Assignment On Decision Making Process
Assignment On Decision Making Process
Assignment On Decision Making Process
Prepared By
Md Moniruzzaman Monir, ID 113143007
A F M Rubayat Ul Jannat, ID 113151004
Md Mahabbat Ali, ID 113143005
Mrs. Salma Jahan, ID 113143002.
1.1
EXECUTIVE SUMMARY
Contents:
Page no
Company Objective.8
1.6
1.7
Manpower Status.9
1.8
Financial Statement10-13
1.9
2.0
2.1
2.2
2.3
2.4
SWOT Analysis.21-23
2.5
Action Plan.24-25
2.6
Conclusion.26
adopt nondiscriminatory principles, limit working hours and pay fair wages.
We do not use child labor under the age of 18 regardless of the Law of the
country of origin.
MSRM Textile Mills Ltd was established in the year 2002 and our associated
factories were established in 2003 to face the challenge of open market
competition in Quality & delivery schedule for International Fashion and
Buying Houses. We are fully committed to our clients no matter small or big
in Fashion industry. We provide our best effort to our valued customers with
total commitment in order to achieve AQL 04 standards.
1.6
#
Production Capacity:#
#
#
Level
Top Level
Management
Mid Level
Management
Lower Level
Management
Workers
TOTAL
1.8
Designation
Existing
Manpower
Chairman
Vice Chairman
Managing Director
General Manager
Factory Manager
HR Manager
Compliance Manager
Security Manager
Maintenance Manager
Utility Manager
Production Manager
Supervisor
10
Floor Manager
Section Head
Line Manager
Workers
400
Remarks
445
ST
DECEMBER, 2012
AMOUNT (TK)
1,000,000,000
289,371,526
6,874,848
PRELIMINARY EXPENSES
492,862,680
340,112,909
L/C LIABILITIES
AMOUNT (TK)
100,000,000
4,900,950
180,645
1,379,070
BILLS RECEIVABLE
590,764,766
124,119,779
MARGINAL DEPOSIT
24,066,000
12,363,813
159,097,151
CLOSING STOCK
538,853,736
112,198,608
FORCED LOAN
99,159,234
ADVANCE TAX
5,051,795
OTHER LIABILITIES
17,804,287
9,354,747
ACCOUNTS PAYABLE
3,277,772
1,465,897,133
1,465,897,133
10
AMOUNT (TK)
PARTICULARS
Balance as per Last A/C
112,198,608
112,198,608
CR.
AMOUNT (TK)
110,703,080
1,495,528
112,198,608
AMOUNT (TK)
36,761,611
281,462
2,372,750
20,998,164
2,407,411
50,659,631
3,172,077
152,210
109,800
2,882
427,702
5,525,355
1,276,100
5,000
1,920,000
1,143,258
345,650
571,329
6,500
425,122
1,027,765
1,208,590
2,000
PARTICULARS
Gross Profit Transferred from
Manufacturing & Trading A/C
CR.
AMOUNT (TK)
134,195,365
11
503,294
233,388
1,160,786
1,495,528
134,195,365
134,195,365
PARTICULARS
Consumption of Raw Materials
Wages
AMOUNT (TK)
947,333,486
2,532,485
8,831,719
79,832,263
Gas Bill
46,272,600
189,543
26,850
1,027,765
312,293
8,228,954
2,180,217
4,183,676
Medical Aid
99,002
Tiffin Bill
229,751
Packaging Charges
672,633
Testing Charge
3,057,989
Fooding
1,477,902
AMOUNT (TK)
1,341,953,654
43,912,172
Labor Charge
Insurance (Marin)
PARTICULARS
Export Proceeds
640,675
56,716,014
12
134,195,365
1,341,953,654
1,341,953,654
PARTICULARS
Building
Open. Balance
as on 01.01.12
93,330,192
Addition
during the year
Balance as
on 31.12.12
93,330,192
Rate of
Depreciation
20%
Depreciation
Dur. The Year
18,666,038
W.D.V.
as on 31.12.12
74,664,154
137,122,138
20%
27,424,428
109,697,711
2,821,169
10%
269,417
2,551,752
137,122,138
2,694,169
Electric Installation
11,780,744
11,780,744
15%
1,767,112
10,013,633
Gas Installation
12,249,786
12,249,786
15%
1,837,468
10,412,318
5,665,292
5,665,292
15%
849,794
4,815,498
1,853,277
1,853,277
15%
277,992
1,575,286
166,837
166,837
10%
16,684
150,153
4,220,281
4,220,281
10%
422,028
3,798,253
301,327
301,327
10%
30,133
271,194
127,000
1,746,655
206,950
1,953,605
10%
174,666
1,778,940
61,410,420
14,373,257
75,783,677
10%
6,141,042
69,642,635
332,541,119
14,707,207
347,248,326
57,876,800
289,371,526
Allocation of Depreciation:
56,716,014
Manufacturing & Trading A/C:
Building
Plant & Machinery
Electric Goods
Gas Installation
Deep Tube well
Electric Sub Station
Spare Parts
Profit & Loss A/C:
18,666,038
27,424,428
1,767,112
1,837,468
849,794
30,133
6,141,042
1,160,786
269,417
277,992
16,684
422,028
174,666
13
57,876,800
High labor turnover may cause reduction in labor productivity and increase
in costs. In Bangladeshi economic condition, living cost and price hike in
daily commodities has reached beyond the limit. The salaries we are paying
to our labor are not satisfactory. Beside it for present market scenario, we
14
Low Productivity
After doing survey it is observed that that there was several dissatisfaction
among the employees regarding the system of management functioning of
our Mid Level management. Usually workers at all level found difficulties
while communicating with the mid level management. It is because the order
passing & execution channel has not worked well. Difference between the
execution of decisions were disrupted as they were not maintained a similar
mind in developing the solutions of the problems.
d.
Most of our labor doesnt know about the benefits we are providing as well
not aware of the companies HSE. Because of the knowledge gap 10-15% of
labors getting less productive and dissatisfied, its results turnover finally.
e.
Lack of motivation
15
f.
No Labor Insurances, worker participation fund and provident
fund benefits
At present, we do not have any insurances, workers participation fund and
provident fund thats why our labor & staff getting dissatisfy, tendency of
shifting to other organization is increased day by day. As most of the new
organizations are introducing attractive benefits like health insurance &
WPF etc and they are following labor law properly.
g.
As fuel price has increased employees are to spend more than their
conveyance. Again hectic traffic and poor public transport facilities are
restricting them to come to work on time and to concentrate in work
properly. That has put impact on their productivity.
h.
We have interviewed some of our Mid & Lower level managers &
employees. We have taken consent of some of our ex-employees
who left the organization recently.
With the short term research carried out by our consultant & after compiling
both views, we came up with the following solutions after analyzing the
situation and these are :
@
Develop the Mid & Lower level managers with some interactive
production oriented training & awareness program.
@
We may review the salary structure of Mid & Lower level managers
& also for the employees.
@
We may go for some declaration of Incentive Bonus thus gaining a
positive competitive mentality among all.
@
We may review the common benefit for the workers as per
Bangladesh labor Law 2006.
17
@
For the Mid & Lower level managers we may give some benefits like
Transportation, Tiffin, Special Lunch & annual picnic etc.
@
Hiring more efficient sales & Marketing executives with attractive
salary packages to put an impact on the market and maintain the profit.
2%
5%
10%
12%
Respective Justification:
Based on our review result, we have found that:
a.
18
In case of Mid & Lower level managers, who are mediocre and not
getting good offers from other organizations & dissatisfied with
current salary structure becomes frustrated and de-motivated and
as a result they have lost interest in their works. It has direct impact
on the low productivity & sales.
c.
For the last few years the cost of living has gone up significantly in
Bangladesh that caused the mid-income group to fall under a
threat. Majority of our mid and low employees income is spent for
buying regular food items, house rents and conveyances.
d.
e.
Subordinate Decision No 01
Since every problem has got more than one solution so we will also take
some additional motivational decisions phase by phase, which also act to
satisfy our employees especially who are based in Dhaka and having
transportation problem.
19
20
We will announce the annual picnic for all employees which will also have
some cultural activities.
Respective Justification
Based on our review result, we have found that if we announce & organize annual picnic
with cultural activities for all the employees, this will definitely have a great effect on the
interaction with Top, Mid & Lower level management. They will be able to share their
views & this will have a direct effect on their productivity.
Subordinate Decision No 04
We will announce the following benefits by mentioning the time frame when
we will be able to provide.
We will make a contract with some private hospitals for the yearly
check up of our Mid, Lower level managers & also for the workers
with a discounted price from 2016.
We will provide the Health insurance for the workers from 2018.
We will provide provident fund for all the workers including Mid &
Lower level managers from 2020.
Respective Justification
Based on our review result, we have found that if we announce the above benefits,
workers along with the Mid & Lower level managers will be motivated. It is because they
will have a target at which time they will get what extra benefit. The migration rate will
drastically decreased. This will have a direct effect on their productivity.
21
SWOT Analysis
As top level executives we cannot take a decision, which will satisfy all the
concerned people. There are merits and demerits of our decision. While taking
decision we have to comply with both the merits and demerits of our decision.
Here we have mentioned the Strength, Weakness, Opportunities and Threats of
our decision.
1) Strengths
The attributes of the decision that is helpful to achieve the company objective is
called the strengths.
a. We will be able to achieve our estimated daily sales and profit target
again after implementing our new decision as it will motivate our
employees and their productivity will increase.
b. This decision will help to restore our goodwill which is under threat now.
c. Employees will be more benefited as well as the company. Better
employees would ensure better service.
d. Satisfaction level of workers & Mid & Lower level managers will increase
and thus we will be able to increase the productivity rate.
e. Transportation facility will ensure in-time to work properly and reduce
daily hassle of the employees.
f. Production oriented training & awareness program will make our Mid &
lower level management more efficient & effective & thus helping in
motivating the workers & with the knowledge of the training they
will be able to increase the standard of working technique of the
workers which will have a direct effect on the productivity.
2) Weaknesses
22
c. Government will appreciate and may provide support for our company.
We may get strong financial response from other financial organizations if
we want to extend.
d.
4) Threat
23
2.5
A plan may sound very high but it will not bring any result unless it is
implemented. Plans are to be implemented. So we should make a realistic &
logical action plan & act accordingly to reach our objective.
Action plan
1. First we will calculate our existing staff salary cost and increased salary
cost and transportation cost and estimate the added expenditure required
to implement our decision.
Level and Tire
(per anum)
(per anum)
19,500,000/=
14,700,000/=
13,535,000/=
40,800,000/=
88,535,000/=
Tk. 7,374,500/=
19,890,000/=
15,435,000/=
14,888,500/=
45,696,000/=
95,909,500/=
= 18,00,000/=
24
We will set controlling and evaluation mechanism to retain our new sales
and profit target.
o We will make a networking system among all the supervisors, so
that we can sense any human resource related problem time
before hand.
o We will always keep a reserve fund & all the necessary parts ready
so that we can use them whenever we need.
o We will analyze our performance every year so that we can come
to know about the current market scenario.
of our Mid, Lower level managers & also for the workers with a
discounted price.
6. We will include the Health insurance & provident fund issue in the
Board meeting agenda so that these two should be noted in the future
25
2.6
Conclusion
We think new decision, which came out eventually with the problems we are
facing, shall not only benefit our company but also uphold our country as well.
This is because more companies will become interested to increase salary if they
can strike the balance like we did between disciplines, giving workload, ensuring
facility for the workers and rather make more profit than loss by utilizing the
capability of our workers. May be we will need some extra money at the
beginning but after setting up we will be able to make greater profit & our
investment will be make up within a reasonable time. We will become one of the
competitive remuneration payer company in our country and thus our reputation
will go high. Efficient employees will be attracted to join our company and we
together will ensure better quality of products and services.
26
27