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STUDIED AT UNIVERSITY OF SARDOGHA, LAHORE COMPUS
STUDENTOF MBA
FINAL YEAR
INTERNSHIP ASSIGNMENT OF SHAHKAM
INDUSTRY
THEORETICAL BASE REPORT
Detailed Report on HRM
A Case of Textile Sector
PREPARED BY:
INTERNEES:
ANAM NASIR (054)
SHAZIA GULZAR (055)
SUBMITTED TO:
MA’AM NEHA
HR GENERALIST
SHAHKAM INDUSTRY
Table of Contents
Acknowledgement..............................................................................................................................4
Executive summary.............................................................................................................................5
Data Obtained From:..........................................................................................................................6
THE WAY HUMAN RESOURCE MANAGEMENT (HRM) PRACTICESEFFECT EMPLOYEES & ORGANIZATIONS
PERFORMANCE: A CASE OF TEXTILE SECTOR ........................................................................................7
Introduction:..................................................................................................................................7
Overview of Human Resource Management:....................................................................................7
THE HISTORICAL BACKGROUND OF HUMAN RESOURCE MANAGEMENT: ...............................................8
Human resource management has changed in name various times throughout history. The name
change was mainly due to the change in social and economic activities throughout history. ..............8
 Industrial Welfare....................................................................................................................8
 Recruitment and Selection.......................................................................................................8
 Acquisition of other Personnel Activities...................................................................................8
 Industrial Relations..................................................................................................................9
Legislation......................................................................................................................................9
 Flexibility and Diversity............................................................................................................9
Information Technology..................................................................................................................9
Stagesin the Development of HRM .....................................................................................................9
Overview of human resource management system & function............................................................10
Introduction Human resource management.......................................................................................10
What is HRM?...............................................................................................................................11
What do HR Managers Do?............................................................................................................11
HRMFunctions:............................................................................................................................11
Manpower planning..................................................................................................................12
Recruitment &Selection.............................................................................................................12
Source of Recruitment...............................................................................................................12
Types of Recruitment ................................................................................................................13
Training & Development............................................................................................................13
Performance Appraisal ..............................................................................................................13
360-degree performance appraisal.............................................................................................13
Pay Roll.....................................................................................................................................14
Compensation & Benefits ..........................................................................................................14
Employees Benefits...................................................................................................................14
NEW HRMSPECIALTY AREAS:............................................................................................................15
Work and FamilyPrograms............................................................................................................15
Cross-Cultural Training..................................................................................................................15
Managed-Care..............................................................................................................................15
Managing Diversity.......................................................................................................................15
HR Roles and Responsibilities in changing Environment......................................................................15
Hierarchy of HR department:.............................................................................................................17
Senior Level Human Resource Management Jobs ...........................................................................17
Middle Level Human Resource Management Jobs ..........................................................................17
Operational Level Human Resource Management Jobs...................................................................18
E-HRM: ............................................................................................................................................20
Overview of Textile Industry:.............................................................................................................20
Introduction of HRMin Textile Industry: ............................................................................................21
About the Condition of HRMin the Textile Industry:...........................................................................22
Contribution of HRMto Organization:............................................................................................23
Role of HRM:................................................................................................................................24
Human Resource Development: ....................................................................................................25
Human Resources Strategies for the Textile Industry:.........................................................................25
Recruitment:................................................................................................................................25
Orientation:..................................................................................................................................25
Maintaining good working conditions: ...........................................................................................26
Training:.......................................................................................................................................26
CompensationPolicy:....................................................................................................................26
Work Environment:.......................................................................................................................27
Managing Employee relations:.......................................................................................................27
ImportantProblems of Textile Industry Faced: ...............................................................................27
HR CHALLENGES:..............................................................................................................................28
Human Resource ..........................................................................................................................28
New Technological Changes in the Textile Industry.........................................................................28
Lack of Training:............................................................................................................................28
Mode of Training:......................................................................................................................29
Training Programs:....................................................................................................................29
Low Educated Employees:.............................................................................................................30
Wrong Decision Making:...............................................................................................................30
Climatic Condition.........................................................................................................................30
Textile Industry Pros and Cons:..........................................................................................................31
SWOT Analysis of Textile Industry:.....................................................................................................31
For textile HR can do:........................................................................................................................33
Responsibility of HR Departmentin Textile Industry: ..........................................................................33
Solving Top 6 Problems of HR in the Garment Industry:......................................................................34
LEADERSHIP DEVELOPMENT:.........................................................................................................34
GOAL ALIGNMENT:.......................................................................................................................35
EMPLOYEE PERCEPTION................................................................................................................35
PROMOTIONS & POLICIES .............................................................................................................36
INTERNSHIP AND TRAINING PROGRAMS........................................................................................36
STAFFING OPTIMIZATION:.............................................................................................................37
How to supervise employees with low self esteem:............................................................................37
Conclusion:......................................................................................................................................38
Recommendations:...........................................................................................................................39
Acknowledgement
We would like to thank University of Sargodha Lahore campus for giving us the opportunity to
do this internship. We would like to thank SHAHKAM Industry management for letting us do
the internship at their HR Division Head office. We’d like to thank Human Resource
management department and to all team members.
Executive Summary
In today's rapidly changing business environment, organizations have to respond quickly to
requirements for people. Hence, it is important to have a well-defined recruitment policy in
place, which can be executed effectively to get the best fits for the vacant positions.
Selecting the wrong candidate or rejecting the right candidate could turn out to be costly
mistakes for the organization. Selection is one area where the interference of external factors is
minimal. Hence the HR department can use its discretion in framing its selection policy and
using various selection tools for the best results. The basic functions of Human Resource
Management: planning and forecasting human resource requirements, recruitment and selection,
training & development, appraisal, evaluation, handle employee grievance’s and employee
motivation.
Managing human resource has always remained as an important concern for managers. At
present, human resource management is being seen as a main stream department in modern
businesses. This report attempts to focus on history, overview, stages, and importance of the
human resource management functions and roles & responsibility of HR department. The
theoretical research narrows down and presents a detailed analysis of the origins of human
resource management discipline.
We have select the topic of this report is “Human Resource Management”. We tried to integrate
our theoretical knowledge of HR and combine it with practical examples as observed during our
study. We have tried to cover all the major functions of Human Resource Management-
recruitment, selection, compensation and benefits, training and development and convey our
understandings of the different functions of Human Resource Management through this project.
We have also discussed about HR departments of Textile Industry, and it’s SWOT Analysis
which shows the importance of HRM to improve the industries performance. We have also tried
to provide some recommendations based on our knowledge followed by the conclusion which
we gathered during our study.
This study examines what factors affect employee attributions to HR practices in relationship
with HR satisfaction and organizational outcomes in case of Textile Industry of Pakistan. This
report demonstrates how the HR practices are perceived by employees and also shows solution
of problems related to different areas of HR division that how HR policies and practices develop
positive employee attitudes or feelings of satisfaction, commitment and motivation.
Data Obtained From:
All the information is based on the secondary data which is already discussed during our study
period, as it is theoretical base report different websites, journals, links and books used for
making this report.
The WayHuman ResourceManagement (HRM)
Practices Effect Employees & Organizations
Performance:ACaseof TextileSector
Introduction:
Overview of Human ResourceManagement:
The term "human resource management" has been commonly used for about the last ten to
fifteen years. Prior to that, the field was generally known as "personnel administration." The
name change is not merely cosmetics.
Personnel administration, which emerged as a clearly defined field by the 1920s (at least in the
US), was largely concerned the technical aspects of hiring, evaluating, training, and
compensating employees and was very much of "staff" function in most organizations. The field
did not normally focus on the relationship of disparate employment practices on overall
organizational performance or on the systematic relationships among such practices. The field
also lacked a unifying paradigm.
HRM developed in response to the substantial increase in competitive pressures American
business organizations began experiencing by the late 1970s as a result of such factors as
globalization, deregulation, and rapid technological change. These pressures gave rise to an
enhanced concern on the part of firms to engage in strategic planning--a process of anticipating
future changes in the environment conditions (the nature as well as level of the market) and
aligning the various components of the organization in such a way as to promote organizational
effectiveness.
Human resource management (HRM), also called personnel management, consists of all the
activities undertaken by an enterprise to ensure the effective utilization of employees toward the
attainment of individual, group, and organizational goals. An organization's HRM function
focuses on the people side of management. It consists of practices that help the organization to
deal effectively with its people during the various phases of the employment cycle, including
pre-hire, staffing, and post-hire. The pre-hire phase involves planning practices. The organization
must decide what types of job openings will exist in the upcoming period and determine the
necessary qualifications for performing these jobs. During the hire phase, the organization selects
its employees. Selection practices include recruiting applicants, assessing their qualifications,
and ultimately selecting those who are deemed to be the most qualified.
In the post-hire phase, the organization develops HRM practices for effectively managing people
once they have "come through the door." These practices are designed to maximize the
performance and satisfaction levels of employees by providing them with the necessary
knowledge and skills to perform their jobs and by creating conditions that will energize, direct,
and facilitate employees' efforts toward meeting the organization's objectives.
The Historical Background of Human Resource
Management:
Human resource management has changed in name various times throughout history. The name
change was mainly due to the change in social and economic activities throughout history.
 Industrial Welfare: (For provide the rights to workers)
 Industrial welfare was the first form of human resource management (HRM). In 1833 the
factories act stated that there should be male factory inspectors. In 1878 legislation was
passed to regulate the hours of work for children and women by having a 60 hour week.
During this time trade unions started to be formed. In 1868 the 1st trade union conference
was held. This was the start of collective bargaining. In 1913 the number of industrial
welfare workers had grown so a conference organized by Seebohm Rowntree was held.
The welfare workers association was formed later changed to Chartered Institute of
Personnel and Development.
 Recruitment and Selection: (Merit base hiring)
 It all started when Mary Wood was asked to start engaging girls during the 1st world war.
In the 1st world war personnel development increased due to government initiatives to
encourage the best use of people. In 1916 it became compulsory to have a welfare worker
in explosive factories and was encouraged in munitions factories. A lot of work was done
in this field by the army forces. The armed forces focused on how to test abilities and IQ
along with other research in human factors at work. In 1921 the national institute of
psychologists established and published results of studies on selection tests, interviewing
techniques and training methods.
 Acquisition of other Personnel Activities: (Introduce other HR
functions)
 During the 2nd world war the focus was on recruitment and selection and later on
training; improving morale and motivation; discipline; health and safety; joint
consultation and wage policies. This meant that a personnel department had to be
established with trained staff.
 Industrial Relations: (Negotiation b/w employers & employees)
 Consultation between management and the workforce spread during the war. This meant
that personnel departments became responsible for its organization and administration.
Health and safety and the need for specialists became the focus. The need for specialists
to deal with industrial relations was recognized so that the personnel manager became as
spokesman for the organization when discussions where held with trade unions/shop
stewards. In the 1970's industrial relations was very important. The heated climate during
this period reinforced the importance of a specialist role in industrial relations
negotiation. The personnel manager had the authority to negotiate deals about pay and
other collective issues.
 Legislation
 In the 1970's employment legislation increased and the personnel function took the role
of the specialist advisor ensuring that managers do not violate the law and that cases did
not end up in industrial tribunals.
 Flexibility and Diversity: (Introduced flexible work arrangements)
 In the 1990's a major trend emerged where employers were seeking increasing flexible
arrangements in the hours worked by employees due to an increase in number of part-
time and temporary contracts and the invention of distance working. The workforce and
patterns of work are becoming diverse in which traditional recruitment practices are
useless. In the year 2000, growth in the use of internet meant a move to a 24/7 society.
This created new jobs in e-commerce while jobs were lost in traditional areas like shops.
This meant an increased potential for employees to work from home. Organizations need
to think strategically about the issues these developments raise. HRM manager’s role will
change as changes occur.
 Information Technology
 Some systems where IT helps HRM are: Systems for e-recruitment; On-line short-listing
of applicants; developing training strategies on-line; Psychometric training; Payroll
systems; Employment data; Recruitment administration; References; Pre-employment
checks. IT helps HR managers offload routine tasks which will give them more time in
solving complex tasks. IT also ensures that a greater amount of information is available
to make decisions.
Stages in the Developmentof HRM
Human resource management in Australia and the Asia Pacific region has progressed along
similar lines to its United States and United Kingdom counterparts, but with differences in the
stages of development, and in the relative influence of social, economic, political and industrial
relations factors.
The two main features of the US development of HRM are its initial emphasis on largely
administrative activities, directed by senior management, and then the move to a more confident,
business-oriented and professional approach in the 1980s and 1990s. Similar processes occurred
in the United Kingdom, with more early emphasis on the ‘welfare’ roles of personnel
practitioners because of the excesses of early capitalist industry, a strong humanitarian
movement and developing trade unionism. In Asian countries, there has been a blend of
administrative, paternalistic, cooperative, and business-focused HRM that varies between
countries depending on their cultures, stages of development, extent of government intervention
in the economy and industrial relations systems.
In Australia, HRM has developed through the following general stages.
 Stage one (1900–1940s): administration stage
 Stage two (1940s–mid-1970s): welfare and administration stage
 Stage three (mid-1970s–late 1990s): human resource management and strategic
human resource management (SHRM) stage
 Stage four (Beyond 2000): SHRM into the future
Overviewof Human ResourceManagement System &
Function
 Session Objectives
1. Introduction of HRM
2. Definition of HRM
3. HRM functions to understand …
4. Recruitment &Selection process
5. Training& Development process
6. Performance Appraisal process
7. Pay Roll
8. Compensation &Benefits
9. To understand the Main HR Roles & Responsibilities
Introduction Human resource management
• It is defined as the art of procuring, developing and maintaining competent workforce to
achieve the goals of an organization in an effective and efficient manner.
What is HRM?
Human Resource Management (HRM) is the function within an organization that focuses on
recruitment, management, and providing direction for the people who work in the organization.
It deals with issues related to people such as compensation, hiring, performance management,
organization development, safety, wellness, benefits, employee motivation, communication,
administration, and training.
What do HR Managers Do?
Human Resource professionals create systems for managing employees that support an
organization’s overall strategy. To accomplish this, they
 Analyze and design jobs.
 Forecast supply and demand for workers.
 Ensure legal compliance.
 Implement affirmative action plans.
 Recruit and select candidates to fill open positions.
 Train and develop employees to meet current and future job demands
 Manage employee performance and career progress.
 Develop basic pay structures.
 Create incentive plans.
 Administer benefit programs.
 Assure employees safety and health.
 Retain employees.
 Improve employee morale.
 Reduce turnover and carry out disciplinary actions,
 All while applying constantly evolving technology.
HRM Functions:
There are seven main functions of HR.
1. Manpower planning
2. Recruitment and selection of employees
3. Employee education, (training and development)
4. Compensation &Benefits (Employee motivation)
5. Performance Appraisal (Employee evaluation)
6. Industrial relations
7. Provision of employee services (safety &Health Benefit)
 Manpower Planning
o It is the process of determining manpower requirements and the means for
meeting those requirements in order to carry out the integrated plan of the
organization.
o It is a double –edged weapon. If used properly, it leads to the maximum
utilization of human resources, reduce excessive labor turnover and high
absenteeism, improve productivity and aid in achieving the objectives of an
organization.
 Recruitment &Selection
o Recruitment is a process of identifying and hiring best-qualified candidate (from
within or outside of an organization) for a job vacancy, in a most timely and cost-
effective manner.
o The process begins when applications are brought in and ends when the same is
finished. The result is a pool of applicants, from where the appropriate candidate
can be selected.
o Recruitment cycle Identify Vacancy Conduct Interview Prepare Job &Decision
Description making Arrange Advertising interview the Vacancy Managing short
listing the response
 Source of Recruitment:
 Internal source:
 Transfer
 Promotion
 Upgrading
 Demotion
 Retired employee
 Retrenched employee
 Employee reference
 External source:
 Advertisement (print media, mass media)
 Educational institutions
 Placement agencies/outsourcing
 Job portals (Naukri .com, monster .com)
 Employment exchange
 Labor contractors
 Unsolicited applicant
 Employment at factory gate
 Types of Recruitment
 Recruitment needs are of three types
 Planned
 The needs arising from changes in organization and retirement
policy.
 Anticipated
 Anticipated needs are those movements in personnel, which an
organization can predict by studying trends in internal and external
environment.
 Unexpected
 Resignation, deaths, accidents, illness give rise to unexpected
needs
 Training & Development
o Training is a process of learning a sequence of programmed behavior.
o It is an act of increasing the knowledge and skills of employees, for performing a
particular job.
o Newly recruited employees require training so as to perform their task effectively.
Instruction, coaching, guidance helps them to handle jobs completely, without any
wastage.
o Development is a long -term educational process utilizing a systematic and
organized procedure by which managerial personnel learn conceptual and
theoretical knowledge for general purpose.
 Performance Appraisal
o Performance appraisal may be defined as a structured formal interaction between
a subordinate and supervisor, that usually takes the form of a periodic interview
(annual or semi-annual), in which the work performance of the subordinate is
examined and discussed, with a view to identifying weaknesses and strengths as
well as opportunities for improvement and skills development.
o Its rates the employees in terms of their performance
o It is necessary to understand each employee’s abilities, competencies and relative
merit and worth for the organization.
o It may be half yearly or yearly report.
 360-degree performance appraisal
o The 360-degree appraisal is the appraisal given by peers, subordinates, workers,
head of the department etc. that means the appraisal given from all the people
working in the organization.
o In short, the half yearly or yearly report of work schedule goes from company to
head quarter of all the workers performance is the appraisal it contains all the
promotion, demotion, and other activities related to the performance.
 Pay Roll
o The term payroll encompasses every employee of a company who receives a
regular wage or salary or other compensation. Payroll refers to the administration
of employees’ salaries, wages, bonuses, net pay, and deductions.
o It consists of the employee ID, employee name, date of joining, daily attendance
record, basic salary, allowances, overtime pay, bonus, commissions, incentives,
pay for holidays, vacations and sickness, value of meals and lodging etc. There
are some deductions such as PF, taxes, loan installments or advances taken by
employee.
 Compensation & Benefits
o Compensation is the remuneration received by an employee in return for their
contribution to the organization.
o It is an organized practice that involves balancing the work-employee relation by
providing monetary and non-monetary benefits to employees.
o Compensation is an integral part of human resource management.
 Components of Compensation
 System Pay Structure Job Salary Analysis Surveys
 Two types of compensation given by any Organization
 Direct compensation
 Indirect compensation
 Employees Benefits
o Benefits in kind (also called fringe benefits, perquisites, perks) are various non-
wage compensations provided to employees in addition to their normal wage or
salaries, where an employee exchanges (cash) wages for some other form of
benefit, this is generally referred to as a salary sacrifice arrangement. Some of
these benefits are
o Housing (employer-provided or employer-paid),
o Group insurance (health, life, etc.)
o Disability income & protection, Retirement Benefits
o Reimbursement,
o Seek leave,
o Vacation (paid and non-paid),
o Social security, profit sharing, funding of education, and other specialized
benefits
o Perk-refer to those benefits of a more discretionary nature.
o Often, perks are given to employees who are doing notably well and/or have
seniority. Common perks are
o Take –home vehicles, hotel stays
o Free refreshments, leisure activities on work time (golf etc.),
o stationary allowances
New HRM SpecialtyAreas:
 Work and Family Programs
 Develops and administers work and family programs including flextime,
alternative work scheduling, dependent-care assistance, telecommuting,
and other programs designed to accommodate employee needs; identifies
and screen child- or elder-care providers; administers employer's private
dependent-care facility; promotes work and family programs to
employees.
 Cross-Cultural Training
 Translate the manners, mores, and business practices of other nations and
cultures for American business people. Other cross-cultural trainers work
with relocated employees' families, helping them adjust to their new
environment.
 Managed-Care
 As a company's health-care costs continue to escalate, employers are
embracing managed-care systems, which require employees to assume
some of the costs. Employers hire managed-care managers to negotiate the
best options for employees.
 Managing Diversity
 Develop policies and practices to recruit, promote, and appropriately treat
workers of various ages, races, sexes, and physical abilities.
HR Roles and Responsibilitiesin Changing
Environment
The HR Roles and Responsibilities needs to react to this basic request by the organization to
keep the level of the satisfaction. Nowadays, the HRM has to deliver even more.
The HR Roles and Responsibilities have to take the high-level recognition of the organization
and they need to be adjusted to make a full fit.
 The HR Roles have to be adjusted to:
o Keep HRM Function focused on tracking and implementing new trends in the
industry.
o Keep HRM Function focused on helping the line management to implement
improvements.
o Keep HRM Function focused on operational excellence.
o Keep HRM Function responsible for developing the Human Capital potential in
the organization.
 The HR Responsibilities have to be adjusted to:
o Demonstrate the Line Management the will to keep the responsibility for the
Human Capital costs
o keep the competitive advantage on the market (and not just the job market)
o Demonstrate the will to drive the main HR Processes to keep the organization in
the excellent health.
o Keeps HRM Function supporting the Business Strategy to reach the business
initiatives?
o keep HRM responsible for the tasks resulting from the Business Strategy
Role of Human Resource Management in the Organization HRM owns a significant role in
promising employee satisfaction, and resulting in improved performance and productivity of
employees. When any company envisions the business the top wish is to have a competent work
force pool, and placing the right person on the right job.
Afterwards, the talented set of employees uses other tangible and intangible resources and works
on taking decision when, where and from whom the resources should be obtained. The
knowledge and art of a manager makes him a man that holds the whole business and
organization.
HRM is crucial for companies to gain competitive advantage. Following are the three challenges
related to competitiveness: 1. Challenge of sustainability: There are various forms of firms or
organizations across the globe which operate at different levels and seem to be implementing
strategies which could not only improve.
According to Therith (2009), mentioned below is the new role of the HRM in the institute:
(i). Change through Leader In order to achieve already defined goals and gaining competitive
edge over competitors, leaders need to play a huge role.
They are required to support, facilitate and drive the changes to bring innovations, enhance
productivity and improve work quality
(ii). Human Resources Strategist Achievement of strategic objectives and goals of organization
is possible by associating and integrating the HR activities with the strategies. Human resource
strategists look ahead and plan HR development activities which enable and ensure good
performance resulting in goals achievement.
(iii). Business Strategist Under this role, an integration and participation in corporate strategy
formulation process is done to cope up with the challenges organization is facing and to give the
long lasting competitive edge. Organizational success is the result of well managed process of
strategy formulation. This success is multi-faceted encompassing satisfied customers, provision
of quality products, and customer services.
(iv). Alignment of Human Resources Function The integration of HRM in company’s strategic
process is mandatory for success of company. Input from HR managers is necessary while make
corporate strategies. The input should be about both organization and people related issues.
Programs ensuring presences of specific skills, behaviors and attitudes are developed in this
regard.
(v). Partner to General Manager For survival and success, and for organization to walk on the
road of success, HR owns a very important role in one way or the other. HR has a close relation
with line manager while making strategic plans, implementing the plans, and work designs. Line
managers help HRM to manage and control employees’ present performance, increments,
promotions and a need of more training, etc.
Hierarchyof HR department:
 A HR department or a Human Resource department is one of the most important
departments of any organization like Garments and is vital to the functioning of the
system. HR executives who are employed in an HR department make several types of
resources available to the company and help in recruitment of new employees.
 They make sure that only efficient employees are hired by the company and the hired
officials bring about maximum productivity. In large companies, there are large HR
departments consisting of several job positions. The following is a detailed account of the
hierarchy within a HR management branch of a company.
 Senior Level Human ResourceManagementJobs
o The senior level HR jobs management are the top level jobs in this segment of
any business and these management executives take part in the decision making
process. They set guidelines on the basis of which the entire HR department
works and generally have several years of experience. The following is the
hierarchy of this section.
 Human resource Director
 Chief human resource officer
 Human resource branch manager
 General human resource manager
 Human resource generalist
 Assistant human resource manager
 Deputy director payroll and legal
 Middle Level Human ResourceManagementJobs
o Instructions of senior level officials and implement the decisions made by
them. They are the ones who decide salaries, manage payrolls, and make
decisions regarding growth and increments. Within this level of HRM jobs, there
are several managers handling various different works. This level of HRM
workers are those executives who are responsible for carrying out the aspects. The
hierarchy is given as follows:
 Senior Human resource executive
 Assistant director
 Personal manager
 Personal training manager
 Personal manager of international relations
 Personal manager of benefit and welfare
 Human resource administrator
 Executive human resource
 Associate executive human resource
 Assistant human resource administrator
 Staff manager
 Salary and wage manager
 Industrial safety analyst
 Human resource safety manager
 Development and training manager
 Human resource welfare administrator
 OperationalLevel Human Resource ManagementJobs
o Entry level HRM jobs are those jobs which are given to new and fresh HR
employees. They handle the most basic Human resource management job duties
and work as per the instructions of their seniors. Operational level HRM
executives, when promoted move onto the mid-level segment jobs. The following
are some of the major job positions in this entry level segment of HRM.
 Employment manager
 Recruiter
 Human resource manager
 Department manager
 Human resource assistant
 Human resource analyst
 Human resource associate
 Human resource trainee
 E-HRM:
E-HRM is the use of web-based technologies to provide HRM services within employing
organizations. It embraces e-recruitment and e-learning, the first fields of human resource
management to make extensive use of web-based technology. From this base e-HRM has
expanded to embrace the delivery of virtually all HR policies.
Within a system of e-HRM, it is possible for line managers to use desktop computers
to arrange and conduct appraisals, plan training and development, evaluate labor
costs, and examine indicators for turnover and absenteeism. Employees can also use a
system of e-HRM to plan their personal development, apply for promotion and new
jobs, and access a range of information on HR policy. Systems of e-HRM are
increasingly supported by dedicated software produced by private suppliers.
E-HRM
It is the (planning, implementation and) application of information technology for
both networking and supporting at least two individual or collective actors in their
shared performing of HR activities.
E-HRM is in essence the devolution of HR functions to management and employees.
They access these functions typically via intranet or other web-technology channels.
The empowerment of managers and employees to perform certain chosen HR
functions relieves the HR department of these tasks, allowing HR staff to focus less
on the operational and more on the strategic elements of HR, and allowing
organizations to lower HR department staffing levels as the administrative burden is
lightened.
Overviewof Textile Industry:
‘The textile industry is primarily concerned with the production of yarn, and cloth and the
subsequent design or manufacture of clothing and their distribution. The raw material may be
natural, or synthetic.’
Textiles are the most important manufacturing sector of Pakistan and have the largest production
chain, with inherent potential for value addition at each stage of processing from;
 cotton to ginning,
 spinning,
 fabric,
 processing,
 made-ups and garments
The sector contributes nearly one-fourth of industrial value-added, provides employment to
about 40% of industrial labor force, and consumes more than 40% of banking credit to
manufacturing sector and accounts for 8% of GDP.
Barring seasonal and cyclical fluctuations, textile products have maintained an average share of
about 60% in national exports. However, despite being the 4th largest producer and 3rd largest
consumer of cotton globally, Pakistan’s comparative advantage is largely pre-empted by low
value added exports as reflected in country’s 12th rank in world textiles exports.
Reason for the best in the market is our labor. On the other hand there is a horrible fact that they
don’t have sufficient salaries and rewards that’s why top quality performers (employees) of
Pakistan market have been moved to other countries especially to the Bangladesh market. So
here comes the role of human resource practices. Implementation of human resource practices
can only be applicable to the organization that is learning and knowledge organization. Keeping
in view the competitiveness of the textile market one must have such practices so that the
employees could be retained and satisfied.
There is not a significant work in this industry in context of human resource management and
reason is that top management never realizes the needs and demands of their employees. There
are few textile mills that are practicing the human resource management in its full strength and
they are getting maximum benefits from it and it is fact that they are the leaders. So to develop a
better understanding a research is carried to know the benefits to practice the human resource
and evaluating the losses if don’t.
Introduction of HRM in TextileIndustry:
• The advent of technological advancement in industrial set-ups has altered the working
conditions and requirements on the part of employees and employers. Also the changes in
government policies have also been taken place since the last decade.
• Different work patterns like night shift, part time work, overtime, etc. is being
experienced. The situation is same in textile sector also.
• The advent of HR practices in textile sector was rather slow in comparison to other
industrial sectors. But due to globalization there is increase in competition as a result
development of human resource has become essential.
• However organized HR practices are being adopted mostly by the mill sector. In last
decade we have seen not so good performance by textile sector, this was because of lack
of HRD department in many mills. But the scenario has changed as HRD departments
have taken up their role in textile sectors.
• Various training programmers pertaining to training of workforce, textile related topics
have helped in enhancing the overall performance of the textile companies.
Every organization or industry is not only made by brick, cement or wood but it builds by 4 m’s.
They are:
 Money
 Material
 Machines And
 Men
The man is ultimate resources of the organization because they think, speck, so that utilization of
this resource is very critical. Every success of origination is depending on efficient and effective
man power. HR starts when a man enters in the organization and its end, when he leaves the
organization .HR deals with the human dimension.
Success or failure of an organization depends on the effective coordination of the resources such
as money, material, machinery and men. Among these, the role and operation of men is the most
complex. All the activities of an organization are initiated and completed by the persons who
make up the organization. Therefore, people are the most significant resources of any
organization. HRM is known by different names – Personal management, personal
administration, man power management.
About the Conditionof HRM in the Textile Industry:
It is common phenomena at every industry is Man, material, machine, method, management,
money and market. The role of HRM (earlier known as personnel management, labor & welfare
officer etc.) is for every aspect and for each area, it needs proper training, work culture to
develop, systems to introduce i.e. system that should work not any individual.
.
The picture below shows the all about HRM and its role
Contribution of HRM to Organization:
 Helping the organization to search its goal.
 Employing the skills and the activities of the workforce efficiently.
 Providing the organization with well trained and well-motivated employee.
 Increasing to the fullest the employee’s job satisfaction.
 Developing and maintaining quality of work life
 Communication
 Helping to other department and function
The basic concept of HRM is to attract and retain the right person at right place in right time with
right remuneration. In textile HRM should appoint the skillful employ at the right, appropriate &
correct place where HR can express capabilities. For textile industries, it should treat the
employee as an asset of the company
Role of HRM:
The role of human resource management in organization is at counter stage. Managers are aware
that HRM is a function that must play a vital role in the success of organization. It is an active
participant in charting the strategic course an organization must take place to remain competitive,
productive and efficient. Its focal point is people; people are the life blood of the organization.
The uniqueness of HRM lies in its emphases on the people in work setting and its concerns for
the well living and comfort of the human resources in an organization. The HRM function is
much more integrated and strategically involved. HRM and every other functions must work
together to achieve the level of organization. Effectiveness required competing locally and
internationally.
 It is the action oriented, individual oriented, globally oriented and future oriented.
 It focuses on satisfying the needs of individual at work.
 Functions and businesses need to integrate for effecting customer service.
The approach to HRM differs from organization to organization depending on how much it is
valued by the management Technological change, innovation and heightened competition drive
to increase the skill of employees. Competitive challenges motivate to companies to use their
human resources effetely.
Integration of HRM
HRM
Production
Finance
Marketing
Human ResourceDevelopment:
Textile industry gives employment to millions of people. In order to recruit skilled workforce in
textile sector, proper training programs would thus facilitate in supply of well qualified
workforce. Thus the role of HRD has gained momentum in terms of employing manpower that
satisfies the professional requirements of this sector and that is well skilled. Thus much
collaboration among many multinational companies and educational institutions has been
observed.
The HRD department of any company is responsible recruiting skilled labors and executives,
allocation and planning of work, monitoring of workforce and performance appraisal. It is also
responsible to timely up gradation of skills of the workforce by organizing educative
professional workshops or seminars. If HRD activities are carried out in proper professional
manner it could result into minimization of cost and wastage, right recruitment of workforce,
increased stability of the company, flexible enough to cope up with futuristic developments and
most important maximizes production.
Human Resources Strategies for the TextileIndustry:
 Recruitment:
o Textile industries promote the work of fashion designing, product pattern and
styles, so your human resources strategy should focus on recruiting suitable
skilled manpower for the production function as well as sales and marketing
departments. Personnel in these areas are crucial to the productivity, performance
and bottom line of your company. If you operate globally, recruit talented local
candidates whose overall compensation will likely be several times lower than
deployed personnel with similar skill levels from the home office.
 Orientation:
o Intensive orientation to the employee is one of the major functions of human
resource management. The program should help the employee to know his
assigned duties and his exact job description, job role, and the relationship of
position to other positions in the organization. It gives clarification to the
employee to take an active role in the organization.
 Maintaining goodworking conditions:
o It is the responsibility of the human resource management to provide good
working conditions to the employee so that they may like the workplace and the
work environment. It is the fundamental duty of the HR department to motivate
the employees.
o The study has been found that employees don’t contribute to the goals of the
organization as much as they can. This is because of the lack of motivation.
Human resource management should come up with a system to provide financial
and non-financial benefits to the employee from the various departments.
Employee welfare is another concept which should be managed by HR team.
Employee welfare promotes job satisfaction.
 Training:
o Human resources personnel have to develop programs to train employees to adapt
to new technology that improves production operations in a changing garment
market. Typically, such training courses help employees enhance their career
growth and update new products for competitiveness. You also will need soft
skills training courses on sales and marketing as a strategic management endeavor
for increased sales volumes. Human resources should have a qualification system
for existing and new employees to determine their respective training needs. For
best results, align the training programs in home and overseas subsidiaries with
your firm’s strategic goals and objectives.
 CompensationPolicy:
o Your human resources strategy should establish a salary and compensation policy
to encourage your existing workforce to stay and attract qualified candidates to
your firm. Perform periodic reviews of salary levels to ensure workers are
remunerated competitively.
o Incorporate an incentive system based on employees’ performance, such as
instant bonuses for the sales team once they get contracts or year-end bonuses for
reaching performance targets. Determine compensation for overseas subsidiaries
based on company regulations and the dynamics in the labor market.
 Work Environment:
o Human resources should ensure a favorable working environment. Implement
safety and security measures, such as having fire alarms, first aid and monitoring
systems in place. Establish a professional working environment. Spell out job
descriptions to avoid confusion. An open door policy can improve communication
and productivity when implemented correctly. Integrate diversity by
accommodating cultural values such as religious holidays or prayer times,
especially for overseas branches. Hold regular team-building events to connect
workers across departments and management, as well as reduce working stress.
 Managing Employee relations:
o Employees are the pillars of any organization. Employee relationship is a very
broad concept and it is one of the crucial functions of human resource
management. It also helps to foster good employee relations. They have the
ability to influence behaviors and work outputs. Management should organize
activities which will help to know an employee at the personal and professional
level. Well-planned employee relations will promote a healthy and balanced
relation between the employee and the employer. It is the key for the organization
to be successful.
 Important Problems of Textile Industry Faced:
 Lack of personnel expert improvements
 Lack of productivity
 Lack of knowledge
 Inadequate application of technologies in informatics
 Insufficiently educated work power
 Obsolete equipment
 Lack of financial capital
 Lack of innovation and flexibility
 Lack of training
 Lack of initiatives
HR CHALLENGES:
 Human Resource
o The textile sector employs 45% of overall labor force, with 38% of the
manufacturing Workers employed under textile sector.
o Pakistan has the advantage of cheaper labor as compared to its competitors, but
unfortunately the labor productivity is very low.
o There are hardly any training programs to develop the skills of labor hence; the
craftsmen entirely depend upon their inherited skills with no advancement and
movement towards technical knowledge.
 New TechnologicalChangesin the Textile Industry
o The challenges of the work environment of this current scenario have created new
knowledge, ability, and talent requirements for human resource. For example,
ongoing developments in new technology are redesigning the process of
production, and the talent requirements of job.
o Most employees are use a new technology like computer, the Internet or some
other machinery in textile industry it’s a form of new technology at working area,
in the upcoming, days the fast speed of technological development is seen and it
increases the demand for high skilled and well-qualified human resource. This
involve that workers, particularly older workers who may not have been ready to
changes with new technology, for this purpose need to engage in training
activities to remain capable in the work force.
 Lack of Training:
o The textile industry has a higher ratio (73%) of male workers and only (27%) of
female workers. A higher proportion of textiles workers have no degree,
certificate, diploma (29%).respondent of the textile industry survey and the
interviews were asked about how they provided training to their Human Resource.
o Formal training was given by 68% of textile industry and informal training by
32%.
o Textile industry in small scale is less likely to be able to provide skills
development for human resource. It is also possible that the absence of human
resources plan for the skills development. In the textile industry survey, 16% of
respondents felt that to training for existing workers. 52% are stated a lack of
training to their textile industry. It’s a need to providing training. Internal training
was used to develop skills in the use of machinery and equipment in the working
area.
o Limited availability of trained technical staff to maintain and run machinery at
full efficiency is a constraint upon the development of Pakistan’s textile industry.
o This shortfall is partly due to a lack of technical education facilities.
o Some of the developments in the textile industry include: Advances in ring
spinning, computerized dyeing and finishing, computer-aided designing,
manufacturing and developing retailing links hence, all these demand new and
greater skills and Pakistan lacks it.
 Mode of Training:
 Orientation
 In-house training
 In-country training
 Overseas training
 Job rotation
 Training Programs:
 Attitude Adaptability
 Understanding Responsibility
 Time Management Skill
 Problem Solving Skill
 Communication Skill
 Leadership Skill
 Training on work process
 Quality of work
 Ability to put knowledge into practice
 Technical Training
 Ability to absorb new development
 Fire Safety Training
 Low Educated Employees:
o The new scenario of 21st century must increase the number of workers with the
rising demands that owners should strengthen human resources so that can keep
Textile industry is running. Human capital is an important resource in a textile
industry.
o It can increase competitive advantage and makes success, but it is also the biggest
problem faced by the industry is the most of the respondents are low-educated or
not getting any type of technical education. So it’s a harmful thing for the
development of textile sector.
 Field education required:
 Foreign Languages
 Computer & Informatics
 Marketing
 Management
 Design
 Entrepreneurship
 Quality Management
 Business Law
 Wrong DecisionMaking:
o HR Managers make efforts to alter this situation lately, but there are several
problems are often including, like training textile sector focus, production and
training environment.
o Each of these will have the greatest impact on the final decision. It’s more
important because it affecting HR life, livelihoods, and safety. Decision making is
an important part in professional lives.
 Climatic Condition
o Although Pakistan has the ideal climatic conditions for the growth of cotton
providing a factor advantage to the textile industry, but it is also quite vulnerable
to pesticides that can lower the yield per hector.
o The textile sector is largely dependent on the supply of raw material of the
agricultural sector and hence whatever happens to the agricultural sector like
floods will adversely affect the textile industry rendering it even more vulnerable
to environmental conditions.
Textile Industry Pros and Cons:
ADVANTAGE DISADVANTAGE
Pakistan has the advantage of cheap labor as
compared to its competitors, but unfortunately
the labor productivity is very low.
There are hardly any training programs to
develop on the skills of these labors and the
craftsmen depend upon their inherited skills
with no advancement.
SWOTAnalysisof Textile Industry:
 STRENGHTS:
• Self-reliance
• Manufacturing flexibility
• Abundance of raw material production
• Design expertise
• Availability of cheap labor
• Growing economy and domestic market
• Progressive reforms
 WEAKNESSES
 Research & Development (R&D)
o Developed countries are using the technology of biotechnology and genetic
engineering to increase the quality and quantity of their cotton production. In
Pakistan, there is very some research done on small scale by private companies.
Practically no efforts are being made by the APTMA (All Pakistan Textile Mills
Association) in the R&D of the textile industry to enhance the quality of its
products.
 Highly fragmented sector.
 High dependence on cotton.
 Lower productivity.
 Declining mill segment
 Technological obsolescence
 Non‐participants in trade agreements
 Poor Quality Standards.
o Pakistan’s textile industry should focus on latest material handling techniques and
should train workers. The inability to timely modernize the equipment, machinery
and labor has led to the decline of Pakistani textile competitiveness.
 THREATS
 New Competitors
o Pakistan is facing new competitors in textile sector such as Bangladesh, Vietnam and
Turkey. Though we cannot avoid competition but we can always stay ahead of them
by reforming our strategies and educating our entrepreneurs so as to move one step
forward in every aspect.
 Phasing Out Of Quota System
o As the quota system is ruled out by WTO, there is a threat by the Chinese and Indian
manufacturers to gain most of the market share. We have high costs, low labor
productivity and inefficient production processes.
 Fashion Life Cycle
o Fashion changes day by day these days. Media has so much penetrated in our daily
lives that we easily adapt ourselves as it wants us to. This has resulted in shortening
the fashion lifecycle thus increasing the fashion risk. Now the buyer does not want to
wait long for his consignment because he is insecure that by the time it will reach to
him he will lost its demand due to change in fashion. Therefore, they prefer to buy
from neighboring countries even at higher cost to get their products instantly rather
than to wait weeks or months for their consignments to reach them.
 Stiff competition from developing countries; especially China and
India.
 Pricing pressure.
 Locational disadvantage.
 International labor and environmental laws.
 ENVIROMENTAL ISSUES:
o Textile industry is associated with some environmental issues some of them are:
 Large volumes of water.
 Usage of complex chemicals.
 Discharge of untreated effluent
 Water Pollution.
 Air Pollution
 Labors concern.
 HR OPPORTUNITIES:
o Many textile sectors provide an opportunity for quality improvement such as: plan,
new technology, education and training. Understanding of these areas may help much
in quality improvement. Increase demand and consistent growth rate indicates that
human resource has great opportunities to utilize its’ capacity for foreign markets.
Increasing health consciousness of human resource goes to use natural textile
products from artificial one. So, tendency might increase the global market.
For textile HR can do:
 Identification of people requirement i.e. why & how much to be required ,because in
textile every process requires different numbers of peoples for say spinning section
requires much more as compare to garment.
 After this, HRM find out where they are available, i.e. internal or external for say
education institutes or competitors or etc.
 Next is training, textile training is very much important, because entire thing is
depend on this. If training is wrong or doesn’t give result then origination loses the
time, money and effort. In textile we should concentrate on training .In this, there are
4 types of training i.e., internship, remedial, refresher, promotion training.
 HRM provide these by two methods i.e. on the job and off the job. Training should
match with organizational goal, job profile, job description, characteristics of trainee.
 After this HRM should evaluate the training program by taking interview report
submission or by field observation
 Next is performance appraisal
 Compensation and rewards have to be individually charted depending on the intellect
brought in by the employee along with the time frame for its delivery. The company
should have reward programs on a group basis for knowledge workers. The
Performance Appraisal system must have built in rewards for system creators
Responsibilityof HR Departmentin Textile Industry:
 It is necessary to have job analysis information as it helped to short list the candidate list
and to conduct interview.
 It is observed that if the description and person specification is not available then it is
responsibility of the relevant department to prepare that document with the help of HR
department, staffing activities cannot be commenced without any reference to document.
 Line managers are involved in final selection of the candidate and HR planning at the
department level, while HR staff is more interested and involved in matters like policy
making, recruiting candidates and their early screening processes.
 Involvement of HR department in hiring process helps to enhance knowledge of the
workforce and required skills.
 It is also helpful for the identification of upgrading skill requirement of the employees.
 By such involvement, good communication seems to have synergy effect and helps to
unify the workforce.
 As a result of this communication, negotiations happen in more positive atmosphere
which has an ultimate effect on the quality within the workforce.
SolvingTop 6 Problems of HR in the Garment
Industry:
Solving Top 6 Business Problems of HR in the Garments Industry HR problems:
Can help you solve issues related to;
 Leadership Development
 Goal alignment
 Employee perception
 Promotions & Policies
 Internship programs
 Overstaffing
 LEADERSHIP DEVELOPMENT:
o 70% of employees who lack confidence in the abilities of senior leadership aren’t
fully engaged Source:
 Problems:
 “Upper management don’t have a clue about what is really going on in the
stores”
 “Our management is not fair with the employees”
 “There is a lot of nepotism”
 “Management doesn’t have a clue of what’s really going on in stores”
 Solutions:
 360 Feedbacks
 Employees, managers and HR manager can select reviewers for a person
 Everyone submits online feedback from their computers
 Reviews can be kept anonymous
 HR manager/coach can analyze reports of individual reviewers as well as
compare reports from multiple reviewers
 HR Manager/coach can use these insights to help the manager improve
Performance Management.
 GOAL ALIGNMENT:
o When goal alignment is not a primary focus, about two-thirds of a company’s
time and resources are wasted Source:
 Problems:
 “Everyone here cares about their bonus, and just want to make it harder
for others to do their jobs”
 “Our management needs to monitor and watch the store managers”
 “I keep on doing the busy work, none of which has nothing to do with my
job”
 “The corporate team makes work harder on the employees”
 Solutions:
 Goal Management
 Employees and managers can set SMART goals for themselves
 People can view goals of the business and their division, when they set
their own goals
 For interns and new employees, managers can import goals from job
descriptions
 People can prioritize their goals by assigning them different weightages
Performance Management
 EMPLOYEE PERCEPTION
o 92% business executives have seen favoritism affect employee promotions
Source:
 Problems:
 “The Company is unprofessional and lacks structure”
 “Our management is not fair to the employees”
 “There is a lot of nepotism”
 “Senior management doesn’t have a clue about what’s really going on at
the store-level”
 Solutions:
 Employee Communication
 Employees can submit anonymous feedback through notes and online HR
help desk
 You can conduct employee surveys before changing policies
 You can communicate one to one with the employee, or include their
manager in the conversation
 The feedback can be made a part of the performance appraisal Talent
Management
 PROMOTIONS & POLICIES
o Management Transparency is the top factor when determining employee
happiness Source:
 Problems:
 “The management constantly revokes employee discounts, and does not
give a reason”
 “The store policies change by the minute”
 “Our favorite store manager was transferred”
 “Management takes away more from good employees and give it to the
employees that they like”
 Solutions:
 Employee Database
 Store previous appraisals online and use these as basis for promotions
 Understand relationships between people before initiating transfers and
promotions
 Communicate company policies through a self-service system for the
employees which they can access on their mobiles / laptops Talent
Management
 INTERNSHIP AND TRAINING PROGRAMS
o New hires who undergo a structured on-boarding program are 54% more
productive at work Source:
 Problems:
 “The internship program is in infancy. There isn’t much to do”
 “The Firm needs to teach and prepare employees for management roles”
 “The company needs a solid internship program”
 Solutions:
 Employee Onboarding & Training Management
 HR manager can establish and change the process to onboard new
employees
 Employees can learn about their team members and managers from a
single screen
 Employees can easily access documents like company policies as well as
training curriculum
 Employees can submit feedback on training electronically
 Manager can assign training goals and evaluate ROI of training Talent
Management
 STAFFING OPTIMIZATION:
o For production with many stores and few employees per store standardization,
visibility and control yield results in line with expectations
 Problems:
 “Management hires people who misrepresent the product and share
nothing with our target customers”
 “Managers hire pushovers, instead of qualified candidates and people who
will fit the culture”
 “I am just at this temporary job until I find something better”
 “My hours are scarce. The company appears to be overstaffed”
 Solutions
 Time and Attendance Management Workforce Management
 Track and report time-off requests
 Reduce unplanned absence by recording and monitoring all leave records
 Ensure a consistent leave policy and automate process across
organizations
 Managers can track time spent on every different kind of activity on a
daily basis
How to SuperviseEmployees with Low Self-Esteem:
 How could low self-esteem impact any company?
• Employees with low self-esteem can present many challenges to a company.
• It is difficult for a company to maintain productivity and quality output from employees
with swinging moods and negative attitudes.
• Even without consciously meaning to, managers stop believing in these employees and
thus begin a cycle that revolves around distrust, low performance and failure.
• You may end up losing such employees and star performers.
 Why it is important to build Self Esteem in Employees?
• Employees with high self-esteem are more productive, committed and are simply more
motivated.
• They have more productive relationships with other coworkers and are able to accept
criticism gracefully.
• Professional self-esteem can be defined as the belief of each employee in their
competence and that they have all the necessary skills to perform their job.
 How to handle employees in such situations?
• The employees who have sudden low self-esteem may become defensive.
• Becoming strict or impatient will only make the situation worse.
• Be patient and give time to them to recover and perform.
• Guide the employee’s behavior rather than their personality.
• Stop watching them too closely or paying attention to everything they say.
• Communicate your expectations in writing.
• Use goal-setting to align their activities Track periodically and recognize every success
• Provide training and professional development opportunities.
• Once the performance is back on track, recommend rewards and give bigger job
responsibilities
Conclusion:
Today, Human Resource Management Department plays a vital role in every organization. These
HR systems improve employee performance at workplace; it updates employee knowledge and
enhances their personal skills. Human Resource programs and functions i.e. recruitment &
selection, training & development, compensation & rewards, performance appraisal & feedbacks
etc. improve the quality of work-life by creating an employee supportive workplace. Textile
Industry is a very big business industry in Pakistan. Pakistan is considering the world
contributing country in the Ready Made Garments (RMG). Knit is also major raw materials of
textile industry. World’s most of the brands are making their dress from Pakistan. So it’s very
competitive market. In that market if anyone wants to success they need skilled worker. If the
organizations provide necessary training to their employees they can increase their productivity.
This study was a learning experience for us and we came to know the HR department in the
textile industry shows positive in response but still more focus on HR functions, strategies and
practices is needed in the textile industry so that the employees are motivated time by time and
they should know their strength & weakness so that they can work on it & improve their
knowledge & skills for the betterment of their organization.
In the last but not the least we conclude that all the HR functions of textile company should
highly effective & beneficial to the employees in giving their best contribution to their personal
growth & development as well to meet the organizational objective.
Recommendations:
 These are some recommendations through which Textile industry may be beneficial:
 Training development format should be friendly and flexible.
 HR department of the textile companies should diversified their training programs rather
than focusing on professional trainings.
 There must be a clear relation between training electiveness and strategic goals of the
organizations
 The Textile companies should update regularly their HRIS that is Human Resource
Information Systems software.
 Approaches used to train employees should be selected after careful consideration of the
trainees and organization needs.
 To motivate and encourage the employee’s adequate allowance should be provided to
them during the working period.
 The Textile companies should increase their training budget, because without a big
budget the companies would not be able to introduce modern technology in their training
system.
 Companies must encourage self-management in their HR system.
 According to their budget more focus on internal employees and if needed then outsource
any function of HR.
 Rethink and implement job designs and a classification system that
support competencies and roles to accomplish work
 Implement efficient, flexible hiring and transfer processes based
on roles and competencies to facilitate movement to and from assignments, roles and
responsibilities.
 Compensation is linked to the competencies of individuals; the compensation system is
flexible enough to support changing work assignments, team-based pay, superior
performance, and market forces.
 Document and disseminate information about best practices to recognize and reward
individuals and teams.
 Performance planning and monitoring is a continuous process, managers are accountable
for, assessed on, and rewarded for supervisees' performance planning and monitoring.
 Every team and employee has measurable goals and a plan for performance.
 Implement competency-based assessment, development and training processes to
promote flexibility and growth.
 Implement an annual strategic planning process to support the staffing needs of academic
departments, centers, and administrative areas as well as the company broader mission
with the help of Vice President for Human Resources and Deans.
Textile industry report

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Textile industry report

  • 1. STUDIED AT UNIVERSITY OF SARDOGHA, LAHORE COMPUS STUDENTOF MBA FINAL YEAR INTERNSHIP ASSIGNMENT OF SHAHKAM INDUSTRY THEORETICAL BASE REPORT Detailed Report on HRM A Case of Textile Sector PREPARED BY: INTERNEES: ANAM NASIR (054) SHAZIA GULZAR (055) SUBMITTED TO: MA’AM NEHA HR GENERALIST SHAHKAM INDUSTRY
  • 2. Table of Contents Acknowledgement..............................................................................................................................4 Executive summary.............................................................................................................................5 Data Obtained From:..........................................................................................................................6 THE WAY HUMAN RESOURCE MANAGEMENT (HRM) PRACTICESEFFECT EMPLOYEES & ORGANIZATIONS PERFORMANCE: A CASE OF TEXTILE SECTOR ........................................................................................7 Introduction:..................................................................................................................................7 Overview of Human Resource Management:....................................................................................7 THE HISTORICAL BACKGROUND OF HUMAN RESOURCE MANAGEMENT: ...............................................8 Human resource management has changed in name various times throughout history. The name change was mainly due to the change in social and economic activities throughout history. ..............8  Industrial Welfare....................................................................................................................8  Recruitment and Selection.......................................................................................................8  Acquisition of other Personnel Activities...................................................................................8  Industrial Relations..................................................................................................................9 Legislation......................................................................................................................................9  Flexibility and Diversity............................................................................................................9 Information Technology..................................................................................................................9 Stagesin the Development of HRM .....................................................................................................9 Overview of human resource management system & function............................................................10 Introduction Human resource management.......................................................................................10 What is HRM?...............................................................................................................................11 What do HR Managers Do?............................................................................................................11 HRMFunctions:............................................................................................................................11 Manpower planning..................................................................................................................12 Recruitment &Selection.............................................................................................................12 Source of Recruitment...............................................................................................................12 Types of Recruitment ................................................................................................................13
  • 3. Training & Development............................................................................................................13 Performance Appraisal ..............................................................................................................13 360-degree performance appraisal.............................................................................................13 Pay Roll.....................................................................................................................................14 Compensation & Benefits ..........................................................................................................14 Employees Benefits...................................................................................................................14 NEW HRMSPECIALTY AREAS:............................................................................................................15 Work and FamilyPrograms............................................................................................................15 Cross-Cultural Training..................................................................................................................15 Managed-Care..............................................................................................................................15 Managing Diversity.......................................................................................................................15 HR Roles and Responsibilities in changing Environment......................................................................15 Hierarchy of HR department:.............................................................................................................17 Senior Level Human Resource Management Jobs ...........................................................................17 Middle Level Human Resource Management Jobs ..........................................................................17 Operational Level Human Resource Management Jobs...................................................................18 E-HRM: ............................................................................................................................................20 Overview of Textile Industry:.............................................................................................................20 Introduction of HRMin Textile Industry: ............................................................................................21 About the Condition of HRMin the Textile Industry:...........................................................................22 Contribution of HRMto Organization:............................................................................................23 Role of HRM:................................................................................................................................24 Human Resource Development: ....................................................................................................25 Human Resources Strategies for the Textile Industry:.........................................................................25 Recruitment:................................................................................................................................25 Orientation:..................................................................................................................................25 Maintaining good working conditions: ...........................................................................................26 Training:.......................................................................................................................................26 CompensationPolicy:....................................................................................................................26 Work Environment:.......................................................................................................................27 Managing Employee relations:.......................................................................................................27 ImportantProblems of Textile Industry Faced: ...............................................................................27
  • 4. HR CHALLENGES:..............................................................................................................................28 Human Resource ..........................................................................................................................28 New Technological Changes in the Textile Industry.........................................................................28 Lack of Training:............................................................................................................................28 Mode of Training:......................................................................................................................29 Training Programs:....................................................................................................................29 Low Educated Employees:.............................................................................................................30 Wrong Decision Making:...............................................................................................................30 Climatic Condition.........................................................................................................................30 Textile Industry Pros and Cons:..........................................................................................................31 SWOT Analysis of Textile Industry:.....................................................................................................31 For textile HR can do:........................................................................................................................33 Responsibility of HR Departmentin Textile Industry: ..........................................................................33 Solving Top 6 Problems of HR in the Garment Industry:......................................................................34 LEADERSHIP DEVELOPMENT:.........................................................................................................34 GOAL ALIGNMENT:.......................................................................................................................35 EMPLOYEE PERCEPTION................................................................................................................35 PROMOTIONS & POLICIES .............................................................................................................36 INTERNSHIP AND TRAINING PROGRAMS........................................................................................36 STAFFING OPTIMIZATION:.............................................................................................................37 How to supervise employees with low self esteem:............................................................................37 Conclusion:......................................................................................................................................38 Recommendations:...........................................................................................................................39
  • 5. Acknowledgement We would like to thank University of Sargodha Lahore campus for giving us the opportunity to do this internship. We would like to thank SHAHKAM Industry management for letting us do the internship at their HR Division Head office. We’d like to thank Human Resource management department and to all team members.
  • 6. Executive Summary In today's rapidly changing business environment, organizations have to respond quickly to requirements for people. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out to be costly mistakes for the organization. Selection is one area where the interference of external factors is minimal. Hence the HR department can use its discretion in framing its selection policy and using various selection tools for the best results. The basic functions of Human Resource Management: planning and forecasting human resource requirements, recruitment and selection, training & development, appraisal, evaluation, handle employee grievance’s and employee motivation. Managing human resource has always remained as an important concern for managers. At present, human resource management is being seen as a main stream department in modern businesses. This report attempts to focus on history, overview, stages, and importance of the human resource management functions and roles & responsibility of HR department. The theoretical research narrows down and presents a detailed analysis of the origins of human resource management discipline. We have select the topic of this report is “Human Resource Management”. We tried to integrate our theoretical knowledge of HR and combine it with practical examples as observed during our study. We have tried to cover all the major functions of Human Resource Management- recruitment, selection, compensation and benefits, training and development and convey our understandings of the different functions of Human Resource Management through this project. We have also discussed about HR departments of Textile Industry, and it’s SWOT Analysis which shows the importance of HRM to improve the industries performance. We have also tried to provide some recommendations based on our knowledge followed by the conclusion which we gathered during our study. This study examines what factors affect employee attributions to HR practices in relationship with HR satisfaction and organizational outcomes in case of Textile Industry of Pakistan. This report demonstrates how the HR practices are perceived by employees and also shows solution of problems related to different areas of HR division that how HR policies and practices develop positive employee attitudes or feelings of satisfaction, commitment and motivation.
  • 7. Data Obtained From: All the information is based on the secondary data which is already discussed during our study period, as it is theoretical base report different websites, journals, links and books used for making this report.
  • 8. The WayHuman ResourceManagement (HRM) Practices Effect Employees & Organizations Performance:ACaseof TextileSector Introduction: Overview of Human ResourceManagement: The term "human resource management" has been commonly used for about the last ten to fifteen years. Prior to that, the field was generally known as "personnel administration." The name change is not merely cosmetics. Personnel administration, which emerged as a clearly defined field by the 1920s (at least in the US), was largely concerned the technical aspects of hiring, evaluating, training, and compensating employees and was very much of "staff" function in most organizations. The field did not normally focus on the relationship of disparate employment practices on overall organizational performance or on the systematic relationships among such practices. The field also lacked a unifying paradigm. HRM developed in response to the substantial increase in competitive pressures American business organizations began experiencing by the late 1970s as a result of such factors as globalization, deregulation, and rapid technological change. These pressures gave rise to an enhanced concern on the part of firms to engage in strategic planning--a process of anticipating future changes in the environment conditions (the nature as well as level of the market) and aligning the various components of the organization in such a way as to promote organizational effectiveness. Human resource management (HRM), also called personnel management, consists of all the activities undertaken by an enterprise to ensure the effective utilization of employees toward the attainment of individual, group, and organizational goals. An organization's HRM function focuses on the people side of management. It consists of practices that help the organization to deal effectively with its people during the various phases of the employment cycle, including pre-hire, staffing, and post-hire. The pre-hire phase involves planning practices. The organization must decide what types of job openings will exist in the upcoming period and determine the necessary qualifications for performing these jobs. During the hire phase, the organization selects its employees. Selection practices include recruiting applicants, assessing their qualifications, and ultimately selecting those who are deemed to be the most qualified.
  • 9. In the post-hire phase, the organization develops HRM practices for effectively managing people once they have "come through the door." These practices are designed to maximize the performance and satisfaction levels of employees by providing them with the necessary knowledge and skills to perform their jobs and by creating conditions that will energize, direct, and facilitate employees' efforts toward meeting the organization's objectives. The Historical Background of Human Resource Management: Human resource management has changed in name various times throughout history. The name change was mainly due to the change in social and economic activities throughout history.  Industrial Welfare: (For provide the rights to workers)  Industrial welfare was the first form of human resource management (HRM). In 1833 the factories act stated that there should be male factory inspectors. In 1878 legislation was passed to regulate the hours of work for children and women by having a 60 hour week. During this time trade unions started to be formed. In 1868 the 1st trade union conference was held. This was the start of collective bargaining. In 1913 the number of industrial welfare workers had grown so a conference organized by Seebohm Rowntree was held. The welfare workers association was formed later changed to Chartered Institute of Personnel and Development.  Recruitment and Selection: (Merit base hiring)  It all started when Mary Wood was asked to start engaging girls during the 1st world war. In the 1st world war personnel development increased due to government initiatives to encourage the best use of people. In 1916 it became compulsory to have a welfare worker in explosive factories and was encouraged in munitions factories. A lot of work was done in this field by the army forces. The armed forces focused on how to test abilities and IQ along with other research in human factors at work. In 1921 the national institute of psychologists established and published results of studies on selection tests, interviewing techniques and training methods.  Acquisition of other Personnel Activities: (Introduce other HR functions)  During the 2nd world war the focus was on recruitment and selection and later on training; improving morale and motivation; discipline; health and safety; joint consultation and wage policies. This meant that a personnel department had to be established with trained staff.
  • 10.  Industrial Relations: (Negotiation b/w employers & employees)  Consultation between management and the workforce spread during the war. This meant that personnel departments became responsible for its organization and administration. Health and safety and the need for specialists became the focus. The need for specialists to deal with industrial relations was recognized so that the personnel manager became as spokesman for the organization when discussions where held with trade unions/shop stewards. In the 1970's industrial relations was very important. The heated climate during this period reinforced the importance of a specialist role in industrial relations negotiation. The personnel manager had the authority to negotiate deals about pay and other collective issues.  Legislation  In the 1970's employment legislation increased and the personnel function took the role of the specialist advisor ensuring that managers do not violate the law and that cases did not end up in industrial tribunals.  Flexibility and Diversity: (Introduced flexible work arrangements)  In the 1990's a major trend emerged where employers were seeking increasing flexible arrangements in the hours worked by employees due to an increase in number of part- time and temporary contracts and the invention of distance working. The workforce and patterns of work are becoming diverse in which traditional recruitment practices are useless. In the year 2000, growth in the use of internet meant a move to a 24/7 society. This created new jobs in e-commerce while jobs were lost in traditional areas like shops. This meant an increased potential for employees to work from home. Organizations need to think strategically about the issues these developments raise. HRM manager’s role will change as changes occur.  Information Technology  Some systems where IT helps HRM are: Systems for e-recruitment; On-line short-listing of applicants; developing training strategies on-line; Psychometric training; Payroll systems; Employment data; Recruitment administration; References; Pre-employment checks. IT helps HR managers offload routine tasks which will give them more time in solving complex tasks. IT also ensures that a greater amount of information is available to make decisions. Stages in the Developmentof HRM Human resource management in Australia and the Asia Pacific region has progressed along similar lines to its United States and United Kingdom counterparts, but with differences in the stages of development, and in the relative influence of social, economic, political and industrial relations factors.
  • 11. The two main features of the US development of HRM are its initial emphasis on largely administrative activities, directed by senior management, and then the move to a more confident, business-oriented and professional approach in the 1980s and 1990s. Similar processes occurred in the United Kingdom, with more early emphasis on the ‘welfare’ roles of personnel practitioners because of the excesses of early capitalist industry, a strong humanitarian movement and developing trade unionism. In Asian countries, there has been a blend of administrative, paternalistic, cooperative, and business-focused HRM that varies between countries depending on their cultures, stages of development, extent of government intervention in the economy and industrial relations systems. In Australia, HRM has developed through the following general stages.  Stage one (1900–1940s): administration stage  Stage two (1940s–mid-1970s): welfare and administration stage  Stage three (mid-1970s–late 1990s): human resource management and strategic human resource management (SHRM) stage  Stage four (Beyond 2000): SHRM into the future Overviewof Human ResourceManagement System & Function  Session Objectives 1. Introduction of HRM 2. Definition of HRM 3. HRM functions to understand … 4. Recruitment &Selection process 5. Training& Development process 6. Performance Appraisal process 7. Pay Roll 8. Compensation &Benefits 9. To understand the Main HR Roles & Responsibilities Introduction Human resource management • It is defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.
  • 12. What is HRM? Human Resource Management (HRM) is the function within an organization that focuses on recruitment, management, and providing direction for the people who work in the organization. It deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. What do HR Managers Do? Human Resource professionals create systems for managing employees that support an organization’s overall strategy. To accomplish this, they  Analyze and design jobs.  Forecast supply and demand for workers.  Ensure legal compliance.  Implement affirmative action plans.  Recruit and select candidates to fill open positions.  Train and develop employees to meet current and future job demands  Manage employee performance and career progress.  Develop basic pay structures.  Create incentive plans.  Administer benefit programs.  Assure employees safety and health.  Retain employees.  Improve employee morale.  Reduce turnover and carry out disciplinary actions,  All while applying constantly evolving technology. HRM Functions: There are seven main functions of HR. 1. Manpower planning 2. Recruitment and selection of employees 3. Employee education, (training and development) 4. Compensation &Benefits (Employee motivation) 5. Performance Appraisal (Employee evaluation) 6. Industrial relations 7. Provision of employee services (safety &Health Benefit)
  • 13.  Manpower Planning o It is the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization. o It is a double –edged weapon. If used properly, it leads to the maximum utilization of human resources, reduce excessive labor turnover and high absenteeism, improve productivity and aid in achieving the objectives of an organization.  Recruitment &Selection o Recruitment is a process of identifying and hiring best-qualified candidate (from within or outside of an organization) for a job vacancy, in a most timely and cost- effective manner. o The process begins when applications are brought in and ends when the same is finished. The result is a pool of applicants, from where the appropriate candidate can be selected. o Recruitment cycle Identify Vacancy Conduct Interview Prepare Job &Decision Description making Arrange Advertising interview the Vacancy Managing short listing the response  Source of Recruitment:  Internal source:  Transfer  Promotion  Upgrading  Demotion  Retired employee  Retrenched employee  Employee reference  External source:  Advertisement (print media, mass media)  Educational institutions  Placement agencies/outsourcing  Job portals (Naukri .com, monster .com)  Employment exchange  Labor contractors  Unsolicited applicant  Employment at factory gate
  • 14.  Types of Recruitment  Recruitment needs are of three types  Planned  The needs arising from changes in organization and retirement policy.  Anticipated  Anticipated needs are those movements in personnel, which an organization can predict by studying trends in internal and external environment.  Unexpected  Resignation, deaths, accidents, illness give rise to unexpected needs  Training & Development o Training is a process of learning a sequence of programmed behavior. o It is an act of increasing the knowledge and skills of employees, for performing a particular job. o Newly recruited employees require training so as to perform their task effectively. Instruction, coaching, guidance helps them to handle jobs completely, without any wastage. o Development is a long -term educational process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and theoretical knowledge for general purpose.  Performance Appraisal o Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. o Its rates the employees in terms of their performance o It is necessary to understand each employee’s abilities, competencies and relative merit and worth for the organization. o It may be half yearly or yearly report.  360-degree performance appraisal o The 360-degree appraisal is the appraisal given by peers, subordinates, workers, head of the department etc. that means the appraisal given from all the people working in the organization. o In short, the half yearly or yearly report of work schedule goes from company to head quarter of all the workers performance is the appraisal it contains all the promotion, demotion, and other activities related to the performance.
  • 15.  Pay Roll o The term payroll encompasses every employee of a company who receives a regular wage or salary or other compensation. Payroll refers to the administration of employees’ salaries, wages, bonuses, net pay, and deductions. o It consists of the employee ID, employee name, date of joining, daily attendance record, basic salary, allowances, overtime pay, bonus, commissions, incentives, pay for holidays, vacations and sickness, value of meals and lodging etc. There are some deductions such as PF, taxes, loan installments or advances taken by employee.  Compensation & Benefits o Compensation is the remuneration received by an employee in return for their contribution to the organization. o It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. o Compensation is an integral part of human resource management.  Components of Compensation  System Pay Structure Job Salary Analysis Surveys  Two types of compensation given by any Organization  Direct compensation  Indirect compensation  Employees Benefits o Benefits in kind (also called fringe benefits, perquisites, perks) are various non- wage compensations provided to employees in addition to their normal wage or salaries, where an employee exchanges (cash) wages for some other form of benefit, this is generally referred to as a salary sacrifice arrangement. Some of these benefits are o Housing (employer-provided or employer-paid), o Group insurance (health, life, etc.) o Disability income & protection, Retirement Benefits o Reimbursement, o Seek leave, o Vacation (paid and non-paid), o Social security, profit sharing, funding of education, and other specialized benefits o Perk-refer to those benefits of a more discretionary nature. o Often, perks are given to employees who are doing notably well and/or have seniority. Common perks are o Take –home vehicles, hotel stays o Free refreshments, leisure activities on work time (golf etc.), o stationary allowances
  • 16. New HRM SpecialtyAreas:  Work and Family Programs  Develops and administers work and family programs including flextime, alternative work scheduling, dependent-care assistance, telecommuting, and other programs designed to accommodate employee needs; identifies and screen child- or elder-care providers; administers employer's private dependent-care facility; promotes work and family programs to employees.  Cross-Cultural Training  Translate the manners, mores, and business practices of other nations and cultures for American business people. Other cross-cultural trainers work with relocated employees' families, helping them adjust to their new environment.  Managed-Care  As a company's health-care costs continue to escalate, employers are embracing managed-care systems, which require employees to assume some of the costs. Employers hire managed-care managers to negotiate the best options for employees.  Managing Diversity  Develop policies and practices to recruit, promote, and appropriately treat workers of various ages, races, sexes, and physical abilities. HR Roles and Responsibilitiesin Changing Environment The HR Roles and Responsibilities needs to react to this basic request by the organization to keep the level of the satisfaction. Nowadays, the HRM has to deliver even more. The HR Roles and Responsibilities have to take the high-level recognition of the organization and they need to be adjusted to make a full fit.  The HR Roles have to be adjusted to: o Keep HRM Function focused on tracking and implementing new trends in the industry. o Keep HRM Function focused on helping the line management to implement improvements. o Keep HRM Function focused on operational excellence. o Keep HRM Function responsible for developing the Human Capital potential in the organization.
  • 17.  The HR Responsibilities have to be adjusted to: o Demonstrate the Line Management the will to keep the responsibility for the Human Capital costs o keep the competitive advantage on the market (and not just the job market) o Demonstrate the will to drive the main HR Processes to keep the organization in the excellent health. o Keeps HRM Function supporting the Business Strategy to reach the business initiatives? o keep HRM responsible for the tasks resulting from the Business Strategy Role of Human Resource Management in the Organization HRM owns a significant role in promising employee satisfaction, and resulting in improved performance and productivity of employees. When any company envisions the business the top wish is to have a competent work force pool, and placing the right person on the right job. Afterwards, the talented set of employees uses other tangible and intangible resources and works on taking decision when, where and from whom the resources should be obtained. The knowledge and art of a manager makes him a man that holds the whole business and organization. HRM is crucial for companies to gain competitive advantage. Following are the three challenges related to competitiveness: 1. Challenge of sustainability: There are various forms of firms or organizations across the globe which operate at different levels and seem to be implementing strategies which could not only improve. According to Therith (2009), mentioned below is the new role of the HRM in the institute: (i). Change through Leader In order to achieve already defined goals and gaining competitive edge over competitors, leaders need to play a huge role. They are required to support, facilitate and drive the changes to bring innovations, enhance productivity and improve work quality (ii). Human Resources Strategist Achievement of strategic objectives and goals of organization is possible by associating and integrating the HR activities with the strategies. Human resource strategists look ahead and plan HR development activities which enable and ensure good performance resulting in goals achievement. (iii). Business Strategist Under this role, an integration and participation in corporate strategy formulation process is done to cope up with the challenges organization is facing and to give the long lasting competitive edge. Organizational success is the result of well managed process of strategy formulation. This success is multi-faceted encompassing satisfied customers, provision of quality products, and customer services. (iv). Alignment of Human Resources Function The integration of HRM in company’s strategic process is mandatory for success of company. Input from HR managers is necessary while make corporate strategies. The input should be about both organization and people related issues. Programs ensuring presences of specific skills, behaviors and attitudes are developed in this regard.
  • 18. (v). Partner to General Manager For survival and success, and for organization to walk on the road of success, HR owns a very important role in one way or the other. HR has a close relation with line manager while making strategic plans, implementing the plans, and work designs. Line managers help HRM to manage and control employees’ present performance, increments, promotions and a need of more training, etc. Hierarchyof HR department:  A HR department or a Human Resource department is one of the most important departments of any organization like Garments and is vital to the functioning of the system. HR executives who are employed in an HR department make several types of resources available to the company and help in recruitment of new employees.  They make sure that only efficient employees are hired by the company and the hired officials bring about maximum productivity. In large companies, there are large HR departments consisting of several job positions. The following is a detailed account of the hierarchy within a HR management branch of a company.  Senior Level Human ResourceManagementJobs o The senior level HR jobs management are the top level jobs in this segment of any business and these management executives take part in the decision making process. They set guidelines on the basis of which the entire HR department works and generally have several years of experience. The following is the hierarchy of this section.  Human resource Director  Chief human resource officer  Human resource branch manager  General human resource manager  Human resource generalist  Assistant human resource manager  Deputy director payroll and legal  Middle Level Human ResourceManagementJobs o Instructions of senior level officials and implement the decisions made by them. They are the ones who decide salaries, manage payrolls, and make decisions regarding growth and increments. Within this level of HRM jobs, there are several managers handling various different works. This level of HRM workers are those executives who are responsible for carrying out the aspects. The hierarchy is given as follows:
  • 19.  Senior Human resource executive  Assistant director  Personal manager  Personal training manager  Personal manager of international relations  Personal manager of benefit and welfare  Human resource administrator  Executive human resource  Associate executive human resource  Assistant human resource administrator  Staff manager  Salary and wage manager  Industrial safety analyst  Human resource safety manager  Development and training manager  Human resource welfare administrator  OperationalLevel Human Resource ManagementJobs o Entry level HRM jobs are those jobs which are given to new and fresh HR employees. They handle the most basic Human resource management job duties and work as per the instructions of their seniors. Operational level HRM executives, when promoted move onto the mid-level segment jobs. The following are some of the major job positions in this entry level segment of HRM.  Employment manager  Recruiter  Human resource manager  Department manager  Human resource assistant  Human resource analyst  Human resource associate  Human resource trainee
  • 20.
  • 21.  E-HRM: E-HRM is the use of web-based technologies to provide HRM services within employing organizations. It embraces e-recruitment and e-learning, the first fields of human resource management to make extensive use of web-based technology. From this base e-HRM has expanded to embrace the delivery of virtually all HR policies. Within a system of e-HRM, it is possible for line managers to use desktop computers to arrange and conduct appraisals, plan training and development, evaluate labor costs, and examine indicators for turnover and absenteeism. Employees can also use a system of e-HRM to plan their personal development, apply for promotion and new jobs, and access a range of information on HR policy. Systems of e-HRM are increasingly supported by dedicated software produced by private suppliers. E-HRM It is the (planning, implementation and) application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of HR activities. E-HRM is in essence the devolution of HR functions to management and employees. They access these functions typically via intranet or other web-technology channels. The empowerment of managers and employees to perform certain chosen HR functions relieves the HR department of these tasks, allowing HR staff to focus less on the operational and more on the strategic elements of HR, and allowing organizations to lower HR department staffing levels as the administrative burden is lightened. Overviewof Textile Industry: ‘The textile industry is primarily concerned with the production of yarn, and cloth and the subsequent design or manufacture of clothing and their distribution. The raw material may be natural, or synthetic.’ Textiles are the most important manufacturing sector of Pakistan and have the largest production chain, with inherent potential for value addition at each stage of processing from;  cotton to ginning,  spinning,  fabric,  processing,  made-ups and garments
  • 22. The sector contributes nearly one-fourth of industrial value-added, provides employment to about 40% of industrial labor force, and consumes more than 40% of banking credit to manufacturing sector and accounts for 8% of GDP. Barring seasonal and cyclical fluctuations, textile products have maintained an average share of about 60% in national exports. However, despite being the 4th largest producer and 3rd largest consumer of cotton globally, Pakistan’s comparative advantage is largely pre-empted by low value added exports as reflected in country’s 12th rank in world textiles exports. Reason for the best in the market is our labor. On the other hand there is a horrible fact that they don’t have sufficient salaries and rewards that’s why top quality performers (employees) of Pakistan market have been moved to other countries especially to the Bangladesh market. So here comes the role of human resource practices. Implementation of human resource practices can only be applicable to the organization that is learning and knowledge organization. Keeping in view the competitiveness of the textile market one must have such practices so that the employees could be retained and satisfied. There is not a significant work in this industry in context of human resource management and reason is that top management never realizes the needs and demands of their employees. There are few textile mills that are practicing the human resource management in its full strength and they are getting maximum benefits from it and it is fact that they are the leaders. So to develop a better understanding a research is carried to know the benefits to practice the human resource and evaluating the losses if don’t. Introduction of HRM in TextileIndustry: • The advent of technological advancement in industrial set-ups has altered the working conditions and requirements on the part of employees and employers. Also the changes in government policies have also been taken place since the last decade. • Different work patterns like night shift, part time work, overtime, etc. is being experienced. The situation is same in textile sector also. • The advent of HR practices in textile sector was rather slow in comparison to other industrial sectors. But due to globalization there is increase in competition as a result development of human resource has become essential. • However organized HR practices are being adopted mostly by the mill sector. In last decade we have seen not so good performance by textile sector, this was because of lack of HRD department in many mills. But the scenario has changed as HRD departments have taken up their role in textile sectors.
  • 23. • Various training programmers pertaining to training of workforce, textile related topics have helped in enhancing the overall performance of the textile companies. Every organization or industry is not only made by brick, cement or wood but it builds by 4 m’s. They are:  Money  Material  Machines And  Men The man is ultimate resources of the organization because they think, speck, so that utilization of this resource is very critical. Every success of origination is depending on efficient and effective man power. HR starts when a man enters in the organization and its end, when he leaves the organization .HR deals with the human dimension. Success or failure of an organization depends on the effective coordination of the resources such as money, material, machinery and men. Among these, the role and operation of men is the most complex. All the activities of an organization are initiated and completed by the persons who make up the organization. Therefore, people are the most significant resources of any organization. HRM is known by different names – Personal management, personal administration, man power management. About the Conditionof HRM in the Textile Industry: It is common phenomena at every industry is Man, material, machine, method, management, money and market. The role of HRM (earlier known as personnel management, labor & welfare officer etc.) is for every aspect and for each area, it needs proper training, work culture to develop, systems to introduce i.e. system that should work not any individual. .
  • 24. The picture below shows the all about HRM and its role Contribution of HRM to Organization:  Helping the organization to search its goal.  Employing the skills and the activities of the workforce efficiently.  Providing the organization with well trained and well-motivated employee.  Increasing to the fullest the employee’s job satisfaction.  Developing and maintaining quality of work life  Communication  Helping to other department and function The basic concept of HRM is to attract and retain the right person at right place in right time with right remuneration. In textile HRM should appoint the skillful employ at the right, appropriate & correct place where HR can express capabilities. For textile industries, it should treat the employee as an asset of the company
  • 25. Role of HRM: The role of human resource management in organization is at counter stage. Managers are aware that HRM is a function that must play a vital role in the success of organization. It is an active participant in charting the strategic course an organization must take place to remain competitive, productive and efficient. Its focal point is people; people are the life blood of the organization. The uniqueness of HRM lies in its emphases on the people in work setting and its concerns for the well living and comfort of the human resources in an organization. The HRM function is much more integrated and strategically involved. HRM and every other functions must work together to achieve the level of organization. Effectiveness required competing locally and internationally.  It is the action oriented, individual oriented, globally oriented and future oriented.  It focuses on satisfying the needs of individual at work.  Functions and businesses need to integrate for effecting customer service. The approach to HRM differs from organization to organization depending on how much it is valued by the management Technological change, innovation and heightened competition drive to increase the skill of employees. Competitive challenges motivate to companies to use their human resources effetely. Integration of HRM HRM Production Finance Marketing
  • 26. Human ResourceDevelopment: Textile industry gives employment to millions of people. In order to recruit skilled workforce in textile sector, proper training programs would thus facilitate in supply of well qualified workforce. Thus the role of HRD has gained momentum in terms of employing manpower that satisfies the professional requirements of this sector and that is well skilled. Thus much collaboration among many multinational companies and educational institutions has been observed. The HRD department of any company is responsible recruiting skilled labors and executives, allocation and planning of work, monitoring of workforce and performance appraisal. It is also responsible to timely up gradation of skills of the workforce by organizing educative professional workshops or seminars. If HRD activities are carried out in proper professional manner it could result into minimization of cost and wastage, right recruitment of workforce, increased stability of the company, flexible enough to cope up with futuristic developments and most important maximizes production. Human Resources Strategies for the TextileIndustry:  Recruitment: o Textile industries promote the work of fashion designing, product pattern and styles, so your human resources strategy should focus on recruiting suitable skilled manpower for the production function as well as sales and marketing departments. Personnel in these areas are crucial to the productivity, performance and bottom line of your company. If you operate globally, recruit talented local candidates whose overall compensation will likely be several times lower than deployed personnel with similar skill levels from the home office.  Orientation: o Intensive orientation to the employee is one of the major functions of human resource management. The program should help the employee to know his assigned duties and his exact job description, job role, and the relationship of position to other positions in the organization. It gives clarification to the employee to take an active role in the organization.
  • 27.  Maintaining goodworking conditions: o It is the responsibility of the human resource management to provide good working conditions to the employee so that they may like the workplace and the work environment. It is the fundamental duty of the HR department to motivate the employees. o The study has been found that employees don’t contribute to the goals of the organization as much as they can. This is because of the lack of motivation. Human resource management should come up with a system to provide financial and non-financial benefits to the employee from the various departments. Employee welfare is another concept which should be managed by HR team. Employee welfare promotes job satisfaction.  Training: o Human resources personnel have to develop programs to train employees to adapt to new technology that improves production operations in a changing garment market. Typically, such training courses help employees enhance their career growth and update new products for competitiveness. You also will need soft skills training courses on sales and marketing as a strategic management endeavor for increased sales volumes. Human resources should have a qualification system for existing and new employees to determine their respective training needs. For best results, align the training programs in home and overseas subsidiaries with your firm’s strategic goals and objectives.  CompensationPolicy: o Your human resources strategy should establish a salary and compensation policy to encourage your existing workforce to stay and attract qualified candidates to your firm. Perform periodic reviews of salary levels to ensure workers are remunerated competitively.
  • 28. o Incorporate an incentive system based on employees’ performance, such as instant bonuses for the sales team once they get contracts or year-end bonuses for reaching performance targets. Determine compensation for overseas subsidiaries based on company regulations and the dynamics in the labor market.  Work Environment: o Human resources should ensure a favorable working environment. Implement safety and security measures, such as having fire alarms, first aid and monitoring systems in place. Establish a professional working environment. Spell out job descriptions to avoid confusion. An open door policy can improve communication and productivity when implemented correctly. Integrate diversity by accommodating cultural values such as religious holidays or prayer times, especially for overseas branches. Hold regular team-building events to connect workers across departments and management, as well as reduce working stress.  Managing Employee relations: o Employees are the pillars of any organization. Employee relationship is a very broad concept and it is one of the crucial functions of human resource management. It also helps to foster good employee relations. They have the ability to influence behaviors and work outputs. Management should organize activities which will help to know an employee at the personal and professional level. Well-planned employee relations will promote a healthy and balanced relation between the employee and the employer. It is the key for the organization to be successful.  Important Problems of Textile Industry Faced:  Lack of personnel expert improvements  Lack of productivity  Lack of knowledge  Inadequate application of technologies in informatics
  • 29.  Insufficiently educated work power  Obsolete equipment  Lack of financial capital  Lack of innovation and flexibility  Lack of training  Lack of initiatives HR CHALLENGES:  Human Resource o The textile sector employs 45% of overall labor force, with 38% of the manufacturing Workers employed under textile sector. o Pakistan has the advantage of cheaper labor as compared to its competitors, but unfortunately the labor productivity is very low. o There are hardly any training programs to develop the skills of labor hence; the craftsmen entirely depend upon their inherited skills with no advancement and movement towards technical knowledge.  New TechnologicalChangesin the Textile Industry o The challenges of the work environment of this current scenario have created new knowledge, ability, and talent requirements for human resource. For example, ongoing developments in new technology are redesigning the process of production, and the talent requirements of job. o Most employees are use a new technology like computer, the Internet or some other machinery in textile industry it’s a form of new technology at working area, in the upcoming, days the fast speed of technological development is seen and it increases the demand for high skilled and well-qualified human resource. This involve that workers, particularly older workers who may not have been ready to changes with new technology, for this purpose need to engage in training activities to remain capable in the work force.  Lack of Training: o The textile industry has a higher ratio (73%) of male workers and only (27%) of female workers. A higher proportion of textiles workers have no degree, certificate, diploma (29%).respondent of the textile industry survey and the interviews were asked about how they provided training to their Human Resource.
  • 30. o Formal training was given by 68% of textile industry and informal training by 32%. o Textile industry in small scale is less likely to be able to provide skills development for human resource. It is also possible that the absence of human resources plan for the skills development. In the textile industry survey, 16% of respondents felt that to training for existing workers. 52% are stated a lack of training to their textile industry. It’s a need to providing training. Internal training was used to develop skills in the use of machinery and equipment in the working area. o Limited availability of trained technical staff to maintain and run machinery at full efficiency is a constraint upon the development of Pakistan’s textile industry. o This shortfall is partly due to a lack of technical education facilities. o Some of the developments in the textile industry include: Advances in ring spinning, computerized dyeing and finishing, computer-aided designing, manufacturing and developing retailing links hence, all these demand new and greater skills and Pakistan lacks it.  Mode of Training:  Orientation  In-house training  In-country training  Overseas training  Job rotation  Training Programs:  Attitude Adaptability  Understanding Responsibility  Time Management Skill  Problem Solving Skill  Communication Skill  Leadership Skill  Training on work process  Quality of work  Ability to put knowledge into practice  Technical Training  Ability to absorb new development  Fire Safety Training
  • 31.  Low Educated Employees: o The new scenario of 21st century must increase the number of workers with the rising demands that owners should strengthen human resources so that can keep Textile industry is running. Human capital is an important resource in a textile industry. o It can increase competitive advantage and makes success, but it is also the biggest problem faced by the industry is the most of the respondents are low-educated or not getting any type of technical education. So it’s a harmful thing for the development of textile sector.  Field education required:  Foreign Languages  Computer & Informatics  Marketing  Management  Design  Entrepreneurship  Quality Management  Business Law  Wrong DecisionMaking: o HR Managers make efforts to alter this situation lately, but there are several problems are often including, like training textile sector focus, production and training environment. o Each of these will have the greatest impact on the final decision. It’s more important because it affecting HR life, livelihoods, and safety. Decision making is an important part in professional lives.  Climatic Condition o Although Pakistan has the ideal climatic conditions for the growth of cotton providing a factor advantage to the textile industry, but it is also quite vulnerable to pesticides that can lower the yield per hector. o The textile sector is largely dependent on the supply of raw material of the agricultural sector and hence whatever happens to the agricultural sector like floods will adversely affect the textile industry rendering it even more vulnerable to environmental conditions.
  • 32. Textile Industry Pros and Cons: ADVANTAGE DISADVANTAGE Pakistan has the advantage of cheap labor as compared to its competitors, but unfortunately the labor productivity is very low. There are hardly any training programs to develop on the skills of these labors and the craftsmen depend upon their inherited skills with no advancement. SWOTAnalysisof Textile Industry:  STRENGHTS: • Self-reliance • Manufacturing flexibility • Abundance of raw material production • Design expertise • Availability of cheap labor • Growing economy and domestic market • Progressive reforms  WEAKNESSES  Research & Development (R&D) o Developed countries are using the technology of biotechnology and genetic engineering to increase the quality and quantity of their cotton production. In Pakistan, there is very some research done on small scale by private companies. Practically no efforts are being made by the APTMA (All Pakistan Textile Mills Association) in the R&D of the textile industry to enhance the quality of its products.  Highly fragmented sector.  High dependence on cotton.  Lower productivity.  Declining mill segment  Technological obsolescence  Non‐participants in trade agreements  Poor Quality Standards. o Pakistan’s textile industry should focus on latest material handling techniques and should train workers. The inability to timely modernize the equipment, machinery and labor has led to the decline of Pakistani textile competitiveness.
  • 33.  THREATS  New Competitors o Pakistan is facing new competitors in textile sector such as Bangladesh, Vietnam and Turkey. Though we cannot avoid competition but we can always stay ahead of them by reforming our strategies and educating our entrepreneurs so as to move one step forward in every aspect.  Phasing Out Of Quota System o As the quota system is ruled out by WTO, there is a threat by the Chinese and Indian manufacturers to gain most of the market share. We have high costs, low labor productivity and inefficient production processes.  Fashion Life Cycle o Fashion changes day by day these days. Media has so much penetrated in our daily lives that we easily adapt ourselves as it wants us to. This has resulted in shortening the fashion lifecycle thus increasing the fashion risk. Now the buyer does not want to wait long for his consignment because he is insecure that by the time it will reach to him he will lost its demand due to change in fashion. Therefore, they prefer to buy from neighboring countries even at higher cost to get their products instantly rather than to wait weeks or months for their consignments to reach them.  Stiff competition from developing countries; especially China and India.  Pricing pressure.  Locational disadvantage.  International labor and environmental laws.  ENVIROMENTAL ISSUES: o Textile industry is associated with some environmental issues some of them are:  Large volumes of water.  Usage of complex chemicals.  Discharge of untreated effluent  Water Pollution.  Air Pollution  Labors concern.  HR OPPORTUNITIES: o Many textile sectors provide an opportunity for quality improvement such as: plan, new technology, education and training. Understanding of these areas may help much in quality improvement. Increase demand and consistent growth rate indicates that human resource has great opportunities to utilize its’ capacity for foreign markets. Increasing health consciousness of human resource goes to use natural textile products from artificial one. So, tendency might increase the global market.
  • 34. For textile HR can do:  Identification of people requirement i.e. why & how much to be required ,because in textile every process requires different numbers of peoples for say spinning section requires much more as compare to garment.  After this, HRM find out where they are available, i.e. internal or external for say education institutes or competitors or etc.  Next is training, textile training is very much important, because entire thing is depend on this. If training is wrong or doesn’t give result then origination loses the time, money and effort. In textile we should concentrate on training .In this, there are 4 types of training i.e., internship, remedial, refresher, promotion training.  HRM provide these by two methods i.e. on the job and off the job. Training should match with organizational goal, job profile, job description, characteristics of trainee.  After this HRM should evaluate the training program by taking interview report submission or by field observation  Next is performance appraisal  Compensation and rewards have to be individually charted depending on the intellect brought in by the employee along with the time frame for its delivery. The company should have reward programs on a group basis for knowledge workers. The Performance Appraisal system must have built in rewards for system creators Responsibilityof HR Departmentin Textile Industry:  It is necessary to have job analysis information as it helped to short list the candidate list and to conduct interview.  It is observed that if the description and person specification is not available then it is responsibility of the relevant department to prepare that document with the help of HR department, staffing activities cannot be commenced without any reference to document.  Line managers are involved in final selection of the candidate and HR planning at the department level, while HR staff is more interested and involved in matters like policy making, recruiting candidates and their early screening processes.  Involvement of HR department in hiring process helps to enhance knowledge of the workforce and required skills.  It is also helpful for the identification of upgrading skill requirement of the employees.  By such involvement, good communication seems to have synergy effect and helps to unify the workforce.  As a result of this communication, negotiations happen in more positive atmosphere which has an ultimate effect on the quality within the workforce.
  • 35. SolvingTop 6 Problems of HR in the Garment Industry: Solving Top 6 Business Problems of HR in the Garments Industry HR problems: Can help you solve issues related to;  Leadership Development  Goal alignment  Employee perception  Promotions & Policies  Internship programs  Overstaffing  LEADERSHIP DEVELOPMENT: o 70% of employees who lack confidence in the abilities of senior leadership aren’t fully engaged Source:  Problems:  “Upper management don’t have a clue about what is really going on in the stores”  “Our management is not fair with the employees”  “There is a lot of nepotism”  “Management doesn’t have a clue of what’s really going on in stores”  Solutions:  360 Feedbacks  Employees, managers and HR manager can select reviewers for a person  Everyone submits online feedback from their computers  Reviews can be kept anonymous  HR manager/coach can analyze reports of individual reviewers as well as compare reports from multiple reviewers  HR Manager/coach can use these insights to help the manager improve Performance Management.
  • 36.  GOAL ALIGNMENT: o When goal alignment is not a primary focus, about two-thirds of a company’s time and resources are wasted Source:  Problems:  “Everyone here cares about their bonus, and just want to make it harder for others to do their jobs”  “Our management needs to monitor and watch the store managers”  “I keep on doing the busy work, none of which has nothing to do with my job”  “The corporate team makes work harder on the employees”  Solutions:  Goal Management  Employees and managers can set SMART goals for themselves  People can view goals of the business and their division, when they set their own goals  For interns and new employees, managers can import goals from job descriptions  People can prioritize their goals by assigning them different weightages Performance Management  EMPLOYEE PERCEPTION o 92% business executives have seen favoritism affect employee promotions Source:  Problems:  “The Company is unprofessional and lacks structure”  “Our management is not fair to the employees”  “There is a lot of nepotism”  “Senior management doesn’t have a clue about what’s really going on at the store-level”  Solutions:  Employee Communication  Employees can submit anonymous feedback through notes and online HR help desk  You can conduct employee surveys before changing policies  You can communicate one to one with the employee, or include their manager in the conversation  The feedback can be made a part of the performance appraisal Talent Management
  • 37.  PROMOTIONS & POLICIES o Management Transparency is the top factor when determining employee happiness Source:  Problems:  “The management constantly revokes employee discounts, and does not give a reason”  “The store policies change by the minute”  “Our favorite store manager was transferred”  “Management takes away more from good employees and give it to the employees that they like”  Solutions:  Employee Database  Store previous appraisals online and use these as basis for promotions  Understand relationships between people before initiating transfers and promotions  Communicate company policies through a self-service system for the employees which they can access on their mobiles / laptops Talent Management  INTERNSHIP AND TRAINING PROGRAMS o New hires who undergo a structured on-boarding program are 54% more productive at work Source:  Problems:  “The internship program is in infancy. There isn’t much to do”  “The Firm needs to teach and prepare employees for management roles”  “The company needs a solid internship program”  Solutions:  Employee Onboarding & Training Management  HR manager can establish and change the process to onboard new employees  Employees can learn about their team members and managers from a single screen  Employees can easily access documents like company policies as well as training curriculum  Employees can submit feedback on training electronically  Manager can assign training goals and evaluate ROI of training Talent Management
  • 38.  STAFFING OPTIMIZATION: o For production with many stores and few employees per store standardization, visibility and control yield results in line with expectations  Problems:  “Management hires people who misrepresent the product and share nothing with our target customers”  “Managers hire pushovers, instead of qualified candidates and people who will fit the culture”  “I am just at this temporary job until I find something better”  “My hours are scarce. The company appears to be overstaffed”  Solutions  Time and Attendance Management Workforce Management  Track and report time-off requests  Reduce unplanned absence by recording and monitoring all leave records  Ensure a consistent leave policy and automate process across organizations  Managers can track time spent on every different kind of activity on a daily basis How to SuperviseEmployees with Low Self-Esteem:  How could low self-esteem impact any company? • Employees with low self-esteem can present many challenges to a company. • It is difficult for a company to maintain productivity and quality output from employees with swinging moods and negative attitudes. • Even without consciously meaning to, managers stop believing in these employees and thus begin a cycle that revolves around distrust, low performance and failure. • You may end up losing such employees and star performers.  Why it is important to build Self Esteem in Employees? • Employees with high self-esteem are more productive, committed and are simply more motivated. • They have more productive relationships with other coworkers and are able to accept criticism gracefully. • Professional self-esteem can be defined as the belief of each employee in their competence and that they have all the necessary skills to perform their job.
  • 39.  How to handle employees in such situations? • The employees who have sudden low self-esteem may become defensive. • Becoming strict or impatient will only make the situation worse. • Be patient and give time to them to recover and perform. • Guide the employee’s behavior rather than their personality. • Stop watching them too closely or paying attention to everything they say. • Communicate your expectations in writing. • Use goal-setting to align their activities Track periodically and recognize every success • Provide training and professional development opportunities. • Once the performance is back on track, recommend rewards and give bigger job responsibilities Conclusion: Today, Human Resource Management Department plays a vital role in every organization. These HR systems improve employee performance at workplace; it updates employee knowledge and enhances their personal skills. Human Resource programs and functions i.e. recruitment & selection, training & development, compensation & rewards, performance appraisal & feedbacks etc. improve the quality of work-life by creating an employee supportive workplace. Textile Industry is a very big business industry in Pakistan. Pakistan is considering the world contributing country in the Ready Made Garments (RMG). Knit is also major raw materials of textile industry. World’s most of the brands are making their dress from Pakistan. So it’s very competitive market. In that market if anyone wants to success they need skilled worker. If the organizations provide necessary training to their employees they can increase their productivity. This study was a learning experience for us and we came to know the HR department in the textile industry shows positive in response but still more focus on HR functions, strategies and practices is needed in the textile industry so that the employees are motivated time by time and they should know their strength & weakness so that they can work on it & improve their knowledge & skills for the betterment of their organization. In the last but not the least we conclude that all the HR functions of textile company should highly effective & beneficial to the employees in giving their best contribution to their personal growth & development as well to meet the organizational objective.
  • 40. Recommendations:  These are some recommendations through which Textile industry may be beneficial:  Training development format should be friendly and flexible.  HR department of the textile companies should diversified their training programs rather than focusing on professional trainings.  There must be a clear relation between training electiveness and strategic goals of the organizations  The Textile companies should update regularly their HRIS that is Human Resource Information Systems software.  Approaches used to train employees should be selected after careful consideration of the trainees and organization needs.  To motivate and encourage the employee’s adequate allowance should be provided to them during the working period.  The Textile companies should increase their training budget, because without a big budget the companies would not be able to introduce modern technology in their training system.  Companies must encourage self-management in their HR system.  According to their budget more focus on internal employees and if needed then outsource any function of HR.  Rethink and implement job designs and a classification system that support competencies and roles to accomplish work  Implement efficient, flexible hiring and transfer processes based on roles and competencies to facilitate movement to and from assignments, roles and responsibilities.  Compensation is linked to the competencies of individuals; the compensation system is flexible enough to support changing work assignments, team-based pay, superior performance, and market forces.  Document and disseminate information about best practices to recognize and reward individuals and teams.  Performance planning and monitoring is a continuous process, managers are accountable for, assessed on, and rewarded for supervisees' performance planning and monitoring.  Every team and employee has measurable goals and a plan for performance.  Implement competency-based assessment, development and training processes to promote flexibility and growth.  Implement an annual strategic planning process to support the staffing needs of academic departments, centers, and administrative areas as well as the company broader mission with the help of Vice President for Human Resources and Deans.