1.
2 Assignment Topic
Decision making in managing.
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
not possible unless a firm decision is taken about a business problem or
situation.
1
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.
When asked, people don’t easily point to what they regard as great
2
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
workplace, that they will not use force or other compulsory labor that they
3
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.
4
MSRM Textile Mills Ltd
Manpower Status as on 17.05.2015
Existing
S/N Level Designation Remarks
Manpower
Chairman 1
Vice Chairman 1
Top Level
1 Managing Director 1
Management
General Manager 1
Chief Executive officer 1
Factory Manager 1
HR Manager 2
Compliance Manager 2
Mid Level Security Manager 2
2
Management Fire & Safety Manager 2
Maintenance Manager 2
Utility Manager 2
Production Manager 2
Supervisor 10
Lower Level Floor Manager 3
3
Management Section Head 7
Line Manager 5
4 Workers Workers 400
TOTAL 445
1.8 Financial Statement: BALANCE SHEET AS ON 31 ST
DECEMBER, 2012
5
CAPITAL & LIABILITIES AMOUNT (TK) PROPERTY & ASSETS AMOUNT (TK)
AUTHORISED CAPITAL: 1,000,000,000 FIXED ASSETS (Schedule-A): 289,371,526
10,00,00,000 Ordinary Shares of Tk. 10/=
each
ISSUED, SUBSCRIBED & PAID UP SECURITY & ADVANCE 6,874,848
CAPITAL: 100,000,000
10000,000 Ordinary Shares of Tk. 10/=
each PRELIMINARY EXPENSES 180,645
BANK LOAN (CC & TR) 492,862,680
EXPORT BILLS NEGOTIATION (IDBPP 340,112,909 DEFERRED REVENUE EXP. 1,379,070
Loan)
HIRE PURCHASE LOAN 4,900,950 BILLS RECEIVABLE 590,764,766
L/C LIABILITIES 124,119,779
MARGINAL DEPOSIT 24,066,000
TAX HOLIDAY RESERVE 12,363,813
BILLS PAYABLE 159,097,151
CLOSING STOCK 538,853,736
PROFIT & LOSS APP. A/C 112,198,608
FORCED LOAN 99,159,234 ADVANCE TAX 5,051,795
OTHER LIABILITIES 17,804,287 CASH & BANK BALANCES 9,354,747
ACCOUNTS PAYABLE 3,277,772
1,465,897,133 1,465,897,133
6
PROFIT & LOSS APPROPRIATION ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER, 2012
DR. CR.
PARTICULARS AMOUNT (TK) PARTICULARS AMOUNT (TK)
Balance as per Last A/C 110,703,080
Net Profit Transferred from Profit & 1,495,528
Balance Transferred to Balance Sheet 112,198,608 Loss Account
112,198,608 112,198,608
PROFIT & LOSS ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER,2012
DR. CR.
PARTICULARS AMOUNT (TK) PARTICULARS AMOUNT (TK)
Salary & Allowances 36,761,611 Gross Profit Transferred from
Other Allowances 281,462 Manufacturing & Trading A/C 134,195,365
Bank Charges & Interest 2,372,750
Interest on CC loan 20,998,164
Interest on Hire Purchase 2,407,411
Interest on IDPB Loan 50,659,631
Insurance Premium (Fire) 3,172,077
License Renewal & Fees 152,210
Postage & Courier 109,800
Newspaper & Periodicals 2,882
Traveling & Conveyance 427,702
Interest on Forced Loan 5,525,355
Sample Charge 1,276,100
Audit Fees 5,000
Office Rent 1,920,000
Telephone Bill, Fax & Internet 1,143,258
Carriage Outward 345,650
Electricity 571,329
Donation & Subscription 6,500
Entertainment 425,122
Form & Fees 1,027,765
Stationery 1,208,590
7
Performance Award 2,000
General Expenses 503,294
Rates & Taxes 233,388
Depreciation 1,160,786
Net Profit Transferred to P/L 1,495,528
Appropriation A/C
134,195,365 134,195,365
MANUFACTURING & TRADING ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER,2012
PARTICULARS AMOUNT (TK) PARTICULARS AMOUNT (TK)
Consumption of Raw Materials 947,333,486 Export Proceeds 1,341,953,654
Wages 43,912,172
Labor Charge 2,532,485
Bank Charge & Interest 8,831,719
Interest on Trusty Loan 79,832,263
Gas Bill 46,272,600
Insurance (Marin) 189,543
Non- Judicial Stamp 26,850
Forms & Fees 1,027,765
Carriage Inward 312,293
Fuel & Lubricant 8,228,954
Repairs & Maintenance 2,180,217
Water Treatment Chemical 4,183,676
Medical Aid 99,002
Tiffin Bill 229,751
Packaging Charges 672,633
Testing Charge 3,057,989
Fooding 1,477,902
Loading & Unloading 640,675
Depreciation 56,716,014
8
Gross Profit Transferred to 134,195,365
Profit & Loss Account
1,341,953,654 1,341,953,654
STATEMENT OF FIXED ASSETS AND THEREON DEPRECIATION
FOR THE YEAR ENDED 31ST DECEMBER,2012
PARTICULARS Open. Balance Addition Balance as Rate of Depreciation W.D.V.
as on 01.01.12 during the year on 31.12.12 Depreciation Dur. The Year as on 31.12.12
Building 93,330,192 93,330,192 20% 18,666,038 74,664,154
Plant & Machinery 137,122,138 137,122,138 20% 27,424,428 109,697,711
Furniture & Fixture 2,694,169 127,000 2,821,169 10% 269,417 2,551,752
Electric Installation 11,780,744 11,780,744 15% 1,767,112 10,013,633
Gas Installation 12,249,786 12,249,786 15% 1,837,468 10,412,318
Deep Tube well 5,665,292 5,665,292 15% 849,794 4,815,498
Led Way Software 1,853,277 1,853,277 15% 277,992 1,575,286
Crockery & Cutleries 166,837 166,837 10% 16,684 150,153
Hardware & Sanitary 4,220,281 4,220,281 10% 422,028 3,798,253
Electric & Sub Station 301,327 301,327 10% 30,133 271,194
Office Equipment 1,746,655 206,950 1,953,605 10% 174,666 1,778,940
Spare Parts 61,410,420 14,373,257 75,783,677 10% 6,141,042 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:
56,716,014
18,666,038
Manufacturing & Trading A/C: 27,424,428
Building 1,767,112
Plant & Machinery 1,837,468
Electric Goods 849,794
Gas Installation 30,133
Deep Tube well 6,141,042
Electric Sub Station 1,160,786
Spare Parts 269,417
277,992
16,684
422,028
9
174,666
57,876,800
Profit & Loss A/C:
Furniture & Fixture
Led Way Software
Crockery & Cutleries
Hardware & Sanitary
Office Equipment
Total Tk-
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
10
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
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.
11
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
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:
12
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.
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.
13
@ 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.
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:
14
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
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.
15
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
Based on our review result, we have found that:
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.
Subordinate Decision No 02
We will arrange some interactive production oriented training & awareness
program for the mid & lower level management.
Respective Justification
Based on our review result, we have found that:
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.
Subordinate Decision No 03
16
We will announce the annual picnic for all employees which will also have
some cultural activities.
Respective Justification
Based on our review result, we have found that if we announce & organize annual picnic
with cultural activities for all the employees, this will definitely have a great effect on the
interaction with Top, Mid & Lower level management. They will be able to share their
views & this will have a direct effect on their productivity.
Subordinate Decision No 04
We will announce the following benefits by mentioning the time frame when
we will be able to provide.
We will make a contract with some private hospitals for the yearly
check up of our Mid, Lower level managers & also for the workers
with a discounted price from 2016.
We will provide the Health insurance for the workers from 2018.
We will provide provident fund for all the workers including Mid &
Lower level managers from 2020.
Respective Justification
Based on our review result, we have found that if we announce the above benefits,
workers along with the Mid & Lower level managers will be motivated. It is because they
will have a target at which time they will get what extra benefit. The migration rate will
drastically decreased. This will have a direct effect on their productivity.
17
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.
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
18
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.
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
19
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.
2.5 Action Plan – How to Implement the Decision
A plan may sound very high but it will not bring any result unless it is
implemented. Plans are to be implemented. So we should make a realistic &
logical action plan & act accordingly to reach our objective.
Action plan
1. First we will calculate our existing staff salary cost and increased salary cost and
transportation cost and estimate the added expenditure required to implement our
decision.
Level and Tire Current Salary Cost Increased Salary cost
(per anum) (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 25 days X 6000/= X 12 months X 4 =
fuel. 72,00,000/=
2 micro buses (12 seated) monthly 25 Days X 3000 Tk X 12 months X 2
rent and fuel = 18,00,000/=
20
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
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
21
plan of minutes of the Board meeting which will communicated to
Head of Welfare.
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.
22
23
