BYZID HR Case Solution

HRM 480; Case 02: Byzid Apparels
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Managing Director of Byzid Apparels named Mr. A. Byzid was in his BMW on his return from the Chittagong Airport. His visit in Dhaka was to attend a meeting with a German Delegate but the meeting got cancelled and that smoked tension and worry in the mind of the MD regarding the survival and growth of the company. His visit in Dhaka after long six months was because of a boom in his business from a new buyer which was the biggest order that ever came to Byzid Apparels.
The Savar incident was an indication that severely misshaped the tour of the MD in Dhaka reported by the Intelligence Team of the company management.
Returning home from the airport the MD was severely concerned about the future of Byzid Apparels and of his future Career. The unrest in the RMG Sector was working against the company and Mr. Byzid just hoped for a quick stipulation of the issue at hand for his continued existence in the Industry.
The garment industry is by far the countrys most important manufacturer, earning around $5 billion annually and accounting for about two thirds of all exports. Bangladesh has about 2,500 garment factories with up to 10 million livelihoods dependent on it directly or indirectly. About 80 per cent of garment workers are women. The Ready Made Garments sector has more potential than any other sector to contribute to the reduction of of poverty. Despite the phenomenal success of the RMG sector the working conditions and wages of workers in the industry are cause for serious concern. Bangladeshs current position as a leading garments exporting nation needs to be consolidated. The economy-wide reverberations of failure would be disastrous. We believe it is in everybodys interest to sustain this industry an industry which changed the lives of so many people, particularly women, in Bangladesh.
The Apparel Industry in Bangladesh accounts for over 64% of the countrys total export earning and it has been growing at the rate of 25% for the last several years. The country ranked itself as the 6th largest apparel exporter to the USA and the EU. Around 2500 export oriented ready made garment Industry in Bangladesh are bunched in Dhaka and Chittagong so buyers get the advantage to choose the correct manufacturer and exporter around the year. 1
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While agriculture for domestic consumption is Bangladeshs largest employment sector, the money gained from exporting textiles is the single greatest source of economic growth in Bangladesh. Only 5% of textile factories are owned by foreign investors, with most of the production being controlled by families or Bangladeshi companies. Immediately after the founding of Bangladesh, tea and jute were the most export-oriented sectors. But with the constant threat of flooding, declining jute fiber prices and a significant decrease in world demand, the contribution of the jute sector to the countrys economy has deteriorated. The garment industry in Bangladesh became the main export sector and a major source of foreign exchange starting in 1980, and exported about $5 billion USD in 2002.
The industry employs about 3 million workers of whom 90% are women. Two nonmarket factors have played a crucial role in ensuring the garment sectors continual success namely (a) quotas under Multi- Fibre Arrangement1 (MFA) in the North American market and (b) preferential market access to European markets.
Bangladesh still remains an underdeveloped, overpopulated and ill-governed nation. Although the 80s era boomed the garments sector in Bangladesh attracting many foreign investors however a lot of competitive factors were ignored by the sector since buyers came to Bangladesh at their own will. The Ready Made Garment Industry in Bangladesh accounts for 76% of the total foreign exchange earnings. Its growth impacted the financial services sector, communications, transportation, and on other related industries. Empowering the women through RMG gave Bangladesh a modern and enlightened society reputation.
With the compromise of quality, competitiveness and efficiency the output of the RMG Sector is classified as low cost, low value added and poor quality. In this context BGMEA visualized and established the BGMEA institute of Fashion and Technology in November 1999 and gave students its service in April 2000. There are about 250 enrolled students in two Bachelor Programs and 675 people who are employed in this Industry have attended certificate courses on various aspects of the manufacturing process. This led to skill development of the people.
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After the September 11 tragedy Bangladesh faced slower export earnings. The country exports to 30 countries around the world. The country exports ready-made garments in the following proportion to different countries of the world as follows and the major export partner for Bangladeshi garments is that of the countries in the EU.
USA (45%)
EU (50%)
CANADA (35%)
Rest (2%)
Since 1974, world trade in textiles and apparel has been governed by the Multi Fibre Arrangement (MFA) which provided the basis on which industrialized countries restricted imports from developing countries. Every year quotas-the quantities of specified items which can be traded between trading partners-have been negotiated on a country by country basis. The MFA does not apply to trade between rich industrialized countries themselves. The MFA was designed to be a short-term measure primarily to give industrialized countries time to adjust to competition from imports from developing countries. Producers from the industrialized world have been protected against competition from producers in the developing countries.
Although negotiations to determine yearly quota for a developing country have favored the industrialized countries, apparel factories have located in countries to take advantage of the quota. This is one of the reasons apparel and textile supplier factories have located in certain countries (along with low wage costs, supply of materials, infrastructure for transport and marketing and nearness to market) For example, Bangladesh has benefited from MFA because of its sizable quotas. The apparel and textile sector has expanded and it has become a major supplier to both the US market and European markets.
The MFA has not prevented a massive shift in production of textiles and apparel to developing countries. Asia has become the world's foremost exporter. However the shift would likely have been greater without the restrictions of MFA. It is estimated 3
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that some developing countries have lost billions of dollars of foreign exchange due to the imposition of MFA trade restrictions.
At the heart of the MFA were a set of bilateral agreements between developedcountry importers, such as the U.S., and developing-country exporters, such as China and Bangladesh. The MFA did not apply to trade among the developed countries. The number of U.S. bilateral export restraint agreements grew from a single agreement with Japan in 1962 to agreements with 30 countries by 1972 and with 40 by 1994. Each agreement governed trade in as many as 105 categories of textiles and clothing, with new categories added to the agreements as the need to avoid market disruption arose.
During the Uruguay Round negotiations related to the World Trade Organization, an agreement was reached to phase out the MFA through the implementation of the Agreement on Textiles and Clothing (ATC). The ATC is an attempt to put an end to the constant extensions of the MFA by agreeing to a phase out plan after which the textiles an apparel sectors will no longer be subject to quotas. The ATC set a timetable for phasing out the MFA in four stages beginning in January 1995, with full phase out in January 2005. There are two aspects of the process: 1) the integration of products into the world trading system and 2) the progressive raising of quotas. The ATC has been viewed as operating in the interests of developing countries, since it is supposed to increase their access to the previously protected markets of industrialized countries. 4
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The ATC requires the integration of a designated percentage of all imports, not a percentage of the previously restricted imports by the MFA. This allows the importing countries like the US to 'integrate' products that were not restricted in the first place, which does not help the exporting countries. Also, the ATC allows industrialized country producers to implement 'safeguard' measures under certain conditions. These loop-hole permits industrialized countries to increase trade barriers if they think imports pose a significant threat to a domestic industry. Within a few months of the ATC being signed, the US had initiated twenty-four 'safeguard' actions against fourteen WTO members. These and other practices effectively delay the full implementation of the ATC as long as possible.
The MFA created a guaranteed market for Bangladeshis RMG in USA and Canada, two of the worlds biggest consumers of garments. The expiry of MFA will therefore mean that Bangladesh will no longer have the guaranteed market of RMG to USA which consumes about 43% of the countrys total apparel market and hence China and India will be the next alarming competitors.
Two major daily newspapers in the United States, the Christian Science Monitor and the New York Times have both separately reported that the US based Wal-Mart; the worlds largest retailing company, has stepped up its presence in Dhaka and increased its apparel imports from Bangladesh by 18 per cent during 2003. Wal-Mart executives have been quoted as saying that Bangladesh is very competitive because labor cost here is less by a third than what it is in China and also compares favorably with Fiji, Brunei, Macedonia and Turkmenistan.
Arrangement (MFA), which gave developing countries guaranteed access to developed countries' markets, was expected to doom the garment sector in countries like Cambodia, Bangladesh and Vietnam. But all three-recorded post-MFA export gains of between 9 and 11 percent last year, keeping hundreds of thousands in work in an industry that is a key economic driver. In its first post-MFA foray, Bangladesh, one of the region's poorest countries, posted 11 percent export growth led by knitwear -T-shirts, sweaters and polo shirts. One thing is very clear. The post-MFA period demands that the RMG sector improves not only its competitive edge in the global market but also the quality of its products by moving into the higher designer niche. Fresh challenges require that apparel producers reduce the cost of production even further. Producers will also have to improve efficiency, reduce lead-time and improve handling capacity at the Chittagong Port. One additional worry is the inadequate backward linkage facilities of Bangladesh. Bangladesh's competitive edge has been and will continue to be its cheap labor. For a labor intensive industry like the garment industry low labor wage is certainly a big 5
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advantage and in Bangladesh workers in the garment industry are paid much lower than in other countries, particularly those of China and Indonesia.
Bangladesh has a large market of knitted T-shirts and knitted jerseys in Canada and it is also the largest supplier of men's woven shirts there and the distribution can be outlined as follows: Cotton T- Shirts (15%) Cotton Woven Mens Shirts (13%) Acrylic Jerseys (10%) Denim and Cotton Trousers (5%)
But garments factories are constantly facing closures. There are hundreds of factories which don't follow any rules whatsoever, maintains no safety measure, use child labor, force their workers to work more hours than law permits, and make them work in unhygienic and claustrophobic environments. Fire incidents are rampant in these factories and hundreds of lives have been lost in innumerable fire incidents in such factories over the years. It could be referred back to the January 6 tragedy that cost at least 22 lives due to a fire incident is proof of the level of exploitation. These factories are simply exploiting the poor. They should be closed. When such bad garment factories will be shut the overall environment will improve, workers will receive better treatment and consequently productivity will rise. So, even if there are some immediate job cuts it will be ultimately good for the industry and for the nation. Many EU countries don't import goods from manufacturers who don't comply with safety regulations and who fail to upgrade work environment. In future, these importing countries, including the US, are going to be more stringent about these regulations. Child labor is another issue which exporters are taking very seriously, so the factories where standards of environment are not up to the standard, and they employ child labors. Thinking out of the box like exploring the handloom market and the SMEs can be other options to revive the economy. This sector is popular not just for the domestic market but also for the foreign market counterparts.
Garments for Bangladesh accounts for 75% of all exports. Bangladesh has its dependence on its export trade with the EU and the US, which amounts to 95% of all textile and clothing exports. 6
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According to the US trade statistics China is increasingly dominating world trade in textiles and clothing and will be more competitive in this arena after 2004. In 2002, China textile and garments exported to the United States with an overall growth of 105%, while the exports of Bangladesh fell by 5% and that of Jamaica fell by 19%. Chinas share of garment items saw an increase of 30% while the rest of the world suffered a fall of 28%. At the same time the prices of Chinese imports fell by 35% while those from the rest of world fell by 11%.These figures suggest that China is driving other developing countries out of the US market and Chinas deflationary impact will further drive down wages and worsen working conditions in the sector.
The expiration of the MFA Era will provide the opportunity for a real change. Until otherwise done as stated, millions of workers and their families will face a terrible future where only China will come out as the winner and millions of others a loser.
Dhakas readymade garment industry is encountering severe turmoils especially after the closure of the export processing zones for indefinite period. Investors closed down all their 92 factories in the Dhaka Export Processing Zone (DEPZ) from Saturday following another bout of workers' violence and said they will not re-open those until the government ensures law and order in the zone and security of their investment. BEPZA was requested to close DEPZ for an indefinite period of time until the situation cooled down. BEPZA on the other hand requested the Investors to keep the industries open as matters will be shortly dealt by the Ministers for Labor and Commerce.
Readymade garments are one of the key foreign exchange earning sources for Bangladesh. The DEPZ employs 70,000 workers while it exports goods worth over $300 million a year. The DEPZ is the second largest of its kind in the country with Chittagong EPZ exporting goods worth over $1 billion a year. More than seventy percent of countrys foreign exchange comes from this sector alone, while millions of workers, mostly female are employed in this sector. Any setback in this sector will ultimately put Bangladesh in to jeopardy. Almost eighty percent of the female workers in the readymade garment sector come from extreme poverty level. If for any reason, this sector faces closure, these females might cause severe social problems and that will lead to extreme political unrest among the country.
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Byzid Apparels is one of the garments manufacturing company in Bangladesh. In order to hold on to their global competitiveness, Byzid Apparels produces quality garments goods. The regular product of Byzid apparels are Shirt, Blouse, Short, Swimming wear, Fleece Top, T-Shirt, Boxer, Children wear set & Trouser etc. its production capacity 5000 DZN / Month (Woven), 6000 DZN / Month (Knit), 15,000 DZN/ Month (Boxer). Kmart, Baby Togs, Franshaw Inc, Joy Athletic, and IFG etc are the main buyers of Byzid apparels. It has 18,000 SQFT factory areas which are situated in 671/ Sholakbahar, Bahardarhat, Chittagong, Bangladesh. The company mainly buys raw materials from different suppliers around the country and from abroad, which is cheap yet of superior quality. Byzids main concern is to deliver the buyers orders according to their desired quality level in the right phase of time.
Byzid Apparel was formed on November 26, 2003 and it started its operation on June 13, 2004. The Directors are renowned businessmen of the country who posses sufficient capital to inject into the business. The company has 6 members; only 3 run the whole organization, holding the position of the Chairman, Managing Director and Director. The investments made by the Director add up to 80% of Capital for the organization and loans are obtained from Social Investment Banks from its name. The initial investment was TK 8 Crore and 50 Lacs which was supplied by the BODs of the Company.
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Byzid-Vision
Byzid-Mission
We will provide superior quality products at the most affordable and competitive prices to gain the complete satisfaction of our buyers and to ensure maximum profit
To provide higher level of buyer satisfaction. To maximize profit. To ensure steady growth. Sustain in the market and competing with the rivals. Provide superior quality in the long run. Ensure on time delivery of the finished goods.
Byzid- Human Resource Department

Byzid Apparels Highly Recognizes the need for a HRD in its organization. It attracts diverse organizational talents in various innovative ways. It also recruits, selects, trains and develops the employees so that a qualified workforce is facilitated. The responsibilities of HRD for Byzid Apparels go beyond explanation.
MISSION: Our aim is to attract the talented workforce in our organization that is available in the country. We strive to provide them with an excellent equal employment opportunity, which shall benefit the organization to the fullest extent and also enhance the employee career in the future. Our commitment is to advance Byzid Apparels strategic mission through recruitment and development."
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Byzid maintains a healthy and compassionate relationship with the Bangladesh Garments manufacturers and exporters association (BGMEA), with the belief that excellence in business can only be achieved by quality and by understanding, uncomplaining, gathering and exceeding buyers expectations.
A competent and intelligent team of professionals in Byzid thus operates with a progressive attitude to meet the buyers expectations through delivering products with non-negotiating terms and quality.
The company diversified itself into new entities in the embroidery factory and by delivering world class standards without any restrictions of any sort. This competitive edge was facilitated by having good marketing channels and by producing quality products constantly so there is always a scope for expansion.
The higher posts of employees are trained from BGMEA training centre and also from the other best industrial organization by providing proper training and development. This ensured that the company has a good pool of talent in the future.
However employee satisfaction severely suffered at Byzid Apparels and hence employee morale was suffering in the ways which are diagrammatically presented in the next page:
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1. No pride in Work Culture, Business ethics and environment Consciousness.
2. Upsetting organizational culture at Byzid Apparels.
3. Manager chooses outsiders rather than old employees for supervisory posts.
4. Lack of confidence in Management Policy.
5. No proper Compensation package for the factory workers.
6. Autocratic Management, so lower level employees are dissatisfied.
7. Lack of Succession Planning.
8. No proper recruitment and selection process.
After few years in the business, Byzid understood the importance of work ethics. On garments manufacturing business they are really following a quality ethics. However, for marketing their product follow unethical business policy like lower quality product and sell it at a lower price which is unfair in the business arena since they are compromising with quality. They are in this way, leading to dumping which makes the business environment ruthless and dirty.
One person got killed and at least 100 got injured while 250 factories and 200 vehicles were plundered on May 23rd 2006, as the garment workers in tens of thousands charged through the city and its suburbs to press home their 11- point charter of demands including a pay raise to be met.
The aggression fired up as a garment worker of Savar EPZ got killed. Workers of different garment factories in the EPZ yesterday came out on the street, set two factories on fire, damaged more than a hundred factories and a number of vehicles, and put up barricades to drive home their demands. They also demanded payment of all unpaid salaries, overtime wages, and basic wages for all, and an end to harassment 11
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by employees loyal to the owners of factories. In the two day incident, 300 garment factories including 21 of Dhaka EPZ in Savar were damaged causing a loss of no less than Tk 400 crore to the garment businesses. The BGMEA filed a case with Ashulia Police Station yesterday accusing six garment workers of prompting the unrest and turmoil. 100 garment workers form Gazipur, Savar and Sripur was also arrested by the police in this connection.
After the Black Tuesday, two more incidents occurred in the Industry which further shook the existence of companies in the market. Those were the-
The Savar Incident
The TejgaonMohakhali Incident
The hostility broke out at Chitrashile in Gazirchat at 9am with frenzied workers setting fire to Little Star Knitting Industry Ltd. Over 50 people including some policemen were injured in erratic clashes between police and thousand of workers during the four-hour bedlam from 9:00am. Police chucked 10 to 15 teargas shells and charged baton to disperse the demonstrating workers. The protesters looted an under construction factory of Mascot Group and set fire to some of its parts, as security guards locked in an altercation with them over continuing with production. A band of 40 to 50 unidentified workers wearing green helmets and black T-shirts set fire to Universe Knitting Industries Ltd, locals and law enforcers said. Some workers also looted various goods from the factory. All activities in Dhaka Export Processing Zone (DEPZ) came to a halt on Monday after the EPZ authorities called a two-day blackout and nobody were allowed to enter. ---- Savar Incident
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Some garment workers brought out a parade at Tejgaon and called the workers of different garment factories. They threw brickbats and started vandalizing cars. They also tried to involve the workers of Samah Razor Blade Factory in the movement but failed. The agitating workers then stanched arson on the factory. They also set fire to eight cars parked on its site. Another car was burnt in front of the National Shooting Complex at Gulshan at noon. Police, RAB, and Ansars were positioned in the area at noon to bring the situation under power. --- Tejgaon- Mohakhali Incident
The management of Byzid Apparels employs an intelligence team to oversee the employee relations. The Team is overlooked by the MD and issues are passed on to the board meeting. To meet extended demand by a new buyer the company started to employ more labor which was not carefully screened and hence some unruly mentality labors got employed in the company in the recent months that started to instigate the formation of Unions in the company for the first time. The Management followed a wait and see strategy to deal with this issue. Despite of the constant warnings of the intelligence team nothing was done by the management. Situations at Byzid Apparels heated up after the Savar Incident on 23rd May. The following turmoil started shooting up in Byzid Apparels that day which led the company to an unforeseen future.
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1. By 10 PM, some employees led by the rebellious employees of one Unit started the protest by slogans.
2. They went to another section and asked the employees to join them in their pursuit.
3. The employees of that section refused and a riot broke out.
4. The first group of employees started to break the machines of the opposing unit.
5. The second unit employees tried to stop it.
6. Security personal along with the second Unit employees tried to stop the occurrences.
7. The operations were halted for a day without any notice of the continuation of operations.
In the meantime the biggest order of Byzid Apparels had its delivery alarm in two weeks time.
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Byzid Apparels is a garments manufacturing company in Bangladesh which produces quality garment goods through which it sustains itself in the global competitive market. However, since Dhakas readymade garment industry is in turmoil most garment factories are going to face a closure. The garment factories do no follow any rules, has no safety measures, uses child labor and has extensive working hours in unhealthy environments which were not acceptable by the factory floor workers and hence they instigated riots and rampage in the city centre. The Black Tuesday, Savar and Tejgaon-Mohakhali Incident all led to some general employees led by rebellious employees form a Union breaking away the machines of Byzids non-unionized units. Moreover, Byzids employees were not proud of their organizational culture, ethics and their compensation package. In addition, the autocratic style of management and lack of proper Recruitment and Selection led to low employee morale which was another alarming problem throughout the company.
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How can Byzid Apparels resume its operations overcoming the alarming riot that broke out among the two different units in the company and establish a harmonious and reasonable settlement between the units to finish off the biggest order of Byzid within two-weeks time and ensure that there is no future union turmoil within the company and hence be able to secure its market placement like before?
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SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Below we have a diagrammatic representation for the SWOT analysis of Bayzid Apparels. WEAKNESSES:
OVERLOOKING OF THE INTELLIGENCE TEAM BY THE MANAGING DIRECTOR IMPROPER RECRUITMENT & SELECTION PROCESS NOT BEING ABLE TO KEEP UP WITH THE MOTIVE OF ATTRACTING EMPLOYEES AND KEEPING THEM LOYAL TO THE FIRM
STRENGTHS:
EFFECTIVE PLANNING PROCESS FOR SMOOTH OPERATION CONGENIAL & SUPPORTIVE RELATIONSHIP WITH BGMEA POSSESSING A COMPETITIVE TEAM OF PROFESSIONALS
OPPORTUNITIES:
NEED OF DEVELOPING THE HR DEPARTMENT FOR A STRONG WORKFORCE EXPLORING OTHER BUSINESS VENTURES FOR MARKET SHARES & DIVERSIFICATIONS LOOKING TO GAIN MORE EVEN AFTER LIFTING OF THE QUOTA RESTRICTIONS
THREATS:
CHOOSING OUTSIDERS FOR SUPERVISORS POST TALENTED BUT AN AUTOCRATIC MANAGER RECRUITMENT OF WORKERS WITH REBELLIOUS MENTALITY
Now we will be doing a SWOT Analysis for Bayzid Apparels in details and later on integrate it with HRP model to come up with the best strategy.
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Strengths:
Bayzid Apparels has an effective planning process at its disposal so that the organization runs at a smooth pace.
Since its birth, Bayzid Apparels has used time very effectively to construct a strong planning process, especially that of Human Resource Department, and also obtain other facilities in order to run the business.
This is a quality of strength because without any sort of effective planning a company cannot carry out an effective and smooth operation. The running will be haphazard resulting in disastrous results. For success pre-planning is necessary so that implementation can be quick.
Integration with the HRP Model: This relates to the area of HRP model where they show Product demand and organizational growth via Managerial estimates under Forecasting DemandConsideration and Techniques.
Justification of Integration: This area is related to the model because it has been witnessed that the biggest order that ever came to Byzid Apparels was arriving in two weeks time. Despite of the closure of many readymade garment factories, Byzid still regained its reputation in the market signifying that there is a product demand from them. Moreover, this will lead to organizational growth since substantial cash inflow is expected from the order and Byzid has Intelligence team and an autocratic manager to ensure the smooth operation of the company which makes it flourish more. Hence Managerial Estimate is an important tool for Byzid to determine the shortage of workers if any and resort to recruiting labors at full time like it did towards the end and hence balanced its Supply and Demand of HR.
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Bayzid Apparels maintains a congenial and supportive relationship with the Bangladesh Garments Manufacturers & Exporters Association (BGMEA).
Bayzid Apparels maintains a congenial and supportive relationship with the Bangladesh Garments Manufacturers & Exporters Association (BGMEA), with the belief that business excellence can only be achieved through pursuit of quality by understanding, accepting, meeting and exceeding buyers expectation.
This is a criterion of strength because as has been explained above that business excellence can only be achieved if a firm or organization or a company understands what its customers wants. A customer or a consumer wants quality and Bayzid Apparels has no other option other than maintaining it through the help and guidance of governing bodies who will help them to understand the demands and how to match those demands.
Integration with the HRP Model: This relates to the area of HRP model where they show government policies and education of the workforce under Forecasting Supply- Consideration.
Justification of Integration: This area is related to the model because under common terms maintaining a good relationship with BGMEA will ensure that government policies and other bylaws and regulations that are forthcoming to the garments factories are beforehand well accounted for. It has been mentioned in the case that most of higher ranked employees at Byzid have studied from BGMEA Institute of Fashion and Technology, so ensuring a good relationship will not only make Byzid have more educated pool of workers at relatively more negotiable terms but also have adequate time, tuning themselves with new government policies since BGMEA is the Peak association under the government governing the garment bylaws to a greater extent. BGMEA can act as the spokesperson for Byzid in the future. This will hence ensure hat there is a proper supply and demand of HR in the right place and right time.
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Bayzid Apparels has a competitive team of professionals.
The management of Bayzid Apparels, is a team full of competent professionals, as it operates with a progressive attitude to provide effective solution to satisfy the buyers needs through its products of uncompromising quality.
This is one of the most important aspects of strength. In order to succeed, businesses need to compete. Not only compete but doing it effectively is the main key behind the success. Competitiveness can only come if the employees are competent thus acting as a threat to other competitors. To direct these employees effectively the management should be competitive enough as well because they are the high-ups whom the subordinates will look up to for guidance and authority. Keeping up with the buyers demands is a proof that the management is competitive.
Integration with the HRP Model: This relates to the area of HRP model where they show Organizational growth under Forecasting Demand- Consideration.
Justification of Integration: This area is related to the model because Byzids competitive team of professionals operates with such a progressive attitude that any issue of importance is immediately brought into the Managing Directors focus and hence effective solutions are gathered at the right time and therefore the buyers needs are never compromised or delayed. This particular approach has led the company be able to uphold its reputation in the market despite the closure of many factories around the city centre. This hence ensures that through growth of the company there is also growth among the employees which results in recruitment if needed balancing the Supply and Demand of HR in the company round the year.
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Weaknesses:
Bayzid Apparels has an intelligence team which is which is overlooked by the manging director
To anticipate any unforeseen condition in employee relations, the management has an intelligence team. The team is directly overlooked by the managing director and any issues that seem important are passed onto the informal board meetings.
This behavior by the top level management just puts the company in troublesome state. They are underestimating the ability of this intelligence department or they being too negligent regarding the team. As a result the related issues are not being dealt with the right persons at the right time. This makes the companys issue solving techniques weak and hampers the future progress in the competition.
Integration with the HRP Model: This relates to the area of HRP model where they show Education of the workforce under Forecasting Supply- Consideration.
Justification of Integration: This area is related to the model because it should be borne in mind that the Intelligence team has a bunch of professionals working for the betterment of Byzid Apparels. The team being constantly ignored has led the company into recently employing workers who are relatively very rebellious in nature. They have formed unions with some general employees and then even broke out riots at Byzid. Therefore education of the workforce is not maintained as it used to be at Byzid where education from BGMEA Institute of Fashion and Technology was a must. Employee Recruitment Criteria got badly compromised in recent years and hence at Byzid some terminations for employee reductions will balance the Supply and Demand of workers in the company properly.
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Bayzid Apparels does not have a proper recruitment and selection process to fulfill its demand for more employees.
To meet the extended demand, the origination started to employ more labor. It is worth mentioning, the recent recruitments were not so carefully screened so some people were recruited with rebellious mentality.
If proper selection and recruitment procedure is not being carried out effectively then the Bayzid Apparels will end up recruiting wrong type of employees which is already happening and if this continues then there will be internal problems inside the company among the employees and employers. As a result the rebellious workers would take advantage of the situation creating conflicts thus bringing the downfall of the company.
Integration with the HRP Model: This relates to the area of HRP model where they show Education of workforce via Skills inventories and Succession Planning under Forecasting Supply- Consideration and Technique.
Justification of Integration: This area is related to the model because since there is a deficiency in proper recruitment and selection hiring educated pool of workers greatly suffered. Lately the company employed some rebellious employees who got them united with some general employees to form a union. Despite of this issue being brought to light by Byzids Intelligence Team, management still decided to follow a wait and see strategy. Moreover, employee morale greatly suffers at Byzid since employees complain that manager chooses outsiders rather than Byzids old employees for supervisors post. In order to ensure Education of workforce it is important that the company first goes through its internal Skills Inventories and with adequate skills identified in an employee go for succession planning to post employees in Supervisors post rather than hiring outsiders. This way employee morale will be improved and such a surplus will determine the mere possibility of hiring outsiders for the company. Shortage in the form of internal recruiting will balance the supply and demand of employees at Byzid.
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Despite the strong motive of attracting proper employees and keeping them loyal to the firm, Bayzid Apparels are not being able to keep up with it.
The employees are not proud of their work culture and they demand more and complains that whatever has been promised has not been fulfilled thus keeping the workers away from work.
In order to make a person motivated enough to carry out the task effectively sufficient scope of motivations should be given. Otherwise the workers would show unwillingness in performing their designated tasks thus making the factory lag behind in terms of fulfilling buyers demands.
Integration with the HRP Model: This relates to the area of HRP model where they show Management Philosophy via Managerial estimates under Forecasting Demand- Consideration and Technique.
Justification of Integration: This area is related to the model because although a very competitive Intelligence Team is present at Byzid, the team still remains ignorant of any major news and issues that come up. The management usually resorts to a wait and see strategy. Due to this some rebellious employees got recruited in the company foaming up riots and disturbances within the company units. Hence the management philosophy of Byzid to do nothing initially made the company revolve around problems and hence the managerial estimates are equally wrong when it comes to hiring and firing. This leads to shortages and hence proper managerial estimates should be performed as opposed to earlier, to bring back the proper balance between the demand and supply of employees at Byzid.
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Opportunities:
Bayzid Apparels has got ample space to develop its HR department in order to have a strong workforce
The HR department should be designed in a way to look into the factors of motivating employees and to make the better use of the workforce available at hands and how to further attract a quality workforce for future enhancement of the factory.
The HR department should draw up proper compensation plans. They should decide which employee to appoint in which position. The immediate supervisors should always be available and easy to communicate to for any sort of issues. The department should design the process of succession planning and should have proper recruiting and selection process.
Integration with the HRP Model: The aforementioned opportunity can be integrated with the models Organizational growth and Technology of Consideration under Forecasting Demand.
Justification of Integration: This area is related to the model because with the vast pool of good financial resources at Byzid and the ample opportunity to develop its HRD depicts that organizational growth can be continued. Developing HRD signifies that there would be opportunities to exploit new modern technologies. This will make work faster, easier and more integrated. Hence any surplus of employees within the organization after Technological advancements can be dealt with reductions and any shortage in a particular unit can be dealt with recruitment, balancing the supply and demand within Byzid.
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Bayzid Apparels should go into other ventures so as to expand their market and to have diversified business.
The company also diversified into new entities in the embroidery factory. They committed to achieve world class standards not only limited to formulations but also to embroidery factory. As they have good marketing channels and they are producing good quality product, so they is a scope for them to expand.
Going into a new field of business means that it creates for more money making activities thus flourishing the company funds. As a process they are also creating employment because to run the factory they need labor force. This will help them to enter the international market as well and thus create a stronghold for itself among the competitors.
Integration with the HRP Model: This relates to the area of HRP model where they show Technology via Trend Analysis under Forecasting Demand- Consideration.
Justification of Integration: This area is related to the model because getting into other ventures ensures that risks of operations are reduced. Diversification for Byzid in technologically fruitful areas can be beneficial since they have the biggest order in hand that ever came to them. Technology application will make their work faster and easier. This can come about by Trend analysis. The Garment industries are in turmoil, figuring out what would be next to the customers and to the buyers will greatly pay off Byzid. Hence they will also be able to balance off Demand and Supply for their company increasing Productivity through Technology via Trend Analysis.
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Bayzid Apparel has the ability to gain more even after lifting the quota restrictions.
As records provide evidences that even after protections has been lifted, Asias most vulnerable garment sectors, including Bangladesh, have flourished. Although there were helps from the developed countries but it also suggest that these developing nations have that ability to compete otherwise the developed nations wouldnt have held out their hand.
Based on this Bayzid Apparels should go for more competition as countries like US and EU are against textile giants China. They are more lenient towards the Bangladeshi products. So being a Bangladeshi garment factory Bayzid Apparels should invest more on higher designer niche and gain a competitive edge by having better backward linkage facilities at their disposal.
Integration with the HRP Model: This relates to the area of HRP model where they show Product/Service Demand under Forecasting Demand-Consideration.
Justification of Integration: This area is related to the model because even after the expiration of the MFA Agreement Byzid was still able to uphold its market position and it is after this removal that Byzid also got the biggest order from a buyer. This signifies that Byzids Product demand is still there in the market. Realizing Shortage Byzid then went for recruitment so that it can fill in the order hence by this way Byzid balanced its Supply and Demand.
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Threats:
Bayzid Apparels managers chooses outsiders rather than Byzids old employees for supervisors post
Employees are upset because managers choose outsiders rather than Byzids old employees for supervisors post. Employees are not motivated with the management policy. They think that they are not in a right position.
It is very important to have the right people in the right sight and in the right time. Thay have a lack of succession planning. Due to this, the outsiders might create ploys to leave out the old employees and give away those places to new recruits known faces. Another problem would be that as the supervisor is new so he is not accustomed with the existing employees problem and issues so he will face problem solving those.
Integration with the HRP Model: This relates to the area of HRP model where they show Education of Workforce via Succession Planning under Forecasting Supply- Consideration and Technique.
Justification of Integration: This area is related to the model because Education of workforce has greatly been affected by this. Lately Byzid engaged itself into recruiting employees who are of rebellious nature and their educational background wasnt even taken into account while hiring them. A lot of employees have shown their disappointment on this approach. They have been upset because their manager chose an outsider and not their old employees for the supervisory posts. Therefore, in the future they can go for succession planning through their intelligence team to identify the potentiality in their employees and assign posts accordingly which will increase employee morale at Byzid and hence balance supply and demand of employees properly.
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Bayzid Apparels manager is talented but autocratic.
The lower level employees are very much upset to communicate with the manager. As a result they are not being able to create a smooth chain of operation within the factory. The manager listens to his own opinion and does not pay any heed to other opinion by others no matter how effective those opinions are.
If this continues on then the employees will be highly disheartened and unsatisfied due to the fact that they are not being listened to. This will create depression resulting in some of the workers voicing their opinions against the authorities creating rifts and violence thus hampering the operations of the factory resulting in downfall of the factory fir an indefinite period.
Integration with the HRP Model: This relates to the area of HRP model where they show Management Philosophy under Forecasting Demand- Consideration.
Justification of Integration: This area is related to the model because it has been mentioned in the case that the lower level employees are very much upset with the manager since it is hard to communicate with him because he follows an autocratic style of management. Therefore the entire management philosophy here is to just work on following the orders from the manager. There is no empowerment in decision making neither there is any free flow of communication. Therefore depending on the managers need the balance between supply and demand of employees are obtained at Byzid.
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Lack of proper training and selection have resulted in Bayzid Apparels recruiting workers with rebellious mentality.
To meet the challenging demands it was necessary for Bayzid to increase the workforce of its factory. As the process had to be quick to meet the demands on time so proper recruitment and selection was not followed thus resulting inappropriate workers were hired of which most of them possessing rebellious mindsets.
These rebellious workers can go to any extent to fulfill their demands and use anyone as a means to achieve that. Some of the workers were trying to talk the general employees into forming a union and thus using it as a means to go against the authorities. These workers create riots which already did happen in the factory of Bayzid Apparels. Although initially it has been stooped, but in the future these will have dire consequences if these workers continue to stay in the firm. Because they will create more riots, so operations will be hampered thus low production and ultimately shutdown of the factory.
Integration with the HRP Model: This relates to the area of HRP model where they show Education of the Workforce under Forecasting Supply- Consideration.
Justification of Integration: This area is related to the model because with the biggest order at hand Byzid realized the need for more employees, and hence compromised on the employment criteria and ended up hiring rebellious natured employees. Despite the constant reminder from the Intelligence Team to deal with this matter immediately, the Byzid Management decided to follow a wait and see approach. Hence the education of the workforce was severely compromised leading to wrong recruitment and unbalancing the supply and demand of the employees at Byzid.
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Below the diagram summarizes in a tabular format the HRP Model. The Oval bullet Points outlines the existence of the Consideration and/or Techniques of Forecasting Demand or Forecasting Supply as per the case.
HR planning model
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Byzid does not have a proper recruitment and selection process with proper application that will help to recruit talented workforce and minimize the chances of hiring anyone with rebellious tendency:
Byzid Apparels strategic aim is to advance through recruiting and developing talented workforce that is available in the country but in order to meet recent extended demand, Byzid recruited people with rebellious mentality. So one of main HR challenges are to develop a proper recruitment and selection process and Byzids HR department should focus more in the proper application of the recruitment and selection process to ensure that right people with adequate skills are selected in the right position at the right time and lower the chances of selecting people with rebellious tendency, thus lowering the chances of riots.
Byzid does not have a proper, flexible compensation package for its factory workers for which the low level workers are demotivated :
Byzid apparels HR department should develop a proper, flexible compensation package for its factory worker that accounts for basic wages, overtime, benefits in such a way that the compensation package ensures internal and external equity. This can be done by proper job analysis to ensure internal equity and pay surveys must be conducted for similar jobs in the garments sector and based on the surveys, compensation package must be designed to ensure external equity. This will help to motivate the employees, increasing their job productivity, satisfaction, commitment to the organization and reducing absenteeism and employee turnover. Moreover an attractive compensation policy will help to attract talented workforce.
Byzid relies on outsiders who are not familiar with Byzids culture for supervisors post and has no proper succession planning as well as development program that will provide existing employees to develop skills and give them scope for careers growth:
The high post employees of Byzid apparels are trained from BGMEA training centre and also from some of the best industrial organization but there is no succession planning and no development program exist in the organization for the existing employees to develop adequate knowledge, skills and abilities needed for future growth. So a proper succession planning and development program must be introduced at Byzid Apparels that will help to motivate the employees, increasing 31
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their job productivity, satisfaction, commitment and lowering turnover. This will also reduce the chances of choosing outsiders who are not aware of the organizations culture, for supervisors post as succession planning and proper training program will help to fill a job vacancy position through internal recruitment.
Byzids employees are dissatisfied with current management policies, working conditions, work ethics, environment consciousness so it is a responsibility of HR department to review and upgrade its existing management policies and provide culture awareness program to all its employees:
Moreover the employees at Byzid are not satisfied with the management policy, work culture and environment consciousness. So one of the main HR challenges are to review the management policies for improvement and then to provide a culture awareness program that will help the employees to become aware about the organizations culture, work ethics and environments consciousness. The culture awareness program must also be designed in a way that will help employees understand that the management policies are in their favor and become familiar with what is expected from them by their employers. This will increase the employees morale.
Byzid existing manager is talented but autocratic for which lower level employees are unable to communicate properly regarding their problems for which the employees are upset:
The manager is talented but autocratic so lower level employees are very much upset to communicate with the manger. It is important for the organizations existence and in order to gain competitive advantage in the future that manager must communicate effectively with lower level employees and act as employee advocate in order to solve employees problems, reduce conflicts, reduce chances of riots and allow free flow of information which can lead to a dynamic organization. So HR department must train the manager to interact properly with lower level employees, act as employee advocate and it is a challenge of HR department to devise a system so that employees can communicate more effectively and efficiently with their managers. Effective communication will help to improve employer-employee relations and prevent chances of unionism at Byzid.
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The existing managing director overlooks the findings of intelligence team and failure to take proper action in time by top management lead to riots among employees, disturbing the workflow and leading to shutdown for a day:
Byzid has an intelligence team in place that are responsible to find out about any suspicious rebellious activity by employees and inform the top management but the main problem is that this intelligence team is often overlooked by the managing director and any issues are passed over to the informal board. It is also seen that in some cases when intelligence team has informed to take immediate actions to prevent shutdown, management has applied the wait and see strategy that ultimately lead to riots, stopping operations for a day. This disturbance in the work flow process and stoppage in operations was detrimental for Byzid as such interruptions might mean that Byzid will not be able to fulfill its biggest order on the due date. The intelligence team of Byzid must be empowered so that they can take appropriate actions without top managements consent to minimize rebellious actions, thus maintaining the workflow.
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ALTERNATIVE 1: DO NOTHING
Byzid Apparels is a garments manufacturing company in Bangladesh whose main focus is to export goods outside the country. So far, Byzid Apparels have succeeded to deliver buyers order according to the buyers desired level of quality in right time. In order to do so, Byzid Apparels bought raw materials of superior quality from different suppliers across the country and aboard at cheaper cost. Moreover Byzid has a good relationship with Bangladesh Garment Manufacturers and exporters associations (BGMEA) which allows Byzid to work progressively, effectively as well as efficiently without compromising quality. In addition, Byzid has diversified its business by entering into the embroidery sectors and is fully relying on its well established marketing channels to expand its business. At this moment, Byzid can still sustain by continuing its existing operations effectively and efficiently.
Pros of Alternative 1: Do Nothing
Saves Money: Byzid can continue its existing operations in the same working environment that existed since its inception without incurring any further costs. This helps Byzid to save money that can be invested in the future.
Saves Time: By following the alternative of Do Nothing Byzid can focus on its existing operation maintaining its operations efficiency, workflow. This will allow Byzid to save time.
Saves Effort Making changes in an existing organization requires a lot of effort so that the people in the organization can adapt to the change and improve their performance. Some people show resistance to changes and become dissatisfied. If Byzid follow the
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strategy of Do Nothing, it does not have to put in extra effort and still can maintain its operations efficiency and effectiveness.
Cons of Alternative 1: Do Nothing
Existing recruitment and selection process fails to attract talented workforce as well as recruits factory workers with rebellious mentality: Proper Recruitment and Selection process will help attract a talented workforce and will place the right person with the right knowledge, skills and abilities at the right lace in the right time. It is seen that in order to meet extended demand, Byzid has hired factory workers without proper screening. As a result, factory workers with rebellious mentality was selected that tried to convince general employees in forming unions. The rebellious factory workers were responsible for starting riots, vandalizing machines which lead to a shutdown of operation for a day on May 23rd. Hence, if management follows the alternative of Do Nothing then there are high chances of selecting more rebellious workers who will be responsible for more violent riots.
Factory workers are dissatisfied with current compensation package that will lead to lower job productivity, increased absenteeism and turnover: A proper compensation package helps to lift the employees morale. At Byzid, factory workers are dissatisfied with existing compensation package. If nothing is done about this, then employees productivity as well as job satisfaction will deteriorate which will ultimately lead to increased absenteeism and turnover. This will eventually cause disturbance in maintaining the current workflow and Byzid might fail to meet its order by dead line.
Lack of proper succession planning and development program is a major drawback: As mentioned earlier, Byzid depends on outsiders for supervisor position. One of the major problems with this is that outsiders are not familiar with Byzid work environment, organizations culture so they cannot play the role of employee advocate and maintain the employer employee relationship. This might alienate the existing employees. Moreover, there is no scope for existing employees to move up the hierarchical order due to lack of proper succession planning and proper development program that will help existing employees to acquire the required skills, knowledge and abilities needed for employee growth and promotion. Thus, lack of proper
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succession planning and development program might demotivate the existing, highly experienced employees causing them to leave their job in search for better paid jobs.
Existing employees are not happy with existing management policies, work environment and environment consciousness which might lead to a demotivated workforce that threatens Byzids existence in the future: Despite having a talented workforce, the employees at Byzid are not proud of their business ethics, environments consciousness and work culture. Moreover, employees are unhappy about existing management policies. If No measures are taken about this situation then the employees of Byzid will become dissatisfied, lowering their productivity which will ultimately lead to absenteeism and turnover. Furthermore, the employees at Byzid might get involved in unethical business practice followed by other garments such as dumping and influence into their lower quality products, sold at below the average market rated, over other companys products.
The existing, highly talented manager is autocratic that does not listen to its employees and alienate them: The current manger is talented but autocratic. This definitely poses a problem. A manager is expected to work as an employee advocate in order to resolve employees problems, reduce conflicts and motivate its employees. But this is not so at Byzid. As a result, there is a communication gap between manager and employee that alienates the employees and make them angry which is detrimental to Byzids success.
The existing managing director overlooks the findings of intelligence team and failure to take effective measures lead to riots, damage to machines and shutdown: The managing director of Byzid ignored the findings of intelligence team when they reported that some rebellious workers are trying to form unions which if these employees succeed can lead to shutdown of Byzid Apparels. The top management at that time failed to take appropriate action as they implemented the wait and see strategy. The outcome of failure to take appropriate action lead to riots, breaking of machines and a shutdown for a single day before Byzids biggest orders delivery date. If management does not do anything about this by following the alternative of do nothing, and then there are chances of greater riots, more damage to machines, properties and a permanent shutdown in the long run.
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ALTERNATIVE 2: A COMPLETE RESTRUCTING OF THE CURRENT HR PRACTICE AND PROPER IMPLEMENTATION OF THESE HR PRACTICES WITH THE GOAL OF ACHIEVING TALENTED, HIGHLY MOTIVATED WORKFORCE THAT WILL THRIVE FOR BYZIDS SUCCESS IN THE LONG RUN.
The employees at Byzid is dissatisfied with the existing management policies and existing HR practices of recruitment, selection process, compensation package and lack of succession planning and lack of training and development program needed for an employees growth. So it is quite necessary that the top management makes a review as well as complete restructuring of its existing HR department, upgrade its HR policies, practices and ensures that the new HR practices are properly implemented in order to achieve success and growth in the near future. The main focus of Byzid is on recruitment, selection, training, development, succession planning, managing employer-employee relationship.
Pros of Alternative 2: A complete restructuring of the current HR practice and proper implementation of these HR practices with the goal of achieving talented, highly motivated workforce:
Proper recruitment & selection process to hire the right people with the right skills, knowledge and abilities at the right position in the right time: Byzid will need to review its recruitment and selection process and make necessary changes so that during extended demand, Byzid can quickly hire the proper candidate with adequate skills, knowledge, abilities, experience, qualifications through proper screening. This will reduce the chances of selecting rebellious factory workers and hence lower the chances of forming unionism, riots at Byzid Apparels. Moreover, hiring the right people with right skills in right position at right time will help Byzid gain competitive advantage over its competitors.
Proper, flexible compensation package will help motivate the employees increasing their job productivity, satisfaction, organizations commitment and lowering chances of turnover: Byzid must review its current compensation package and make necessary changes to ensure the compensation package meets both internal and external equity. Byzid can take into account of important factors such as cost of living adjustments and the benefits included in the compensation package must be custom fitted to meet each individuals specific needs. This will help to lift the employees morale, motivating them to perform better. 37
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Proper succession planning and development program provided to the right, experienced person to acquire the adequate skills, knowledge and abilities needed for growth which will further motivate employees reducing voluntary turnover: Succession planning by top management will help screen the right person in terms of skills, seniority and experience for supervisors post and a development program must be designed to ensure that the selected person has the adequate skills needed for job. The advantage of internal job posting and succession planning instead of hiring outsiders is that the existing employee is familiar with the organizations culture and this also reduces the costs of hiring a new employee from outside.
Designing separate, efficient and effective T and D plan for each level of employees starting from managers to factory workers regarding their skills, knowledge and abilities as well as providing cultural awareness program to all employees regarding organizations culture, work ethics and environment consciousness which will help Byzid Apparel to develop a dynamic workforce: Cultural awareness program must be designed in such an efficient and effective manner so that all level of employees in the organization becomes aware of the organizations culture, work ethics and environments consciousness. This reduce the chances of employees getting involved in unethical business practices such as dumping once they understand what the employers expects from them and how the employees can meet the employers expectation. Moreover, awareness program will help the employees to understand fully about the management policies and how such policies exist for betterment of organization as a whole. This eliminates the chances of employees becoming alienated and retaliates.
Furthermore, a separate training program must be designed and provided to each type of employee in the hierarchical order: For example, there must be an effective training and development program for training the new and experienced line production workers so that they possess the required skills, abilities and knowledge for their jobs. A training program must be provided to the manager so that he knows how to interact with his employees on a daily basis regarding problems and act as an employee advocate and then co operate his employees to jointly provide solution regarding problems. This also helps to maintain the harmony in the working condition.
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Cons of Alternative 2: A complete restructuring of the current HR practice and proper implementation of these HR practices with the goal of achieving talented, highly motivated workforce:
Additional costs for restructuring HR practices: If Byzid makes a review of its HR practices and make necessary changes, it will incur additional costs. For example, conducting pay surveys and then designing a compensation package that is highly attractive can be costly. RMG sector in Bangladesh is blooming for its cheap labor and suppose if employees are paid using above the market strategy, then Byzid will incur significant costs compared to its competitors. Designing specific, separate T and D plan for each level of employees and also designing a proper recruitment and selection process can add to the extra cost as well. Hiring specialist and trainers to design T and D program can also be expensive.
Additional time required: Making necessary changes in HR practices requires a lot of time as HR managers has to conduct job analysis thoroughly, conduct pay surveys, devote more time in proper screening of individuals and designing effective and efficient training and development program for all level of employees. Making succession plan also requires more time.
Requires more effort Making changes in an existing organization requires a lot of effort. The HR department first has to review the existing HR policies, identify the loop holes by conducting thorough analysis which requires a lot of effort than usual to design a perfect HR practice system that is consistent with Byzids goals and mission.
People can show resistance to change: Some employees might not want to participate in training and development program and can show resistance to change in their current work setting. This might demotivate them, causing them to leave their jobs.
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ALTERNATIVE 3: THE INTELLIGENCE TEAM AT BYZID APPARELS SHOULD BE EMPOWERED SO THAT THEY CAN TAKE ESSENTIAL MEASURES TO PREVENT CHAOS, RIOTS AND PROTECT THE FACTORYS MACHINE AND THE EMPLOYEES
Byzid Apparels has created an intelligence team that are responsible to find out about rebellious workers, the workers attempt to form union and create havoc and then intelligence team are expected to report about their findings to the top management so that top management can act. However, there were many occasions when their findings were overlooked by the managing director and management failed to act at the right time which lead to riots, break down of machines and shutdown for a single day on May 23rd. So it is important that the intelligence team is empowered so that they can stop riots before they can occur and monitor all the employees for the organizations welfare as a whole.
Pros of Alternative 3: The intelligence team at Byzid Apparels should be empowered so that they can take essential measures to prevent chaos, riots and protect the factorys machine and the employees
The intelligence team must be empowered to reduce the chances of their findings being overlooked by managing director and they can take preventive as well as effective measures whenever required: The intelligence team is responsible to find out about employees intention to form union and participate in rebellious activity that is detrimental to Byzids success in the future and it might also hamper Byzids relationship with its buyers if Byzid cannot deliver in time. However, the findings of intelligence team are ignored by managing director who has other important things to look after. Giving intelligence team the authority by empowering them helps Byzid in following ways:
The intelligence team can prevent riots from happening by stopping the rebellious employees from forming unions and stopping them before riots break out. The intelligence team can find out the rebellious employees and can fire them.
Moreover this will help Byzid from damages caused by riots that are expensive for Byzid. If machines are broken due to outcome of riots, Byzid will require money to fix them and the idle time for fixing the machines can be costly as well if Byzid fails to fulfill its order before delivery date which might hamper their relationship with buyer. Thus empowering intelligence team helps Byzid saves money. 40
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Empowering the intelligence team helps top management in many ways. The top management does not have to be worried about the rebellious workers because the intelligence team will handle it. This reduces the anxiety of top management, saves their time and helps them to focus more time on other important decisions for the company such as expansion.
The intelligence team can act as an employee advocate and enable to minimize the communication gap between managers and employees: Since intelligence teams work is to find out about rebellious employees and their activities and stop them, it is important that intelligence team has a very good relationship with all the employees. Intelligence team can find out the reason that alienates the employees, making them angry for which they are willing to form union and cause violence. The intelligence team can then act as employee advocate and help employee by solving their problems and resolving conflicts. This will help to reduce the chances of riots, motivate the employees, increasing their productivity, satisfaction, organizations commitment and also help to minimize the communication gap that employees have with their manager. This will further help facilitate effective upward as well as downward communication and free flow of information via the intelligence team.
CONS of Alternative 3: The intelligence team at Byzid Apparels should be empowered so that they can take essential measures to prevent chaos, riots and protect the factorys machine and the employees
The intelligence team can look after their own interest once they are empowered: Once authority is given to intelligence team, they can misuse the power and can look after their own interest instead of the managements interest. Moreover they would not have to give any justifications for their actions. Moreover they can manipulate their findings and accuse innocent employees against whom they might have a grudge. Once the innocent employees are framed, they will be kicked out of the organization and if this continues happen, there can be chances for the organization to lose valuable employees.
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We recommend alternative-2 as a probable solution.
Our alternative 2 was A complete restructuring of the current HR practice and proper implementation of these HR practices with the goal of achieving talented, highly motivated workforce that will thrive for byzids success in the long run. As the mission of Byzid Apparels is to provide high level of buyer satisfaction, steady growth, maximize profit, provide superior quality, ensure the time delivery to provide the finished goods, so they need to practice the HR systems and need to implement those properly. Byzid Apparels highly recognizes the need for a HRD in its organization. It believes that a qualified workforce can only be achieved by a dynamic Human Resource Department. But they are not practicing the policies of HR. And as a result employee dissatisfaction is occurring in the organization. Employees are not motivated with the management policy. So this alternative will provide Proper recruitment & selection process to hire the right people with the right skills, knowledge and abilities at the right position in the right time, proper, flexible compensation package to motivate the employees, Proper succession planning and development program, Designing separate, efficient and effective T and D plan for each level of employees.
The other two alternatives do not cover the overall span of the problem like the above mentioned alternative does. The aim was to come up with a solution which would solve the problem in such a manner so as to reduce the possibility of any future problems. Like alternative-1 which was Do nothing is not a proper solution. It may not increase the cost, effort but it will raise the existing problems. It will not motivate the employees to work properly. And the alternative-3 was to empower the intelligence team at Byzid Apparels. This might affect adversely as the intelligence team can look after their own interest once they are empowered.
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General implementationByzid Apparels is based on garments manufacturing company in Bangladesh. Its basic aim is to produce quality garments goods, which helps them to sustain their position in the global competitive market. The main focus of Byzid Apparels is to export goods outside the country. The main concern is to deliver the buyers orders according to their desired level of quality in the right phase of time. Their vision is to provide superior quality products at the most affordable and competitive prices to gain the complete satisfaction of buyers and to ensure maximum profit. So it is very crucial for Byzid Apparels to do a very through and in-depth implementation process for the desired result. To reach the level of Byzid Apparels mission and vision a complete restructuring of the current HR practice and proper implementation of these HR practices with the goal of achieving talented, highly motivated workforce is needed. As the companys mission is to ensure the time delivery and provide superior quality, they have to have good HR policies. Byzid will need to review its recruitment and selection process and make necessary changes so that during extended demand, Byzid can quickly hire the proper candidate with adequate skills, knowledge, abilities, experience, qualifications through proper screening. Byzid maintains a congenial and supportive relationship with the Bangladesh Garments manufacturers and exporters association (BGMEA), with the belief that business excellence can only be achieved through pursuit of quality by understanding, accepting, meeting and exceeding buyers expectation. And this believe should be maintained for the steady growth. Cultural awareness program must be designed in such an efficient and effective manner so that all level of employees in the organization becomes aware of the organizations culture, work ethics and environments consciousness. This reduce the chances of employees getting involved in unethical business practices such as dumping once they understand what the employers expects from them and how the employees can meet the employers expectation. Finally for ensuring quality products the company should employ highly skilled persons from the existing employees not from outside. At the same time it should invest more on technologies related to production.
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Functional implementationMarketing Implementation As Byzid appraisal committed to achieve world class standards is not only limited to formulations but also to its embroidery factory. But But there are some unethical business policies in the garments market that is much unexpected. For marketing their product they follow the unethical business policy like manufacturing lower quality product and sell it with a lower price which is very unfair with quality product. So to do their marketing properly, the first thing they need to ensure is quality product. As Bangladesh is totally dependent on its export trade with the European Union and the US, which take 95% of all textile and clothing exports, they need to implement a good marketing policy. They need to come up with some new marketing strategy by hiring some freshers who are skilled and experienced. Fresh challenges require that apparel producers reduce the cost of production even further. This assumes particular importance given the edge enjoyed by some other countries that have better backward linkage facilities at their disposal. Producers will also have to improve efficiency, reduce lead-time and improve handling capacity. Develop Integrating Marketing Communication (IMC) Plan To build an Integrated Marketing Communication (IMC) Plan Byz appraisal must follow the following development steps: Review of marketing plan Analysis of promotional program Budget determination Develop integrated marketing communication program Implement marketing communication programs Monitor, evaluate and control the program The communication medium Using consultants: In the selling and marketing products consultants always play a very vital role, so Byzid Apparels can use consultants to convince government personnel and international clients to win contracts and attract new market segments. Bill boards: though it is an international business but again using billboards through which company can let others know about their products and also when the foreigners will visit they will also have their attention.
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Public relation: These days pr does most of the marketing work in efficient manner. It is cost efficient and it is of high effectiveness.
Distribution Process Now the process of distribution network which will have to be implemented when the distribution is low graded when it comes to serve and they need to be really focused in to that segment as the market of this segment is really huge. They have to hire people and also make some research that what is the thing that will attract the foreign buyers. They will provide information accurately so that they can make the strategies to distribute properly and they need to be really focus. They have to hire people who will actually gather the data and they need to be compensating well to work for the company and make the information workable to make the strategies which will actually help them to capture a huge portion of the market.
The distribution channel system and also the rules and regulation of the distribution channel will also need a thorough a change and it have to done by some specialist as it will be really a crucial move to change the distribution channel. Also the systems in the Chittagong port needs to be changed. It takes a lot of time to make a shipment which might affect on the time efficiency.
Financial implementation Regarding the funding things, Byzid Apparels will have to focus according to the existing market situation. The optimists believe that though China has better infrastructure and a lower lead-time Bangladesh's competitive edge has been and will continue to be its cheap labor. For a labor intensive industry like the garment industry low labor wage is certainly a big advantage and in Bangladesh workers in the garment industry are paid much lower than in other countries, particularly those of China and Indonesia.
Bangladesh is still heavily dependent on imported fabrics to meet the demand for domestic and export-oriented RMG industry. In 2003, the demand-gap of fabric for domestic and export through RMG was 2,000 million meters. So to invest the money in the proper sector, Financial implementation also has to be made to support the building the distribution system. This would include human resource cost and also cost of other resources such has distribution vehicles or methods in the building of the process.
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They will require money to conduct the research activities for identifying the possible market, improve logistic systems for better distribution, winning license from government by competitive bidding and for the promotional activities.
Like every business organization Byzid Apparels is a profit seeking company suffering from damages. It is investing developed countries like Canada, U.S.A, UK where the company would need huge investment regarding the whole production set up, strategic business offices in different location and developing a supply chain. Thus in order to sustain in business it needs to have a finances. So some sources of fund have been listed below as per priorityBank Loan Own money Share price Maintaining good environment is necessary also. Many EU countries don't import goods from manufacturers who don't comply with safety regulations and who fail to upgrade work environment. In future, these importing countries, including the US, are going to be more stringent about these regulations. Child labor is another issue which exporters are taking very seriously, so the factories where standards of environment are not up to the standard, and they employ child labors, and violate rules that assure workers' rights are ultimately going to be hushed. So the rules should be implemented properly through HR policies. Child abuse should be removed.
Human Resource implementation Strategic human resource management or SHRM is like the heart for the company since it is the department which would be searching and employing those skilled and qualified people who are going to make a company successful. In the case of Byzid Apparels, the company also needs to give high attention on its SHRM. Because a successful entry is not the ultimate success of business, it is the sustainability of business that counts. So Byzid Apparels should carry out an effective Human Resource implementation system to bring out the desired result from the recommendation. To bring about the desired result from the strategic human resource implementation, Byzid Apparels would be a shown a systematic building block which they can restructure the HR department. The following diagrammatic representation summarizes the process blocks for the HR restructuring and integration for Byzid Apparels:
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Obtain the required employees & workers
Improve skills & qualifications & performance evaluation
Compensation and benefit management
Come up with a succession plan
Now we will go through a detailed analysis of the above building blocks in the following pages.
Block 1: Obtain the required employees and workers

For restructuring the HR department professional HR personnel is needed. They will be the ones drawing up the HR plans and find ways to implement them to give the company a sound employee base. There will be a HR head, who will think of the plans and policies for the labors and get those plans approved by the top level management. Then there will be a stand-in HR head or more precisely a deputy to the HR head who will carry out the plans further for implementation. At the last stage will be the HR executives who will be actually on the field that is they will carry out the instructions of the HR department.
If seen from a point-of-view of a communication bridge, the HR head will act as a liaison between the top management and the middle level HR employees; the deputy to the HR head will act as a liaison between the HR head and the HR executives; and lastly the HR executives will act as a liaison between the middle level HR deputy and the production workers.
To understand the fruits of their efforts and planning, a pool of workers should be present on whom; the plans are actually going to be implemented. They will be the source of feedbacks for whether the restructuring of the HR department has been a wise decision or not.
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Certain activities that need to be carried out are: Job Analysis: This involves identifying the skills and expertise required to perform the work, which clarifies hiring and promotion standards. Job Description: This is the written summary of a job, including responsibilities, qualifications and relationships. The job description provides a wide picture of the job. Recruitment & selection: This involves constructing an employment planning; supply of candidates from inside sources; supply of candidates from outside sources; using selection tools and building a pool of appropriate candidates. A diagrammatic summary below will give the whole picture of the plan: Obtain the required employees & workers
Job Analysis Job Description
Recruitment and selection
HR executives
Deputy
Head of the HR department RESTRUCTURED HR DEPARTMENT 48
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Block 2: Improve Skills & Qualifications & Evaluate Performance

After changing the hierarchical structure, it is necessary to make these employees perfect at their workplace. There is no use of a restructured department if the employees of the department themselves are inefficient are ineffective to perform their designated tasks. Desired results are within the grasp only and only if the employees are skilled and qualified enough and when an effective evaluation is in place.
Effective evaluation will give the employees feedback about their work and output. It will keep them on a regular check. The employees will understand areas to develop on and areas on which they are good but should work hard to be better. Evaluation will also help the authorities to decide whom to keep and whom to fire.
The activities that need to be carried out for the effective improvement of skills and qualifications and evaluating performance are: Training under expertise: The technique of managing people would require the employees and workers to learn the job quickly, hence the employees needs to be trained by people who are good at this people and resources handling. Job instruction training (JIT): The lower level employees of the HR department can be trained by this method. In this way they will be given a list of instructions, which they will follow while managing the HR department. Simulation training: This could be another very effective method to train up a huge number of employees who will be handling labor related issues. In this method of training a trainer would show how to handle a labor dispute or drawing up a compensation plan which may arise due to any sort of conflicts or confusions. Workshop: The HR department would arrange workshops for the HR executives for better knowledge, sharing new ideas and being more compatible in the industry. Workshops would be a better option for the departments middle and lower level management employees. Performance appraisal: This will be done by Management by objectives; 360degree appraisal; Behavioral observation scale; behaviorally anchored rating scales. After applying the methods of performance appraisal the HR department would come with a plan which would specify the ways of judging an employees performance and create a development phase where the ways 49
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of judging performance would be determined and designed. Then comes the execution of the ways of judging performance of the employees by the HR experts.
The following flow chart will summarize the whole process more specifically:
Improve skills & qualifications
Performance evaluation
Training under expertise JIT Simulation training Workshop
MBO 360 degree Behavioral observation scale Rating scales
IMPROVED SKILL & QUALIFICATION & EVALUATION PERFORMANCE
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Block 3: Compensation & Benefit Management

After carrying out the necessary evaluation techniques and methods it is now time to reward those employees according to the results of the evaluation. Compensation and benefits are the most influential motivators for the employees to strive for success. A person carries out his or her work in the hope the he or she will be rewarded appropriately. The way the person is being rewarded whether monetarily or nonmonetarily will determine whether that person will give the same level of performance in the future or change the level of performance. This is both in the case for positive and negative views.
In order to run the HR department efficiently different set of packages need to be introduced for different set of employees. The division will be accordingly: Head of the HR department, Deputy, Executives.
For the Head of the department following benefits will be provided: Fixed pay Profit sharing Pension incentives Employee stock ownership plans Payments for holidays Incentives for medical, transport, housing and recreation Employment insurance Long term disability pay For the Deputy, following benefits will be provided: Fixed pay Health and transport incentives Profit sharing Pension incentives Short to long term disability pay And lastly for the executives, the following benefits will come into effect: Performance based pay Health insurance Short term disability pay
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Other sort of compensation and benefits for all level of employees can be: motivational strategy, career counseling, career specific information & employment opportunities.
All these can be represented in the following ways:
Compensation and benefit management
Executives Head of HR department Deputy Performance based pay, Health insurance, Short term disability pay
Fixed pay, Profit sharing, Pension incentives, Employee stock ownership plans, Payments for holidays, Incentives for medical, transport, housing and recreation, Employment insurance, Long term disability pay
Fixed pay, Health and transport incentives, Profit sharing, Pension incentives, Short to long term disability pay
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Block 4: Succession planning
An employee will only strive to work hard when he or she is recognized by rewarding him or the highest possible accolade of power, in relation the respective post being held, given by the organization.
Obviously what we are discussing about is Promotion or more technically or professionally known as Succession Planning.
Succession Planning takes place when a vacant position is being filled by appointing an employee who was holding the position right below the vacant position. This is an example of internal recruitment and is considered to be very prestigious as it is known for gaining recognition and power. In case of the HR department of Byzid Apparels succession planning is an important issue as this will motivate the HR personnel to create better motivational programs for the employees of other departments as well as HR departments. The following considerations need to take place: Maintaining Skills Inventory: Bifid Apparels need to keep the record of the employee training and skills. For various purpose they will need different skilled people and sometimes. If the company dont consider the issue then there is a possible way that it can be missed and sometimes company wont be able to know about that are they having the people who have that specific skill or not. Performance Appraisal: All employees will undergo performance appraisals with their immediate managers on timing that is based on the level of their role. All performance appraisals will be timed from the date of employment commenced. This is to ensure performance management is a regular, rather than occasional management responsibility.
Making recommendation: HR department will be not only involved in recruitment and training but also maintain link with the other department to know about what kind of skilled people they want. This department will make a necessary list of skills of a specific post. So whenever any post is going to be vacant they can take a quick step to fulfill the post with the skilled people. Consulting: HR department will also do the consultancy for the employees. Any time any employees can consult with the Human Resource dept. about their need. The HR dept will help them by giving the full suggestion about this issue and they also work for the employees for that issue. 53
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The above mentioned core activities for succession planning can be summarized by the following ways:
Come up with a succession plan
Maintaining Skills Inventory
Performance Appraisal
Making Recommendation
Consulting
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So we have seen that the implementation process has been carried out in two phase which proves that the system has been gradual and have kept scopes of result display and taking further decision on improvements and betterment.
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56

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HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

Byzid- Human Resource Department

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

1. No pride in Work Culture, Business ethics and environment Consciousness.

2. Upsetting organizational culture at Byzid Apparels.

4. Lack of confidence in Management Policy.

5. No proper Compensation package for the factory workers.

6. Autocratic Management, so lower level employees are dissatisfied.

7. Lack of Succession Planning.

8. No proper recruitment and selection process.

HRM 480; Case 02: Byzid Apparels

The Savar Incident

The TejgaonMohakhali Incident

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

3. The employees of that section refused and a riot broke out.

5. The second unit employees tried to stop it.

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

Bayzid Apparels has a competitive team of professionals.

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

Bayzid Apparels manager is talented but autocratic.

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

Pros of Alternative 1: Do Nothing

HRM 480; Case 02: Byzid Apparels

Cons of Alternative 1: Do Nothing

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

We recommend alternative-2 as a probable solution.

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels

HRM 480; Case 02: Byzid Apparels