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Formulation and implementation of organizational behavior concept in penguin sportswear pvt ltd

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    Formulation and implementation of organizational behavior concept in penguin sportswear pvt ltd Formulation and implementation of organizational behavior concept in penguin sportswear pvt ltd Document Transcript

    • FORMULATION AND IMPLEMENTATION OF ORGANIZATIONAL BEHAVIOR CONCEPT INPENGUIN SPORTSWEAR PVT LTD Submitted to National Institute of Business managementLecturer :Mr.LalithWeragodaGroup Members :VichithraSiriwardena PrasanathikaDissanayake DinushikaMadhubhashini
    • ContentsAcknowledgement ...................................................................................................................................... 2Introduction ................................................................................................................................................. 3 PENGUIN GROUP & EMJAY INTERNATIONAL............................................................................. 3Variables of Organization Behavioral ........................................................................................................ 4 Dependent variables ................................................................................................................................ 4 Independent variables ............................................................................................................................. 5 Individual level variables-................................................................................................................... 5 Group level variables .......................................................................................................................... 5 Organizational level variables............................................................................................................. 6Literature Review........................................................................................................................................ 6 Turn Over ................................................................................................................................................ 6 Problems related to turnover ............................................................................................................... 8Review ........................................................................................................................................................ 8 New strategies they adopted in last couple years.................................................................................... 9 Penguin Sportswear (Pvt) Ltd Employee Turnover Details ................................................................. 11 Comparison and contrast between the OB theories and actual OB implement in Penguin (Pvt) ltd .... 12Recommendations ..................................................................................................................................... 13Abstract ..................................................................................................................................................... 14References ................................................................................................................................................. 15Annexes..................................................................................................................................................... 16Figure 1-Vision and Mission statement ...................................................................................................... 3Figure 2-Peguin Sportswear (Pvt) Ltd Employee Turnover Detail graph ................................................ 11Table 1-Job Satisfaction and Turnover ....................................................................................................... 8Table 2-Adopted new strategies................................................................................................................ 10Table 3- Penguin Sportswear (Pvt) Ltd employee turnover Details ......................................................... 11Table 4-OB implementation ..................................................................................................................... 12Table 5-Recommendations ....................................................................................................................... 131
    • AcknowledgementWe consider it is a great privilege to thank all those people who helped me to complete this projectwork. To express our sincere thanks to the management of National Institute of Business Management-Kandy branch and my project guide Mr.LalithWeragoda for giving us this opportunity to commence theproject work and guidance do so.We express our profound thanks to, Mr.Hemantha,Group General Manager in Human Resource,PenguinSportswear (Pvt )Ltdand all the HR executives, line supervisor and staff for giving their valuable assistanceand guidance and sparing valuable time in clarifying various points raised by us.At for last not for least like to thank our parents who gave me a great deal of helping hand to make thisproject a success.2
    • IntroductionPENGUIN GROUP & EMJAY INTERNATIONALPenguin Group &Emjay International; a leading manufacturer of high quality apparel in Sri Lanka offera range of innovative and customized clothing and manufacturing solution to suit your apparel needs.Most of their plants are based in city of Kandy. Penguin Sportswear, Casualwear &Pony Euro are alllocated in Kandy with Kalacraft being the only exception, which is located in KalutaraFrom beginning in 1989 with a workforce of just 125 and 80 machines the Penguin Group of companieshas grown to a company employing over 4000 people with 2000 machines servicing the best high streetRetails both in Europe and the USA.Today the Penguin Group of companies is gaining new vistas in management strategies, increasing theirefficiency and effectiveness with their “One thought process to the goal” service philosophy.At the Penguin Group of companies believe in a more participatory management system; beingcommitted to their team as much as to their customers. They strive to create a dedicated workforce withhigh morale. This, they believe is the key to their success. VISION We Make Your Dreams Our Goals MISSION G ive our time money and resources to develop the communities we are in. O ut do the competition by keeping our promises to our customers and stakeholders. A chive internal excellence in our processes. L ove for the company by creating a self inspired culture in our team. Figure 1-Vision and Mission statement3
    • Variables of Organization BehavioralOrganizational behavior is a term related to the study of the impact of individuals, group and structurewithin the context of an organization, as well as the nature of the organization itself. This is aninterdisciplinary field that includes sociology, psychology, communication and management. Mainpurpose of studying such area is to improve the organizational effectiveness and efficiency.Main purpose of organizational studies is to understand and model these facts. A model can be definedas abstraction of the real situation or real world phenomena. It can be explained as a presentation offactors, for creating something meaningful.Organizational behavioral models mean a model represented the behavior of an organization. There aretwo types of variables in the O.B models. As, Dependent variables. Independent variables.Dependent variablesDependent variables are the key factors which are affected by other factors. They are the responses thatare affected by the activities of independent variables. There are different variables in an organization asfollows, Absenteeism - Absenteeism mean failure to report to the work. It becomes difficult for the organization to operate smoothly and to attain its objectives if employee fails to report to their job. Level of absenteeism is an indicator of the effectiveness and effectiveness of an organization. Turnover- Turnover means voluntary and involuntary permanent withdrawal of employee in an organization. Every organization has convinced amount of turnover. High turnover may increase the cost of recruitment, selection. However, turnover cannot be eliminated completely because there are certain unavoidable situations as death of an employee. Job satisfaction- Job satisfaction means employee’s aptitudes towards his work. If he is satisfied with his job that’s meant to be his positive attitude towards his job. A person gets satisfied by the level to which his expectoration of needs fulfill.4
    • Productivity-Productivityis a term which measure effectiveness and efficiency. Combination of effectiveness and efficiency called as productivity. Effectiveness measures by achievements of goals whereas efficiency measure rate of input and output. Productivity = value of output (effectiveness) Cost of input (efficient) Organizational citizenship- organizational citizenship is the behavior of an employee towards his organization. If a person is highly attached with his organization then it is said that there is high organizational citizenship with that person. Successful organization need employee who will do more than their usual work and perform better.Independent variables Independent variables mean the variables which directly affect the dependent variables such asproductivity, these variables are describe under three sub levels as, 1. Individual level variables. 2. Group level variables. 3. Organizational level variables. Individual level variables-There are different individual level variables like perceptions, learning, motivation and attitude and so on such factors of individuals affects the behavior at work. Personal characteristic like age, gender,etc Group level variables- The behavior of people in group is more than the sum total of individual acting in their own way. The behavior of an individual is different when being alone and when in a group. The behavior of people working in group is affected by many factors like,  Communication within the group.  Communication with other group.  Level of conflict in a group.  Level of group cohesiveness. Different group have different behavior or have different individual performance. With different groups such concepts increased the complexity of organizational behaviors models.5
    • Organizational level variables Organizational level variables are accumulation of group behavior and individual behavior.In other words, formal structure of group and individual behavior is known as organization behavior. Groups are more than the collection of individual members, in the same way organizations are more than the sum of their groups. It is collection of the formal structure, work process, technology, human resource policy, organizational culture are the factors which affect organizational behavior. It’s a field of study that investigates the impact that individuals group and then it applies knowledge to make organizations work more effectively; reduce absenteeism and turnover while increasing employee citizens and job satisfaction.Literature ReviewTurn OverRegular crisis Penguin Sportswear (Pvt) Ltd is facing is labor turn over. Hence proper knowledge on thisorganizational behavior variable is a must. Many academic scholars pointed out turnover as thecorrelation between job dissatisfaction and decreased organizational commitment.6
    • The rate of turnover varies from company to company. The highest level of turnover normally found inprivate sectors than public sectors. Sometimes employee turnover benefits organizations positively. Thismight happen when a poor performer is replaced by a more skilled employee and when a retiredemployee replaced by a younger one. Yet information on turnover can help the planning, prediction andcontrol of resources too.Labor turnover indexThe labor turnover index (sometimes referred to as the employee or labor wastage index) is thetraditional formula for measuring wastage. Number of leavers in a specified period (usually 1 year) × 100 Average number of employees during the same period Why Employees Stay –Job satisfaction Why employees go-Reasons for turnover Career growth, learning, and development Further payments and higher salary Exciting work and challenge Better prospects Meaningful work, making a difference and a Poor relationships with manager/team contribution leader Great people Lack of providing essential training Being part of a team Better working conditions Good boss More opportunity to develop skills Recognition for work well done Poor relationship with colleagues Fun on the job Bullying or harassment Autonomy, sense of control over my work Personal reasons – pregnancy, illness, moving away from area Flexibility Additional job security Fair pay and benefits Inspiring leadership Pride in organization, its mission and quality of product7
    • Great work environment Location Job security Family-friendlyProblems related to turnover Employees leave the company; the employer has to incur a considerable amount of direct and indirect expense. -These costs include advertising expenses, headhunting fees, resource management expenses, loss of time and productivity, work imbalance, and employee training and development expenses for new joiners. It makes the employers difficult to maintain a Table 1-Job Satisfaction and Turnover steady and successful operation. Can reduce investors’ confidence in the firm Effects that not only impact on the organization, but also the individual employee and the societyReviewTurnover is one such dependent variable influence overall organizational behavior and its objectives.Within penguin sportswear (pvt) ltd had undergone massive problem of turnover and we hope todeliberate our research. In past years up to 2010 annual turnover rates were 8%-9% .After dynamicchanges in top management, merging with EMJAY international caused changes in strategy ofmanagement aspect and the way they deal with individual objectives. Turnover ratio has decrease to 5%almost due to those sudden changes. But still we can identify changers that should be done to make thatachieved turnover ratio stable.8
    • New strategies they adopted in last couple yearsMATTER BEFORE2010 PRASENT PROCEDUERSelection Recruitments were done randomly, Present selection process within 2 hoursProcess with a brief interview and regardless 1. Applicants welcome by the Guard Room & suitability. inform the HR Department 2. Fill the application 3. Formal interview done by the HR Assistant 4. General Written Test 5. Practical test 6. Medical Checkup 7. Interview with the counselor 8. Final recommendation by the HR Manager As a result all the employees suits for the positionLeave There is no proper Leave Request Introduced proper leave plan.Request system 1. Employees must apply leave before one Employees apply leave at the week same time. 2. Sectional heads consider leave requests. All the leaves approved 3. Approve leave hence production is not affect the production process, disturbed. Not approved employees are dissatisfied.Night Target couldn’t meet due to Workers are efficiently recruited so theShifts workers’ inefficiency and poor productivity increased. Therefore the night shifts attendance. Therefore night shifts are not essential hence Turnover is reduced. were necessitated and this was a factor to the Turnover.9
    • Grievances 1. Two Peer Counselors1 appointed amonghandling workers from each Line. Join Consultant There wasn’t proper system Committee (JCC)2of the works has been grievances handling setup and meetings with peer counselors and the management are being held monthly to discuss the works’ problems and give solutions then and there. 2. HR Assistants are titled as Business Partners3 and they are responsible assist problems in the divisions which they are entrusted. 3. Counselor4 assigned to identify potential leaver. 4. An Internal Communication Unit (ICU)5 has been setup to maintain an accurate communication system between the workers and the management. 1. Legitimate benefits given to employees. Reasonable SalaryMotivation Monetary motivators Over Time EFP & ETF benefits(EPF - 8% deducted from employee, 12% contribution of the company, ETF - 3% contribution of the company) Gratuity Payments Leave(Annual Leave – 14 days [after one year]/Maternity Leave) 2. Selection of best efficient workers, best attendance, best quality of the month and awards and pay incentive. 3. All workers are given a Multi Skill Training so that they can attend to cover up other workers’ duties in case of an emergency. 4. Moreover the workers are enjoying following facilities also, Welfare Loan Death Donation Transport facilities Free breakfast and Tea Table 2-Adopted new strategies10
    • Penguin Sportswear (Pvt) Ltd Employee Turnover Details Month Budgeted Total Turnover Turnover % % Apr-10 5% 6% Aug-10 5% 8% Dec-10 5% 7% Apr-11 5% 5% Aug-11 5% 7% Dec-11 5% 6.5% Apr-12 5% 5.4% Aug-12 5% 4.9% Table 3- Penguin Sportswear (Pvt) Ltd employee turnover Details 9% 8% 7% 6% 5% 4% Budgeted Turnover % Total Turnover % 3% 2% 1% 0% Aug-10 Apr-10 Apr-11 Aug-11 Apr-12 Aug-12 Feb-11 Feb-12 Dec-10 Dec-11 Jun-10 Oct-10 Jun-11 Oct-11 Jun-12 Figure 2-Peguin Sportswear (Pvt) Ltd Employee Turnover Detail graph11
    • Comparison and contrast between the OB theories and actual OB implement in Penguin(Pvt) ltd Categories OB Theories Actual SituationJob Satisfaction -Job satisfaction mean the - Satisfaction of an employee general attitude employee got comes secondary to achieving about his job. targets. -Attitude based on their values -And organization tries to keep - Positive attitudes like worker the employee by answering their relationships, working condition, problem with shorter remedies. rules, career ladder, payments -It is difficult to find a time for make high job satisfaction. the inter relation with bosses - Positive relationship between /core workers due to the tough job satisfaction and work schedule. organizational performances.Job Involvement -Job involvement mean up to -Employees are highly what degree employee has specialization on their task, than understood about his job understanding its practices. activities. - Employees are more - High level of job involvement mechanically involve than will show by less absenteeism morally involvement with the and less resignation. job. -This can improve by applying -Organization doesn’t have time organizational culture and to develop the culture and organizational commitment. commitment which effect job involvement.Organizational Commitment - Level to an employee - Employee reduces absenteeism understands a particular and tries to stay within the organization, its goals and wishes organization mainly for the to maintain membership within economic benefits than their it. commitment. -Low organizational commitment -Employees are more concerned is shown by high absenteeism on monitory benefit as gratuity and turnover. payment, payment for less -Commitment employees are leaves, child care facilities. good indicator of turnover and absenteeism than job involvement. Table 4-OB implementation12
    • Recommendations Problem Recommendation 1. Problem related to peer counselors may  Change peer counselors periodically to change cause turn over their aspect on what they contribute a) Operational level labors neglect peer  Encourage to make personal working counselors because they consider as relationships among workers part of management.  Workers-peer counselors who travel together b) Not enough time to discuss with peer discuss problems while travelling. counselors c) Some personal issues may not be discussed 2. There are many theories add to solve  Do a SWOT analysis/research to choose and turnover make conflicts and unproductive implement appropriate concept 3. Discontinuous of adopted OB concepts  Continuous observation of the chosen concept 4. Added stress for middle line managers cause  Do a SWOT analysis/research to choose the managerial turnover best concept and adopt it a) HR executives job enlarged being  Hire the right person, for right position; in right business partner in JCC, member of time Barrier Remove Team, a member of  Make a proper span of control and chain of ICU command(authority, responsibility, unity of b) Financial management had to command) constantly calculate turnover. c) Production department had to train new employees 5. Problems with counselor won’t make  Encourage to make a industrial relationship counseling as a method of reducing turnover with counselor 6. Workers don’t have organizational  Provide uniform to all the workers commitment(as companies like MAS)  Let them understand how their performance important to organization 7. Use money as the only motivator  Provide flexible work schedules adopted to the a) Replace leisure and recreation by needs of the individual monetary benefits which cause long  Use career development as a motivator term fatigue, occupational burnout till it becomes turnover 8. Offer short term solutions to employee  Make long term employee retention plan problems which create unsatisfied and potential leavers in long term Table 5-Recommendations13
    • AbstractThis study was conducted in a leading export oriented Penguin Sportswear (Pvt) Ltd , Sri Lanka. Theorganization was a leading apparel manufacturer to US market. General objective of the study was toobserve the effect of Labor Turnover on achievement of Organizational objectives. Specific aims of thestudy were to identify the major influential factors for labor turnover, to examine the factors contributingto labor turnover, and to analyses the impact of current practices and measures taken by the organizationin addressing labor turnover.Study was focused on the labor turnover, specifically the sewing machine operators. Study has examinedthe models and sources of labor turnover, paying attention to Study analyzed, and verified a range offactors that were consistently linked to employee turnover. There was a relationship between variablesaffecting employees to have intention to leave shown positive relationships.Factors that tip Team members to leave the organization were linked to its processes, practice andmethods. Organization needs to consider exact necessities of employees for benefits to be perceivedpositively by them. Results of this study would facilitate organization’s decision makers to understandthe overall nature of employee turnover and its’ likely causes, and contexts as well.14
    • References Name of the book or Website Author Published Publisher and address year and the editionOrganizational Behaviour Stephen P. Robbins 2002 Perentice Hall, One Lake street, Upper Saddle river, 10th Edition NewJersy, 07458 Fundamentals of Organizational Robert Kreitner, 2003 McGraw-Hill RyersonBehaviour Angelo Kinicki Nina Limited, a Subsidiary of Cole 2nd Edition The McGraw-Hill Companies. Canadian EditionHandbook Of Principles Of Edited by 2nd Edition John Wiley & Sons Ltd,Organizational Behavior The Atrium, Southern Edwin A. Locke Gate, Chichester, West Sussex, PO19 8SQ, United KingdomA Handbook of Human Resource Michael Armstrong 2006 120 Pentonville Road ,Management Practice London N1 9JN United 10th edition Kingdom 525 South 4th Street, #241, Philadelphia, PA 19147, USAInternational Students Edition -G.Bohlander-S.Shell 2007 Thomas Higher Education,Managing the Human Resources. 519 Natorp Boulevard, 13th Edition Mason OH 45040, USAInternational Students Editionhttp://top7business.com/http://www.nwlink.com/~donclark/leader/leadobhttp://nature.berkeley.edu/http://www.penguinsl.com/www.obmnetwork.com/15
    • Annexes CERTIFICATIONS The certificates earned by the Penguin Sportswear (Pvt) Ltd group are, WRAP - Worldwide Responsible Accredited Production ISO 9001 GWG – Garments without Guilt ETI – Ethical Trade Initiative C-TPAT - Customs-Trade Partnership Against TerrorismFACTORIES Penguin Sportswear (Pvt) Limited-Pallethalawinna Penguin Sportswear (Pvt) Limited-Panwila M.G International-Theldeniya M.G International-KaradagollaBUYER Helly Hansen Mark & Spencer Next Gap/Old Navy Victoria Secret Sanma Oshkosh B’gosh Craghoppers GeoxRespira GASSELLING ITEM Ladies Outerwear Ladies Underwear Mens Underwear Mens Outerwear Kids Underwear Kids Outerwear16
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