Assignment on Decision Making Process

MSRM Textile Mills Ltd

United International University

Prepared For

Course Instructor : Prof. Md. Salim BhuiyanCourse Title : Management & Organizational Behavior

EMGT-506 Section-ASpring 2015

Prepared By

Md Moniruzzaman Monir, ID – 113143007A F M Rubayat Ul Jannat, ID – 113151004

Md Mahabbat Ali, ID – 113143005Mrs. Salma Jahan, ID – 113143002.

Date of Submission : 17.05.2015

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May 17,2015.

Prof. Md Salim Bhuiyan

Adjunct faculty

School of Business & Economics

United international University

House – 80, Road – 8/A, Satmoshjid Road

Dhanmondi, Dhaka 1209.

Subject : Letter of Transmittal

Dear Sir

We are submitting you the report, due on May 17,2015, that you requested. The report is

entitled MSRM Textile Mills Ltd, The purpose of the report is to inform you the decision

making process that has grown after completing the Management and Organizational

Behavior(EMGT 506). The content of this report analyze the management crisis of the

company that fell impact on the profit & yearly turnover and how a decision making

could help the top management to overcome the problem.

We really appreciate the efforts and the assignment that helped all of us to synchronize

altogether and learn the decision making process practically by analyzing every situation

and learnt how to overcome management crisis in real life.

Sincerely

Md Moniruzzaman Monir, ID – 113143007A F M Rubayat Ul Jannat, ID – 113151004Md Mahabbat Ali, ID – 113143005Mrs. Salma Jahan, ID – 113143002.

Section AEMBA, Spring 2015.

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1.1 EXECUTIVE SUMMARY

The macro economic performance of Bangladesh is heavily dependent on its Readymade Garment (RMG) manufacturing sector. After the failure of jute sector, the demand of RMG has dramatically risen. The RMG sector alone does export worth $21.5 billion a year, which is 79 percent of the total export earning of our country.

Currently some of the leading companies of Bangladesh in garments sector are Ha-Meem groups, Squire fashion limited, Mohammadi group, Habib group ltd etc. They have some common departments for smooth functioning their production.

RMG has a tremendous effect in our society. Women empowerment has established and increased, job sources have been created, population growth rate has been fallen but it has also promoted child labor.

RMG has improved the economic sectors like agricultural, industry as well as GDP of Bangladesh. More jobs have been created. More people have been employed and have also developed the GDP of the country.

The fact that the RMG sector has responded to calls for taking initiatives to improve the wellbeing of its workers by means of opening up health and recreational facilities is helping to improve its image as a responsible sector to foreign buyers. It is not only the Scandinavians who have faith in Bangladesh’s potential to become the country of choice for sourcing different types of garments but also other big guns like USA have facilitated our RMG sector.

Bangladeshi RMG is growing in a vast way. Expanding RMG sector has to face some competitors. One of the major competitors is Vietnam which is proved a challenging competitor for our RMG sector.

There are some reasons lying behind our RMG sector’s success. Flexible labor market law, availability of raw materials, price competitiveness is one of them.

But some of the problems are slowing down our RMG sectors growth just like infrastructure, political instability, poor transportation system etc.

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Contents: Page no

1.1 Executive Summary …………….. ………………………3

1.2 Assignment Topic…………….………………………….5

1.3 Decision Making…………….…………………............5-7

1.4 Company Overview……………………………….……7-8

1.5 Company Objective…………………………………….8

1.6 Products & Production capacity………………………..8

1.7 Manpower Status……………………………………….9

1.8 Financial Statement…………………………………10-13

1.9 Current problem that we are facing ……………………14

2.0 Importance of our decision making ……………………14

2.1 Identifying the causes of current problem…………….14-16

2.2 Developing alternative solutions………………………17

2.3 Our Decision to Solve the Problem and Justification…18-21

2.4 SWOT Analysis……………………………………….21-23

2.5 Action Plan…………………………………………….24-25

2.6 Conclusion…………………………………………….…26

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1.2 Assignment TopicAssume that you are the top executive of an organization. Now think of a

decision which will bring significant change in your organization. Justify

why do you want to take such a decision & how will you implement it.

1.3 Decision Making

Decision-making is an essential aspect of modern management. It is a primary function of management. A manager’s major job is sound/rational decision-making. He takes hundreds of decisions consciously and subconsciously. Decision-making is the key part of manager’s activities. Decision is important as they determine both managerial and organizational actions. A decision may be defined as “a course of action which is consciously chosen from among a set of alternatives to achieve a desired result.” It represents a well- balanced judgment and a commitment to action.

It is rightly said that the first important function of management is to take decisions on problems and situations. Decision-making pervades all managerial actions. It is a continuous process. Decision-making is an indispensable component of the management process itself.

Means and ends are linked together through decision-making. To decide means to come to some define conclusion for follow-up action. Decision is a choice from among a set of alternatives. The word ‘decision’ is derived from the Latin words de ciso which means ‘a cutting away or a cutting off or in a practical sense’ to come to a conclusion. Decisions are made to achieve goals through suitable follow-up actions. Decision-making is a process by which a decision (course of action) is taken. Decision-making lies embedded in the process of management.

A manager has to take a decision before acting or before preparing a plan for execution. Moreover, his ability is very often judged by the quality of decisions he takes. Thus, management is always a decision-making process. It is a part of every managerial function. This is because action is

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not possible unless a firm decision is taken about a business problem or situation.

This clearly suggests that decision-making is necessary in planning, organizing, directing, controlling and staffing. For example, in planning alternatives plans are prepared to meet different possible situations. Out of such alternative plans, the best one (i.e., plan which most appropriate under the available business environment) is to be selected. Here, the planner has to take correct decision. This suggests that decision-making is the core of planning function. In the same way, decisions are required to be taken while performing other functions of management such as organizing, directing, staffing, etc. This suggests the importance of decision-making in the whole process of management.

Planning the Decision

Decision will get four benefits out of planning:

1. Planning give chance to the establishment of independent goals. It is a conscious and directive series of choices.

2. Planning provides a standard of measurement. It is a measurement of whether you are going towards or further away from your goal.

3. Planning converts values to action. You think twice about the plan and decide what will help advance your plan best.

4. Planning allows for limited resources to be committed in an orderly way. Always govern the use of what is limited to you. (e.g. money, time, etc.)

Decision-making is one of the defining characteristics of leadership. It’s core to the job description. Making decisions is what managers and leaders are paid to do. Yet, there isn’t a day that goes by that you don’t read something in the news or the business press that makes you wonder, “What were they thinking?” or “Who actually made that decision?” That’s probably always been the case, but it seems exponentially more so in the opening decade of the new millennium where everything seems marked with, “too big, too fast, too much, and too soon.” The reality seems to be that most organizations aren’t overrun by good decision makers, yet alone great ones.

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When asked, people don’t easily point to what they regard as great decisions. Stories of bad decisions and bad decision-making come much more readily to mind.

Some of that is due to our tendency to notice and recall exceptions vs. all the times things go as planned. For example, you’ve walked along side buildings more times than you could possibly count. Yet you remember vividly the one time you got nailed by a pigeon overhead. That’s how we are about bad decisions. We’re also that way because the really bad ones tend to really hurt. It’s not that people don’t have the capacity to make high-quality decisions in them. Decision-making is a distinctly human activity. It’s what that great, big frontal lobe is for. We all make decisions all the time.

But the fact that we’re hard-wired to make decisions doesn’t by itself make us good decision-makers. That takes discipline: discipline to do at least four things all the time and well.

1. Realize when and why you need to make a decision.

2. Declare the decision: decide what the decision is, how you’ll work it, and who should be involved.

3. Work the decision: generate a complete set of alternatives, gather the information you need to understand the possibilities and probabilities, and ultimately make a choice that best fits your values.

4. Commit resources and act.

1.4 Brief Overview of MSRM Textile Mills Ltd

MSRM Textile Mills Ltd is a socially responsible business organization and is engaged in Manufacturing & Export business in Bangladesh. Our vision is to provide the utmost satisfaction to our clients through unwavering commitment to International Quality Standards in every aspect of our business. We achieve our vision on the strength of our highly motivated employees in a caring and safe work environment.

MSRM Textile Mills Ltd is opposed to any form of slave, child or prison labor, whether domestic or international. We expect our clients to share these same ethical standards. We provide employees with a safe & healthy

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workplace, that they will not use force or other compulsory labor that they 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.

1.5 Company Objective

The Objective of the company is to provide professional service and best quality products to ensure utmost satisfaction to our clients through unwavering commitment to International Quality Standards in every aspect of our business. The objective is perused keeping in mind the respect for the customer needs and satisfaction. We are always transparent & positive in fulfilling the Buyer’s requirements as well as our commitment.

1.6 Products & Production capacity

# Products(100% Export) :

*Polyester,*polar fleece,*micro fleece, *CVC fleece, *single jersey (cotton, polyester, CVC), *Rib, *Interlock, *Mash.

# Production Capacity:-

# Knitting Capacity: 35,000 kg/day. # Dying Capacity: 35,000 kg/day.# Finishing Capacity: 30,000 kg/day.

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Manpower Status as on 17.05.2015

S/N Level Designation Existing Manpower Remarks

1 Top Level Management

Chairman 1

Vice Chairman 1

Managing Director 1

General Manager 1

Chief Executive officer 1

2 Mid Level Management

Factory Manager 1

HR Manager 2

Compliance Manager 2

Security Manager 2

Fire & Safety Manager 2

Maintenance Manager 2

Utility Manager 2

Production Manager 2

3 Lower Level Management

Supervisor 10

Floor Manager 3

Section Head 7

Line Manager 5

4 Workers Workers 400

TOTAL 445

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1.8 Financial Statement: BALANCE SHEET AS ON 31 ST DECEMBER, 2012

CAPITAL & LIABILITIES AMOUNT (TK) PROPERTY & ASSETS AMOUNT (TK)

AUTHORISED CAPITAL:10,00,00,000 Ordinary Shares of Tk. 10/= eachISSUED, SUBSCRIBED & PAID UP CAPITAL:10000,000 Ordinary Shares of Tk. 10/= each

BANK LOAN (CC & TR)

EXPORT BILLS NEGOTIATION (IDBPP Loan)

HIRE PURCHASE LOAN

L/C LIABILITIES

TAX HOLIDAY RESERVE

BILLS PAYABLE

PROFIT & LOSS APP. A/C

FORCED LOAN

OTHER LIABILITIES

ACCOUNTS PAYABLE

1,000,000,000 FIXED ASSETS (Schedule-A):

SECURITY & ADVANCE

PRELIMINARY EXPENSES

DEFERRED REVENUE EXP.

BILLS RECEIVABLE

MARGINAL DEPOSIT

CLOSING STOCK

ADVANCE TAX

CASH & BANK BALANCES

289,371,526

6,874,848

180,645

1,379,070

590,764,766

24,066,000

538,853,736

5,051,795

9,354,747

100,000,000

492,862,680

340,112,909

4,900,950

124,119,779

12,363,813

159,097,151

112,198,608

99,159,234

17,804,287

3,277,7721,465,897,133 1,465,897,133

PROFIT & LOSS APPROPRIATION ACCOUNT

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FOR THE YEAR ENDED 31 ST DECEMBER, 2012

DR. CR.PARTICULARS AMOUNT (TK) PARTICULARS AMOUNT (TK)

Balance Transferred to Balance Sheet 112,198,608

Balance as per Last A/C

Net Profit Transferred from Profit & Loss Account

110,703,080

1,495,528

112,198,608 112,198,608

PROFIT & LOSS ACCOUNTFOR THE YEAR ENDED 31 ST DECEMBER,2012

DR. CR.PARTICULARS AMOUNT (TK) PARTICULARS AMOUNT (TK)

Salary & AllowancesOther AllowancesBank Charges & InterestInterest on CC loanInterest on Hire PurchaseInterest on IDPB LoanInsurance Premium (Fire)License Renewal & FeesPostage & CourierNewspaper & PeriodicalsTraveling & ConveyanceInterest on Forced LoanSample ChargeAudit FeesOffice RentTelephone Bill, Fax & InternetCarriage OutwardElectricityDonation & SubscriptionEntertainmentForm & FeesStationeryPerformance AwardGeneral ExpensesRates & TaxesDepreciationNet Profit Transferred to P/LAppropriation A/C

36,761,611281,462

2,372,75020,998,1642,407,411

50,659,6313,172,077

152,210109,800

2,882427,702

5,525,3551,276,100

5,0001,920,0001,143,258

345,650571,329

6,500425,122

1,027,7651,208,590

2,000503,294233,388

1,160,7861,495,528

Gross Profit Transferred from Manufacturing & Trading A/C 134,195,365

134,195,365 134,195,365

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MANUFACTURING & TRADING ACCOUNTFOR THE YEAR ENDED 31 ST DECEMBER,2012

PARTICULARS AMOUNT (TK) PARTICULARS AMOUNT (TK)Consumption of Raw Materials

Wages

Labor Charge

Bank Charge & Interest

Interest on Trusty Loan

Gas Bill

Insurance (Marin)

Non- Judicial Stamp

Forms & Fees

Carriage Inward

Fuel & Lubricant

Repairs & Maintenance

Water Treatment Chemical

Medical Aid

Tiffin Bill

Packaging Charges

Testing Charge

Fooding

Loading & Unloading

Depreciation

Gross Profit Transferred toProfit & Loss Account

947,333,486

43,912,172

2,532,485

8,831,719

79,832,263

46,272,600

189,543

26,850

1,027,765

312,293

8,228,954

2,180,217

4,183,676

99,002

229,751

672,633

3,057,989

1,477,902

640,675

56,716,014

134,195,365

Export Proceeds 1,341,953,654

1,341,953,654 1,341,953,654

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STATEMENT OF FIXED ASSETS AND THEREON DEPRECIATIONFOR THE YEAR ENDED 31 ST DECEMBER,2012

PARTICULARS Open. Balance as on 01.01.12

Addition during the year

Balance as on 31.12.12

Rate of Depreciation

Depreciation Dur. The Year

W.D.V.as on 31.12.12

Building

Plant & Machinery

Furniture & Fixture

Electric Installation

Gas Installation

Deep Tube well

Led Way Software

Crockery & Cutleries

Hardware & Sanitary

Electric & Sub Station

Office Equipment

Spare Parts

93,330,192

137,122,138

2,694,169

11,780,744

12,249,786

5,665,292

1,853,277

166,837

4,220,281

301,327

1,746,655

61,410,420

127,000

206,950

14,373,257

93,330,192

137,122,138

2,821,169

11,780,744

12,249,786

5,665,292

1,853,277

166,837

4,220,281

301,327

1,953,605

75,783,677

20%

20%

10%

15%

15%

15%

15%

10%

10%

10%

10%

10%

18,666,038

27,424,428

269,417

1,767,112

1,837,468

849,794

277,992

16,684

422,028

30,133

174,666

6,141,042

74,664,154

109,697,711

2,551,752

10,013,633

10,412,318

4,815,498

1,575,286

150,153

3,798,253

271,194

1,778,940

69,642,635

Total Amount in Tk. 332,541,119 14,707,207 347,248,326 57,876,800 289,371,526

Allocation of Depreciation:

Manufacturing & Trading A/C: Building Plant & Machinery Electric Goods Gas Installation Deep Tube well Electric Sub Station

Spare Parts Profit & Loss A/C: Furniture & Fixture Led Way Software Crockery & Cutleries Hardware & Sanitary Office Equipment

Total Tk-

56,716,01418,666,03827,424,4281,767,1121,837,468

849,79430,133

6,141,0421,160,786

269,417277,99216,684

422,028174,666

57,876,800

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1.9 Current Problems we are facing:

As we have the latest data base of all production, cost, sales & marketing perspective which is monitored by our higher management & our Work study Group. According to the status of last five years production status we see the graph is going down as the productivity has also been decreased drastically. After analyzing the financial statements we could measure that approximately 10% of our profit margin has been decreased. The annual turnover which was 64.2 million USD in 2010 & the annual Turnover of 2014 was 55.3 million USD.

2.0 Importance of Decision Making:

As top level executives we should always try for the higher productivity which will definite has a hand in the incensement of our profit margin as well as yearly turnover. As the current problem is hampering the financial gain, so we need to take a decision that would bring significant change in our productivity & profit which will definitely reflect a good impression in the Human Resources arena. It is said that management involves 6 Ms that is Man, Materials, Machine, Method, Money & Market. Among these 6 Ms Man(Human Resource) creates major problem for a manager as well as for the organization. So an effective decision making has a significant role in this regard.

2.1 Identifying The causes of current Problem:

a. High Rate of Lower Level Employee Turnover

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 have to produce RMG products to meet the demand of international market. That’s why; each worker has to do extra time duties. For these reason Supervisor are in pressure to motivate workers for overtime duties with in budgeted overtime payment, that’s why relationship between workers and supervisor are not that good. So our labor is recently leaving our organization, and the ratio getting higher day by day. After doing HR survey

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it is observed that for the salary & benefit issue, the dissatisfaction rate has been increased.

b. Low Productivity

We are facing low productivity and outcomes because of high rate of turnover and poor job satisfaction level due to non-satisfactory remuneration and benefits. On the other hand, Ineffective management practices decreased our company's productivity in several ways.

c. Management Functions are disrupted

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. Lack of Awareness of labor group

Most of our labor doesn’t 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

As we are mainly focus on product quality, management has zero tolerance mindset in quality product. So, supervisors are in pressure to follow up and care about the product instead of motivating them to do the best. And because of recent turnover incidence, labors are afraid of doing their best which cause job insecurity and less productivity.

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 that’s why our labor & staff getting dissatisfy, tendency of shifting to other organization is increased day by day. As most of the new

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organizations are introducing attractive benefits like health insurance & WPF etc and they are following labor law properly.

g. Transportation for Mid Level Management:

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. Health, safety and environment

Now a days, health, safety and organizational environment becomes major factors for the workers. Some recent tragedies, marks our labors concentrations about such important issue. So we are facing some challenges to make feel our labors fearless while working. Proper training and initiative are not taken to make them aware of health & safety.

i. Lack of efficiency & effectiveness among Marketing & Sales Department:

Most of our marketing & Sales people of our organization are following the system of 1980s-1990s for marketing & sales. For that reason they usually don’t understand the new requirements of Various Buyer accordingly & they fall back in maintaining a similar pace with the latest requirements. As we know with the passage of time there are a lot of requirements which all are new & innovative. So for the lack of training & development has got a major effect on this issue.

j. Competitive Market Position:

Our competitor companies are offering competitive remuneration package to some of our efficient mid & lower level managers. As a result the migration ration of Mid-Lower level managers has gone high.

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2.2 Developing Alternative Solutions:

We know that our problems have got some alternative solutions. To develop alternative solutions we have used the available resources. Those are:

We had a brainstorming session involving top level executives like our Chairman, Managing Director, CEO & general Manager.

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.

We hired a consultant to analyze and review the problems and to propose alternative solutions for us from a third party view so that the alternative solutions become neutral.

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.

@ 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.

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2.3 Our Decision To solve the Problem & Justification:

Considering the facts & after analyzing the problems & the cause of the current problems we may take some major decisions along with some other decisions which will give us a fruitful result. We strongly believe that our employees & Mid & Lower level managers are our assets and they can definitely contribute to our profitability if they are 100% motivated & productive by getting good facilities.

Major Decision:

We will increase the salary for all level of employees. Here we will follow Cost of living Adjustment (COLA) method and would also consider the market demand and competencies of our employees. So the increment will not be same percentage at all level.

So the increment would be as follows:

Top Level : 2%Mid Level : 5%Low Level : 10%Workers : 12%

Respective Justification:

Based on our review result, we have found that:

a. The present salary structure is not competitive and do not match with the market demand. So turnover rate is high among our most efficient workers. They are keen to switch organization if they get good offers from other organizations. It has direct impact on the low productivity & sales.

b. 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

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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. So our decision of increasing salary would bring significant change

in our company by motivating the employees providing incentive

to them.

e. As top level employees are already highly paid, their increment is

the lowest. Our efficient mid level employees are keen to switch

job, so incentive is the highest to retain them based on market

demand analysis. Our low level employees play key role in

production and are given incentive as per market demand analysis.

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.

We will provide transportation facilities to our Workers by providing

Bus service & for the Mid level managers we will provide Micro Bus

service on monthly basis.

Respective Justification


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a. As fuel price has increased, employees& staffs are to spend more on

their conveyances. 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. Providing transport to work would solve the problem

and would maintain in-time to work properly.


We will arrange some interactive production oriented training & awareness

program for the mid & lower level management.



If we can provide some interactive production oriented & awareness training

for the mid & lower level managers, they will be quite efficient & effective

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.


We will announce the annual picnic for all employees which will also have

some cultural activities.


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

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interaction with Top, Mid & Lower level management. They will be able to share their

views & this will have a direct effect on their productivity.


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 JustificationBased 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.

2.4 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.

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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

Attributes of the company those are harmful to achieve the company objectives is

called weakness.

a. One major concern is the cost of extra budget which was not included in

financial year so some unexpected cost will be added with yearly

expenditure.

b. May be some other factory already using such similar ideas to reduce

dissatisfactions.

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c. Since we cannot provide their expected salary in line with the actual

inflation rate so may be some de-motivation will still remain after

implementing the decision all types of decisions.

3) Opportunity

Opportunities are those external conditions that are helpful to achieve the

objective. So in order to make our roots deeper into the market, we will get those

opportunities in future.

a. Since we will be able to run our production smoothly without any

interruptions, we will be able to trade more products at a cheaper rate & in

shorter time.

b. Many companies may be unable to be so much courageous to

invest huge amount of money to increase salaries & take the benefit of

such decision.

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. We might draw more efficient and dedicated workers from other

companies as we will offer competitive packages and transportation

facility after implementing our decision.

4) Threat

Threat means external barriers for a new product or service.

a. Other companies may also follow our decision more effectively and

thereby snatch our efficient employees.

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2.5 Action Plan – How to Implement the DecisionA 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 plan1. 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 Current Salary Cost(per anum)

Increased Salary cost(per anum)

Top Level : 5 persons 19,500,000/= 19,890,000/=

Mid Level 15 persons 14,700,000/= 15,435,000/=

Lower Level 25 persons 13,535,000/= 14,888,500/=

Workers ( 400 persons) 40,800,000/= 45,696,000/=

Total 88,535,000/= 95,909,500/=

Extra amount needed Tk. 7,374,500/=

Transport cost per annum

4 Bus (50 seated) monthly rent and

fuel.

25 days X 6000/= X 12 months X 4 =

72,00,000/=

2 micro buses (12 seated) monthly

rent and fuel

25 Days X 3000 Tk X 12 months X 2

= 18,00,000/=

2. We have to make plans on how to recover the cost of our new decision.

We will set new sales target that will recover our extra cost without

hampering our profit target. As shown the calculation above, this

investment will bring a significant change of workers working behavior with

a very small investment. If we can achieve our monthly sales target, then it

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would not be a problem to recover the extra cost. Ultimately their job

satisfaction will make them to do their job more effectively. Per day sales

will be high and this extra sales profit will be given them as new increased

wages and also accommodate the transportation cost.

3. We will arrange some production oriented & awareness training program

monthly which will cost approximately 60,000/=(Annually 7,20,000/=)

which will definitely cover up by the profit.

4. 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.

5. We will include the Medical facility expenditure in the 2016 budget by

making a contract some of the private hospitals for the yearly check up

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

plan of minutes of the Board meeting which will communicated to

Head of Welfare.

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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.

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Assignment on Decision Making Process

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