Compensation management scenario in shanta garments limited

1. COMPENSATION
MANAGEMENT
SCENERIO IN
SHANTA GARMENTS
LIMITED 1

2. “If you pick up the right people
and give them the opportunity to
spread their wings and put
compensation as a carrier behind
it, you almost don't have to
manage them.
2
Jack Welch

3. 3
Group Member
1) Fazle Rabby Raiyan-2023031045
2) Mohammad Mydul Islam-2023031053
3) Jahirul Islam Bhuiyan-2023031077
4) Khaled Hossain-2023031075
5) Alamgir Iqbal Bhuiyan-2023031063

4. Introduction
▰ The process of managing, analyzing and determining
the salary, incentives and benefits for employees
▰ Includes monetary and non-monetary components
▰ A very important tool for the employee satisfaction
4

5. 5
Objective
To provide information about Compensation
Management scenario in a manufacturing
organization like Shanta Garments Limited

6. Methodology
Primary Source
▰Operational work
▰HR Managers
▰Personal Observation
▰Discussion with employees
Secondary Source
▰Annual report, publications
▰Official website
▰Documentary file
▰Reference books
6

7. Limitations
▰Lack of records
▰Fear of disclosure
▰Unavailability of document
▰Corona crisis
7

8. History
8
Established in 1989
Associated with 3 companies
Approximately 16500 employees
Board of Director is headed by a chairman
Total 12 department with particular HR department

9. Mission
✓ Highest level of
customer
✓ Recruit the best
applicants
✓ Provide attractive
compensation package
✓ Motivate the employee
✓ Contribute socio
economic development
✓ Maximize company
profit
Goals
✓ Social commitment
✓ Achieve positive
economic value
✓ Implement corporate
slogan
Vision
✓ Leading Garments in
the country

10. Organizational Structure
10

11. Departments
11
Merchandising
Department
Trims and
Accessories store
Department
Washing
Department
Maintenance
Department
Finance and
Accountants
Departments
Quality
Assurance
Department
Spreading &
Cutting
Department
Sampling
Department
Fabric
Department
Sewing
Department
Finishing &
Packaging
Department
HR/Admin
Department

12. Employees
12
Regular
Employees
HR Staffs
Outsourced
Staffs
Interns

13. Organogram of Shanta Garments Ltd.
Chairman
Director
General Manager
Finance Manager
Operation
Manager
Marketing
Manager
Human Resource
Manager
HR Executive Direct Marketers Accountant Product Manager
Quality Check
Operator
Sewing Supervisor
Pattern Master &
Cutting Manager
Fabric Store
Manager
Packaging/
Dispatch Store
Manager
Workers
Tailors

14. Product list
14
Men clothing
Women clothing
Kids clothing

15. Products
Men Clothing
1. T-Shirts
2. Causal Shirts
3. Formal Shirts
4. Jeans
5. Ethnic Wear
6. Track Wear
7. Shorts
Women
Clothing
1.Tops
2. Tees & Shirt
3. Jeans
4. Leggings
5. Shorts
6. Skirts
Kids Clothing
1. Infant wear
2. Ethnic wear
3. Shorts
4. Tees & Shirts
5. Skirts
6. Causal Dresses

16. Customers
16

17. Literature Review
17
Definition of compensation
The total cash and non-cash payments
that employer give to an employee in
exchange of the work it is more than an
employee’s regular paid wages .
❖To be legal
❖To be adequate
❖To be motivational
❖To be equitable & cost effective
Objectives of Compensation

18. 18
Purpose of study about Shanta garments
Minimum wage rate are acceptable to owners and workers in Shanta garments.
We investigated the impact of imbalance of payments
we explored the impact of Shanta garments wage rate on the social life

19. 19
Compensation scenarios of RMG sector in Bangladesh
(RMG) industry emerged in Bangladesh in the late 1970s
Almost 80% of Bangladesh’s export earnings come from the RMG sector
Still backward for the workers of this sector.
Sever health and safety risks as well as overall working condition, including
extreme low wage.
But again as cheap labor is one of the main factors behind the boost of this
sector.

20. 17

21. Compliance Certifications
Non-financial Benefit
18

22. Initial Compensation Analysis Plan
Our survey and research have tried to find the following information
❖ policy of compensation for the workers, entry level, mid level & top level employees
❖ Performance Management and financial incentives
❖ Practice of Performance Appraisal with financial benefit
❖ Motivation
❖ External Competitiveness and determining pay level.
❖ Efficiency Wage
❖ Long term incentives and Provident Fund
❖ Equity theory
❖ Benefits and services consideration
❖ Compensation of Special group
❖ Person based pay structure
❖ Legal Provisions 19

23. Interview Findings from HR Manager
20
❖ The objective of compensation program and policy is to motivate and attract employees.
❖ Assess the compensation system through creating proper balance between cost and contribution.
❖ Effective implementation of compensation plan after overall assessment to achieve the objective
❖ Investigate to know about the competitors’ benefit package. Adapt periodical change with new
situation.
❖ Evaluate and adapt benefit packages as per market trend. Design group incentives for team work.

24. Interview Findings from HR Executive
21
❖ The objective of compensation program and policy is to reduce employee turnover and increase
productivity.
❖ The organization offers an annual lump-sum merit program.
❖ The organization offers an individual performance based recognition for nonfinancial recognition awards.
❖ The organization practices promotion activities by following both years of service and performance.
❖ The organization pays GPF (General Provident Fund) and extra duty allowance at the rate of 10%
❖ The organization pays overtime beyond 8 hours at 10% additional of basic salary
❖ The organization allows sick leave for 10 days and maternity leave for 6 months.

25. Interview Findings from Union Leader
22
❖ The organization follows a formal policy for the compensation and benefit programme of workers and
have multiple windows of compensating the workers’ demand.
❖ the organization has the options for hourly wages, piece-rate and other competitive workers benefit
program to attract and retain skilled workers.
❖ The organization has workers union.
❖ The organization pays GPF (General Provident Fund) and extra duty allowance at the rate of 10%.
❖ The organization pay overtime after 8 hours at 10% B.S
❖ The organization pays sick leave for 10 days and maternity leave for 6 months
❖ The organization provides the following benefits:
❖ Free training workshops
❖ Long service awards
❖ Children day care facilities for employees and workers.

26. Interview Analysis
23
Overview about the compensation objectives, policy and techniques:
• The compensation system of that organization complies with government regulations, it has
helped to reduce turnover and conflict and it has made a progressive contribution to the overall
effectiveness of the organization.
Major barriers to effective compensation and benefit system:
• The HR executive has mentioned that there is a lack of fairness and ethics in administering and
managing the current compensation and benefit packages and it needs some changes, while the
HR manager has mentioned there is no problem at all and it actually facilitates the human
resource functions.

27. Findings
▰Performance and Financial Incentives
▰Practice of Performance Appraisal
▰Motivation
▰External Competitiveness
▰Efficiency wage
▰Provident Fund 27

28. Findings
▰Fairness
▰Benefits and services consideration
▰Compensation of special group
▰Performance based pay structure
▰Legal provisions
28

29. Strengths & Weaknesses
Strengths
▰Incentives based on performance
▰GPF
▰Sick leave & maternity leave
▰Retirement benefit package
▰Insurance benefit
▰Extra duty allowance
▰Employee satisfaction
Weaknesses
▰Non-paid time off
▰Lack of fairness and ethics
▰Lack of negotiation
▰Lack of experience in junior level
▰Centralized power
▰Lack of administrative performance
▰Lack of communication
29

30. Conclusions
▰One of the fastest growing garments factory
▰Good compensation package leads to reduced turnover
▰More compensation with proper strategy
30

31. Recommendations
▰Emphasize on mid-level managers
▰Disability insurance
▰Fairness and ethical practices
▰Equal distribution of facilities
▰Earned leave
31

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