HRM Practices and Policies in AJI Group

HRM Practices and Policies in AJI Group

The Organization

2.1 Background of AJI Group:

AJI Group of concerns saw her emergence in the horizon of Readymade Garments Manufacturer in Bangladesh in the Year 1993 through creation of a small sewing unit called AJI Apparels Ltd.

Through hard toil and perseverance, AJI managed to survive the difficult times in the early years. Amidst the constant battle for existence, AJI nonetheless stuck with her originally adopted principles of honesty, integrity, moral scruples and business ethics. And that probably had helped AJI ease gently through the perilous path toward success and stability in the subsequent years.

Never missing to realize the future challenges that lay ahead, AJI always had put her efforts and means to master the best practices in all her manufacturing units in order to achieve professional competence and reliability.

It has been the policy since inception that AJI would always offer more to her customers than could be expected for her. To fulfill this commitment AJI has been acting as not only a trusted supplier of readymade garment but also a benevolent partner toward all he buyers and customers.

As a result, meet meeting the extraordinary requirements of her customers has become a custom in this business house and a matter of pride for the group.

Quick adoption of some of the other very important policies like getting accreditation of ISO and Oeko-Tex Quality standard practice, ensuring total compliance of various Code of Conduct requirements of prestigious Buyers across the world, prioritizing the need for creation of ideal work conditions for the workers and ensuring proper health care & safety for them etc. has awarded AJI a respectable position the top echelons of the RMG manufacturers in Bangladesh.

AJI is committed to make excellence in the field of business by consistently maintaining high quality products and services for the ultimate satisfaction of our customers.Now AJI introduce herself as on the leading Knit, Dyeing, Printing, Embroidery, Washing Garment and buying services operating from Bangladesh sourcing latest range in Knitwear & Woven garment in man’s, woman’s & Kids of verity T-shirt, Pajamas, Active Wear, Polo’s Ladies tops with Sequins, Embroidery, Latest Prints, Stone and Stud works, Nightwear’s and all other exclusive garments.

2.2 Mission Statement: “To maximize profit while creating an environment in which we can provide the best value and the best service to our customers, while developing ourselves to our maximum potential in a pleasant, clean and professional atmosphere.”

2.3 Goal:

“Outsourcing, Manufacturing and Design, Vendor Consolidation, Cost reduction, Solving Technical Challenge, Quality Improvement, Inventory Reduction, and Service Improvement.”

2.4 Strength of AJI:

All the units are being controlled from corporate office located at groups own building in Hemayetpur near the capital city Dhaka of Bangladesh.Each unit has its own factory management setup to perform from a sampling to finishing of the products.The issue like Environment, Occupational Health & Safety has duly taken care of while designing the building. Medical centre are available in the official hour and providing free medical treatment with the medicine for the employee.The issue like working for the Social Welfare AJI Group is a step ahead then any other companies in Bangladesh. There is Child Care Centre for the employee’s children. Children can play and learn free of cost. Ethical Principles are applied for all products of AJI Group made for export to foreign countries.AJI Group recognizes that there are legal and cultural environments in which facilities operate. These ethical principles set forth the basic requirements of AJI factories in order to do with its customers abroad.AJI makes ceaseless efforts to promote best practice and continuous improvement of ethical issue in all its manufacturing units. For easy access to the issue, the AJI management has posted contents in the notice boards of factories in both Bangla (local language) and English.AJI woven units have become complete code of conducts of SRG Imports Limited of UK, Rajan Imports of UK, Jordache Incorporation in USA. Polo Assan. In USA.

2.5 Name of the Units:AJI Apparels Industry LimitedFRM Fashion House Ltd.Polo Composite Knit Industry Ltd.Polo Knitting Unit Polo Dyeing Unit (Open Width and Tubular) Polo Washing Unit Polo Skin Print Unit Polo Embroidery Unit Polo Flat Bed Print Unit

2.6 Working Space:Building# 01 : 90,000 Square Feet

Underground is for Fabric Store Ground floor is for reception, medical treatment, security department. First, Third and Fifth floor is for sewing. Second floor is for finishing. Forth floor is for cutting. Sixth floor is for Corporate Office.

Seventh floor is for Dining & Café.

Building# 02 : 92,000 Square Feet Ground floor for finishing fabric store, grey fabric store, chemical store, yarn store. First floor is embroidery. Second floor is for printing. Third floor is for cutting. Fourth floor is for finishing. Fifth & Sixth floor is for sewing Seventh floor is for dining & café.

Building# 03 : 25,000 Square Feet Ground floor is for child care, security camp, and ware house. First floor is for ware house Second floor is for finishing Third floor is for Production Control Department, Accounts Department and

Compliance Department. Fourth Floor is for Accessories store.

Building# 04 : 27,500 Square Feet (Shade) Dyeing Plant Washing Plant Fabric Finishing Unit Laboratory Unit Production Control Office ETP Plant

Building# 05 : 22,500 Square Feet (Shade) Circular Knitting Unit Flat Rib Twill Tape Yarn Store Grey Fabric Store

2.7 Production Section:2.7.1 Knit Section:

Pique Lacost Single Jersey Rib Interlock Fleece Collar & Cuff etc.

Machine BriefS Name of Country Machi Gaug Fee Neede Machi Remark

L# Machine of Origin ne

DIA e der r Qty ne Qty s

1 Fukahama Taiwan 19 inch 24 G 57

F 1440 2


F 1500 3


F 1584 3


F 1654 3


F 1728 3


F 2544 4


F 2252 1

8 Pailang Taiwan 19 inch 24 G 57 F 1440 1








It has Sufficient Slender Yarn Guide Lyera Attachment Fleece Making Yarn Rib etc.

RIB / INTERLOCK16 Smart Taiwan 30 inch 24/18

96 F 1

17

Fukahama Taiwan 34 inch 24/18

96 F 1

18

Fukahama Taiwan 36 inch 24/18

76 F 2

19

Fukahama Taiwan 38 inch 24/18 80 2

20


21


22 Smart Taiwan 42 inch 24/18 84 1

FLEECE CONVERSION23 Smart Taiwan 44 inch 24/20 132 1

SEMI AUTO STRIPER24 Wellrun Taiwan 36 inch 24/20 180 1 25 Wellrun Taiwan 40 inch 24/20 200 1 26 Smart Taiwan 42 inch 24 252 1

AUTO STRIPER27

Tien Yang Taiwan 36 inch 24/20 42 1

28


29


2.7.2 Dyeing Section: It is one of their big plants of textile with 14000 to 15000 production capacity per day.

SL No Description Kgs Country of Origin.1 Beneks High temperature 25 Kgs Turkey

2 Canlar high temperature 50 Kgs Turkey3 Canlar high temperature 450 Kgs Turkey4 Canlar high temperature 150 Kgs Turkey5 Canlar high temperature 900 Kgs Turkey6 Canlar high temperature 600 Kgs Turkey7 Canlar high temperature 1200 Kgs Turkey8 Beneks High temperature 750 Kgs Turkey9 Sample dyeing machine 1 nose Bangladesh10 Beneks fabric reversing machine 1 nose Turkey11 Canlar squeezer machine 1 nose Turkey12 Beneks High temperature 1 nose Turkey13 Canlar squeezer machine 1 nose Turkey14 Dryer machine Entema 1 nose Turkey15 Compacting Tubetex 1 nose USA16 Soft Seting calendar 1 nose Turkey17 Fabric Inspection 1 nose Thailand18 Gas generator 600 KV 1 nose UK19 Gas generator 380 KV 1 nose UK20 Gas boiler loos 1 nose Germany21 Air Compressor DALGAKIRAN 1 nose Turkey22 Water Treatment plant Turkey23 Effluent Treatment plant Turkey24 10 Kg Dyeing 10 Kg Turkey25 10 + 15 Kg Dyeing 25 Kg Turkey26 200 Kg Atta Dyeing M/C 200 × 2 kg China27 400 Kg Atta Dyeing M/C 400 × 2 kg China

Machine Brief

2.7.3 Printing Section: Discharge Print Rubber Print Pigment Print Flock Print Puff Print Foil Print Plastic Soul Print Reflective Print High Density Print

2.7.4 Embroidery Section:It can provide all kinds of Embroideries because of computerized system with 24 machine having 20 frames. Those are working for 24 hours non stop.

2.7.5 Sewing Section: T-shirt Sweat Shirt Polo Shirt

Woven Shirt Active Wear Fleece Jacket

2.8 AJI Show Room:AJI have a large show room provided with its all newly invented attractive designs along with the previous charming designs hanging decently in the rails. Buyers can easily locate their own chosen designs from there.

2.9 Production Capacity:

2.10

Annual Turn Over:AJI Group Total Turn Over $ 46.51 MillionCompany Name Unit / Plant Name MillionAJI Apparels Industry Ltd. Garment Unit 5.28FRM Fashion House Ltd. Garment Unit 8.73Polo Composite Knit Industry Ltd. Knitting and Dyeing 14.40

Printing 0.36Embroidery 0.42Garment 11.14Washing 0.18Flat Bed Print 6.00

Total = 46.51

2.11 Management:The entire management is run by AJI’s Managing Director and the Chairman of AJI Group. That is the reason to make AJI different then any other group. AJI can make quick decision and do the work faster maintaining quality.

AJI’s Managing Director has unique knowledge and extreme capacity on knit and garment division. These makes AJI’s Managing Director have superb knowledge regarding this business.

SectionsQuantities

Knitting 15,000 to 16,000 kg per dayDyeing 14,000 to 15,000 kg per dayFlat Bed Print 4,500 kg per dayPeached Fabric 4,500 kg per dayCutting 48,000 to 50,000 per dayPrinting 28,000 to 30,000 pcs per daySewing 4,400 to 4,500 pcs per dayWashing 30,000 to 35,000 pcs per dayFinishing 45,000 to 46,000 pcs per dayPacking 44,000 to 45,000 pcs per day

AJI has maximum employee of young age. They are modern and have the capability to except new things as AJI in fashion business. AJI are superb running with current affair.

2.12 Management hierarchy of AJI Group:

Chairman

Managing Director

Deputy Managing Director

Technical Director

Executive Director

General Manager

Deputy General Manager

Assistant General Manager

Manager

Senior Officer

Officer

Assistant Officer

Trainee Officer

2.13 Organogram:

2.14 Compliance:AJI Group is fully functioning with the compliance. AJI has already achieved the following compliance:

Security Compliance: Jordache In Co., USA (US Polo)

Social Compliance: Wallmart, USA Sears and K-Mart, USA Walt Disney, USA Inditex Group (Pull and Bear), Spain Arcadia Group (Burton), UK NEXT, UK

2.15 Mother & Child Care:There is a separate building for the Doctor and Child. Doctor is always available in the office hour. So any kind of medical emergency of treatment required is giving free to the employee.For women employee when they get pregnant are getting full treatment free and also getting maternity leave for 16 Weeks with payment. For the employee’s kids are taken care of by the child care. The employees’ kids whose age is less then a year gets opportunity for 15 minutes

on every two hour time to breast feed the baby after every two hour. More then one year kid stay on child care and feed by the nurse.

2.16 Prevention of Child Labor:AJI strictly not provide any option to get employee below 18 years. Testimonial is attached with the application.

2.17 Insurance:All the employee of AJI is ensured by the BGMEA & BKMEA providing by the AJI group. Employee gets benefit if he/she gets expired as an employee of AJI’s Group is having fire insurance, any disaster insurance with Rupali Insurance Company Limited to avoid kind of risk.

2.18 Corporate Information:Address: Factory and Office: 226, Singair Road, Hemayetpur, Saver, Dhaka, Bangladesh.

Contact Telephone, Fax & Email: Phone: +88-02-7741 540

Fax : +88-02-7713 898

Email : [email protected]

Website: www.aji-group.com Bank Information: Mutual Trust Bank Panthapath Branch Chandrashila Suvastu Tower 69/1, Panthpath Dhaka, Bangladesh Phone: +88-02-862-468

Observations

3.1 General Responsibilities:

Responsible for performing a variety of duties to support the Human Resource Division function of Head office; coordinating work within the departments, as well as with other departments; reporting pertinent information to the immediate supervisor; responding to inquiries or requests for information.

3.2 Essential Duties:Performs a variety of duties to support the HR Division functions of head office of which the following are illustrative:

Recruit the workers. Train theme about rules and regulation of company.

http://www.aji-group.com/

Train theme about leave as how they will get it or what is the procedure to get leaves. Arrange the ID card. Train theme about resign. To maintain personal file. Maintains the leave application copies and give input of these tracks. Completes the documentation works of employees personal. Complete the salary updates and analyze the papers of the sheets. Engaged in distributing the salaries of the casual stuffs of head office. Monitor all of the working floors. Make the counseling with the workers to find out the problems to build the close

relationship with workers. Arrange the meeting between top level management and workers. To maintain workers group insurance. To maintain the cases from workers against company. To maintain the communication with the BGMEA and BKMEA for different purpose. Face the audit. Coordinates specific work tasks with other personnel within the department as well as

with other departments in order to ensure the smooth and efficient flow of information.

Abides by the current laws and organizational policies and procedures designed and implemented to promote an environment, which is free of harassment and other forms of illegal discriminatory behavior in the work place.

Cooperates with, participates in, and supports the adherence to all internal policies, procedures, and practices in support of risk management and overall safety and soundness and the organization’s compliance with all regulatory requirements, etc.

Reports pertinent information to the immediate supervisor as requested, or according to an established schedule; compiles information as necessary or as directed and provides data to appropriate garment personnel.

3.3 Critical Observations:During my intern period, I found some problem. Firstly, in HR Division, there are few employees so one employee has to do huge volume of works. The working space of HR Division is not enough. Because they have to maintain a huge amount of papers documents and files which needs a huge space. Some times I did not implement my ideas for their rules. On that time I thought it too much difficult to adjust myself in this sector

Bangladesh Garments Industry4.1 Market Structure of Bangladesh Garment of Industry:Textile Sector in Bangladesh is predominantly made of natural fiber using cotton. This sector is broadly classified into the following stages/sectors based on the value addition.

Each of the above sectors is analyzed to generate an overall perspective on the industry. Apparel is the high Growth Sector of garments sector. The liberalization of industrial policy of Bangladesh along with development of export processing zones at Dhaka and Chittagong, attracted investment in the Ready-Made Garment (RMG) industry in Bangladesh to set up large plants working on higher economies of scale. This enabled Bangladesh to achieve a phenomenal growth in export of RMG. The export of RMG from Bangladesh increased from a meager US $ 7 million during 1981-82 to about US $ 1.95 billion during 1995-96. The RMG Sector achieved a growth of 20% per annum over the past ten years. Such high growth was catalyzed by the low wages along with Multi fiber Agreement (MFA) on textile quotas

principally with U.S.A., Canada and European countries. The Generalized System of Preferences (GSP) provided import tax breaks worth about 15% of the import valuation, giving Bangladesh's RMG export a considerable advantage in these markets. In addition to the above, the financing arrangements created through a system of back- to-back Letters of Credit (LOC) covering imported inputs and finished exports, greatly contributed to the accelerated growth of RMG sector. The above factors enabled Bangladesh to become the fifth largest exporter of RMG to the European Union and Sixth largest to the USA. The apparel industry in Bangladesh is broadly classified into Knitwear, RMG, specialty/linen including terry towels and others. The total export of apparel was about Tk 105.87 billion during 1995-96. The share of RMG export in this sector is above 75%. The composition of export of apparel by type is indicated in the following chart:

The further break-up of main items of knitwear and RMG export is provided in the following charts:

Break-up of main items of export in apparel sector of Bangladesh

The quality of fabric produced domestically in Bangladesh is not up to the standard required for the production of export quality garments. Therefore, exporters of garment, largely have to depend upon import of quality fabric. There are about 26 weaving mills in Bangladesh reported as in 2000, with a total of 7,179 looms. About half of these mills are government owned. There are also another 515 thousand hand looms in the country apart from about 488 hosiery units. About 30 per cent of these hosiery units produce export quality knit fabric. The local fabric production is reported to be about 915 million meters during 1995-96. The total demand for fabrics against this production level is estimated to be about 3155 million meters (approximately 3.45 billion yards) during 1995-96. Hence apart from the quality considerations mentioned earlier, domestic production is inadequate to meet the fabric demand. The composition of demand of fabrics for garments for domestic market and garments for export market is illustrated in the following chart: Composition of Demand for Fabric from Garment Sector

Value of RMG Export: Taka 79.7 Billion KNITWEAR

(Approx. US $ 2 billion)

The above chart indicates the importance of export market for textile sector of Bangladesh. The local demand for fabric, which is reported to be about 1325 million meters, is largely met by the traditional hand looms, small power looms and textile mills in the government and private sector. However as domestic production falls short to meet even the domestic demand for fabric, about 410 million meters is imported during 1995-96 to meet the short fall. The overall scenario of fabric sector in Bangladesh is indicated in the following table and chart: The following chart illustrates the interpretation of above table in graphical form.

The above chart indicates that about 82% of the fabric imported is consumed in the production of garments for export, while the balance 18%, is consumed to meet the domestic demand, which by itself is about 30% of the requirement of domestic market. This emphasis is the need for investment in textile/weaving segment in Bangladesh. After assert assigning the need for setting-up a weaving unit, the following parts investigate the prospects and key success factors for such weaving mill: Yarn is the primary input to the weaving mill. Yarn is spun in a spinning mill using spindles. Bangladesh has about 118 spinning mills. About 25% of these mills are owned and managed by the government. It is reported that about 45% of these spinning mills are out dated and run at a loss. The production of yarn in Bangladesh is reported to be about 100,000 tons during 1995-96. The demand for yarn is, however, as high as 470,000 tons. Hence the domestic production meets only about 21% of the domestic demand for yarn. The huge deficit in production of yarn to meet its demand in Bangladesh is met through imports. Bangladesh sources its requirement of yarn mainly from countries like India. Pakistan apart from China, Korea, Singapore, Thailand, USA, Canada, Egypt, etc. It is estimated that about 116 additional spinning units with a capacity of 25,000 spindles each are required to meet the demand-supply gap for yarn

Fabric Sector in Bangladesh during 1995-96

Million Meters Total Market Segment

Domestic Export

Demand 3155 1325 1830

Production 915 915

Import 2240 410 1830

Million Meters

4.2 Recent Performance of the Apparel Export Sector:In a liberalized trade regime, competition among textiles and clothing exporting countries is likely to become intense. The objective of this paper is to identify the prospects of RMG industry after the MFA phase out by analyzing the current scenario along with different policy measures and the available options in order to be more competitive in the new regime. The export made by Garments Industries of Bangladesh is improving year after year except some of the year. Strike, layout, shutdown of company, political problem, economic problem, inflation etc. are the prime cause of decreasing export in this important sector. But above it, Readymade Garments Industries is the leading sector in export sector.

Year Export (in US $ million) Percentage change

1996 – 97 2228.35 43.47

1997 – 98 2547.13 14.11

1998 – 99 3001.25 17.83

1999 – 00 3781.94 26.01

2000 – 01 4019.98 6.29

2001 - 02 4349.41 8.19

2002 – 03 4859.83 11.74

2003 – 04 4583.75 5.68

2004 – 05 4912.12 7.21

2005 – 06 5686.09 15.83

Year Export by the garments industries (in US $ million)Average Quota Prices of Selected Garments Items Exported by Bangladesh, 2006

Table: Exports of Knit and Woven Garments to the United State

4.3 Recent Growth Performance:Bangladesh Bureau of Statistics:

Sector Average1990/91-1994/95

1995/96 1996/97 1997/98 1998/99 1999/00a

Agriculture 1.55 3.10 6.00 3.19 4.77 6.43

Crops & horticulture -0.43 1.74 6.44 1.05 3.16 6.13

Animal farming 2.38 2.51 2.58 2.64 2.69 2.74

Forest & related services 2.82 3.46 4.03 4.51 5.16 5.16

Fishing 7.86 7.39 7.60 8.98 9.96 9.50

Industry 7.47 6.98 5.80 8.32 4.92 5.55

Manufacturing 8.20 6.41 5.05 8.54 3.19 4.25

Construction 6.27 8.50 8.64 9.48 8.92 8.00

Services 4.63 4.29 4.91 4.77 4.90 4.97

GDP 4.39 4.62 5.39 5.23 4.88 5.47

Chapter – 5

Project

5.1 HRM Operations:At a general level, it is important to analyze training needs against the backdrop of organizational objectives and strategies. Unless you do this, you may waste time and money on training programs that do not advance the cause of the company People may be trained in skills they already possess the training budget may be squandered on rest and recuperation

sessions, where employees are entertained but learn little in the way required job skills or job knowledge, or the budget may be spent on glittering hardware that meets the training director’s needs but not the organization’s.It is also essential to analyze the organization’s external environment an internal climate. Trends in the strategic priorities of a business, judicial decisions, civil rights laws, union activity, productivity, accidents, turnover, absenteeism, and on the job employee behavior will provide relevant information at this level. However, assessing the needs for training does not end here. It is important to analyze needs regularly and at all three levels in order to evaluate the results of training and to assess what training is needed in the future.

At the organizational level, senior managers who set the organization’s goals should analyze needs.

At the operations level, the managers who specify how the organization’s goals are going to be achieved should analyze needs.

At the individual level, the managers and workers who do the work to achieve those goals should analyze needs, keeping in mind that performance is a function of both ability and motivation.

5.2 Human Resource Planning:Human resource planning is all about measuring the organization need to identify the numbers of employees and skills required to do those jobs. Further, an understanding of available competencies is necessary to allow the organization to plan for the changes to new jobs required by corporate goals.At AJI Group, major changes according to economic and social environments are required purchasing new and additional office equipment to enhance efficiency e.g., computer hardware or software, coping with the recall of a defective product and dealing with the need for a new design e.g. new automatic rotary machine.This suggests several specific, interrelated activities that together constitute a human resource planning system.They include:

A talent inventory to assess current human resources and to analyze how they are currently being used.

A human resource forecast to predict future HR requirements. Action plans to enlarge the pool of people qualified to fill the projected vacancies

through such actions as recruitment, selection, training, placement, transfer, promotion, development and compensation.

Control and evaluation to provide feedback on the overall effectiveness of the human resource planning system by monitoring of HR objective.

5.3 Structure of the HRM Department:　5.3.1 Number of Employees working in HRM Department:Now I will discuss the personnel management of AJI Group under various steps of Human Resources Management AJI Group also knows this fact and has personnel department right at the entrance of main gate of mill. Personnel Department of AJI Group can be critically

HR Department

Man power Planning

Recruitment and Selection

Training and development

Performance management system

Compensation management

analyzed on the basis of various steps of human resources management process.First I would like to describe the ware bouts of department. Department is situated in an old building which was constructed at the time of establishment of AJI Group and department was named as labor department. Recently three or four years ago name of department was changed to personnel department. There are only 5 personnel who actually handle the department’s affairs and about 4500 employees are working. There is great work that is to be done by 5 persons and they feel burden on themselves. 5.4 Functions of the HRM Department: 5.4.1 Major Functions:Every organization whether it is a multinational conglomerates a small business, a religious institution or a government agency depends on people. Appropriate candidates for each job from chairman of the board to night shift janitor must be located either inside or outside the organization and they must be convinced by pay benefits and working conditions to take and keep the job. They must also be trained and motivated. Handling these functions is part of human resources management’s job. They feel burden on themselves... There are five steps are:

5.4.2 Standard Operating Procedure:

5.5 Training Need Assessment:

Vacancy

Resources

Internal External

Lateral Movement

Promotion

Advertisement and online CV

Previous CV

On Campus Test

Test and interview

References and medical

examination

Permanent Job

5.6 Conceptual Framework:

5.6.1 Manpower Planning:

The penalties for not being correctly staffed are costly.

Understaffing loses the business economies of scale and specialization, orders, customers and profits.

Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate because of modern legislation in respect of redundancy payments, consultation, minimum periods of notice, etc. Very importantly, overstaffing reduces the competitive efficiency of the business.

Future staffing needs will derive from:

Sales and production forecasts The effects of technological change on task needs Variations in the efficiency, productivity, flexibility of labor as a result of training,

work study, organizational change, new motivations, etc. Changes in employment practices (e.g. use of subcontractors or agency staffs,

hiving-off tasks, buying in, substitution, etc.) Variations, which respond to new legislation, e.g. payroll taxes or their abolition,

new health and safety requirements Changes in Government policies (investment incentives, regional or trade grants,

etc

5.6.2 Recruitment and selection of employees:

Recruitment of staff should be preceded by:

An analysis of the job to be done (i.e. an analytical study of the tasks to be performed to determine their essential factors) written into a job description so that the selectors know what physical and mental characteristics applicants must possess, what qualities and attitudes are desirable and what characteristics are a decided disadvantage;

In the case of replacement staff a critical questioning of the need to recruit at all (replacement should rarely be an automatic process).

Effectively, selection is 'buying' an employee (the price being the wage or salary multiplied by probable years of service) hence bad buys can be very expensive.

For that reason some firms (and some firms for particular jobs) use external expert consultants for recruitment and selection.

Equally some small organizations exist to 'head hunt', i.e. to attract staff with high reputations from existing employers to the recruiting employer. However, the 'cost' of poor selection is such that, even for the mundane day-to-day jobs, those who recruit and select should be well trained to judge the suitability of applicants.

5.6.3 Employee motivation:

To retain good staff and to encourage them to give of their best while at work requires attention to the financial and psychological and even physiological rewards offered by the organization as a continuous exercise.

Basic financial rewards and conditions of service (e.g. working hours per week) are determined externally (by national bargaining or government minimum wage legislation) in many occupations but as much as 50 per cent of the gross pay of manual workers is often the result of local negotiations and details (e.g. which particular hours shall be worked) of conditions of service are often more important than the basics. Hence there is scope for financial and other motivations to be used at local levels.

As staffing needs will vary with the productivity of the workforce (and the industrial peace achieved) so good personnel policies are desirable. The latter can depend upon other factors (like environment, welfare, employee benefits, etc.) but unless the wage packet is accepted as 'fair and just' there will be no motivation.

5.6.4 Employee evaluation:

An organization needs constantly to take stock of its workforce and to assess its performance in existing jobs for three reasons:

To improve organizational performance via improving the performance of individual contributors (should be an automatic process in the case of good managers, but (about annually) two key questions should be posed:

** What has been done to improve the performance of a person last year? And what can be done to improve his or her performance in the year to come?). To identify potential, i.e. to recognize existing talent and to use that to fill vacancies

higher in the organization or to transfer individuals into jobs where better use can be made of their abilities or developing skills.

To provide an equitable method of linking payment to performance where there are no numerical criteria (often this salary performance review takes place about three months later and is kept quite separate from 1. and 2. but is based on the same assessment).

5.6.5 Industrial relations:

Good industrial relations, while a recognizable and legitimate objective for an organization, are difficult to define since a good system of industrial relations involves complex relationships between:

(a) Workers (and their informal and formal groups, i. e. trade union, organizations and their representatives);

(b) Employers (and their managers and formal organizations like trade and professional associations);

(c) The government and legislation and government agencies l and 'independent' agencies like the Advisory Conciliation and Arbitration Service.

5.6.6 Provision of employee services:

Attention to the mental and physical well-being of employees is normal in many organizations as a means of keeping good staff and attracting others.

The forms this welfare can take are many and varied, from loans to the needy to counseling in respect of personal problems.

Among the activities regarded as normal are:

Schemes for occupational sick pay, extended sick leave and access to the firm's medical adviser;

Schemes for bereavement or other special leave; The rehabilitation of injured/unfit/ disabled employees and temporary or

permanent move to lighter work; The maintenance of disablement statistics and registers (there are complicated

legal requirements in respect of quotas of disabled workers and a need for 'certificates' where quota are not fulfilled and recruitment must take place);

Provision of financial and other support for sports, social, hobbies, activities of many kinds which are work related;

Provision of canteens and other catering facilities; Possibly assistance with financial and other aid to employees in difficulty

(supervision, maybe, of an employee managed benevolent fund or scheme); Provision of information handbooks, Running of pre-retirement courses and similar fringe activities; Care for the welfare aspects of health and safety legislation and provision of first-

aid training.

The location of the health and safety function within the organization varies. Commonly a split of responsibilities exists under which 'production' or 'engineering' management cares for the provision of safe systems of work and safe places and machines etc., but HRM is responsible for administration, training and education in awareness and understanding of the law, and for the alerting of all levels to new requirements.

5.6.7 Employee education, training and development:

In general, education is 'mind preparation' and is carried out remote from the actual work area, training is the systematic development of the attitude, knowledge, skill pattern required by a person to perform a given task or job adequately and development is 'the growth of the individual in terms of ability, understanding and awareness'.

Within an organization all three are necessary in order to:

Develop workers to undertake higher-grade tasks; Provide the conventional training of new and young workers (e.g. as apprentices,

clerks, etc.); Raise efficiency and standards of performance; Meet legislative requirements (e.g. health and safety); Inform people (induction training, pre-retirement courses, etc.);

From time to time meet special needs arising from technical, legislative, and knowledge need changes. Meeting these needs is achieved via the 'training loop'.

Performance appraisals not only assist in determining compensation and benefits, but they are also instrumental in identifying ways to help individuals improve their current positions and prepare for future opportunities. As the structure of organizations continues to change-through or expansion-the need for training and development programs continues to grow. Improving or obtaining new skills is part of another area of HRM, known as training and development.

"Training focuses on learning the skills, knowledge, and attitudes required to initially perform a job or task or to improve upon the performance of a current job or task, while development activities are not job related, but concentrate on broadening the employee's horizons". Education, which focuses on learning new skills, knowledge, and attitudes to be used in future work, also deserves mention.

Because the focus is on the current job, only training and development will be discussed. Training can be used in a variety of ways, including

(1) Orienting and informing employees,

(2) Developing desired skills,

(3) Preventing accidents through safety training,

(4) Supplying professional and technical education,

(5) Providing training and executive education.

Each of the training methods mentioned has benefits to the individual as well as to the organization. Some of the benefits are reducing the learning time for new hires, teaching employees how to use new or updated technology, decreasing the number and cost of accidents because employees know how to operate a machine properly, providing better customer service, improving quality and quantity of productivity, and obtaining management involvement in the training process. When managers go through the training, they are showing others that they are taking the goals of training seriously and are committed to the importance of human resource development.

The type of training depends on the material to be learned, the length of time learners have, and the financial resources available. One type is instructor-led training, which generally allows participants to see a demonstration and to work with the product first-hand. On-the-job

training and apprenticeships let participants acquire new skills as they continue to perform various aspects of the job. Computer-based training provides learners at various geographic locations access to material to be learned at convenient times and locations. Simulation exercises give participants a chance to learn outcomes of choices in a no threatening environment before applying the concept to real situations.

Training focuses on the current job, while development concentrates on providing activities to help employees expand their current knowledge and to allow for growth. Types of development opportunities include mentoring, career counseling, management and supervisory development, and job training.

5.6.8 Staffing:

Both the job description and the job specification are useful tools for the staffing process, the first of the seven HR functions to be discussed. Someone (e.g., a department manager) or some event (e.g., an employee is leaving) within the organization usually determines a need to hire a new employee. In large organizations, an employee requisition must be submitted to the HR department that specifies the job title, the department, and the date the employee is needed. From there, the job description can be referenced for specific job related qualifications to provide more detail when advertising the position-either internally, externally, or both.

Not only must the HR department attract qualified applicants through job postings or other forms of advertising, but it also assists in screening candidates' resumes and bringing those with the proper qualifications in for an interview. The final say in selecting the candidate will probably be the line manager's, assuming all Equal Employment Opportunity Commission (EEOC) requirements are met. Other ongoing staffing responsibilities involve planning for new or changing positions and reviewing current job analyses and job descriptions to make sure they accurately reflect the current position.

5.6.9 Performance Appraisal:

Once a talented individual is brought into an organization, another function of HRM comes into play creating an environment that will motivate and reward performance. One way to assess performance is through a formal review on a periodic basis, generally annually, known as a performance appraisal or performance evaluation. Because line managers are in daily contact with the employees and can best measure performance, they are usually the ones who conduct the appraisals. Other evaluators of the employee's performance can include subordinates, peers, group, and self, or a combination of one or more.

Just as there can be different performance evaluators, depending on the job, several appraisal systems can be used. Some of the popular appraisal methods include

Ranking of all employees in a group;

Using rating scales to define above average, average, and below average

Recording favorable and performance, known as critical incidents, and

Managing by objectives,

Guiding human resource actions such as hiring, firing, and promoting;

Rewarding employees through bonuses, promotions, and so on;

Providing feedback and noting areas of improvement;

Identifying training and development needs in order to improve the

Individual’s performance on the job

Providing job related data useful in human resource planning.

5.6.10 Safety and Health:

Not only must an organization see to it that employees' rights are not violated, but it must also provide a safe and healthy working environment. Mondy and Noe define safety as "protecting employees from injuries caused by work-related accidents" and health as keeping "employees free from physical or emotional illness". In order to prevent injury or illness, the Occupational Safety and Health Administration (OSHA) was created in 1970. Through workplace inspections, citations and penalties, and on-site consultations, OSHA seeks to enhance safety and health and to decrease accidents, which lead to decreased productivity and increased operating costs (Cherrington, 1995).

Health problems recognized in the can include the effects of smoking, alcohol and drug/substance abuse, AIDS, stress. Through employee assistance programs (EAPs), employees with emotional difficulties are given "the same consideration and assistance" as those employees with physical illnesses.

5.6.11 Employee and Labor Relations:

Just as human resource developers make sure employees have proper training, there are groups of employees organized as unions to address and resolve employment-related issues. Unions have been around since the time of the American Revolution. Those who join unions usually do so for one or both of two reasons- to increase wages and/or to eliminate conditions. Some of the outcomes of union involvement include better medical plans, extended vacation time, and increased wages.

Today, unions remain a controversial topic. Under the provisions of the Taft-Hartley Act, the closed-shop arrangement states employees (outside the construction industry) are not required to join a union when they are hired. Union-shop arrangements permit employers to hire non-union workers contingent upon their joining the union once they are hired. The Taft-Hartley Act gives employers the right to file complaints against the union and to express their views concerning unions.

Not only do HR managers deal with union organizations, but also they are also responsible for resolving issues-namely, the contract. The contract defines employment related issues such as compensation and benefits, working conditions, job security, discipline procedures, individuals' rights, management's rights, and contract length. Collective bargaining involves management and the union trying to resolve any issues peacefully-before the union finds it necessary to strike.

5.7 HRM Resource Planning:

HRM Resource Planning or HRM Business Planning is a very painful process for the HRM Function. The behavior and respect of managers during the planning period shows the real power and position of Human Resources.

The planning process is about a good preparation of the HRM Function. The Human Resources focused on a proper measurement of important HR KPIs has an advantage, as the numbers are not a topic to discuss about. The managers are pushed to discuss the numbers not the emotions and big ideas with no evidence behind.

The HRM Function needs to prepare global HR goals for the whole company and the HRM and Finance have to prepare the ideal split of the goals among different units and departments before the HRM Planning period starts. The Finance Department is the best friend in the company for Human Resources, when the preparation of the business plan starts. The Finance Department understands the big numbers and the HRM Function can prepare the split into small details and the discussions with the management can easily start.

The HRM Function needs to discuss the goals of the business plan in a detail, as the HR Front Office staff needs to understand their role in the planning process and the goals they have to reach during the discussions with the managers. It is the role of the HR Front Office to deal with the managers during the HRM Planning.

The managers will quickly discover how the HR Front Office staff did make their homework in the preparation for the HRM Planning period. The managers will always ask more staff to realize their goals comfortably. The role of Human Resources in the planning period is different. The HRM Function represents the shareholders of the company and the resources available have to be strictly limited to the managers.

The HRM Planning is about the HR Front Office staff, as they have to demonstrate a deep knowledge of their internal client. The HR Front Office staff has to be developed and they have to understand the basics of the business.

5.8. Employee Recruitment and Selection Process:

There are many steps to recruiting and selecting qualified employees. First, a department head must inform the HR manager of an opening in their department. Then the HR manager must obtain either the job description to formulate a Job Description Sheet for publication internally, publicly, or both. 5.9 Employee Compensation Benefits: The Human Resources Department is responsible for developing and administering a benefits compensation system that serves as an incentive to ensure the recruitment and retirement of top talent that will stay on with the company. Compensation (payment in the form of hourly wages or annual salaries) and benefits (insurance, pensions, vacation, modified sick days, stock options, etc.) can be a catch because an employee's performance can be influenced by compensation and benefits, and vice versa. In the ideal situation, employees feel they are paid what they are worth, are rewarded with sufficient benefits, and receive some satisfaction (good work environment, interesting work,

etc.). Compensation should be legal and ethical, adequate, motivating, fair and, cost-effective, and able to provide employment security.

5.10 Employee Relations:

With the increased rise in unethical practices and misbehaviors taking place in today’s workplace such as age, gender, race, and religion discrimination and sexual harassment, there needs to be mandatory compliance with governing rules and regulations to ensure fair treatment of employees.

5.11 Policy Formulation:

Regardless of the organization’s size, company policies and procedures must be established to ensure order in the workplace. These policies and procedures are put in place to provide each employee with an understanding of what is expected of them. Similarly, these policies and procedural guidelines will assist hiring managers in evaluating their employee’s performance. These policies can be established company-wide or used to define each department’s function. It is Human Resource’s responsibility to collaborate with department managers on the formulation of these policies and regulations to ensure a cohesive organization. A common practice is the development and implementation of an Employee Procedure Manual or Employee Handbook that is distributed to each employee at the time of hire or a master copy allocated one to a department.

5.12 Human Resources Information Systems:

A Human Resource Management System (HRMS), Human Resource Information System (HRIS), HR Technology or also called HR modules, refers to the systems and processes at the intersection between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular, its basic HR activities and processes with the information technology field, whereas the programming of data processing systems evolved into standardized routines and packages of enterprise resource planning (ERP) software. Overall, these ERP systems have their origin on software that integrates information from different applications into one universal database. The linkage of its financial and human resource modules through one database is the most important distinction to the individually and proprietary developed predecessors, which makes this software application both rigid and flexible.

5.13 Purpose:

The function of Human Resources departments is generally administrative and common to all organizations. Organizations may have formalized selection, evaluation, and payroll processes. Efficient and effective management of "Human Capital" has progressed to an increasingly imperative and complex process. The HR function consists of tracking existing employee data, which traditionally includes personal histories, skills, capabilities, accomplishments and salary. To reduce the manual workload of these administrative activities, organizations began to electronically automate many of these processes by introducing specialized Human Resource Management Systems. Due HR executives rely on internal or external IT professionals to develop and maintain an integrated HRMS. Before the "client-server" architecture evolved in the late 1980s, many HR automation processes were relegated to mainframe computers that could handle large amounts of data transactions. In

consequence of the high capital investment necessary to purchase or program proprietary software, these internally-developed HRMS were limited to organizations that possessed a large amount of capital. Currently Human Resource Management Systems encompass:

1. Payrolls 2. Work Time 3. Benefits Administration 4. HR management Information system 5. Recruiting 6. Training/ Learning Management System LMS 7. Performance Record

1. Payroll module

The Payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic pay cheques and employee tax reports. Data is generally fed from the human resources and time keeping modules to calculate automatic deposit and manual cheque writing capabilities. This module can encompass all employee-related transactions as well as integrate with existing financial management systems.

2. Work Time

The Work Time gathers standardized time and work related efforts. The most advanced modules provide broad flexibility in data collection methods, labors distribution capabilities and data analysis features. Cost analysis and efficiency metrics are the primary functions.

3. Benefits Administration module

The Benefits Administration module provides a system for organizations to administer and track employee participation in benefits programs. These typically encompass insurance, compensation, profit sharing and retirement.

4. HR management module

The HR management module is a component covering many other HR aspects from application to retirement. The system records basic demographic and address data, selection, training and development, capabilities and skills management, compensation planning records and other related activities. Leading edge systems provide the ability to "read" applications and enter relevant data to applicable database fields, notify employers and provide position management and position control. Human resource management function involves the recruitment, placement, evaluation, compensation and development of the employees of an organization. Initially, businesses used computer based information system to:

produce pay checks and payroll reports; maintain personnel records; Pursue Talent Management.

5. Recruiting

http://en.wikipedia.org/wiki/Talent_Management

Online Recruiting has become one of the primary methods employed by HR departments to garner potential candidates for available positions within an organization. Talent Management systems typically encompass:

analyzing personnel usage within an organization; identifying potential applicants; recruiting through company-facing listings; Recruiting through online recruiting sites or publications that market to both recruiters

and applicants.

The significant cost incurred in maintaining an organized recruitment effort, cross posting within and across general or industry-specific job boards and maintaining, a competitive exposure of availabilities has given rise to the development of a dedicated Applicant Tracking System, or 'ATS', module.

6. Training Module

The Training Module provides a system for organizations to administer and track employee training and development efforts. The system, normally called a Learning Management System if a stand alone product, allows HR to track education, qualifications and skills of the employees, as well as outlining what training courses, books, CDs, web based learning or materials are available to develop which skills. Courses can then be offered in date specific sessions, with delegates and training resources being mapped and managed within the same system. Sophisticated LMS allow managers to approve training, budgets and calendars alongside performance management and appraisal metrics.

Many organizations have gone beyond the traditional functions and developed human resource management information systems, which support recruitment, selection; hiring, job placement, performance appraisals, employee benefit analysis, health, safety and security, while others integrate an outsourced Applicant Tracking System that encompasses a subset of the above. Examples of popular HRMS are PeopleSoft HRMS, SAP-HR, Oracle HRMS, and HRA.

5.14 Key Strategic HRM Concepts: Analyzing and solving problems from a profit-oriented, not just a service-oriented,

point of view

Assessing and interpreting costs or benefits of such HRM issues as productivity, salaries and benefits, recruitment, training, absenteeism, overseas relocation, layoffs, meetings, and attitude surveys

Using planning models that include realistic, challenging, specific, and meaningful goals

Preparing reports on HRM solutions to problems encountered by the firm

Training the human resources staff and emphasizing the strategic importance of HRM and the importance of contributing to the firm’s profits.

5.15 HRM and Organizational Effectiveness:

Criteria and Components

Performance Legal compliance Employee satisfaction Absenteeism Turnover Training effectiveness Training return on investment Grievance rates Accident rates

In order for a firm to survive, prosper, and earn a profit, reasonable goals in each of these components must be achieved. In most organizations, effectiveness is measured by the balance of such complementary characteristics as reaching goals, employing the skills and abilities of employees efficiently, and ensuring the influx and retention of well-trained and motivated employees.

5.16 HRM Activities:

In most organizations, two groups perform HRM activities: HR manager-specialists (staff) Operating managers (line)

Competencies needed

Communication skills Problem solving Leadership Recruiting/staffing Employment law Training and development Technology Forecasting Compensation design Benefits design and administration Accounting and finance Record keeping

5.17 New Labor Relations and Work Ethics:

1. With the establishment of foreign owned companies and Joint venture companies, a new system of labor relations and work ethics were "imported" which was alien to the indigenous, industrial set up.

2. In order to attract Foreign Direct Investment, new fiscal incentives were offered, hitherto unknown to the Sri Lankan entrepreneurs. Labor rules more in line with investors' needs,

were also introduced. These new investments, and employment generated thereby, were directed towards exports, and required different (i.e. higher) standards of quality specifications and rigid delivery schedules which were considered up to then as unimportant for an industry which was catering mainly to the local market.

5.18 Expatriate Management:

1. The interests of New Foreign Direct Investors and Joint Venture Partners had to be safeguarded and this was done by employing Expatriate Management and Technical staff who were familiar with the "new" labor relations and work ethics.

5.19 Cheap Labor Label:

1. in "selling" Sri Lanka as an ideal land for investment, the availability of a cheap. Trainable workforce was cited as a comparative advantage and an asset. However, the concept of productivity and work ethics were never touched.

5.20 HRM Roadmap:

5.21 HRM Approach:

5.22 Role of HR department:

HR department with the right skills can contribute to a Six Sigma initiative at both strategic and tactical levels. This article describes the areas in which HR should play a role in Six Sigma and discusses how HR professionals can increase their chances of being included in Six Sigma decision-making and implementation. To appreciate the important role HR has in Six Sigma, it is Important to begin this discussion by having an understanding of what Six

Demand for the

workforce/HR

planning

Job Analysis Job Descriptions &

Person Specifications

Recruitment &

Selection

Performance

Appraisal

Reward Admin

Employee Developm

entCareer

Management

Industrial Relations

Employee Separatio

n

Employee Orientation

Salary & Benefits Admin

Maintenance of employees’ personal files

Demand for the

workforce/HR

planning

Job Analysis Job Descriptions &

Person Specifications

Recruitment &

Selection

Performance

Appraisal

Reward Admen

Employee Developm

entCareer

Management

Industrial Relations

Employee Separation

Employee Orientation

Salary & Benefits Admen

Maintenance of employees’ personal files – leave record, promotions, transfers, disciplining etc.

Sigma is, all the roles played by others in a Six Sigma implementation, and the factors critical to a successful Implementation.

5.23 The Challenges of Workplace:

The future success of any organizations relies on the ability to manage a diverse body of talent that can bring innovative ideas, perspectives and views to their work. The challenge and problems faced of workplace diversity can be turned into a strategic organizational asset if an organization is able to capitalize on this melting pot of diverse talents. With the mixture of talents of diverse cultural backgrounds, genders, ages and lifestyles, an organization can respond to business opportunities more rapidly and creatively, especially in the global arena (Cox, 1993), which must be one of the important organizational goals to be attained. More importantly, if the organizational environment does not support diversity broadly, one risks losing talent to competitors.

5.24 Planning a Mentoring Program: One of the best ways to handle workplace diversity issues is through initiating a Diversity Mentoring Program. This could entail involving different departmental managers in a mentoringProgram to coach and provide feedback to employees who are different from them. In order for the program to run successfully, it is wise to provide practical training for these managers or seek help from consultants and experts in this field. Usually, such a program will encourage organizations members to air their opinions and learn how to resolve conflicts due to their diversity. More importantly, the purpose of a Diversity Mentoring Program seeks to encourage members to move beyond their own cultural frame of reference to recognize and take full advantage of the productivity potential inherent in a diverse population.An organization that sees the existence of a diverse workforce as an organizational asset rather than a liability would indirectly help the organization to positively take in its stride some of the less positive aspects of workforce diversity.

5.25 Diversity:

A broad definition of diversity ranges from personality and work style to all of the visible dimensions such as race, age, ethnicity or gender, to secondary influences such as religion, socioeconomics and education, to work diversities such as management and union, functional level and classification or proximity/distance to headquarters.Diversity is able to implement a range of managed technology solutions that include the following features:· Management of responsibility for an organization’s entire contingent workforce· Consolidated pay rolling and Contractor Care program across the contingent workforce· Contractor performance measurement and reporting· Workforce planning and metrics – providing contractor workforce demographic reporting and the effective redeployment of contingents· Full reporting across the contingent workforce.

5.25.1 Workplace diversity:

Workplace diversity has taken on a new face. Today, workplace diversity is no longer just about anti-discrimination compliance. Workplace diversity now focuses on inclusion and the impact on the bottom line. Leveraging workplace diversity is increasingly seen as a vital

strategic resource for competitive advantage. More companies are linking workplace diversity to their strategic goals and objectives--and holding management accountable for results. Thus, HR plays a key role in diversity management and leadership to create and empower an organizational culture that fosters a respectful, inclusive, knowledge-based environment where each employee has the opportunity to learn, grow and meaningfully contribute to the organization's success.

5.25.2 Cultural diversity:

Organizations around the world has been realizing the cultural diversity within organization is not a negative aspect, rather can facilitate organizational stalk for glory. However, it is not an easy task to manage employees with different cultural backgrounds. Nevertheless, many policy guidelines can make task easy.On a broader perspective, cultural diversity can be managed through communicating (creating awareness among all employees about diverse values of peers through communication), cultivating ( facilitating acknowledgement, support and encouragement of any employee’ success by all other workers), and capitalizing (linking diversity to every business process and strategy such as succession planning, reengineering, employee development, performance management and review, and reward systems) strategies.

5.25.3 Managing Workforce Diversity: Recruitment for diversity Selection without discrimination Orientation and training that is effective

5.26 Sexual Harassment:An unwanted activity of a sexual nature that affects an individual’s employment

• The Supreme Court definition: Unwelcome behavior of a sexual nature in the workplace that negatively affects the work environment or leads to adverse job-related consequences for the employee

• There continues to be disagreement as to what specifically constitutes sexual harassment.

An offensive or hostile environment

• An environment in which a person is affected by elements of a sexual nature

5.27 Works-Life Balance:

Employees have personal lives that they do not leave behind when they come to work.

Organizations have become more attuned to their employees by offering family-friendly benefits:

• On-site child care

• Summer day camps

• Flextime

• Job sharing

• Leave for personal matters

• Flexible job hours

5.28 The open external labor market:

This corresponds most closely to the simple model of the labor market as an arena of competition. It is external in the sense that employers draw their labor from an external pool and do not seek to foster long-term employment relationships. Workers are hired and fired as needed. It is also unstructured because there are no clear occupational boundaries within it and it is easy for workers to enter the market and move from job to job because no prior training or qualifications are necessary. Furthermore, there is little institutional regulation in the open external labor market. Workers have few legal rights or protections and trade unions are weak or non-existent. Therefore, workers compete with each other for employment and employers determine the level of wages in the light of how abundant or scarce labor is in the market. This means that employees are continually exposed to external market forces.

5.29 The occupational labor market:

Occupational labor markets arise where workers have skills that can be transferred from one firm to another. Labor markets for professional workers are often of this type; for example, doctors can work in different hospitals, teachers can move from one school to another and lawyers from one law firm to another without having to retrain. Occupational labor markets are external in the sense that, because workers’ skills are transferable across garment industries, employers can fill vacancies by drawing on the pool of qualified garments workers that exists outside the firm. Workers can also look to further their careers by moving from one firm to another in search of promotion and better opportunities. Clearly, there is potentially an element of competition in the occupational labor market. However, unlike workers in the open external labor market, those in structured occupational labor markets are able to insulate themselves from pressures of labor market competition to a considerable extent. The reasons for this are as follows. Occupational labor markets are structured on an occupational basis, with occupational boundaries being defined in terms of the tools or materials used, or skills and qualifications. Movement between occupations is therefore difficult because of the time and expense involved in retraining to obtain a new set of occupational qualifications. This limits the extent to which workers in an occupation are exposed to competition from workers outside it. This in turn enables workers to act collectively to influence their terms and conditions of employment through institutional regulation rather than leaving them to be determined by competitive market forces. Professional associations or trade unions control entry to the occupation, for example by making the right to work in it conditional on having certain minimum qualifications. Control of entry means that the number of workers can be restricted. This limits competition further and means that those in the occupation are ensured of employment. It also gives trade unions and professional associations a measure of bargaining power, which they can use through negotiation with employers to regulate pay and conditions.

5.30 The nature of labor markets and employment systems:

The most general definition of the labor market is that it consists of workers who are looking for paid employment and employers who are seeking to fill vacancies. The amount of labor that is available to firms – labor supply – is determined by the number of people of working age who are in employment or seeking employment and the number of hours that they are willing to work. This number will be determined by the size and age structure of the population and by the decisions made by individuals and households about the relative costs and benefits of taking paid employment. These decisions are influenced by various factors, one of which is the level of wages on offer. Generally speaking, a higher wage will attract more people into the labor market and a lower wage will attract fewer as long as other factors, such the level of welfare benefits and people’s attitudes towards work, remain constant. The number of jobs on offer to workers – labor demand – is the sum of people in employment plus the number of vacancies waiting to be filled. The demand for labor is determined by the level of demand for the goods and services produced by firms in the market. When sales and production are rising, firms’ demand for labor rises. When sales fall and production is cut back, firms’ demand for labor falls. The simplest view of the labor market in garment is that it is an arena of competition. Workers enter the arena in search of jobs and employers enter it in search of workers. Competition between employers for workers and between workers for jobs results in a ‘market wage’ that adjusts to relative changes in labor demand and supply. Thus, when labor demand rises relative to labor supply, the market wage rises as firms try to outbid each other for scarce labor. When labor demand falls relative to labor supply, the market wage falls as workers compete with each other for the smaller number of available jobs. Competition means that no individual firm can set a wage that is out of line with the competitive market wage. Neither can workers demand such a wage. Should a firm try to offer a wage that is below the market rate, it will be unable to hire workers. Should a firm set a wage above the market rate, it will go out of business because its costs of production will be above those of its competitors. For the same reason, workers who demand a wage higher than the market rate will price themselves out of jobs. No firm will hire them because to do so would increase their costs of production relative to those of their competitors. While it is undeniable that competitive forces operate in the labor market to a degree, few would seriously pretend that this is a wholly accurate description of the real world. There are limits to competition between firms and among workers. Empirical research has shown that rates of pay vary between firms in the same industry operating in the same local labor market (Nolan and Brown, 1983). Wages do not respond instantly to changes in labor demand. Employment policies vary considerably among firms. For example, some employ labor on a casual hire and fire basis while others offer long-term employment security and career development. This has led labor economists to recognize that firms are not all equally influenced by the external labor market. Instead, they develop a variety of employment systems, which can be differentiated from each other in terms of the extent to which competitive labor market forces influence terms and conditions of employment.

5.31 The rise and fall of garment employment systems:

5.31.1 Employee pressure and influenceTrade union membership and influence rose during the 1995s and 2005s. In representing their more traditional constituency among manual workers, they were also able to establish ‘seniority’ rules with respect to redundancy dismissals and restrict Management’s freedom to hire and fire.

5.31.2 Distinguishing contractual and statutory garment sector employment rights:It is impossible to provide a complete and comprehensive analysis of the employment relationship and its legal regulation – employment contracts and employment statutes are subject to change as practices that were previously ‘outwit the law’ become subject to legal regulation, for example the recent emergence of paid paternity leave for fathers. Equally, many areas of contractual and statutory regulation are extremely complicated and disputes between an employer and an employee may require specialist analysis by employment lawyers. Examples of these areas include discrimination claims with respect to pension rights for part-time women employees, disability discrimination claims that relate to the status of an employee as HIV positive and the interpretation of working time regulations for a particular group of employees. Thus, bearing in mind that contractual and statutory regulation of the employment relationship is a ‘moving target’, our examination of regulation within the employment relationship divides between a discussion of contractual and statutory employment rights.

5.31.3 Contractual rights:All employees have a contract of employment that governs the relationship between the garment employer and an individual employee. As we discuss below, an employment contract has three types of terms and conditions within it – express terms that are usually written down and which govern the specific details of the employee’s contract of employment, implied terms that are unlikely to be written down but which are considered part of an employee’s contract of employment. For example, an employer is under a legally enforceable duty to provide a healthy and safe workplace. Equally, employees are likely to find themselves subject to various duties that are derived from custom and practice arrangements in the workplace even though many of them may be unwritten. The third type of term and condition within a contract of employment relates to statutory protection against unfair or unreasonable treatment by an employer and these statutory terms and conditions are incorporated into individual employment contracts. In summary, contractual rights flow from the express, implied and statutory incorporated terms and conditions that create an individual contract of employment. It is important to point out that while employees receive protection via elements of these terms and conditions they are subject to regulation by them; hence, the contract of employment is made up of a balance of rights and obligations between the garment employer and the employee.

5.31.4 Statutory rights:Statutory employment rights provide a basic floor of rights for all garment workers. Statutory employment rights are created by legislation in the form of Acts of Parliament and, increasingly. Interpretation of legislation is a complicated and controversial matter and often turns on the issue of what is ‘reasonable’. For an employer’s interpretation of a statute to be reasonable the employer must be able to demonstrate to an employee, trade union or, in a matter of dispute, an employment tribunal that another employer faced with the same or a similar situation would have acted in the same way. In a matter of dispute, an employee or a trade union must be able to demonstrate that another employer would not have acted in a particular manner. For example, until recently it was common practice for many employers to exclude their part-time workforce from occupational pension schemes on the basis that the salary or wage level of part-timers was too low to generate a sufficient pension fund, particularly as this would reduce the take-home pay of such workers because of the necessary deduction of an employee’s contribution to the pension scheme. After a long legal campaign several trade unions, supported by the Equal Opportunities Commission, have established that this practice is unreasonable because many part-time workers are women and their

exclusion from company pension schemes amounts to indirect sex discrimination. This is the case because, although the exclusion of part-time workers from pension schemes appears to be sex neutral in its effects, such exclusion has a disproportionate effect on women, so the practice is discriminatory. Common law precedent, that is, judicial decisions of interpretation, guide decisions in disputes where there is no relevant Act of Parliament and thus has the status of an Act of Parliament.

5.31.5 The contract of employment:The first distinguishes employment contracts from commercial contracts; this is followed by a brief discussion of contract theory. The effects of the common law on employment contracts; this is followed by a discussion of different types of employment contracts. The employment contracts and finally statutory rights that relate to employment contracts are examined in some detail.

5.32 Termination of the employment contract:Employment contracts can terminate in a variety of ways, for example job redundancy, voluntary resignation, death in service, non-renewal of a fixed-term contract and summary termination due to conduct – ‘the sack’. This part of the chapter examines the issue of termination due to dismissal under the headings of fair dismissal, unfair dismissal, wrongful dismissal and constructive dismissal.

5.32.1 Fair dismissal:In the majority of situations when an employee is dismissed from employment, the reasons for the dismissal are likely to be fair. An employer can fairly dismiss an employee on several grounds; dismissal is likely to be fair if it relates to the following categories:

● Employee conduct – theft or fraud in the workplace, gross insubordination, fighting etc.● Job redundancy – where a job is no longer needed and the employee is dismissed due to job redundancy through no fault of their own and has been correctly consulted about the situation and fairly selected for redundancy via an agreed process of selection. If an employee has two years of continuous service with the employer, they must be compensated for the redundancy.● Capability, competence and qualifications. An employer can fairly dismiss an employee on these grounds but must demonstrate that dismissal relates to job capability, not the employee. For example, to obtain dismissal due to capability on the grounds of illness or disability an employer must demonstrate that they have already Termination of the employment contract 447 In what ways is the exclusion and opt-out provision from the working time regulations fair and reasonable? Is your job included, excluded or opted-out? If your job is exempt or subject to an opt-out clause in your contract of employment, consider the implications for your employer if, in the future, your job were to be included in the regulations on the 48-hour working week. made changes to the work situation of an employee and cannot make further changes. Without this evidence, the employee may have a claim under the Disability Discrimination Act. If an employee has falsified their qualifications or if they lose a practitioner qualification, for example by being struck off the medical register if they are a doctor, dismissal is likely to be fair. If an employee is deemed incompetent, it will be necessary to demonstrate this, for example that they have been through an internal disciplinary procedure and been given a reasonable opportunity to improve their performance but failed to do so. ● Statutory bar or other legal requirement that prevents the continuation of employment. If an employee is a driver or needs to be able to drive to perform their job, the loss of a driving license is likely to be a fair reason for dismissal. Similarly, if there is another legal

requirement that the employee can no longer meet, dismissal is likely to be fair; for example, for deep sea divers there are strict age and hours limits due to health and safety considerations. Equally, lorry drivers may have to pass eyesight checks and pilots meet strict health requirements. While dismissals may be fair in some situations, an employer may offer the employee another job. This is more likely if the firm has a collective bargaining agreement with a trade union. ● Some other substantial reason. Here an employer must demonstrate, in a case where a dismissal is disputed, that the dismissal, while it does not relate to the categories listed above, is nonetheless substantive, fair and reasonable.

5.32.2 Unfair dismissal:A dismissal is fair if an employer can demonstrate that the reason for the dismissal fits into one of the five categories listed above. However, as pointed out earlier in the chapter, many aspects of employment law turn on questions of interpretation and the reasonableness of a particular interpretation. Therefore, while an employer may deem a dismissal fair, an employee may disagree. For example, they may claim that they were unfairly selected for redundancy, or that they have been victimized for whistle-blowing or that their dismissal on any of the grounds listed above was motivated by discrimination such as disability, race, sex, marital status, pregnancy etc. In situations where the fairness of a dismissal is disputed and proceeds to an employment tribunal, there are several tests that the tribunal will apply to rule on a dismissal. Dismissals due to conduct, redundancy, statutory bar, competence and qualification and some other substantive reason are termed potentially fair reasons for dismissal. A tribunal will examine the dismissal against the facts of a particular case to test whether the dismissal was fair in the particular circumstances of the case. If the details of a particular case do not meet the criteria for a potentially fair dismissal then the dismissal is unfair. In some circumstances, a reason for dismissal may be fair yet the dismissal may have been conducted in an unfair manner, that is, a dismissal may be procedurally unfair. Hence if there are internal procedures that should be followed that relate to grievance and discipline in the workplace it is vital that an employer follows these procedures and is further able to demonstrate to the employee, their representatives and a tribunal that they have done so. As part 2 of the chapter states, employees need one year of continuous employment service to qualify for protection against unfair dismissal. This extends to unfair dismissals that relate to job redundancy, that is, unfair selection for redundancy, whereas dismissal due to job redundancy requires two years’ employment service before an employee qualifies for compensation. Unfair dismissals that relate to race or sex discrimination, including those for unequal pay and those that relate to pregnancy, are automatically unfair and are available to employees as day one rights. For example, a group of part-time women workers employed on a particular pay grade made redundant after six months’ service may be able to demonstrate unfair selection for redundancy if no male employees were made redundant and they can establish that they were made redundant because they were the cheapest employees to terminate. Other situations where no length of service is necessary to claim unfair dismissal include those that relate to trade union membership, participation in lawful industrialaction that lasted less than eight weeks, participation as an employee representative for purposes of consultation (where there is no trade union presence), refusal to work on grounds of health and safety or where an employee seeks to assert a statutory right.

5.32.3 Wrongful dismissal:A wrongful dismissal is a dismissal that is in breach of contract, for example dismissal without notice or a failure to pay all due wages and remuneration during the notice period. Many wrongful dismissal cases relate to highly paid business executives who are dismissed

but denied some aspect of their remuneration package. Other cases may relate to employees in government service who are dismissed by Ministers.

5.32.4 Constructive dismissal:Constructive dismissal refers to a situation where an employee alleges that an employer has acted so contrary to the operation of their contract of employment that the contract is deemed to be unlawfully and immediately terminated. Events that may trigger constructive dismissal include financial loss due to unilateral changes in pay and remuneration, racial or sexual harassment, unilateral relocations to undesirable areas, being unilaterally stripped of authority or persistent victimization. Claims for constructive dismissal are risky because an employee has to satisfy a tribunal that they had no alternative but to leave and in the majority of cases, it is unlikely that the employee will get their job back.

5.33 Establishing the terms and conditions of garment sector employment:The ‘classical’ definition of collective bargaining has been subject to a number of critical analyses. By establishing rules, collective bargaining outlines a framework for future negotiations regarding the buying and selling of labor. Therefore, it is not a collective equivalent of individual bargaining, as nothing is actually bought or sold; only the rules under which the commodity of labor can be bought or sold are established. Flanders argued that collective bargaining also entails a power relationship; the imbalance of economic power, status and security between the single employee and that of the management can, to some degree, be addressed by collective pressure such that agreements are compromise settlements of power conflicts. Drawing from these arguments, it is useful to recognize that Flanders moves the discussion forward with the emphasis on regulation but the contrast between collective regulation and individual bargaining is debatable. Rather than isolating one major function of collective bargaining, an analysis which outlines three distinct activities which interact to form the bargaining process:

● Market or economic functionThis determines the price of labor to the employer, thus the collective agreement forms the ‘contract’ for the terms under which employees will work for the employer, i.e. the substantive terms (see below) of employment.

● Decision-making function In this role, collective bargaining offers employees the opportunity, if they wish, to ‘participate in the determination of the policies which guide and rule their working.

● Governmental function Collective bargaining establishes rules by which the employment relationship is governed. Thus, bargaining is a political process as it establishes a ‘constitution’. From the above points it is clear that collective bargaining is concerned with the establishment of:

● Substantive rules These regulate all aspects of pay agreements and hours of work.

● Procedural rules These establish the rules under which negotiation over the terms and conditions of employment can take place and establish grievance and dispute procedures. The aim of collective bargaining is to reach negotiated agreements upon a range of issues pertaining to

the employment relationship. From this range of issues, some will hold the potential for a conflict situation where the distribution and division of scarce resources are under negotiation (for example, division of profit as dividends or wages increase). Others, however, will have mutual benefit for employees and management, with themajor debate focusing upon the most beneficial manner in which to implement change:

● Distributive bargaining One party will seek to achieve gains at the expense of the other, the aim is the division of a limited resource between groups, both of whom wish to maximize their share. Pay bargaining is distributive bargaining as one party’s gain is the other’s loss.

● Integrative bargainingThis approach seeks mutual gains in areas of common interest, with a problem-solving approach from the parties involved. Successful integrative bargaining depends upon a relatively high level of trust between parties and a willingness to share information.

5.34 Development:Human Resources Development is concerned with providing learning and development opportunities, making training interventions and planning conducting training and development programs. It is essentially a strategic process, which is concerned with meeting both business and individual needs.

● Develop the key competencies that allow individuals in organizations to perform current and future jobs, through planned learning activities ● Groups within garment industries initiate and manage change ● Ensure a match between an individual and organizational needs.

There are several competing definitions for HRD including things such as unleashing human potential, training and development, career management, organizational performance, organizational citizenship behavior, potential management, employee embedding, organizational change and development, and other issues.

● Executive and supervisory/management development ● Leadership Development ● Professional Skills Development ● Rewards and Recognition Management ● Competency Mapping ● Talent Management ● Technical/Job instruction and coaching ● New recruit socialization and integration ● Health and Safety Awareness ● Organizational Development

5.34.1 Training and Development Options:One key factor in employee motivation and retention is the opportunity employees want to continue to grow and develop job and career enhancing skills. In fact, this opportunity to continue to grow and develop through training and development is one of the most important factors in employee motivation. There are a couple of secrets about what employees want from training and development opportunities, however. In addition, training and development opportunities are not just found in external training classes and seminars. These ideas

emphasize what employees want in training and development opportunities. They also articulate your opportunity to create devoted, growing employees who will benefit both your business and themselves through your training and development opportunities.

5.34.2 Training and Development Option: Job Content and Responsibilities:

Impact training and development significantly through the responsibilities in an employee’s current job.

Expand the job to include new, higher level responsibilities. Reassign responsibilities that the employee does not like or that are routine. Provide more authority for the employee to self-manage and make decisions. Invite the employee to contribute to more important, department or company-wide

decisions and planning. Provide more access to important and desirable meetings. Provide more information by including the employee on specific mailing lists, in

company briefings. Provide more opportunity to establish goals, priorities, and measurements. Assign reporting staff members to his or her leadership or supervision. Assign the employee to head up projects or teams. Enable the employee to spend more time with his or her boss. Provide the opportunity for the employee to cross-train in other roles and

responsibilities.

5.34.3 Training and Development Option: Formal Training and Development: Enable the employee to attend an external seminar. Enable the employee to attend an internally offered training session. Perform all of the activities listed before, during, and after a training session to ensure

that the learning is transferred to the employee’s job. Ask the employee to train other employees with the information learned at a seminar

or training session. Purchase business books for the employee. Sponsor a book club or offer the time at a

department meeting to discuss the information or present the information learned to others.

Provide a flexible schedule so the employee can take time to attend formal educational sessions.

Provide tuition assistance to encourage the employee's pursuit of additional education. These are key factors in multiplying the value of the training and development. Allow employees to pursue training and development in directions they choose, not

just in company-assigned and needed directions. Company support learning, in general, and not just in support of knowledge needed

for the employee’s current or next anticipated job. Recognize that the key factor is keeping the employee interested, attending and engaged.

The development of a life-long engaged learner is a positive factor for garment industry no matter how long the employee chooses to stay in the industry.

5.34.4 Performance Management and Development in the General Work System:

Define the purpose of the job, job duties, and responsibilities. Define performance goals with measurable outcomes. Define the priority of each job responsibility and goal.

Define performance standards for key components of the job. Hold interim discussions and provide feedback about employee performance,

preferably daily, summarized and discussed, at least, quarterly. (Provide positive and constructive feedback.)

Maintain a record of performance through critical incident reports. (Jot notes about contributions or problems throughout the quarter, in an employee file.)

Provide the opportunity for broader feedback. Use a 360 degree performance feedback system that incorporates feedback from the employee's peers, customers, and people who may report to him.

Develop and administer a coaching and improvement plan if the employee is not meeting expectations.

5.34.5 Immediate Preparation for the Performance Development Meeting: Schedule the Performance Development Planning (PDP) meeting and define pre-work

with the staff member to develop the performance development plan (PDP). The staff member reviews personal performance, documents “self-assessment”

comments and gathers needed documentation, including 360 degree feedback results, when available.

The supervisor prepares for the PDP meeting by collecting data including work records, reports, and input from others familiar with the staff person’s work.

Both examine how the employee is performing against all criteria, and think about areas for potential development.

Develop a plan for the PDP meeting which includes answers to all questions on the performance development tool with examples, documentation and so on.

5.34.6 The Performance Development Process (PDP) Meeting: Discuss and agree upon the objective of the meeting, to create a performance

development plan. The staff member discusses the achievements and progress he has accomplished

during the quarter. The staff member identifies ways in which he would like to further develop his

professional performance, include training, assignments, and new challenges and so on.

The supervisor discusses performance for the quarter and suggests ways in which the staff member might further develop his performance.

Add the supervisor's thoughts to the employee's selected areas of development and improvement.

Discuss areas of agreement and disagreement, and reach consensus. Examine job responsibilities for the coming quarter and in general. Agree upon standards for performance for the key job responsibilities. Set goals for the quarter. Discuss how the goals support the accomplishment of the organization's business

plan, the department's objectives and so on. Agree upon a measurement for each goal. Assuming performance is satisfactory; establish a development plan with the staff

person, which helps him grow professionally in ways important to him. If performance is less than satisfactory, develop a written performance improvement

plan, and schedule more frequent feedback meetings. Remind the employee of the consequences connected with continued poor performance.

The supervisor and employee discuss employee feedback and constructive suggestions for the supervisor and the department.

Discuss anything else the supervisor or employee would like to discuss, hopefully, maintaining the positive and constructive environment established thus far, during the meeting.

Mutually sign the performance development tool to indicate the discussion has taken place.

End the meeting in a positive and supportive manner. The supervisor expresses confidence that the employee can accomplish the plan and that the supervisor is available for support and assistance.

Set a period for formal follow up, generally quarterly.

5.34.7 Following the Performance Development Process: If a performance improvement plan was necessary, follow up at the designated times. Follow up with performance feedback and discussions regularly throughout the

quarter. (An employee should never be surprised about the content of feedback at the performance development meeting.)

The supervisor needs to keep commitments relative to the agreed upon development plan, including time needed away from the job, payment for courses, agreed upon work assignments and so on.

The supervisor needs to act upon the feedback from departmental members and let staff members know what has changed, based upon their feedback.

Forward appropriate documentation to the Human Resources office and retain a copy of the plan for easy access and referral.

5.35 Management by Objectives: Management by Objectives (MBO) is a philosophy of management that has employees establish objectives (MBO) though consultation with their superiors and then uses these objectives as a basis of evaluation.MBO is a system involving a cycle that begins with setting the organization’s common goals and objectives and ultimately return to the step. The system acts as a goal setting process whereby objectives are established for the organization (step 1), department (step 2), and individual managers and employees (step3).

Given Figure Illustrates a significant features of the cycle is the establishment of specific goals by the employees but those goals are based on a board statement of employee responsibilities prepared by subordinate.

5.36 Innovative Employee Reward System Is Very Important for Motivating the Employees Its Importance is discussed below:

(1) Motivation: - Innovative Employee Reward System Help in Motivating the Employees. Employees Put Their Efforts To Show Their Performance.

(2) Increasing Productivity: - Innovative Employee Reward System Helps In Increasing the Individual Productivity Hence Increase Organizational Productivity.

(3) Healthy Completive Environment: - It Also Helps In Creating Healthy Completive Environment, Which Is Useful For Achieving The Garment Industries Goal.

(4) Self - Satisfaction: - Reward for the Work Help In The Employee Job Satisfaction. Employees Take Initiative In Every Kind Of Activity.

(5) Differentiate Between Efficient and Inefficient Employees: -Innovative Employee Required Also Help in Differentiating Between Efficient and Inefficient Employees Efficient Employees Can Be Awarded Accordingly For There Efforts.

■ Acquire or Sharpen Workers Capabilities Required To Perform Various Obligations, Tasks and Functions.■ Develop Workers Capabilities As Individual So That They May Be Able To Discover Their Potential And Exploit them To Full Their Own and/or Garment Industries Development Purpose And■ To Develop An Garment Industries Culture Where Superior Subordinate Relationship Team Work And Collaboration Among Different Sub Units Are Strong And Contribute to Garment Industrial Wealth, Dynamism And Pride To The Employees.

Chapter – 6Conclusion:The role of the HR manager must parallel the needs of the changing garment industries. Successful organizations are becoming more adaptable, resilient, quick to change directions, and customer-centered. Within this environment, the HR professional must learn how to manage effectively through planning, organizing, leading and controlling the human resource and be knowledgeable of emerging trends in training and employee development.At present, there are automated Human Resource Management Systems (HRMS) as well as benefits management systems that assist employees in managing their facilities and incentives.

Because of this aspect, the role of HR is changing in garment industries.A growing trend in modern day HR practice is the need to integrate Decision Support Management Systems (DSM). Just as an organization’s business and financial development is augmented with the use of sophisticated analytical tools, HR decisions today are supplemented using DSM programmes. HR decisions need to be focused towards the common goal of supporting business decisions. HR managers therefore have to administer systems to foster effective decision-making abilities in individuals. The ultimate goal is to produce a leader for tomorrow. While making a decision, the quality of the decision itself is very important. To permit DSM, the HR manager should identify vital indicators of success within himself, the employees and the company. The indicators act as a framework to facilitate the decision making process. The quality of the decisions also depends on

identifying appropriate outcome measures in all aspects of decision-making. The outcome should be long-term and not short-term. HR is about administering the system to get an outcome and not ensuring that a system is in place, but still does not provide the necessary outcome.

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HRM Practices and Policies in AJI Group

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