the criteria of assessment and the analysis done in previous steps, choose the best
solution generated. These four steps form the core of the Rational Decision Making Model.
PART 04
4.1 Division of Work
Shwapno have different division of work in their outlets. The person who works as a security
guard always look at the entrants of the outlets. He also takes the badges of the customer and
kept it on the selves. Moreover the staffs and employees also help the customers to find out their
desire product. There is also a person in the outlet who kept the record of sales in their computer.
The Operational Manager in every outlet monitors all the employees of that outlet and report to
higher level management.
4.2 Departmentalization
Accounts & Finance
Production
Quality Control
Human Resource (HR)
Engineering
Information and Technology (IT)
Security
Commercial

17

Product Development
Distribution
Legal
Technical Services Department
Management Information System (MIS)
Transport Management And Logistic Support

4.3 Hierarchy

CEO

Operational
Manager

Marketing
Manager

Sales
Manager

Assistant
Manager

Assistant
Manager

Assistant
Manager

Sales
Person

Service
Staff

Service
Staff

Shwapno uses tall organogram as it is suitable with the nature of their organization. Moreover
large, complex organization often requires a taller hierarchy. As shwapno is a large organization
18

with a lot of outlets so it is better to follow tall hierarchy. A tall structure results in one long chain
of command similar to military.Shwapno also have a long chain of command. As Shwapno
grows, the number of management levels increases and the structure grows taller. Although tall
organization have more management levels but managers from many ranks has a small area of
control.

4.4 Suggestion towards appropriate Organograom:


From our point of view the organogram they are following is perfect for their business. As
Shwapno is doing super shop business so they need to maintain different management levels in
their organization. Firstly, within tall organizational structure there is a close supervisory control
because of low span of managers. So, in Shwapno all the managers can supervise other
managers. Secondly,it is more authoritative structure as a consequence, the roles and
responsibilities are clearly defined .In shwapno the roles and responsibilities of each manager are
clear so they can do their own task. Thirdly, in a tall organization the responsible person is other
accountable to higher authorities. In Shwapno each manager are responsible and accountable to
their senior managers which is really required to earn more profit and to increase their sales. If
they follow flat organogram than the control of top management could be weakened as they may
have too wide a span of control. So they may need to delegate more frequently. Motivation level
in flat organization is little. The chance of promotion in flat organization is very few than tall
organization. If Shwapno follow flat organogram than the employees can be demotivated to work
as there is a less chance of promotion.

4.5 Responsibilities and Accountabilities of different position


CEO

Direct and coordinate the managers


Passes new plans and fixes missions

19

Marketing Manager

Identify, develop and evaluate marketing strategy, based on knowledge of company

objectives, market characteristics and cost and markup factors


Develop marketing plan for launching new product to make successful inroads under the

portfolio and Prepare and implement marketing budget efficiently


Formulate, direct and coordinate marketing activities and policies to promote products

and its brand, working with advertising managers


Initiate market research studies or analyzes their findings and competitor analyze.
Develop private level branding and identify new source of product and develop existing

source.
Set up Plano gram and ensure best visual merchandising

Sales Manager

Accomplishes regional sales human resource objectives by recruiting, selecting,


orienting, training, assigning, scheduling, coaching, counseling, and disciplining
employees in assigned outlets; communicating job expectations; planning, monitoring,
appraising, and reviewing job contributions; planning and reviewing compensation

actions; enforcing policies and procedures.


Supervise Area Managers, outlet managers and Cluster Operation Managers of the

respective superstores
Implement special project of Shwapno Mini Shop and supervise existing 15 mini shops.
Achieves regional sales operational objectives by contributing regional sales.
Information and recommendations to strategic plans and reviews; preparing and
completing action plans; implementing production, productivity, quality, and customerservice standards; resolving problems; completing audits; identifying trends; determining

regional sales system improvements; implementing change.


Meets regional sales financial objectives by forecasting requirements; preparing an
annual budget; scheduling expenditures; analyzing variances; initiating corrective
actions.

Operational Manager

20

Develop and administer pricing strategies, balancing company objectives and customer
satisfaction Direct the hiring, training, or performance evaluations of marketing or sales

staff and oversee their daily activities


Consult with buying personnel to gain advice regarding the types of products expected to

be in demand
Evaluate the financial aspects of product development, such as budgets, expenditures,
research and development appropriations, or return-on-investment and profit-loss

projections
Consult with product development personnel on product specifications such as design,

color, or packaging.
Negotiate contracts with vendors or distributors to manage product distribution,
establishing distribution networks or developing distribution strategies

Assistant Managers

To enhance institutional sales of the outlets


To reduce inventory shortage
To devise sales target
To achieve sales Target

PART 05
5.1 Motivational drives of Employees
Recently Shwapno identified that some of their employees are not working well and they are not
giving their best effort in workplace. The employees are not even showing on a regular basis. So
that the productivity, sells and revenue of company is decreasing which is a threat to the
company. Because demotivated employees are likely to spend little or no effort in their jobs,
avoid the workplace as much as possible, exit the organization if given the opportunity and
produce low quality work. On the other hand, employees who feel motivated to work are likely
to be persistent, creative and productive, turning out high quality work that they willingly
undertake.
So to overcome these situation the organization should develop some motivational drives and
program for the employee. There are two types of motivation:
21

5.2 Financial Motivation

Sallary
Bonus
Provident Fund
Graduity

Salary:

The salary scale of the company starts from 4,500 tk. in worker level and it maximizes up to
10,000-12,000 tk. basing on job experience and performance. The management staff salary
scale starts from 15,000 tk. and maximizes till 16,000-40,000 tk. per month again basing on
skill, potentiality, performance and definitely experience. The company always pays salary to
its staffs between the selected days. So, there is no chance of discrimination in here and there
is no racism in here. Again this is a motivational step for the staffs.
Bonus:
The company can offer bonuses for the employees in different occasion. In Eid, Durga puja,
Cristmas Day and in any religious occasion they can provide bonus to the employees which
can motivate them to work.
Provident Fund and Graduity:
Shwapno can also provide provident fund and graduity facilities to the employees as a
motivation drive.A certain ammount of salary are saved to the provident fund which can help
the employyes in future and in a long run.

5.3 Non-Financial Motivation-

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Fringe Benefits
Working condition
Job Security
Status
Praise of Recognition
Growth and promotional opportunity
Job enrichment

Vacation

Fringe benefits:
Shwapno may offer some fringe benefits for the staffs.
Doctors can provide free treatment to workers.
Mobile bill can be paid by company for selected management staffs.
Ensure Free transportation facilities for management staffs.
These facilities encourage staffs a lot
Working condition:
Shwapno can maintain neat and clean working environment. They can build their own cleaning
team who cleans the working place every day. Without this, they can also ensure special
checking team who check each department outlet store once in every 2 months. So, working in
Shwapno can be safe and healthy for its workers
Job security:
Shwapno should ensure job security for its employees. They can give newly recruited employees
in passes a 3 month provision period at first. Then he or she might be permanent. In case of firing
someone, if it is a root level worker, the firing may depends on workers job performance and if
it is a management staff, then he or she can get a 2-3 months warning period. If still the
performance deteriorates, then he or she need to gets fired. So, whatever the status of the staff is,
he or she can gets a good chance to protect his job from getting fired which is really motivating.
Status:
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Definitely identifying the status of a staff in company is really motivating for him and in this
case, Shwapno can go one step ahead. They can provide badge for every staff whether he is a
root level worker or a top level management staff. His designation can be written on it with a
photo of his own which clearly expresses his status in the company and makes him feeling that
he is important in the company.
Recognition:
Shwapno should recognize its valuable and potential employees. Because that if the staffs are not
recognized properly for their effort, then they wont be able to pay 100% concentration next
time. So, to recognize, company may kept records of every worker to his supervisor. After a
certain time, the internal audit team can checks everyones records and praises them accordingly.
The good recognition results in increasing salary, vacation period and so
Growth and promotional opportunity
A good chance of growth and promotion must be implemented in Shwapno . Any root level
worker can start their job life in this company with 4500 tk salary. It should be maximized till
10000-12000 tk according to performance and experience. For management employees, the
salary starts from 15000 tk and can be maximized above 40000 tk basing on quality performance
and experience. Any staff can start their job life from root level worker and can reach till high
level management staff through promotion. So, this is really motivating for staffs.
Job enrichment:
As Shwapno is export oriented company, so definitely they need to be cautious about their
product quality and where the question is about quality, Shwapno is 100% dedicated to keep the
standard of their products. Now to keep the standard of the product Shwapno always
concentrates on job enrichment rather than job enlargement because by job enlargement
Shwapno will be able to complete more orders, but there always remains a question about
quality. By job enrichment, the quality is confirmed. Shwapno can build its own inspection team.
For every order, the inspection team inspects the products and focuses on job enrichment. This is
because job enrichment gives the chance to employees to show their full range of abilities. So, if

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the company does not focus on job enrichment, the staffs will not be motivated. Ultimately, the
company will not be benefited.
Vacations:
Shwapno can provide vacation according to Labor act 7, 10 days = Sick leave, 5 days = Holiday
and government holidays. They can also provide maternal leave for the women employees.
5.4 Motivational Program
5.5 Maslows need hierarchy theory:
Shwapno can follow another great theory to clarify their staffs and to motivate them. The theory
is Maslows need hierarchy theory
According to Maslows need hierarchy theory, Shwapno differentiates the needs of their staffs as
follows.
Physiological needs:
According to Bangladesh labor act, the minimum salary starts from 3500 Tk. and the basic salary
of workers of Shwapno starts from 4500tk. Though this amount is very little, but Patriot Group
thinks that it is possible to meet the basic needs (food, cloth, shelter, basic education) by this
amount. As a workers leads a hand to mouth life, so shopno can provide some special
arrangements for workers in Shwapno super shop.
1. They can provide doctors for workers who can fulfill workers health facilities.
2. They can arrange pure drinking fileted water as much workers want. This is because, it is
really hard to work 10 hours without drinking water.

Safety:
There is always a fear among workers regarding the security of their job, body, health etc. So, to
ensure the safety, Shwapno can follow different arrangements.

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1. Wearing hand gloves needed to be mandatory as the job is sewing related.


2. Wearing special thin cap should also be mandatory as it helps to work in safe and protects
from germs.
3. Financial help for unexpected serious injury.
4. The job need to be completely secured in Shwapno as long the employee is not breaking
any company law.
And it is essential to mention that there is a good chance of promotion in Shwapno.
State of belonging:
According to Maslows theory, in this stage humans want or involve in feelings of
belongingness. Human expects love, friendship, intimacy etc. from others. In Patriot Shwapno,
the management team can always encourages the workers to make a good relation with coworkers so that they can have love, friendship, intimacy among themselves. Not only this,
sometimes the supervisors can arrange speaker and play music in loud. As a result, the workers
get inspired and work with full energy rather than getting bored.
Esteem:
In the stage of esteem, people want to be respected by others, valued by others. As it is not
possible for Patriot Group to take the workers in esteem stage only by giving 4500 Tk. salary, but
there is a roadmap for staffs to come in this stage called promotion. As an example, we can
mention the name of an experienced worker named Mr. kamrul who has worked more than
3years in the company. His starting salary was 4500 Tk. only but now he is getting more than
16,000 Tk. per month. This has been only possible by his dedication to work. His education has
also helped him a lot. Now he is respected by fellow workers and valued by management
authority. So, in here, Maslows theory is proved again.
Self-actualization:
To be very honest, its not possible for workers to reach in self-actualization level but it is
slightly possible for high level management staffs. For example, we can mention the Head of
management of Shwapno is Md. Sabbir Ahmed who his patronizing work for the society.
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So in this way, Shwapno can apply the famous Maslows need hierarchy theory in the
company
5.6 Adams Equity Theory:
Peoples view their outcomes and inputs as a ratio and then compare it to someone else ratio- is
the summary of equity theory. Its obvious that an employee will be satisfied only if he/ she finds
that there is equity exists between the outcomes (given by company) and inputs (given by
employees). According to equity theory outcomes from a job includes pay, recognition,
promotion, social relationship and intrinsic rewards. To get these rewards the individuals give
inputs to the job such as time, experience, effort, education and loyalty. To motivate employees,
equity theory is used by them wisely. Because they know that if the employees think that they are
getting their salary, promotion, recognition as per their output that means time, efforts etc.
nothing is need to motivate them because they will remember that company is doing justice with
me so why not me ! Actually the comparison is done by an employee with another employee.
Whenever he/she sees that an employee sitting beside him in same position getting more or less
benefits from company then he feels under or over rewarded. To remove this thing from the mind
of the employees Shwapno use this formula:

Outcomes (self)/inputs (self) = outcomes (other)/inputs (other)


Shwapno need to ensures that the ratio is equal because only then a state of equity or fairness
will exist. We can tell about their salary. They are giving 4500 for operators and they ensure that
all the operators get the same amount of money. This strategy can not done only in this section
but also in other sections of Shwapno. As a result, employees of Patriot group feel that they are
treated equally and ultimately they are motivated. The employees of Shwapno can get
recognition or facility as per their input. For example, some selected management staffs can get
the mobile bill from the company. Their inputs are more than the average employees so they get
this kind of facility.
But sometimes the ratios can be perceived as unequal in Shwapno. Sometimes benefits,
advantages, outcomes that are given by them are failed to maintain fairness. Sometimes the
employees feel that they are under rewarded when they compare the facilities of others with
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them. Whenever this inequity rises amongst the employees, steps must be taken carefully by
Shwapno to resolve this because they know equity or fairness in work is the only way to hold the
position in this sector.
5.7 Vrooms expectancy theory
How much people want something and how likely they think they will get it is the theme of
expectancy theory. Implying this thing on behalf of an employee will help us to understand better
actually what the theme says. An employee wants a better position in a company and this can be
achieved by different ways he likes. To understand this line we have to understand the four
assumptions on which expectancy theory rests. Shwapno can use three components of
expectancy theory to motivate employees,

1. Effort - to performance expectancy:


Individuals perception of the probability by which effort will lead to high performance is

easily understood by this term. When the individuals believe that effort will lead directly to high
performances; expectancy will be quite strong. Shwapno can works in this case they can ensure
that employee can hold this belief. They try their utmost level because they know this strong
effort is one and only way to get better performance. Whenever there is challenge, lots of work,
deadline is near, Shwapno can ensures that the employees put their best effort to get best
performance. There is another reason for which Shwapno gives so much try on this. The reason
is if the employee believes that efforts and performance are unrelated or the efforts are not strong
enough then nothing but frustration will come in his mind and the result will be less effort. And
that means the company will lose their place in competition.
2. Performance outcome expectancy:
Performance will lead to the specific outcome is expressed by this term. In Shwapno, outcomes
can be given according to performance. If the performance is high, employees are rewarded by
pay rise, promotion or thank you speech from their superiors. But if their performances arent
appreciating, they wont be punished but definitely they will be deprived from these benefits.
Shwapno should be always careful in this matter that the employees are getting proper benefits
according to their performances.
3. Outcomes and valences:
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Actually this theory recognizes that individuals behavior results in a variety of outcomes or
consequences in an organizations setting. Also each of the outcomes that are earned by the
employees for their better performance has an associated value or valence an index of how
much an individual values a particular outcome. Shwapno should know these things very well
more than other companies. Shwapno should know what the importance has valence got. They
should know if the employees want the outcome, the valence will be positive. And the result will
be positive for company. Shwapno can ensures one thing before giving any kind of benefits to
employees for their performances that they want it or they need it. Because whatever Shwapno
gives its employees, it will help to motivate employees only if employees wants are matched by
the outcomes.
PART 06
6.1 Performance Management:
In this section I am going to evaluate the performance of Shawpno as an outsider. There are some
certain criteria to evaluate an organizations performance, they are:
6.2 Performance criteria:
We have to go through two criteria to measure performance criteria, the first one is organization
performance and the second one is individual performance.
Organization: we have talked with Mr. Amirul Islam an operation manager of Shawpno and we
have been informed about their set of goals and their gains and losses in different field in 2013,
and we also talked with some regular customers then we made a summaryof this organization
like as :

Criteria
1) Revenue

Goals
90,000

Reality
92,377

2) Customer Satisfaction

100%

83%

3) Service Level

100%

84.75%

4) Sales

at least 85% of production


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87%

So, here we can see that, their target revenue of their organization was fulfilled. That is a good
issue for them but on the other hand they could not satisfy their customer much due to their poor
service level. They could make a sale of 87% which is more than their target. So, they should
concern more on their behavior while they are communicating with the customers and if they do
so, then they will able to make more profit than this year.

Individual :
Shawpnos customer retention is about 63% so, they should pay more attention on this matter. In
earlier part I talked about their attitudes when they are interacting with their customers, it
obviously should be polite and humble and also helpful. Their sales volume is now around 94%
which is good. Their employee retention is almost 67%. So, in this field they have many works
to do. As they know there are many others competitors in the market like as: Meena Bazar,
Agora, Amanaa etc. so, they will have to be aware about their customer retention so that, they
can attract their customers and by doing this they will able to fulfill their mission and vision.

6.3 Performance Management Process:


Manager

Employee

30

Set Target

Aware

Six
Accepted

Revise
Communication

Perform

Evaluate

Agreed

month

One Year

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According to this performance management process chart the higher level of authority
(CEO/Manager) of shawpno will set a target then communicate with his employee about that
target. Employee will observe the goal then they will give their opinion now here, there are two
chances either the employee will accept the proposal or not. If not then the authority will set their
goals or target again that called revised of decision and follow earlier steps. And if employees
accept the proposal then, they start doing their job according to their set target and at this stage
the CEO or Manager will evaluate the performance of employees. Therefore, they have to fulfill
their target through these employees so; if the performance of employees will be satisfactory
then they will agree to run the process otherwise not.
6.4 Performance Management Frequency:
There are three method to evaluate Performance management frequency. They are:
1) Quarterly
2) Half-yearly
3) Annually
I will prepare first one that means Quarterly to evaluate the performance management
frequency because, if any employee is doing wrong then I can make him right within a short time
in this method rather than the half-yearly and the annually method. Secondly, when I will
evaluate each and every portion of the organization only after 4 month then, all the employees
are aware about their duty. They would have to have the concern that, he or she would have to
accountable regarding their work. 3rd reason is, when I will evaluate my organizations activities
within this short time then my employee will be inspired to do work and by this way the
productivity and the work capabilities of employee will be improved. And the final one is, i can
understand, who my active employee is and who is idle. Then I will able to take the right step
regarding this matter whether, I am going to hold this employee or not.
6.5 Recommendation:

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1. The salary that is given by Shwapno to its employees isnt enough. They should increase
the pay scale so that they can be able to maintain their basic living expenses.
2. Some workers of Shwapno are working in standing condition for hours after hours. This
is too pathetic. Company should arrange sitting facilities for them.
3. The feedback that is given by the authority to employees isnt enough. They should give
it frequently.
4. The supervision of Shwapno is too strict for its employees. They should reduce their
strictness.
At last, the theories that we explained in this term paper, are not implied properly in Shwapno
.They need to be more careful to apply these theories
6.6 Reference

https://www.facebook.com/Shwapno

http://www.shwapno.com/about.php
http://www.aci-bd.com/sub_logistics.php
Annual report of ACI 2012
Md Amirul Islam
Operational Manager,West Kazipara Branch,
Mirpur Dhaka

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