2. Introduction: Our assignment topic is RMG (ready-made garments) industry. This
study attempts to explore the theory of organization, planning, staffing, controlling and
how to practice those on a RMG industry. The comparison between theory and general
practices. We have chosen a garment, the name of this garment is Shanta Denims
Limited (DEWHIEST). The RMG industry is the only multi-billion-dollar
manufacturing and export industry in Bangladesh. Whereas the industry contributed
only 0.001 percent to the country’s total export earnings in 1976, its share increased to
about 75 percent of those earning in 2005. Bangladesh exported garments worth the
equivalent of $6.9 billion in 2005, which was about 2.5 percent of the global total value
($276 billion) of garment exports. The country’s RMG industry grew by more than 15
present annum on average during the last 15 years. Currently, there are more than 4000
RMG firms in Bangladesh. So, there are many successfulstory in this sector. Behind
the all those success management play the big role. Without follow a properstrategy of
management this sector can’t grow up.
Theoretical Background:
Planning definition:
Planning is the fundamental management function, which involves deciding hand, what
is to be done, when is to be done, how it is to be done & who is going to do it.
Objective of planning:
Reduce business related risks.
Give right decision.
Keep good control.
Gives right direction.
Helps to achieve objective.
Motivate the personnel.
Helps in decision making.
Aids in organising.
Steps involved in planning:
Analyzing opportunities
Setting objective
Developing premises
3. Identifying alternative
Evaluating alternative
Selecting alternative
Implementing action plan
Reviewing
Types of plan:
1. Breadth
2. Time frame
3. Specificity
4. Frequency of use.
1. Breadth.
Strategic planning:
Strategic planning is the art of creating specific business strategies, implementing
them, and evaluating the results of executing the plan, in regard to a company’s
overall long-term goals or desires.
Operational planning:
An operation plan is an extremely detail-oriented plan that clearly defines how a team
or department contributes to reaching company goals.
Time frame:
Short term Planning:
Short term planning is the planning which covers less than two years. It must be
formulated in a manner consistent with long-term plans.
Long-Term Planning:
Long-term planning usually converse a period of more than five years, mostly between
five and fifteen years.
2. Specificity:
4. Specific planning:
Specific Plan that are clearly defined & leave no room for interpretation.
Directional planning:
Directional plans are the flexible plans that set out general guidelines.
3. Frequency of use :
Single Use Plan:
Single use plan is one, which sets a courseof action for a particular set ofcircumstances
and is used up once the particular goal is achieved.
Standing Plan:
Standing plan is one, which is designed to be used over and over again.
Objectives, policies procedures, methods, rules and strategies are included in
standing plans.
Definition of Organizing:
Organising is the process establishment of effective authority relationship among
selected work, persons & work places in order for the group to work efficiently.
Importance of Organising:
Clarity in working relationship.
Effective administration
Expansion & growth
Benefits of specialization
Optimum utilization of resources
Development of personnel.
Formal Organization:
A formal organization is an organization with a fixed set of rules of intra-
organization procedures and structures. As such, it is usually set out in writing, with a
language of rules that ostensibly leave little discretion for interpretation.
Informal Organization:
Informal organization, the manner in which an organization operates in reality, as
opposed to its formal distribution of roles and responsibilities.
Steps involved in the Organizing process:
5. Narrow spans of control:
Advantages:
Higher degree of control.
Manage is more familiar with individuals
Close supervision can provide immediate feedback.
Disadvantages:
More management level, more expensive.
Slower decision making.
Isolation of to management. And Discourses employee autonomy.
6. Wide span of control :
Figure 2: organization with wide spans
Advantages:
Increased efficiency and reduced costs.
Quicker decision making.
Greater flexibility.
Higher levels of job satisfaction.
Disadvantages:
Less control.
Possible lack of familiarity
Managers spread thin.
Lack of coordination or synchronization.
Staffing definition:
Stuffing is the process ofhiring eligible candidates in the organization or company for
specific positions. In management, the meaning of stuffing is an operation of
recruiting employees by evaluating their skills, knowledge & then offering them
specific job roles accordingly.
7. Importance of stuffing:
Helps in discovering & obtaining competent employees of various job.
Improve the quantity & quality of output by putting the right man for right
job.
Improved job satisfaction of employees.
Reduces of cost of personnel by avoiding wastage of human resource.
To understand issue related to job analysis and overcome the problem.
Steps involved in staffing process:
Manpower planning
Recruitment
Selection
Placement
Training
Development
Promotion
Transfer
Appraisal
Determination of remuneration
1. Manpower Planning
Manpower planning can be regarded as the quantitative and qualitative measurement of
labour force required in an enterprise. Therefore, in an overall sense, the planning
process involves the synergy in creating and evaluating the manpower inventory and as
well as in developing the required talents among the employees selected for promotion
advancement
2. Recruitment
Recruitment is a process of searching for prospective employees and stimulating them
to apply for jobs in the organization. It stands forfinding the sourcefromwhere potential
employees will be selected
3. Selection
The purposeof this selection processis to determine whether a candidate is suitable
for employment in the organization or not. Therefore, the main aim of the processof
8. selection is selecting the right candidates to fill various positions in the organization.
A well-planned selection procedure is of utmost importance.
4. Placement
Placement means putting the person on the job for which he is selected. It includes
introducing the employee to his job.
5. Training
After selection of an employee, the important part of the programmed is to provide
training to the new employee.
With the various technological changes, the need for training employees is being
increased to keep the employees in touch with the various new developments.
6. Development
A sound staffing policy provides for the introduction of a system of planned promotion
in every organization. If employees are not at all having suitable opportunities for their
development and promotion, they get frustrated which affect their work.
7. Promotions
The process of promotion implies the up-gradation of an employee to a higher post
involving increasing rank, prestige and responsibilities. Generally, the promotion is
linked to increment in wages and incentives but it is not essential that it always relates to
that part of an organization.
8. Transfer
Transfermeans the movement of an employee from onejob to another without increment
in pay, status or responsibilities. Therefore this process of staffing needs to evaluated on
a timely basis.
9. Appraisal
Appraisal ofemployees as to how efficiently the subordinateis performing a job and also
to know his aptitudes and other qualities necessary for performing the job assigned to
him.
9. 10. Determination of Remuneration
This is the last process which is very crucial as it involves in determining remuneration
which is one of the most difficult functions of the personnel department because there
are no definite or exact means to determine correct wages.
Definition of control:
Controlling is determining what is being accomplished thatis evaluating the performance
and, if necessary, applying corrected measures so that the performance takes place
according to plans.” In Terry’s view, controlling helps in properimplementing of plans.
Importance of Controlling:
Accomplishing organizational goals.
Judging accuracy of standards.
Making efficient use of resources.
Improving employee motivation.
Ensuring order & discipline.
Facilitating coordination inaction.
Controlling Process
10. Types of control Techniques:
Budgetary control.
Standard costing.
Financial ratio analysis.
Break – Even analysis
Statistical control
Budgetary Control
Budgeting simply means showcasing plans and expected results using numerical
information. As a corollary to this, budgetary control means controlling
regular operations of an organization for executing budgets.
A budget basically helps in understanding and expressing expected results of projects
and tasks in numerical form. For example, the amounts of sales, production
output, machine hours, etc. can be seen in budgets.
Standard Costing
Standard costing is similar to budgeting in the way that it relies on numerical figures.
The difference between the two, however, is that standard costing relies on standard and
regular/recurring costs.
Under this technique, managers record their costs and expenses for every activity and
comparethem with standard costs.This controlling technique basically helps in realizing
which activity is profitable and which one is not.
Financial Ratio Analysis
Every business organization has to depict its financial performances using reports like
balance sheets and profit & loss statements. Financial ratio analysis basically compares
these financial reports to show the financial performance of a business in numerical
terms.
Comparative studies of financial statements showcase standards like changes in assets,
liabilities, capital, profits, etc. Financial ratio analysis also helps in understanding the
liquidity and solvency status of a business.
11. Internal Audit
Another popular traditional type of control technique is internal auditing. This process
requires internal auditors to appraise themselves of the operations of an organization.
Generally, the scope of an internal audit is narrow and it relates to financial and
accounting activities. In moderntimes, however, managers useit to regulate several other
tasks.
Break-Even Analysis
Break-even analysis shows the point at which a business neither earns profits nor incurs
losses. This can be in the form of sale output, productionvolume, the price of products,
etc.
Statistical Control
The useofstatistical tools is a great way to understand an organization’s tasks effectively
and efficiently. They help in showing averages, percentages, and ratios using
comprehensible graphs and charts.
Managers often use pie charts and graphs to depict their sales, production, profits,
productivity, etc. Such tools have always been popular traditional control techniques.
Profile of DEWHIEST
12. Practices
Organization: According to organogram we see that DEWHIRST follow the narrow
spans. The narrow span of management allows the manager more time per subordinate
supervised. This can improve the quality of decision making.
Dewhirst Organogram:
How to do planning: Top management are directy involved when take any decision.
After apply it top management discuse with his subordinates and workers. All time they
give priority SWOT analysis. Every plan has extremely detail-oriented plan that clearly
defines how a team or department contributes to reaching company goals that means
operational planning. Its help them easily reach to goal.
Some process of planning:
Utilize full production capacity
Right product input right line
Meet customer given delivery date
Execute garments manufacturing process and give feedback to top
13. Staffing:Written and oral examinations are taken during recruitment. In case of higher
lavel employees. Lower level employees are recruited on the basis of aptitude. For
promotion is given on the basis of age and qualifications of the job. There are around
5000 workers here.
The staffing process are:
1. Manpower Planning
2. Recruitment
3. Selection
4. Placement
, 5. Training
6. Development
7. Promotion
8. Transfer
, 9. Appraisal
10. Determination of Remuneration
Controling: If there is no work according to the plannig, it is found out where mistake
has been made. What is the purposeofthe mistake. If there is a problem for any spacific
person, he is given prewarning.
Comparison between theoretical background and practices:
Organization: There are two types of span of controls as Narrow spanand wide
span.
Narrow Span Wide Span
The firm with narrow span of control has
less number of subordinates reporting
directly to the manager.
The firm with wide span of control has
more number of subordinates reporting
directly to the manager.
The firm with narrow span ten to have
narrow structures i.e. more levels of
management.
The firm with narrow span ten to have
wide structures i.e. fewer levels of
management.
14. It allows less employee autonomy in
decision making as compared to wide span
of control.
It allows more employee autonomy in
decision making.
Thus, it results into better employee
morale and increased motivation.
It is appropriate to handle unstructured and
highly technical tasks.
It is appropriate to handle structured and
routine tasks.
Planning: Your strategic plan outlines long-term goals for the next three to five years.
What you’ll be doing to achieve those goals in the shorter term (typically the next
fiscal year) is outlined in your operational plan.
The goal of your strategic plan is to outline the company’s long-term vision and how
all departments should work together to achieve it. The goal of your operational plan
isn’t company focused it is department focused. There can be overlap between
departments, but that’s the exception rather than the rule. Large departments may
require multiple operational plans.
Staffing: The Company follow the staffing process propertyfor management label.
But this process is not accepted in the worker label
Controlling: According to my uncle each department is controlled by its head. And
QC department checks the value of the product.
Conclusion: We have benefited a lot through this assignment. Only after theory did we
realize by assigning a subject that cannot be fully learned. I learned how to organize,
plan, staff, control in RMG sector. I learned a lot more about management. Due to
their propermanagement, employees work self-motivated, so that their daily target is
filled up every day. By doing this we understand that properuse in management is
very important in every organization.