Introduction

A manual that gives HR policies of an organization along with a wide overview of different HR procedures such as work force planning, enlisting, pay packages and profits, grooming, employee governance, etc. is called an HR manual. It is usually fashioned for internal use in the HR department only. An HR manual ought to result in the succeeding level of justification, wherever necessary. HR manuals are complete compilations of policies and procedural corroborations relevant to employees within the organization. The content of these manuals is not to be interpreted as the policy but it is to be utilized along with the HR policies formulated by the Department of Human Resource Management. The HR manual of any organization is formulated to enable the managers and supervisors to accomplish the human resources obligations meted out to them efficaciously. This is done by supplying parameters and guidance for making decisions, along with supplying all staff members with user-friendly and approachable data. HR manuals are usually developed and revised by Human Resources Departments of various companies. The HR manual usually deals with the company policies regarding the following areas of operation. These include ways and categories of hiring support staff and academic staff, guidelines for fixed-term employment, policies for selection and recruitment, position descriptions, working hours of main and support staff, guidelines for annual leaves and sick leaves and other forms of leaves, salary packages for the various positions, guidelines to staff grievances, etc. Along with these, the other things such manuals deal with are: Selection and Recruitment, Methods of employment and working hours, Flexibility of employment and development of staff, Opportunity for equal employment, Superannuation and remuneration, Leave, Safety and occupational health, Disciplinary procedures and termination of employment, and other employment related provisions.

1.0 HR Planning
1

Human Resource Planning is the process by which an organization ensures that it has the right number and right kinds of people, at the right places, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. The planning process of SN Apparel Ltd. will involve 2 major activities: 1) Projecting the possible job openings in future 2) Deciding whether they will be filled by inside or outside candidates 1.0.1 Forecast Demand for Human Resources To forecast the demand, there are several ways of predicting the future job openings. We will do trend analysis, ratio analysis and the management judgment and decisions. Trend Analysis: It involves studying the companys employment levels over the past years to predict the future employment requirements. Ratio Analysis: It involves forecasting based on the ratio between some causal factors such as sales volume and the number of employees required for that performance level). Ratio Analysis can be of various kinds, such as Productivity ratio, Direct-to-indirect labor ratio etc. Management insight and judgment: It will depend purely on the department how many people they will need. If our activity is expanded obviously we will need more people. 1.0.2 Forecast Supply of Human Resources Forecasting supply is nothing but forecasting the Human Resource Inventory. Human Resource Inventory is a profile of the current status of the human resources in the company. Such profile helps identify what skills are currently available in the organization before the management can start considering new pursuits. Internal: Human Resource Inventory also helps in other personnel activities, such as selecting individuals for training, for promotion, and for transfers. One of the devices used in todays world is the Human
2

Resource Information System (HRIS). We will also use it. SN Apparel Ltd will customize its HRIS program through best possible programmer to keep a sound record of it. External: Now HRIS can be applicable if we do internal recruiting. While doing external recruiting, we will have to forecast the external supply of market. Here we will consider the labor market, which means the area from which an employer typically recruits to fill a position. This area varies according to the type of job being filled. Labor markets are based on: skills and geography .So SN Apparel Ltd. will consider both of them. 1.1 HR Recruitment It is obviously essential for any organization to have properly skilled and experienced staff to run the organization smoothly and successfully. Right person in the right place is as critical as other required resources (land, capital, facilities, etc) for the success of an organization. And this triggers the necessity for recruiting new employees from time to time. This section of the manual outlines the process for recruitment. 1.1.1 Authority of Recruitment As per Company rules, Appointments to the services of the employees excluding the Managerial post shall be made by the department head with the consultation of HR department. All other appointments (CEO, Directors of different departments) shall be made by the Managing Director and Chairman of the Company. 1.1.2 Recruitment Requirements and Procedures HR requirement within the organization is determined as per Manpower Evaluation/ Manning due to turnover, promotion, retirement, new business strategy, etc. SN Apparel Ltds philosophy is to retain and develop the in house talents and hire the best performers in the industry. If there is any shortage of manpower in any department or when a new project requires additional staffs, the project director/ or the department head informs HR department about the vacant positions. Vacancies are announced at different ways based on the employee needed for the vacant posts. Such as, in the concerned organization, there are several categories of workers as follows---

Permanent - who are paid salary and able to avail the leave like earned leave, casual leave, they will be evaluated based on their performance and will be considered for promotion, training or termination. Temporary who do not get monthly salary, rather they get wages per month on the basis of contract Casual No work, no pay. Probationary They are given a specific period to work for the company which is known as probationary period. After the probationary period they will be permanent if their performance satisfies the management. During this period they get salary as per the contract.

1.2 Employee Level

And also different level of employees as follows---

Managing Director

Executive Director

General Manager

Factory Manager

Production Manager Floor or Section in charge Supervisor

Accounts Manager

Marketing manager Marketing Officer

Maintenance & Store Personal Security

Accountant

Personal Security

Executive

1.3 Recruitment Process Recruiting and selection is the process by which organization locates and attracts individuals to fill job vacancies. Most organizations have a continuing need to recruit new employees to replace those who leave or are promoted,
4

and to permit organizational growth for recruiting employees both type of sources (internal and external) are used in our organization. For Internal Recruiting, the company may either search its Human Resource Information System, this is the database it maintains containing the records and qualifications of each employee that can be accessed to identify ad screen candidates for an internal job opening. They can also go for Job posting and bidding, posting vacancy notices and maintaining lists of employees looking for upgraded positions. For External Recruiting, company will implement any combination of the sources are advertisements in the leading dailies, employee referrals educational institutions, professional organizations, public employment agencies, Internet recruiting, posting it in bdjobs.com and its own company website. Recruitment Process of SN Apparel Ltd
Need Identified In Accordance With Area Operating Plan

Need Identified In Accordance With Area Operating Plan Candidates short-listed according to job Criteria Match Candidates undertake ability tests Candidates undertake customer service questionnaire Candidates are interviewed by Human Resource Panel Candidates are offered a position dependent on satisfactory References and medical examinations Candidate is appointed to probationary staff Candidate is appraised during the probationary period Candidate is appointed to the permanent staff 5

rding and Do you have what it takes to crave a long, rewa firm of successful career in the most creative advertising Bangladesh???

1.4 Job Advertisement For announcing vacancies for the employee excluding the managerial level, company generally publish and post job advertisement in newspapers and companys website and re-known portals like bdjobs, prothom-alo job etc. Sometimes, company goes for Job Agencies if job advertisement or internal sources of candidates (Employee Referrals, Internship Program) does not meet the expected amount of candidates from select to. A sample of a job advertisement is provided here.

We are here to take you there

effectively transform visions into branded solutions. SN Apparel Ltd concentrates on transforming imagination and concepts into tangible, branded solutions that exceed expectations and move beyond potential. You think you are ready to join our We are searching for . team as a Management Trainee under an attractive Team Hard play remuneration, Workin Multitaski medical and dental g ng coverage, paid Resourc vacation/holiday eful and employee discount.
Proble m solving

SN Apparel SN Apparel Ltd is the leading RMG firm in Bangladesh working for last ten years as a means to provide the highest quality creative results that s

Communica tion skill

Fresh gradu ate

Flexible working under pressure

SN Apparel Ltd is an equal opportunity employer and committed to diversity and inclusion.

2.0 Job Analysis Job analysis means critical analysis of a job. And it includes job description and job specification. The company designs the job description based on its long experience for the particular employee positioning. It includes Job Description: Job Identification Job Summary Relationship Responsibilities and Duties Authority of Incumbent Standards of Performance Working Conditions Job Specification: Educations Experience Knowledge Skills Aptitude SN Apparel Ltd has attempted to create a segments solution to fit the needs of different layers of job opportunities within its surroundings. It is derived from: Action to be performed. Skills and knowledge obligatory for that job. Initially, the company has planned the educational flow to the hierarchy of job opportunities within its area. In general, the company has found that non graduates need to be guided and deployed for the spectrum of jobs provided the basic level. The high performers in graduate level in business administration and a subset from the masters level can be used in high end services. By activity this planning for its internal purposes, SN Apparel Ltd is ensuring that there is a constant supply of the right human resources to the right career opportunities and that there is no mismatch between the roles and the available skill and knowledge sets.

2.1 Job Description & Specification of employees Job Identification Job Title: Management Trainee Officer (MTO) Department: No specific Department Job Code: 101 Date: 1/12/2010 Prepared By: Recruitment Team Approved By: HR Manager Pay Range: BDT12000-15000 Relationships Reports To: Immediate Supervisors Supervises: NIL Works With: Immediate supervisors and co-workers Outside The Company: Government legislation officers and third party organizations Job Summary The applicant must posses good communication skill in both Bengali and English. Have a good negotiation skill. The candidate must have good knowledge on the basic segments of business. Ability to work under pressure. Must be willing to build or develop his career in the organization. Responsibilities and Duties Leadership and motivational skills are vital to success in this role. It is an advantage in this role to be able to cultivate meaningful interpersonal relationships. The creation of a positive and friendly work environment is expected of the job holder. The ability to participate naturally and willingly with others is a distinct advantage. Influencing and motivational skills are a critical requirement in the role
9

The results of the completed job profile suggest that the competencies required by the jobholder should include the ability to: Provide optimum levels of leadership, if required, encouragement, training and support in order to help others achieve their results and meet their budgets. Generally motivate people to give their best results, praising them when things go well and apprising them of improvements which can and should be made. Encourage others to communicate effectively and efficiently at a level that is understood by all thus developing a culture of participation and involvement. Create a network of contacts across various disciplines that provide advice on what Resources are available both within and outside the organization. Focus and drive to achieve targets, budgets and results. Continually seeks out opportunity, practicing and encouraging a culture of strategic excellence. Be firm and persistent when expressing views and provides thoughts and ideas to overcome problems once the situation has been properly debated. Bring a sense of urgency to situations, demonstrate an active approach, be willing to get involved in order to increase the pace and achieve goals and objectives. Authority Authority to control the workers of specific area Authority to get access to the documents related with his/her responsibilities and duties

10

Job Specification
Educational Requirements BBA/MBA from any reputed university. Major in Finance/Management is preferable. Candidate should not have any third class or CGPA below 2.80 in the scale of 4.00. Experience Requirement N/A Knowledge Requirements He must posses good knowledge about the basic organizational functions. Skills and Competencies Verbal and non verbal communication skills in Bengali and English Computer literacy is must (MS office and internet) Problem solving and diagnostic skill Attitudes Self confident Politeness Good interaction Able to take the work load

11

3.0 Selection process After the recruitment process has been successfully done, the company goes through the selection procedure. For the upper managerial level (directors of different functional departments, general manager), the selection process is quite simple, an informal interview has been taken by the Chairman, M.D, D.M.D. For the selection process firstly comes the primary screening, which is done to match the CVs applied just to fit in the position and the requirements in a particular department. Secondly, the applicants are invited to sit for an aptitude written test. Thirdly, the persons, who got the qualifying score in the test, are next called for an interview session. Based on that score successful candidate is called for a medical test, which checks the physical fitness of the applicant according to the job requirements. Entry level Placement procedure: SN Apparel Ltd usually conducts its entry level placements through a standard procedure. The Selection Procedure consists of a written test. Those who clear written test will face technical and HR Interview. The HR Interview is very general to test your temperament. General questions based on current affairs, general awareness, trends in construction area etc may be asked. The technical interview is based on subjects that have already studied in the applicants curriculum. Probationary period will be six months. Selection procedure for Entry level:

12

13

Selection procedure for Experienced Professionals: SN Apparel Ltd also conducts its experienced professionals placements through a standard procedure. They will also face a technical interview is based on applicants curriculum. Then in managerial round, a topic will be provided and they have to make arguments on that particular topic and show logic from their point of view.

3.1 Selection Test Employers often use tests and other selection procedures to screen applicants for hire and employees for promotion. There are many different types of tests and selection procedures, including cognitive tests, personality tests, medical examinations, credit checks, and criminal background checks. We use three different methods for selection process

14

15

3.1.1 A sample Questionnaire for the written test

SN APPAREL LTD Written exam for management trainee Full Marks: 10 Time 20mins Date: 29-10-2010 _____________________________________________________________________________ ____________________________ Each question contains 1 mark. 1) Name Three popular International Brand of sweater companya) b) c) 2) Employees are the most important asset of the organization. (True or False) 3) HR manual includes HR policies, forms, and procedures that are used frequently in managing employees in an organization. (True or False) 4)

In which of the following years did the number of graduate student applications increase the most from that of the previous year? A. 1985 B. 1986 C. 1988 D. 1990 E. 1991 5) A father is three times as old as his son. After fifteen years the father will be twice as Old as his son's age at that time. Hence the father's present age is A. 36 B. 42 C. 45
16

D. 48 E. None of the above 5) If a red house is made from red bricks and a blue house is made from blue bricks and a pink house is made from pink bricks, what is a greenhouse made from? Ans. 6) What would you do if you are in charge of the accounts department, and you found out that one of your close colleagues was stealing, what would you do? Ans. 7) Without using calculator, Divide 30 by half and add ten. What do you get? Ans. 8) Take 2 apples from 3 apples. What do you have? Ans. 10) Write a brief notes what do you know about our company?

17

3.1.2 A sample questionnaire for Personality Test: I am organized 1 Not so much I am playful 1 Not so much I am assertive/ speak my mind 1 Not so much I am out-going/ socially active 1 Not so much I am able to criticize others without feeling uneasy 1 Not so much 2 3 4 5 6 Very much 2 3 4 5 6 Very much 2 3 4 5 6 Very much 2 3 4 5 6 Very much 2 3 4 5 6 Very much

When working on an important task with someone, I tend to fill the dominant role 1 Not so much I like arguing as a sport 1 2 3 4 5 6 Very much 2 3 4 5 6 Very much

Not so much 3.2 Appointment Letter

After giving the Offer Letter, an Appointment Letter is the next step of interaction between a company and an employee. For him/her, a Letter of Appointment is a guarantee about the given job and position in that company. There are various formats available.
A Sample Appointment Letter is as follows-------18

HUMAN RESOURCES DEPARTMENT Ref.: SNA/HRD/HO/2214 4th, 2010 Mr. X Address: _____________________ Subject: Appointment Letter Dear Mr. X, With reference to your application dated nil and subsequent interviews, we are pleased to offer your employment as Management Trainee with SN Apparel Ltd in accordance with the terms and conditions detailed below: i. You will be paid a consolidated salary of Tk. 12,000/-(Twelve thousand only) per month. ii. You will be entitled to Contributory Provident Fund at 10% of your basic salary, with effect from the date of your joining. iii. You will also be entitled to the other fringe benefits like bonus, gratuity, transport loan, insurance and leave fare assistance equivalent to three months basic salary in accordance with the relevant policies of the company. iv. You are required to provide one month written notice in the event that you wish to terminate your employment with Proctor and Gamble or by surrendering one (1) months basic salary in lieu thereof. v. You will be responsible for payment of all taxes on your annual income, as applicable. vi. You should be ready to work anywhere in Bangladesh vii. You will be responsible to work in conformity with the Service Rules and other regulations of the Company Dec

Duties: You will be required to faithfully carry out such duties, exercise such powers and comply with such instructions of the company in connection with its business. During your employment, you will (except when prevented from doing so by illness, accident or holidays) devote the whole of your time, attention and skill during this companys business hours, and (insofar, as is
19

reasonable, having regard to the nature of your appointment) at other times, when necessary, to the affairs of SNAL, and use your best endeavors to promote its interest, and, this offer is made on this understanding. Hours of work: The office hours of the company are as follows:

Sunday to Thursday Lunch Time

9.00 am to 5.00 pm 1.0 pm to 1.30 pm

Non-competition: Except with written consent of SNAL, you will not during the course of your employment be directly or indirectly engaged, concerned or interested in any other trade, business or occupation whatsoever. Conflict of interest: During your employment, you will not have any financial interest in or derive any financial or other benefit from contracts or transactions made by SN Apparel Ltd, with any third party, without disclosing such interest or benefit to the company and obtaining its approval, thereto. Confidentiality: You will not, either during the continuance of your employment of thereafter, use to the detriment or prejudice of P&G, except in the proper course of your duties, divulge to any person any trade secret or any other confidential information concerning its business or affairs, which have come to your knowledge during your employment. In the event of cessation of employment, for whatever reason, you will return to SNAL any papers, documents, manuals, discs (including floppies or CDs) relative to the Companys affairs which might be in your possession and acceptance of this offer constitutes and undertaking that you will not remove or copy any such information for subsequent use. Your employment in the Company is subject to: i. Your physical fitness, for the determination of which you shall report to our designated check-up centre in order to undergo the medical tests. ii. Your production of original certificates and other relevant documents for verification and record purpose.
20

SN Apparel Ltd. Employees Code of Conduct: On joining your employment, you are required to read and fully comprehend the SNAL Employees Code of Conduct in its entirely. The Code addresses the following areas: SNAL Mission, Ethical Standards, Compliance with Laws and Regulations, Relationship with and responsibilities to SNAL, relation with and responsibilities to customers, Protection of Business Assets and Information, Respecting others, Misconduct, Insider Trading and Control. You are required to adhere to all the requirements detailed in the Code and sign and date the document in evidence thereof. In subsequent years, the recruitment is for you to sign at year-end in acknowledgement of your continuing understanding and adherence to the provisions of the Code. Agreement Letter: We shall be pleased to clarify any aspect of the contents of this letter. If the terms and conditions of the offer as outlined above agreeable to you, please signify your acceptance by signing, dating and returning to the enclosed copy of the letter. It is expected that you will join us on or before June 1st, 2010. Finally, we would like to wish you well in the intended employment with P&G. Thanking you, Yours sincerely, --------------------------------------CEO and Managing Director

I accept and agree to the terms and conditions of employment as detailed in this letter. ___________________________________ Signature ___________________________________ Date
21

4.0 Employee orientation The HR department of SN Apparel Ltd. (SNAL) administers ample orientation programs. The programs provide information regarding work rules and procedures, organization, general safety requirements, compensation and benefits, and general company orientation such as history, and training. SNAL provide orientation guide to all new employees and in the first day of joining employee has to fill a joining form. SNAL also take around the new employee to oversee the physical facilities of the company as well to all departments to orient them with the old employee. To ensure the smooth induction of a new employee into the organization and to assist him/ her with the preliminary joining formalities. The objective of this policy directive is to ensure that employees while joining new in the organization are provided with an appropriate orientation. It is also the objective of this policy directive to ensure that orientation is provided in a consistent and timely fashion across all the new employees and Head of HR are aware of their orientation responsibilities. The Head of HR along with MD is responsible for developing and implementing the Orientation Policy. Head of HR has the full responsibility of implementing the said policy. The following provides an outline of orientation activities for employees who have been newly appointed to SNAL: Explain the significance of the Contract of Employment Explain how the company is structured Explain the duties of the employees position and the requirements of the job Provide a brief history and the mission and vision of the company Provide the name, location and work telephone number of the HR personnel Provide information on terms and conditions of employment Provide information on standards of conduct and ethical behavior Provide information on maintaining a workplace free from harassment or discrimination Provide information pertaining to pay, leave entitlements, medical, health and employee services Provide information on workplace programs Explain employee development and career development opportunities
22

Explain safety and health procedures and emergency preparedness Ensure that the employee receives a box of visiting cards (if eligible) on his first day on job Introduce the new employee to colleagues at the workplace and give a brief explanation of their roles Describe the probationary period Ensure that the employees work station is ready prior to the employees first day on the job including telephone and computer connections; (wherever applicable) Provide information on work procedures relating to the operation and administration of the workplace including hours of work and attendance reporting requirements

On the day of the joining, the employee will be given a Joining Docket which will contain the following: Welcome Letter Vision Handbook; Employee Handbook; Appointment Letter Joining Forms Confidentiality Agreement; Joining Report; and Personal Information Form. On the day of joining of any new employee, the HR Department will open a Personnel File for the employee. This file will contain all the documents related to the employee. 4.1 Training & Development Trainers: Who actually conducts the training depends on the type of training needed and who will be receiving it. On-the-job training is conducted mostly by supervisors; off-the-job training, by either in-house personnel or outside instructors. 4.1.1 Training & Design Principles:

23

After selecting the employees SN Apparel Ltd. will arrange training and development program in order to make its employees work in an effective and efficient manner and thus achieve the objective of the organization. Off-the-job training Formal courses- it can be accomplished either by self-training which is facilitated by programmed instruction, computer-assisted instruction and reading and correspondence courses or by others training, as in formal classrooms and lectures. Simulation- it presents participants with situations that are similar to actual job conditions. Its a vestibule method in which trainees learn on the actual or simulated equipment they will use on the job, but are actually trained off the job. On-the-job Job rotation- job rotation thus provides employee exposure, the extent of training and long run benefit it provides may be over stand. Job instruction (JIT): step-by-step process is called job instruction training. Assistantship- assistantship involved full time employment and expose an individual to a wide range of job. 4.1.2 Training Need analysis Training needs analysis process is a series of activities conducted to identify problems or other issues in the workplace, and to determine whether training is an appropriate response. The needs analysis is usually the first step taken to cause a change. This is mainly because a needs analysis specifically defines the gap between the current and the desired individual and organizational performances.

24

4.1.3 Techniques for Determining Specific Training Needs There are a number of practical methods you can use to gather data about employees performance. Each works well in given circumstances; therefore, you must determine which the best be for you. None of these methods can stand alone. Always use at least two, if for no other reason to validate your findings. One of those you choose should always be observation. Observation: In this approach, an employees performance itself is you source of information. You evaluate a workers performance through firsthand observation and analysis. This is best accomplished by watching the worker and playing the role of non-participating observer. This means that you watch and listen and evaluate what you see and hear, but do not get involved in his work process in any way. To make this activity more productive, use a checklist to remind you of what to look for and take notes. The objective during observations is to identify both the strengths to build on and the deficiencies to overcome. A key advantage of using direct observation in the needs analysis is that you gain first-hand knowledge and understanding of the job being performed and the strengths and weaknesses of the relevant worker.

25

Interviews The use of interviews in conducting the needs analysis is strongly urged. The prime value of interview guides is that they ensure the same types of data from all sources. This allows you to determine whether a piece of information is one persons opinion, or part of a widespread perception. Since the interview guide forces you to ask each worker a number of predetermined questions, you must select those questions that are essential to what you are trying to learn. Interviews allow you to meet employees face to face to discuss their impressions of performance. Because you are in conversation with workers, you can explore their responses in depth. You can ask or clarification of comments and for examples of what they mean. In this way, you obtain a full understanding of their performance deficiencies. Questionnaires: A questionnaire is a sort of interview on paper. You create your own questionnaire by writing down all the questions you want employees to answer for you. Then you mail it to them and await their responses. The key advantage of a questionnaire is that you can include every person from whom You want input. Employees can complete the questionnaire when and where they choose. You need not travel and spend time with all respondents. Every employee is asked the identical questions, and consequently data is very easy to compile and analyze. Questionnaires can be useful in obtaining a big picture of what a large number of employees think while allowing everyone to feel that they have had an opportunity to participate in the needs analysis process. Job Descriptions: Before establishing a job description, a job analysis must be made. This job analysis involves a thorough study of all responsibilities of the relevant job. It is company wide in scope and should be detailed to such a degree that those conducting the training can use the job analysis as a yardstick for their course content. After the job analysis phase has been completed, the writing of job description and needs analysis is a relatively simple task. When an employees job description has been defined, the trainer can easily tailor his training curriculum to a very close proximity of what will be expected of the employees. The Difficulty Analysis: The Job Analysis will focus attention on enumerating the numerous duties that a worker must perform. On the other hand, the Difficulty Analysis establishes which of the duties cause the
26

employee the greatest amount of troubles and how this trouble can be reduced through better training.

4.1.4 Example of the training needs analysis:

27

5.0 Performance Appraisal There are several appraisal methods among which it will follow the approach, which will best suit the employees. Appraisal Methods would be: Output-based Assessment: Management by Objectives (MBO) as a more common name for this method is a result oriented method that seeks to measure employee performance by examining the extent to which predetermined work objectives have been met. Rating Scales: Ranking consists of listing all employees from highest to lowest in order of performance. Points may be assigned to indicate the size of the gap to overcome this drawback. Essay Methods: In the essay method approach, the appraiser prepares a written statement about the employee being appraised. The statement usually concentrates on describing specific strengths and weaknesses in job performance. It also suggests courses of action to remedy the identified problem areas. The statement may be written and edited by the appraiser alone, or it may be composed in collaboration with the appraisals. 360-Degree Appraisal: The stakeholders may include the relevant managers, direct and indirect reports, peers, and also customers both internal and external. In a simpler form (sometimes called upwards feedback) it may involve merely collecting data from the individuals subordinates. This latter approach may be particularly useful when an organization wishes to develop aspects of team working or management style. In most cases, such feedback is collected systematically through formally constructed questionnaires. Management by Objectives (MBO): MBO is a process through which goals are set collaboratively for the organization as a whole, various departments and/or sub functions, and each individual member. With MBO, individuals are evaluated, usually annually, on the basis of how well they have achieved the results specified by the goals. MBO, or goal setting, is particularly applicable to no routine jobs, such as those of managers, project leaders and individual contributors. Behaviorally Anchored Rating Scales (BARS): BARS attempts to assess an employees behaviors instead of characteristics. Descriptions of possible behaviors are matched against those that the employee most commonly exhibits. The assessment tool contains sets of specific behaviors that represent gradations of performance used as common reference points or anchors for rating employees on various job
28

dimensions. Developing a BARS assessment tool is expensive and time-consuming. It is based on extensive job analysis and the collection of critical incidents (examples of very good and bad performance information) for a particular job. 5.1 Scope of Performance Appraisal Usually, awards and bonuses based on overall company and employee performance aappraisal is done for both the Services & Managerial Employees. The half yearly appraisal is more from the point of view of Identifying Training & Development needs whereas the year-end appraisal is for Measuring the Performance vis--vis the targets. The major objectives of performance appraisal are: Identifying employees for salary increases, promotion, transfer and lay off or termination of services. Determining training needs for further improvement in performance. Motivating employees by indicating their performance levels. It happens on: Quarterly Basis: Before confirmation Half yearly Basis: After confirmation It helps to: Align employee objectives to the business goals. Enable strategic Performance Management through Management by Objectives (MBO) Measure and Assess employee performance periodically and provide feedback and support to achieve quantitative, qualitative and process targets Evaluate and track Hi-Performance and achievers based on Competency driven practices. Enable Reward and Recognition Performance Management solution not only helps establish the best practices in Performance Management, like 360degree appraisal, MBO etc, but enables reduced Performance Management cycle time without compromising on the sub-processes which are so critical to HR values, like work planning conference, work plan establishment, development plans and
29

objective setting, interim review, overall evaluation, detecting performance deficiencies, tracking, documentation.

5.2 Importance of Performance Appraisal Performance appraisals are essential for the effective management and evaluation of staff. Appraisals help develop individuals, improve organizational performance, and feed into business planning. Formal performance appraisals are generally conducted annually for all staff in the organization. His or her line manager appraises each staff member. Directors are appraised by the CEO, who is appraised by the chairman or company owners, depending on the size and structure of the organization. Annual performance appraisals enable management and monitoring of standards, agreeing expectations and objectives, and delegation of responsibilities and tasks. Staff performance appraisals also establish individual training needs and enable organizational training needs analysis and planning. Performance appraisals also typically feed into organizational annual pay and grading reviews, which commonly also coincide with the business planning for the next trading year. Performance appraisals generally review each individual's performance against objectives and standards for the trading year, agreed at the previous appraisal meeting. Performance appraisals are also essential for career and succession planning - for individuals, crucial jobs, and for the organization as a whole. Performance appraisals are important for staff motivation, attitude and behavior development, communicating and aligning individual and organizational aims, and fostering positive relationships between management and staff.

30

 Performance appraisals provide a formal, recorded, regular review of an individual's performance, and a plan for future development. 5.3 Who will do the appraisal? The employees should be informed and the standards should be clearly explained to the employee. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. 5.4 Performance Appraisal Process

5.4.1 Measuring the actual Performance The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work. 5.4.2 Comparing the actual with the desired performance The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative
31

deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance. 5.4.3 Discussing Result The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. 5.4.4 Decision Making The last step of the process is to take decisions, which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

32

33

6.0 Compensation COMPENSATION COMPENSATION FINANCIAL FINANCIAL COMPENSATOIN COMPENSATOIN DIRECT DIRECT PAY PAY SALARY SALARY INCENTIVES INCENTIVES MERIT MERIT PAY PAY Indirect Indirect FINANCIAL FINANCIAL COMPENSATION COMPENSATION INSURANCE INSURANCE VACATION VACATION HOLIDAY HOLIDAY MEDICAL MEDICAL FACILITIES FACILITIES

BONUS BONUS GRATUITY GRATUITY PROVIDENT PROVIDENT FUND FUND AFTER AFTER RETAIRMENT RETAIRMENT BENEFIT BENEFIT

6.1 Types of Compensation There are different types of compensation benefit. Mainly 2 type of compensation, one is Financial (Direct) and another one is Non- financial ( Indirect ): Financial Benefits Pay for performance (incentive system) reward employee performance on the basis of three assumptions Individual employee and work teams differ in how much it contribute to the firm not only in what they do but also in how they do it. Firms overall performance depends to a large degree on the performance of individuals and groups within in the firms. To attract, retain and motivate performers and to be fair to all employees.

34

6.1.1 Direct Pay Salary: Air Fashion offers different salary packages depends on performance & experience/seniority for its employee. Thus two employees in the same position can get different salaries and incentives for their different performance. These variations occur only in the case of experience employees. Basic Salary Medical Fee House Rent Fixed 600-3000 tk Maximum 40% Salary

of

the

Basic

The Salary structure of the organization: Title of the Job Managing Director (MD) Executive Director(ED) General Manager(GM) Factory Manager Production Manager Accounts Manager Marketing Manager Floor-in-charge/Section in charge Accounts Executive Marketing officer Supervisor Cashier Management Trainee Salary(Tk) 150000.00 100000.00 70000.00 32000.00 35000.00 32000.00 28000.00 16500.00 16000.00 15000.00 10000.00 80000.00 12000.00

Incentives: i. Merit Pay / Increment :Employee may get Merit or Performance award individually by salary increment once or twice in a year. ii. Bonus: Every employee will get incentive (Bonus) for the festival for Once or twice in a year which is equivalent to one months basic payment considering employees one year service record which does not raise the employees basic pay permanently.

35

6.1.2 Indirect Financial Compensation: i. Insurance: General insurance is done for all employees. Also, company gives option to open life insurance for the employees. If any accidental case occurs then group insurance will cover up the whole company as well as employees. ii. Holiday: 11 days is announced holiday by government. iii. Provident Fund: A benefit of Provident fund will be paid to certain employees whose service record will be at least 10 years for the company. Employee will get 5% from his or her basic salary and also same percentage from the Companys equity after a certain period of service record. iv. Gratuity: A benefit of Gratuity is offered to the employee after his or her retirement in the company. After 25 years of service at the company or certain ages of the employee, an employee will get gratuity (monetary benefit) which is One month basic salary for each year he or she worked in the company. v. Transportation Facility: Air fashion provides transportation facility for all of its officers. Company has 3 micro/mini buses. This buses starts from the three most important routes where most of the employees of the company leave. Leave Provisions i. Causal Leave: With the full payment an employee will get 10 days causal leave. If any employee does not attain this leave within that year, it will not be added for the next year. ii. Earned Leave: If anyone works without any breakage for 1 year, he/she will earn 1 day leave for every 18 days work. And the total limit is 20 days. An employee can take this leave yearly. If he takes it for 15 days this year, then he will get 25 days Earned leave next year. iii. Sick Leave: With the half payment of the basic an employee will get leave of 5 days as sick leave. An employee must give an application to his supervisor for sickness leave. Firstly, these 5 days will be cut from his causal leave. And, if it is more than 5 days then it will be cut from his Earned Leave. iv. Maternity Leave: A pregnant woman will get 16 weeks leave with the full payment. 8 weeks prior the birth of child and 8 weeks after the birth. v. Festival leave: With full payment 11 days government leave is given for all the employees. For any major reason if employees have to work
36

during the holiday, then the company has to give 2 days full payment and 1 alternative holiday according to the 118(3) law.

General Regulations of Leave This leave matters will work only when the employees will work minimum for 3 months without any break. In case of maternity it extends to 6 months. If any employee interested to take leave then they must fill up the leave form. without obtaining prior leave from the competent authority. An employee shall not remain absent himself from duty. No employee shall overstay against his sanctioned leave, without obtaining additional leave from competent authority. No Employee who overstays without obtaining prior permission thereof shall not get salary for the period of such overstay unless post fact to sanction is obtained.

37

38

7.0 Employee Relations 7.1 Provision Related To Dress Code There are provisions of Dress Code in the organization, which are known as Working Dress. Those who are production related are to be worn with company provided dress. Office related persons are to be dressed according to company policy (no bright or casual color like red, yellow, green etc.). Dress Code must be maintained very strictly. 7.2 Code of Conduct Which has been discouraged by company, is to be maintained. Besides, the conduct that is defined in the Labor Code -2006 is to be maintained by the employee of the organization too. Some of the discouraging activities by the company are as follows--- Insubordination or disobedience to any lawful or reasonable order(s) of the superior; Theft, fraud or dishonesty in connection with the Banks business or property; Negligence to compliance Damage to or loss of companys goods or property; Habitual late attendance, habitual leaving early or returning late from lunch break; Absence from duty without permission; Drunkenness, gambling, riotous or disorderly or indecent behavior or any act subversive of discipline; Habitual negligence of duty, or neglect of work; Breach of Rules, Regulations, Standing Orders or Instructions of the Company Improper or non-use of uniforms while on duty; Falsifying, tampering with, damaging or causing loss of Banks records;

7.3 Provision Related To Working Hours: Working hours of the employee is defined as 08 hours. The entire employee has to be engaged in their eight hours job. They have to be engaged in shift duty. Shifts are known as A Shit, B- Shift and C-Shift. Shifts are being changed by rotation. Those who are senior are to be engaged in the duty of General Shift.
39

7.4 Provisions Related To Smoking Policy: There is a smoking policy in the organization i.e. Smoking is prohibited inside the factory or offices. The person who is interested in smoking will have to go in the fixed room. A room, which is adjacent to Gate House, is fixed for smokers. 7.5 Grievance Procedure: The company believes in equal and fair treatment, due respect and honor for fellow colleagues irrespective of job level. Prompt and timely resolution of all conflict and dissatisfaction among the employees is prerequisite criteria of a sound and healthy organization. If any employee thinks that he/she is not treated properly by his/her line Manager while discharging official responsibilities, he/she is allowed to address the matter in writing to Head of HR. Head of HR upon receipt the letter arranges a meeting between the two parties and resolve the matter once for all. 7.6 Trade Union Regulation: There can be three trade unions at most and one CBA in the company to ensure the right of the workers. And no party developing is allowed for the official employees. CBA Agreement is to be maintained in the organization as per direction of Bangladesh Labor Code-2006.CBA Election is normally scheduled to arrange whenever the duration of the election (02 yrs) is finished. Members of Trade Union can participate only in the CBA Elections 7.7 Situation of Disciplinary Actions: If any employee has found doing any misconduct such as misusing his/her authority in any kind, monetary or behaviorally, according to the company policy, she/he must go through the disciplinary procedures as per Bangladesh Labor Code-2006 7.8 Disciplinary Procedures: An employee found guilty of misconduct or violation of other rules shall be go through the following disciplinary procedures--Step-1: If any allegation comes against any employee, s/he shall be provided with Show Cause Letter. A sample show case letter is as follows---

40

Dated: 07-11-10 To Mr. X Sr. Officer- Production ID No- 30053 SNAL.

Subject: Show Cause, Suspension Pending Enquiry.

Mr. X, It has been reported that on 17 th instant at about 9.00pm while you were in B Shift duty, a delivery was made & processed without proper document under your supervision, which shows your negligence to duty. It is normally kept a record of every delivery, but record of No- 15 delivery was not kept accordingly that is an example of unprofessional behavior to your parts too. Your act is an example of violation of discipline & rules of the company that amounts to gross misconduct under section 23 of the Bangladesh Labor Code- 2006. Under the circumstances, you are hereby asked to explain your conduct within 07 days of receipt the letter as to why appropriate disciplinary action will not be taken against you. Since your act amounts to gross misconduct and your presence in the factory is detrimental to the interest of the company, you are hereby suspended pending enquiry.

41

--------------------------Manager-HR & Admin SNAL CC: General Factory Manager Personal File Office Copy

42

Step -2: If the answer of the Show Cause is not satisfactory, the letter of forming enquiry committee on any case shall be issued to the enquiry Officer to be presented on the enquiry session of the accused employee. And a sample letter of forming enquiry committee is as follows---

Date: Nov19,2010 To Mr. X Enquiry Officer SNAL. Sub: Domestic Enquiry. Mr. Y, You are hereby advised to conduct Enquiry as the response to the Show Cause issued to Mr.X (Sr. Officer) of kneet manufacturing unit, dated on 19 th Nov, 2010 has not been found satisfactory. The enquiry against the charge brought him will be held on 29 th instant (Wednesday) at 11.30 am in the Conference Hall of the factory. At the time of conducting enquiry on 29 th Nov, 2010 in the conference hall, your act will be as an Enquiry Officer. At the enquiry the accused will be given full opportunity to defend his case. In case of his failure to appear at the enquiry on the stipulated date & time, the enquiry will proceed ex- prate.

-------------------------------Manager- HR & Admin SNAL

43

Step-3: After subsequent enquiry, a Warning Letter shall be issued to the accused employee to warn him/her. A sample warning letter is as follows---Dated: 29th Nov, 2009 To Mr. X Sr. Officer- Production Card No-30053 SNAL. Sub: Letter of Warning. This refers to the Show Cause notice dated 19-11-10 issued to you for Misconduct (Negligence of duty) and the subsequent domestic enquiry held into the charge on 29-11-10. During the proceedings of the said enquiry you were given full opportunities to defend your case. After careful consideration of the records and findings of the Enquiry Officer, we have found that the charge of negligence of dutya case of misconduct brought against you has been proved sufficiently. In view of the above facts and circumstances, it would have been justified for the management in taking severe disciplinary action against you. However, considering your experience and with a view to giving you an opportunity to rectify your conduct and performance, it has been decided to let you warn as a measure of disciplinary action. As such you are hereby warned finally to refrain from such activities in future. Please take a final note that, if you are found guilty of such or any other misconduct in future, we will not hesitate to inflict upon you the extreme punishment/ drastic action against you.

----------------------------Manager-HR & Admin SNAL

CC: General Factory Manager Office Copy Personal File

44

Step-4: If the accused employee is found doing the same mistake again, s/he shall thereby be issued with a suspension letter. A sample suspension letter is as follows--Dated: Dec 05, 2010 To Mr. X, Sr. Officer- Prod, SNAL. Sub: Suspension. This refers to the Show Cause notice dated 19-11-10 issued to you for Misconduct (Negligence of duty) and the subsequent domestic enquiry held into the charge on 29-11-09. During the proceedings of the said enquiry you were given full opportunities to defend your case. After careful consideration of the records and findings of the Enquiry Officers, we have found that the charge of negligence of dutya case of misconduct brought against you has been proved sufficiently. We have also scrutinized your past records and did not find any extenuating circumstances by which the gravity of offence could be reduced. Rather it was found that you committed the similar types of misconduct on a number of occasions in the recent past for which you had been verbally asked to be more careful. Moreover, you were also warned to refrain from such activities but no improvement has been observed in your conduct. In view of the above facts and circumstances, we would have been justified in taking extreme/drastic disciplinary action against you. However, with a view to giving you the last opportunity to rectify your conduct, it has been decided to suspend you as a measure of punishment. Accordingly, you are hereby suspended for 07 days for the period of Dec 5, 2010 to Dec 7, 2010 without any wages. Please take a final note of warning that, if you are found to be guilty of such or any other misconduct in future, we would not hesitate to inflict upon you the extreme punishment, if so warranted by the facts and circumstances of the case. Yours truly----------------------------Manager-HR & Admin
45

SNAL CC: All Concerned Officials Step-5: If the accused employee is found doing the same mistake again yet after the suspension, s/he shall thereby be issued with a dismissal letter. Dated: Dec 14,2010 To Mr. X, Sr. Officer- Prod, SNAL. Sub: Dismissal. This refers to the Show Cause notice dated 19-11-2010 issued to you for Misconduct (Negligence of duty) under section 23, Bangladesh Labor Code2006 and the subsequent domestic enquiry held into the charge on 29-1109. During the proceedings of the said enquiry you were given full opportunities to defend your case. After careful consideration of the records and findings of the Enquiry Officer, we have found that the charge of Negligence of Dutya case of misconduct brought against you has been proved sufficiently. We have also scrutinized your past records and did not find any extenuating circumstances by which the gravity of offence could be reduced. Rather it was found that you committed the similar types of misconduct on a number of occasions in the recent past for which you had been verbally asked to be more careful. Moreover, you were also warned to refrain from such activities but no improvement has been observed in your conduct. In view of the above facts and circumstances, we have to justify in taking drastic disciplinary action against you. Accordingly, you are hereby dismissed from your service w. e.f 14-12-10.

Yours truly----------------------General Manager SNAL

46

CC: All Concerned Officials Personal File

47