Report on Decision Making United International University Faculty: Prof. Md. Salim Bhuiyan

1. 1
United International University
“A Decision to Bring Significant Change in Our
Organization-RIMERS Tea Estate”
Prepared for
Prof. Md. Salim Bhuiyan
Management and Organizational Behavior
MGT-506 Section: B
Prepared by
Md. Tahminul Islam ID: 112131006
Md. Marufur Rahman ID: 113123007
Srabonti Chakraborty ID: 112131098
Mohtasim Kaisar ID: 112131012
Ishaq Ahmed ID: 112131066
Kazi Refat Hossain ID: 112131067

2. 2
Date of Submission: 16th May 2013
Letter of Transmittal
May 16, 2013.
Prof. Md. Salim Bhuiyan
Adjunct Faculty
School of Business and Economics
United International University
House-80, Road-8/A, Satmasjid Road
Dhanmondi, Dhaka-1209.
Sub: Submission of Term Report
Dear Sir:
It is of great honor to us to present our term report to you. The entire duration of preparing
this report has been immensely helpful to us, giving us a golden opportunity to move to the
real world. We have learnt a lot of new things through working on such a latest topic.
Developing decision making skills, analyzing organizational issues and utilizing each detail
were just to name a few. The knowledge we gathered, will help in our professional life too.
We would like to express our sense of gratitude towards you for giving us the opportunity to
work on such an innovative topic.
Sincerely,
Md. Tahminul Islam ID: 112131006 ……………………
Md. Marufur Rahman ID: 113123007 ……………………
Srabonti Chakraborty ID: 112131098 ……………………

3. 3
Mohtasim Kaisar ID: 112131012 ……………………
Ishaq Ahmed ID: 112131066 ……………………
Kazi Refat Hossain ID: 112131067 ……………………
Executive Summary
Bangladesh is one of the top most tea producers in the world. In the tea market there
are lots of companies among them we are one of them. In the report we have focus on the
problems we faced when we bought the company from the previous owners. We have found
out that the market is very much penetrated & consumers have several alternatives, so if the
performance of one company gets bad then the others come up from behind & take the
position. Here in the company we have faced some problems which were hampering the
performance of the organization. Then we found that we have the solution on giving the
employees a better compensation package, which will motivate them. Here we have
discussed it that how we have implemented it & how the performance of the company &
employees get better through our decision. Here we have briefly discussed the problem we
have faced, the solutions, the decisions & how we have implemented it.

4. 4
Topic:
“Assume 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.”

5. 5
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. Decisions are 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 definite 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

6. 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.
This clearly suggests that decision-making is necessary in planning, organizing,
directing, controlling and staffing. For example, in planning alternative 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.
6
Planning the Decision
Decision will get four benefits out of planning:
i. Planning give chance to the establishment of independent goals. It is a conscious and
directed series of choices.
ii. Planning provides a standard of measurement. It is a measurement of whether you
are going towards or further away from your goal.
iii. Planning converts values to action. You think twice about the plan and decide what
will help advance your plan best.
iv. 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.)

7. 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 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
7
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.

8. 8
Company Overview
Srimongol holds total 19 Tea Estates. RIMERS Tea Estate is one of the well known
Tea Estates in Srimongol. It is situated at Srimangal. It was previously known as “Shatgaon
Tea Estate”, but in 2012, we have purchased the ownership of “Shatgaon Tea Estate” and
named it as “RIMERS Tea Estate”. It was actually established approximately more than two
fifty years ago by the British colony. After that, by generation the ownership of this Tea
Estate was transferred.
Basically, there are three types of tea estates:
 British Garden
 Shaw Walls
 Duncan’s
The area around Sylhet is traditional tea growing area. Srimangal is known as the tea
capital of Bangladesh and for miles around one can see the green carpet of tea gardens on
the hill slopes. Sylhet area has over 150 tea gardens. Nearly 300,000 workers are employed
on the tea estates. The gardens are relics from the days of the British Raj. The plantations
were started by the British and the manager still live in white timber homes as they did in
those days. The Bungalows stand on huge beautifully maintained lawns and the service and
lifestyle is pretty much unchanged.
RIMERS Tea Estate has three divisions. These are,
i. RIMERS Tea Estate
ii. Makrichara Tea estate
iii. Ichamoti Tea Estate
Among these divisions, our main and biggest division is the RIMERS Tea Estate.

9. 9
Industry Overview
History of Bangladesh Tea Industry dates back to 1840 when a pioneer tea garden
was established on the slopes of the hill in Chittagong. First Commercial tea garden was
established in 1857 at Mulnichera in Sylhet. During the partition in 1947 Bangladesh (East
Pakistan) owned 103 tea estates covering 26,734 hectors of tea plantation with annual
production of 18.36 M.kg with a yield of about 639 kg per H.A. Home consumption was
around 13.64 M.kg up to 1955. After that home consumption went up rapidly and
government imposed 3% mandatory extension of tea area per year 1961. Ten years later by
1970 tea are extended to 42,658 hectors and production was increased to 31.38 M.kg.
During liberation war in 1971, our tea industry suffered immense damage which caused in
poor management, high vacancy, insufficient inputs, inadequate maintenance etc.
Total global export of tea in 2006 was 1572 million kgs of which Bangladesh
exported only 4.97 million kgs. World export levelers hardly increased during the year under
review. India, Srilanka, Vietnam and Argentina ended the year with higher exports even as
exports from Indonesia, Kenya and Bangladesh dropped. Export from Bangladesh declined
about 88% from 9.01 M.Kg in 2005 to 4.79 M.kg. In 2006 mainly due to increase of internal
demand that pushes the local action price up (www.teaboard.gov.bd). Most of the tea estates
are located in the north-east region of Bangladesh .The first tea garden was established by
The Duncan Brothers. Since then all the tea gardens have been established clearing jungles.
Those who did the jungle cleaning were non-locals brought by Duncan from Assam, Bihar,
Madras, Orissa and other place in India.
They are not well aware of their origins. Their lives in Bangladesh are confined to
the tea gardens and they do not interact much with people of other ethnic identities. They do
not speak their language perfectly and most of them illiterate. In 1854 when the tea workers
(Santals, Oraons, Munda etc) from different states of India first arrived they each signed a
four year contract that eventually obliged them to remain on the tea gardens for generations.
That was the beginning of hard labor, erosion of cultural identity and captivity that never
came to an end. Illiterate, they do not understand what the document contained when they
signed it.

10. 10
Employee-structure of our Company
In our company there are three levels of employees - Top, Mid and Lower Level.
Top level employees include:
Designation Number of Employee Base
Chairman 1 Head Office
Managing Director 1 Head Office
Director 1 Head Office
General Manager 1 Head Office
Mid level employees include:
(1st Tier)
Designation Number of Employee Base
Marketing Manager 1 Head Office
Sales and Distribution Manager 1 Head Office
Trading Manger 1 Head Office
Accounts and Logistics Manager 1 Head Office
Human Resource Manager 1 Head Office
Technical Service Manager 1 Head Office
Commercial and Regulatory Affairs Manager 1 Head Office
(2nd Tier)
Designation Number of Employee Base
Marketing Manager 6 Head and Branch
Offices
Sales and Distribution Manager 4 Head and Branch
Offices
Assistant Trading Manager 2 Head Office
Assistant Accounts and Logistics Manager 2 Head Office
Assistant Technical Service Manager 2 Head Office
Assistant HR Manager 2 Head Office

11. 11
Low level employees include:
(1st Tier)
Designation Number of Employee Base
Marketing Executive 8 Head and Branch
Offices
Sales and Distribution Executive 12 Head and Branch
Offices
Trading Executive 5 Head and Branch
Offices
Accounts Executive 12 Head and Branch
Offices
Technical Executive 7 Head and Branch
Offices
Executive Secretary 4 Head Office
HR Executive 7 Head Office
(2nd Tier)
Designation Number of Employee Base
Store Keeper 4 Head Office
Worker 20 Field
Delivery Man 12 Head and Branch
Offices
Peon 5 Head and Branch
Offices
Driver 10 Head and Branch
Offices

12. 12
Problems we are Currently Facing
 Lack of co-ordination: Lack of Co-ordination among the employees of all levels is
a main problem of the organization. Lack of Co-ordination among the mid & low
level employees are hampering the work environment, it is also one of the reason
behind low productivity.
 Weak distribution channel: The distribution channel of the organization is very
poor. In the distribution level the people who are working are not efficient. They are
not maintaining proper liaison to the distribution level, so we are losing market.
 Low sales margin: The sales margin of the company is very low. Workers are not
producing a high quality of product. So there becomes a very low sales margin.
 Low Production: The production of the company becomes very low. The labor has
not sufficient knowledge about production. Moreover they are not getting enough
wages to do their works.
 High competitions in the market: In the market there are many companies & there
are many brands. So the market is very much penetrated, for competing in the market
we need a proper plan
 Lack of awareness of the labor group: The labors that work on the garden are
totally aware of them, they are not aware of their own work & their health. They are
also not aware of their duties & responsibilities as they have Lack of proper
education.
 Lack of motivation: Motivation is a big factor. Every employee needs motivation.
Motivation makes them more energetic; they found new inspiration to do the work.
Mangers of our organization don’t give the employees sufficient motivation.
 No labor insurance: There is no insurance for the labors, who work on the field, as
they work on the field they have many risks. For the sake of the labors insurance
should be adequate for them.

13.  Lack of Monitoring: As the tea state is a very large arena here the monitoring is
very difficult. So for proper monitoring there should be a proper plan & for
implementing the plan effective manpower should be used.
13
Identifying the Causes of Current Problem
As we found deviations from our set plan and previous experiences we carried out an
internal survey on immediate basis to identify the reasons and root causes of our current
problems. The found causes are interconnected in most of the cases.
1. 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. As a result we have found that mid and low employees are very much
dissatisfied with their current salary structure. They are depressed with the price hike
that made their life miserable than earlier.
2. As fuel price has increased employees are to spend more on their transportation cost.
3. Our competitor companies are offering competitive remuneration packages to our
very efficient mid level managers. As a result, some of them left the organization.
4. As some of the efficient mid-level employees left the organization one after another,
our company is now having management crisis. Leading in departmental level,
organizing and controlling had been hampered and that has resulted into indiscipline
among the low level supervisee’s. They are not getting due direction and not paying
attention to their work.
5. Among Mid and Low level workers, who are mediocre and not getting opportunities
to switch to other organizations has become frustrated and de-motivated and as a
result they have lost interest in their works. It has direct impact on our decrease of
sales.

14. 14
Our Decision
Considering the facts that our employees are dissatisfied with their salary and benefits we
have to take a major decision. We believe that employees are our assets and they can
contribute to our profitability if they are empowered properly. We will maintain the present
employees and change their compensation package and balance the pay policy with present
economic situation of Bangladesh. The compensation package given below:
SWOT Analysis of the Decision Taken
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.
c. Employees will be more benefited as well as the company. Better employees would
ensure better service.
d. Satisfaction level of worker will increase and thus we will be able to increase the
productivity rate.
e. Transportation facility to the mangers will bring satisfaction, the transportation
allowance will properly and reduce daily hassle of the employees.

15. 15
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. Some other factories may also use such similar ideas to reduce dissatisfactions.
c. Since we cannot provide their expected salary in line with the actual inflation rate so
some de-motivation will still remain after implementing the decision.
d. The different percentage for different Tiers and levels may bring disappointment
among the employees.
3) Opportunities
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/ have that 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 investment offer from other financial organizations if we want to extend.
d. We might draw more efficient and dedicated workers from other trading
companies as we will offer competitive packages and transportation facility after
implementing our decision.

16. 16
4) Threats
Threat means external barriers for a new product or service.
a. Other trading companies may also follow our decision more effectively.
b. It they implement this types of facility then they can snatch our managers.
Developing Alternative Solutions
We came up with two solutions after analyzing the situation and these are:
1. Maintain the present employees and change their compensation package and balance
the pay policy with present economic situation of Bangladesh.
2. Hiring more efficient & energetic sales and marketing executives with present salary
package to put an impact on the market and maintain the profit.
3. Use Job Rotation and Cross Function Policy in order to increase their effectiveness.
4. Job Evaluation of the managers.
5. Provide proper training to the employees.
6. Performance appraisal for the employees & on the basis of performance proper
performance bonus should be provided.

17. 17
Justification of the Decision
Base Pay Will Increase:
Top Level: 6%
Mid Level (1st Tier): 12%
Mid Level (2nd Tier): 11%
Low Level (1st Tier): 8%
Low Level (2nd Tier): 7%
Cost of Living:
Cost of living adjustment will be the same increase to everyone, regardless of performance.
But mid and low level employees will get the main incentives as the top level employees are
few in numbers and actually the mid and low level employees are facing this problem.
Short Term Incentives:
Short term incentive will be given to all employees. It will be based on their individual
performance.
Long Term Incentives:
Long term incentive will be given to all the employees.
Income Protection:
 Medical facilities.
 Retirement Package.
 Life insurance.
 Provident Fund.

18. 18
Work Life Balance:
Employees will get flexible work arrangement, like-
 Nonpaid time off
 Time Away from work (Vacations)
 Women employees will receive access to services to meet specific needs maternity
leave, child care.
Allowances:
All employees will get transportation allowances. For the managers we will have a package
housing & car facility.
Situation before the Compensation Package
• Poor Compensation Package
• Employee Dissatisfaction
• Poor Performance of the
Organization
• Less Profit
• More Risk
• High Turnover

19. 19
Fig: Our New Compensation Package
Total Return
Total
Compensation
Cash
Compensation
Base
Cost of Living
Short-Term
Incentives
Long-Term
Incentives
Benifits
Income Protection
Work/Life
Balance
Allowances
Relational Return
Recognition &
Status
Employment
Security
Challenging Work
Learning &
Training
Opportunities

20. 20
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, increased salary cost,
transportation cost and estimate the added expenditure required to implement our
decision.
Level and Tier
Current Salary Cost
(Per anum)
Increased Salary cost
(per anum)
Top Level : 4 persons 1,95,00,000/= 2,04,75,000/=
Mid Level (1st Tier): 7
persons
91,00,000/= 1,04,65,000/=
Mid Level (2nd Tier): 18
persons
1,56,00,000/= 1,71,60,000/=
Low Level (1st Tier): 54
persons
1,13,75000/= 1,27,40,000/=
Low Level (2nd Tier): 51
persons
4,160,000/= 44,92,800/=
Total 59,735,000/= 65,332,800/=
Extra amount needed Tk. 55,97,800/=

21. 21
Transport cost per annum
Monthly rent and fuel for 2 Micro buses
(12 seated)
25 Days * 2500 Tk * 12 months * 2 =
15,00,000/=
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’ behavior with a very small investment. If we can achieve our daily sales
target to TK. 1000000, then it would not be a problem to recover the extra cost.
Ultimately they will be likely to perform better in their respective works. Per day
sales will be high and this extra sales profit will be given to them as new increased
wages and also accommodated transportation cost.
3. 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 before it takes place.
o We will always keep our reserve fund and all the necessary parts ready so
that we can use them whenever we need.
o We will analyze our performance every month, so that we can come to know
about the current market scenario.

22. 22
Action Plan Framework
Calculate
existing
salary cost
Measure
increased
salary &
Transport
ation cost
Setting new
sales target
Involving
employees
in
organizatio
nal
activities
Providing
dai ly
incentive, if
ta rget met
Compare
acquired
sales return
Make a
network
among
supervisors
Timely
monitoring
reserve
fund
Monthly
Performance
Evaluation

23. 23
Situation after the Compensation Package
• Effective running of the organization
• More Profit
• Better Performance of the Organization
• Employee Satisfaction
• Better Compensation Package

24. 24
Conclusion
RIMERS Tea State was bought by six of us when it was in a very bad situation. As
the market of tea has become very penetrated, the competition is very high among the
companies. We face heavy difficulties when we purchased it; the company’s situation was
not good. It was losing market, the sales volume was decreasing. The performance of the
employees was poor, they were demotivated. From there we try to hold on the situation, then
we try to find out the problems that was hampering the company’s overall performance, then
we came up with solution, we try to bring new things in the company. Then after finding the
possible solutions, we came up with a new compensation package, that boost the employees
& we bring new people who are energetic & ready to work in any situation. From then we
have find out that the company’s performance is getting better day by day. The company is
getting its profit back & the overall performance in company & market is developing & we
hope that we will be able to become the market leader in the upcoming days through our
decision.