Letter of Transmittal May 29, 2009 Nazmul Hossain Lecturer Department of Marketing Faculty of Business Studies University of Dhaka Subject: Submission of the report. Dear Sir, This is the report on Organizational Behaviour an essential component of Business strategy that you have assigned us on different lectures in this semester. The report carrying essential organizational culture of our Bangladeshi company component bears the proof of our sincerity and professionalism. We try our best to make the report an excellent. This report is made according to your direction.
We appreciate you having this report as it will, we hope, help us in our academic and carrier life. We will be available for any further inquiries whenever you call us. Thanking You, Versatile BBA, 13th Batch Section: A Department of Marketing Faculty of Business Studies University of Dhaka Name Roll No A. T. M Omar Faruq 021 Md. Aminul Islam 027 Saeid Uddin Ahmed 035 Md. Hafizur Rahman 069 A. S. M Nur-E-Elahi125 Aslam Ali Rajib141 Table of Contents TitlePage No. Square Group of Industries08 Introduction09 Organizational Chart11 Square Textiles Ltd. 12 Introduction13 Unit Profile14 Square Knit Fabrics Limited15
Introduction16 Production18 Conclusion20 Acknowledgement This report is the result of many people’s contributions and help. At this moment we want to thank those people who extended their help providing suggestions and advices. Special thanks go to our honourable Course Instructor Nazmul Hossain Lecturer Department of Marketing Faculty of Business Studies University of Dhaka Who helped us giving tips, suggestions and valuable advices regarding the report; he is also credited for her excellent teaching in this course. We also want to make thanks to those writers whose books helped us to make this valuable report.
And also thanks Square Textile ltd. to provide important information. Our friends who are in the following helped us a lot. Methodology To prepare this report we have collected data from different published materials. Then we have conducted a secondary study. After that we have prepared a questionnaire and took interview one of the executive serving in this Company. We also collect data from internet . This way we collected primary data. Thus we have used both primary and secondary report to prepare this report. Executive Summary Square Textile Ltd. started its operation in 1997.
It was enlisted in Dhaka Stock Exchange & Chittagong Stock Exchange in 2002. The business lines of Square Textile Ltd. are manufacturing and marketing of yarn. Its factory is located in Gazipur , Dhaka. The manufactures 100% Cotton Ring Span Yarn or Hosiery, 100% Cotton OE Rotor for Hosiery and Knit Fabrics for 100% export oriented readymade Garments Industry. The strategic Goals and Objectives of the Company are to strive hard to optimize profit though conduction and transparent business operations and to create more competitive in the internal and external market.
In home, customer of Square Textile Limited is export oriented readymade Garments Industry. The Company also exports its products to the market of Europe & USA. The export sells increased by 19% in 2003 over the previous year. Competition level is increasing both in local and abroad market. Competition will be stiffer after 2005 when multifiber agreement will be phaced out. Among the other foreign competitors Srilanka, China Pakistan and India are prominent. Square is one of the biggest employees in Bangladesh. It has a personnel and administrative department. The total numbers of employees are 1223.
For the employees there is systematic in house training in home and abroad. The managing director, the CEO is the head of the executive management team. Below in there are directors, executive directors and general manager. Under the direct super vision of the general manager a number of departments are controlled. The Company is going through continuous growth in production. The total production increased year on year basis at the rates of 0. 43% and 1. 467% during 2002 and 2003 respectively. The Company’s operations are out on an aggregate basis and are managed as a single opportunity segment.
The Company uses Computer Aided Design (CAD), Computer Aides Spreading (CAS) and Computer Aided Manufacturing (CAM) in its plant to increase the overall efficiency and productivity. Introduction *Origin of the study -This is a part of the B. B. A program as students of business faculty, we have to do such type of report. *Objective of the study – To gather enough information to understand necessity of organizational behaviour in business strategy that can help us to make a decision. *Limitation of the study-To finish this we face some problem such as- # Time Limitation Monitory Problem # Lack of information Square Group of Industries Introduction Square Group is one of the most renowned pharmaceutical company in Bangladesh. This group inaugurated their journey through Square firm in 1958. This is the first medicine exporting firm in the country. It’s contributing to the national economy by exporting medicine from 1987 to till now. Square group is no longer confined to medicine production. They have diversified their activities. In 1988 they established Square Toiletries. In 1997 they established Square Textiles. In 2000 Square spinning started exporting by satisfying the local market.
In 2001 Square group lunched many other firms: Knit Fabrics, Square Fashions Limited, Square Informatics, Square Consumer Product and Square Hospital. Now their total asset is about $200 million. And, yearly investment is about $300 million. The companies of Square Group of Industries are: |Square Pharmaceuticals Ltd. |[pic] | |Square Textiles Ltd. |[pic] | |Square Spinnings Ltd. |[pic] | |Square Toiletries Ltd. [pic] | |Square Consumer Products Ltd. |[pic] | |Square Informatix Ltd. |[pic] | |Square Health Products Ltd. |[pic] | |Square Agro Ltd. |[pic] | |Sheltech |[pic] | |Pioneer Insurance Company Ltd. [pic] | |Mutual Trust Bank Ltd. |[pic] | |National Housing Finance And Investment Ltd. |[pic] | |Mediacom Ltd. |[pic] | |Aegis Services Ltd. |[pic] | |Maasranga Productions |[pic] |
These all following companies owner is Square Group of Industries. So, it’s too much tough to visit all companies within a day. So, we just visit their only textiles & fabrics company. In our report, we only present the details of these companies detail & their production possibility. And also know about how they help our country to improve our economic growth rate. Organizational Chart As we know that Organizational chart is the framework of an organization. It helps to accomplish the goals effectively and efficiently. It represents the organizational skills and also uniqueness in the business world.
Square Group also follows a realistic organizational chart. The chart is given in below: Organizational Chart Managing director General Manager Manager (Export) Manager (Purchase)Manager (Production) Plant Manager Supervisor Operator Junior Operator Assistant Operator Square Textiles Ltd. COMPANY OVERVIEW ABOUT COMPANY: Square Textiles Ltd. started its journey by establishing the first unit in 1997. One year later the second unit was established. Square Textile is a subsidiary company of Square Group . The Company was incorporated as a public limited company in the year of 1994.
The operation was started in 1997. It was enlisted in Dhaka Stock Exchange & Chittagong Stock Exchange in 2002. Within a very short time of span the company achieved some significance success. Square Textile receives Oeko-Tex standard 100 and ISO-9002 certificates in the year 2000. Authorized capital of the company is tk. 1000 million. It’s paid- up capital is tk. 251. 90 million. 1,223 employees are working in this organization. The business lines of Square Textiles Limited are manufacturing and marketing of yarn. The factory is located in Saradaganj, Kashimpur, Gazipur, Bangladesh.
Its office is located at Uttara in Dhaka MISSION STATEMENT: The mission statement of Square Textiles Limited is “Our mission is realization of vision through maximum production of goods and services strictly on ethical and moral standards at minimum costs to the society ensuring optimum benefits to the shareholders and other stakeholders. ” This mission is envisioned by the concept of business which ensures well being of the investors, stakeholders, employees and members of the society which will create new wealth in the form of goods and services. KEY PRODUCT / SERVICES:
As stated earlier the business line of the company is manufacturing and marketing of yarn. It manufactures: • 100% Cotton Ring Span Yarn For Hosiery • 100% Cotton OE Rotor Yarn for Hosiery • Knit Fabrics for 100% export oriented readymade Garments Industry. It also performs the following services:- • Dying & Post Mercerization. • Fabric Dying The final output is marketwise by Square Fashion Ltd. In Square Textile Limited two types of products are produced in two different units. These are as follows: Unit 1: Combed and Carded Yarn from a count range of Ne. 10 to Ne. 80. Unit 2: Combed Ring Yarn from a count range of Ne. 0 to Ne. 40. In Square Spinning Ltd. 100% Cotton Carded and Combed Yarn in the count range of Ne. 16 to Ne. 30 are produces. Finally in Square Fashion’s Ltd. Readymade Knit Apparels like T-shirts, Polo shirts, Tank tops, Pajamas, Sport wear, Under garments, Men’s & Ladies fashion wear , Kids wear etc STRATEGIC GOALS & OBJECTIVES: The company sets the following objectives for it to achieve: • To strive hard to optimize profit through conduction of transparent business operations within the legal and social framework with malice to none and justice for all • To create more jobs with minimum investments To be competitive in the internal as well as external markets • To maximize export earning with minimum imported in-puts • To reduce the income gap between top and bottom categories of employees. Thus the company focuses to pole-star its mission that fulfill the objective with emphasis on the quality of the product , process and services blended with good – governance that help build the image of the most enable corporate – citizenship at home and abroad .
The company wants to produce such society friendly goods and services that go to satisfy the wants of all the relevant party without disturbing or damaging the socio- economic and ecological, balance of the mother earth and the process of human civilization leading to peaceful co-existence of all the leaving beings. The company always strives for top quality products at the least cost reaching the lowest rungs of the economic class of people in the country. The company values its obligation to the greater society as well as it strives to protect the interests of it’s shareholders and to ensure highest return and growth of their assets.
Square Textiles Limited – Marketing Overview MARKETING OVERVIEW POTENTIAL CUSTOMER: The target market for products produced in Square Textiles Ltd. and Square Spinning Ltd. is Export Oriented Readymade Garments Industry. Readymade Garments exporter that is Knit Fabrics, Sweater and Denim manufacturer. In Bangladesh Beximco Kitting, Grameen Knitwear, Shasha Denim, Knit Concern etc are the customers. Target market for products produced in Square Fashion Ltd. is Europe and U. S. A.
Square Textiles does not direct sales in overseas market but sometimes India, Pakistan & other countries take their yarn. SIZE & GROWTH OF MARKET: The Company’s marketing operations continued its emphasis on export sales over the years as depicted below: | |Year – 2006 |Year – 2005 |Year – 2004 | |(a) Quality sold (Kg) | | | | |Local sales |99,800 527,903 |539,417 | | |(0. 7%) |(3. 7%) |(3. 9%) | |Export Sales |14,554,342 |13,817,314 |13,129,599 | | |(99. 3%) |(96. 3%) |(96. %) | |Total Sales |14,654,142 |14,345,217 |13,669,016 | | |(100%) |(100%) |(100%) | | | | | | |(b) Sales Revenue ( Taka ) | | | | |Local Sales |9,455,588 |32,576,936 |46,956,494 | | |(0. 4%) |(1. 8%) |(2. 3%) | |Export Sales |2,093,214,675 |1,756,441,450 |2,029,968,545 | | |(99. 6%) |(98. 2%) |(97. 7%) | |Total Sales |2,102,670,263 |1,789,018,386 |2,076,925,039 | | |(100%) |(100%) |(100%) |
The above figures show that the export sales increased by 19% in 2006over the previous year with greater exposure to international market scenario and risk. COMPETITOR ANALYSIS: Only in few years back textile sector in Bangladesh was left behind but current scenarios is different. In recent years a mentionable figure of money has been invested in this industry. Government is also encouraging this sector. Government is making some favorable policies and minimizing the regulations, so that this sector can be grown up. Among the domestic companies Square is one of the leading one. The other potential competitors are Padma Textiles, Shamim Textile etc. Competition will be severe after 2005, that is, during the post multifiber agreement period. World market will be Quota free at that time.
So Bangladesh will have to compete with countries like Srilanka, China, Pakistan, Vietnam etc. Square Textiles Limited – Management MANAGEMENT Management: The entire management process comprises the following units: Executive Management: The Managing Director, the CEO is the head of the Executive Management Team which comprises senior members of the Management Apparatus. Within the limits of delegated authority and responsibility by the Board of Directors , Executive Management operates through further delegation of authority at every echelon of the line management . The executive Management operates within the framework of Policy & Planning strategies set by the Top Management with periodic performance reporting for guidance .
The Executive Management is responsible for preparation of segment plans / sub – segment plans for every profit centers with budgetary targets for every items of goods & services and are held accountable for deficiencies, with appreciation for outstanding and exceptional performances . These operations are continuously carried out by the Executive Management through series of Committees , sub – Committees ,Committees & standing Committees assisting the line management . Management Committee: Comprising top executives , deal with entire organizational matters. Standing Committee: Standing Committee comprises the following committee: Audit Committee: • Internal Audit Committee • ISO Audit Committee Social / Environment Committee • Performance Evaluation Audit Committee Employment Relations Committee: • Remuneration Committee • Work Environment Committee • Performance Evaluation Audit Committee Management Committee: • Product Planning & Development Committee • Quality Control & Research Committee • Production & Inventory Management Committee • Export Promotion Committee Square Textiles Limited – Human resource management Human resource management Human resource planning Square has a personal and administrative Department . Square is one of the biggest employers in Bangladesh. The total number of employers in Bangladesh . The total number of employees is 1,223.
For the employees there are systematic in house training in home and abroad . To motivate the employees, along with salary and benefits the company provides various facilities like free meals , free transportation , 24 hour medical center , on site sports . Production and accommodation facilities includes full time supply of safe drinking water, adequate lighting and ventilation facilities from sheet. HR Practices of SQUARE textile Recruitment Training Performance Management Labor relation Employee relation Job analysis Job design Selection Development Incentives Benefits Recruitment and Selection process in SQUARE Recruitment is the process trough which the organization seeks applicants for potential employment.
Selection refers to the process by which it attempts to identify applicants with the necessary knowledge, skills, abilities and other characteristics that will help the company achieve its goals, companies engaging in different strategies need different types and numbers of employees. The strategy a company is pursuing will have a direct impact on the types of employees that it seeks to recruit and selection. Source of recruitment There are two kinds of source SQUARE uses for recruitment . They are 1. External source 2. Internal source. We try to discuss all relative sources which are used for recruitment in SQUARE. Internal source SQUARE thinks that current employees are a major source of recruits for all but entry-level positions.
Whether for promotions or for ‘Lateral’ job transfers, internal candidates already know the informal organization and have detailed information about its formal policies and procedures. Promotions and transfer are typically decided by operating managers with little involvement by HR department. Job-posting programs HR departments become involved when internal job openings are publicized to employees through job positioning programs, which informs employees about opening and required qualifications and invite qualify employees to apply. The notices usually are posted on company bulletin boards or are placed in the company newspaper. Qualification and other facts typically are drawn from the job analysis information.
The purpose of job posting is to encourage employees to seek promotion and transfers the help the HR department fill internal opening and meet employee’s personal objectives. Not all jobs openings are posted . Besides entry level positions, senior management and top stuff positions may be filled by merit or with external recruiting. Job posting is most common for lower level clerical, technical and supervisory positions. Departing Employees An often overlooked source of recruiters consists of departing employees. Many employees leave because they can no longer work the traditional 40 hours work week . School, child care needs and other commitments are the common reason.
Some might gladly stay if they could rearrange their hours of work or their responsibilities . Instead, they quit when a transfer to a part-time job may retain their valuable skill and training. Even if part-time work is not a solution, a temporary leave of absence may satisfy the employee and some future recruiting need of the employer. External source When job opening cannot be filled internally, the HR department of SQUARE must look outside the organization for applicants. We discuss all the external source of recruitment at bellow: Walk-ins and Write-ins: Walk-ins are some seekers who arrived at the HR department of SQUARE in search of a job; Write-ins are those who send a written enquire . oth groups normally are ask to complete and application blank to determine their interest and abilities. Usable application is kept in an active file until a suitable opening occurs or until an application is too old to be considered valid, usually six months. Employee referrals: Employees may refer job seekers to the HR department . Employee referrals have several advantages . Employees with hard –to –find job skill may no others who do the same work. Employees referrals are excellent and legal recruitment technique, but they tend to maintain the status quo of the work force in term of raise , religions , sex and other characteristics , possibly leading to charges of discrimination. Advertising
Want ads describe the job and the benefits, identify the employer, and tell those who are interested how to apply . They are most familiar form of employment advertising . for highly specialist requites, ads may be placed in professional journal or out of town newspaper in areas with high concentration of the desired skills Example: General Manager- production (ref: PM) -Age: 28-35 years; Graduate with specialization in garment mfg technology from NIFT or equiv. -Minimum 10 years experience in similar position of a unit with a minimum of 1000machines. -Must have detailed hands on knowledge of industrial engineering. We offer competitive salary which is commensurate with experience and qualification.
If you aspire to an exiting and rewarding career , send your detailed resume, quoting your present and expected salaries to jobs. Internet Now today no body thinks anything without internet. So SQUARE give their advertise at internet. Example: WWW. bdjobs. com www. square. bd. com Square Textiles – Employee relation & Job analysis Employee relation Employers and employees each have their own sets of needs and values, and successful relationship between these two sides requires that some sort of balance be struck. This balance often takes the form of a psychological contract, an understood agreement between employer and employees that defines the work relationship.
This contract with or without support of a formal collective bargaining, agreement influence the outcome achieve by each side. SQUARE group the various into three channel categories those are 1. Employee safety 2. Employee health 3. Employee working condition Employee safety SQUARE provide the employee safety . It ensure the all kinds of job safety such as insurance of each employee not this it provide insurance to the labor. Employee health Free medical checkup, provide health card and also provide necessary medical facilities for each employee. Employee working condition The working condition of employee is very hygienic SQUARE is ISO 9001-2000 Certified company
Square Textiles – Empowerment Empowerment Compensation fluctuates according to – A pre-established formula – Individual or group goals because group goals are different from individual goals – Company earnings Incentives adds to base pay It controls costs because the employee is being paid for his/her extra effort and for the benefits brought to the organization. Motivates employees Empowerment Pay Categories Individual Group Company-wide Individual Empowerment plans – Quantity of work output (How many units produced) – Quality of work output (What was the quality of the product or service being produced or served) – Monthly sales (How much sales was generated) Work safety record (How many hazard or errors are being reduced. – Work attendance (If the absent is reduced or attendance is good) Group empwerment Performance Measures Group incentive plans – Customer satisfaction – Labor cost savings – Materials cost savings – Reduction in accidents – Services cost savings Company-Wide Performance Measures Company-wide incentive plans – Company profits – Cost containment/prevention – Market share – Sales revenue Individual empowerment Plans (Piecework plans) • Awards based on individual production vs. company standards • Awards based on individual performance standards using objective & subjective criteria • Quantity and / or quality goals
Advantages and disadvantages of Individual Iempowerment Plan • Advantages – Helps relate pay to performance – Promotes equitable distribution of compensation – Helps retain best performers – Compatible with individualistic cultures and societies • Disadvantages – May promote inflexibility – Unrealistic standards may hamper employee motivation – Setting performance standards is time consuming – Factors beyond employee’s control may affect outcomes – Factors not rewarded may be overlooked Group empowerment Plans • Rewards employees for their collective performance • Group incentive use has increased in industry • 2 types – Team – based or small group – Gain sharing
Company-Wide Empowerment Plans • Rewards employees when company meets performance standards • 2 Types – Profit sharing plans – Employee stock option plans Competitive Strategies • Lowest – cost – Lower output costs per employee – Individual & group incentive plans – Behavioral encouragement plans • Differentiation – Unique product or services – Creative, risk – taking employees – Long – term focus – Team – based incentives FINDINGS AND RECOMMEDATIONS Findings: Textile industry is a comparatively new in our country. The size of the industry is still growing. Square Textiles Limited is one of the first movers in this sector.
Starting only in 1997 , it has managed to be grown up as one of the country’s leading Textile Company . Its increase turnover has been significantly increasing, since 1997-2007. It is providing employment to a large number of skilled and unskilled people all over the country. The Company contributed an amount of taka 37. 892 million to the national exchequer in different forms like Cooperate Income Tax, Advance Income Tax, Ecise, Vat, Import Duties, Taxes, Government Taxes , Stamp Duties, License Fees etc. The Company contributed substantially to the Foreign Exchange Reserve of the country through its export marketing operation. In 2007its net export earning was taka 1021. 368 million.
Recommendations: From the analysis with the organization structure we have seen that its span of super vision is too large. A number of departments report directly to the general manager. If the number were less the efficiency and productivity of the organization might be increased. Quality control department should remain prompt always. So that it can maintain a certain level of standard as per the market demand to capture the foreign market share it should strive more. CONCLUSION The flourishment of any industry requires combined efforts and co-operation from several parties . Social , political and macro economic environment play pivotal role in this regard .
Though Square Textile is a newly Ventured Company in the respective sector, its growth and expansion is praiseworthy. Its contributing the country and serving the nation in different ways. If it can up hold its much toward advancement, it will be able to set a role model in our country. ———————– Group: Versatile Deparment of Marketing VERSATILE Square Textiles Limited Industrial Study Tour Report on Square Textile & Fabrics Submission Date May 29, 2009 Prepared By Group: Versatile Section: A Batch: 13th Department of Marketing Faculty of Business Studies University of Dhaka Prepared For Nazmul Hossain Lecturer Department of Marketing Faculty of Business Studies University of Dhaka