Project Paper on“Shwapno”

.

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Submitted to,

Md. Tamzidul Islam Senior Lecturer BRAC Business School

Submitted By,

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Course

Title: MGT 211Course Name: Principals of ManagementSection: 05Date of Submission: 1st April 20141st April ,2014

Md. Tamzidul IslamSenior Lecturer

BRAC Business School

BRAC University

Dear Sir,

Sub: Letter of transmittal

With due respect, we have the pleasure to submit our project workon “Shwapno” as a part of MGT-211 course to partially fulfill therequirements under your supervision. It has been an excellentexperience for us to work in the “Project” as it helps us to knowand realize different management theories, function, and motivationof an organization. So, this project work will help us a lot in ourhigher level courses.

In Our report, we have used both primary and secondary data andhave tried to prepare the report according to your instructions. Wealso confess that this report has some limitations as well becausewe got limited resources. So we hope that you will be kind enoughto consider the limitations of this report.

So, we would like to thank you for your encouragement and supportwhich inspired us to work enthusiastically. It would be our

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Name Student IDInzamam Azad 12304020Susmita Gupta 12104140Shams Jarin Aurpa 12104207Md.Mahbubur Rahman 12304066Md. Neamat Ullah 11104083

pleasure to clarify any discrepancy that may arise or anyclarification that you may require regarding our project work.

We are really glad that we got the opportunity to have suchwonderful and educative experiences.

Thank you,

Yours sincerely,

TABLE OF CONTENTS

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Name Student IDInzamam Azad 12304020Susmita Gupta 12104140Shams Jarin Aurpa 12104207Md.Mahbubur Rahman 12304066Md. Neamat Ullah 11104083

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Parts Topics Page

Numbers

Acknowledgement 06

PART-01 INTRODUCTION 07

1.1 Abstract 07

1.2 Origin of the report 07

1.3 Objectives & scope of the

studies

07

1.4 Methodology 08

PART-2 Section-01 09

2.1 Nature of Business 09

2.2 Customer & competitors 09

2.3 Other Stakeholders 10

2.4 Measuring Effectiveness &

Efficiency

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2.5 Skill requirement 10

2.6 Environmental Factors 10

PART-03 Section 02 11

3.1 Intensive Growth

strategies

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3.2 Integrative Growth

Strategies

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3.3 Downsizing of growth

Strategies

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3.4 Decision making Model 16

PART04 Section 03 17

Acknowledgement

This term paper would not have been possible without the support

of many people. Thus, we would like to express our deepest

appreciation to all those who provided me the possibility to

complete this report. At first, we are very grateful to our

honorable course instructor Mr.Tamzidul Islam for his continuous

guidance henceforth. His guidance and instructions about

preparing this report has been of extreme help. We are also

gratified for all the times we seek advice from him and he

answered with the paramount patience and perseverance. We are

also thankful to him for giving us the opportunity to learn

through this project how the theories in the book could be

executed with the in real world.

Moreover, all of our group members are helpful and co-operative

to complete this project work. Every members of our group give

their best effort to make the work successful and they contribute

a lot whenever they require.

Furthermore, we would like to express our gratitude to Md.Amirul

Islam, Operation Manager, Retail Sales of Shwapno for giving us

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his valuable time by sharing his experiences and knowledge and

made it possible for me to finish the project paper. We also

admire the warm welcome of all the Shwapno office staffs that

they had given us whenever we went to their office. A special

thanks to all the fellow class mates for their appropriate

suggestions and help during preparing the project work.

Part 1 : Introduction

1.1 Abstract:

Shwapno is one of the most popular super shop in our country.

Shwapno is operated by ACI Logistics limited. They have a very

large number of outlets in different parts of our country. They

have more than 79 outlets and about 700 employee all around the

country. Shwapno apply and implement different management

theories and function in their organization. While we are

preparing the report we found that they evaluate the performance

of their employees, develop motivational program and other

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various strategies that are related with management a lot. So, by

preparing this project work we come to know that how different

theories of books are implemented in real organization.

1.2 Origin of the Report

Our group has been privileged to work on this project which has

been assigned by our honorable course instructor Md. Tamzidul

Islam in the class of Principles of Management (MGT 211) in

section-05. Our report is based on the nature, competitors,

customer, different skill, relevant growth strategies, decision

making model, division of work, hierarchy, departmentalization,

motivational program and performance evaluation of a well-

recognized company in the apparel industry called “Shwapno”. We

basically tried to cover all the things that is required by our

course instructor.

1.3 Objectives & Scope of the Study

Broad Objective

To study and analyze how different management function affects an

organization in the practical world.

Specific Objective

The goal of working on the project is to learn how an

organization manages all the department, division and how they

develop relevant growth strategies, decision making process, and

motivational program and evaluate the performance of the

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employees. So it creates a bridge between our academic study and

real life situation.

Scope

Our group got an opportunity to know the details management

functions of Shwapo. We got the scope to understand the various

management strategies of the company. When we took an interview

and researched on Shwapno, we came to know the strengths and the

weakness of Shwapno and how it is performing in this arena of

competition

1.4 Methodology

We divided the work among ourselves and then prepared individual

questionnaire for the purpose of interviewing the personnel of

Shwapno. Then, combining all the information we made this

descriptive report.

Sources of data collection

Primary Source: The primary information is gathered through

informal interviews of the employees and operation manager

working over there under management level, their salesman

who are directly involved with selling product and also

observation while physically visiting the office premises.

Secondary Source: Secondary sources had also used to collect

information. Secondary sources include:

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Features and articles published in newspapers and other

journals

Website of “Shwapno” super store and many other related

WebPages Data Collection Technique

Questionnaire: Unstructured and open-ended questionnaires were

asked to the different people and customer of different

areas where the Shwapno super store is located to find

overall information of Shwapno.

Observation: We visited West Kazipara, Mirpur branch of

Shwapno for an interview to an Operation manager. We also

observed the shop’s environment as well as customer

perception towards them.

Secondary Information’s: Secondary information has collected by

reviewing websites, journals, brochures and some other

relevant documents.

PART 02:

2.1 Nature of business

With a vision to change the lifestyle of Bangladeshi consumers

Shwapno is a newdimensional superstore in Bangladesh, a retail

establishment selling goods to customers on the premises. Opening

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their first outlet in Postogola Dhaka, in 28 October 2008,

Shwapno is growing rapidly by recently running 59 outlets in 16

districts to serve maximum customers. Selling goods that are

expected to have a short life for personal or household use in a

price that is similar to the open market. It is a self-

service shop offering a wide variety of food and household

products organized into aisles, comprising meat,

fresh produce, dairy along with shelf space reserved for canned

and packaged goods. Even though the super-shop or super-market

industry has not yet fully flourished in our country Shwapno has

already made its own place in the industry with their unique

marketing strategy

2.2 Customers and competitors

The target market or customer for Shwapno is middle-class and

upper middle-class people. Specially, nuclear families with

service holding parents who barely have time to go from shop to

shop to bargain and purchase daily groceries. Other than that,

Shwapno tries to capture not only urban dwellers but also the

people living in suburban areas, establishing outlets in Feni,

Sylhet, Moulvi bazar, Bogra, Nator, Rangpur, Khulna etc.

Agora, Mina Bazar and Nandan are the super shop that provide

similar services for similar group of people and is considered as

competitors of Shwapno. Furthermore, the upcoming super shops

that are about to start their business on the same industry also

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possesses threat. Shwapno should convert the competition into a

strength by providing more facilities to the customers.

2.3 Other Stakeholders

The stake holders of Shwapno are the customers and consumers,

it’s staffs, producers or farmers (as Shwapno buys directly from

the farmers), and the overall business environment.

2.4 Effectiveness and Efficiency

Over times Shwapno has been successful in taking and executing

effective business ideas. Recently Shwapno has launched their own

clothing line named “Shwapno Life” which has gained much

popularity and has brought huge success for them. The idea behind

“Shwapno Life” is to provide trendy, fashionable clothes in the

lowest possible price range. On the contrary, the idea of buying

product directly from the farmer is undoubtedly the most

efficient decision as it enables them to skip the middleman which

is both less time and cost consuming. Shwapno usually buys the

product in a much higher volume than the small grocery shops that

enables them to sell at a lower price and still make profit.

2.5 Skills required

Shwapno has a large number of employees. To signify any task,

Shwapno plans report, targets practical report. After a certain

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time, Shwapno matches or combines target report with the

practical report. Then the company can easily show the success

and failure of the company to its workers and tries to realize

them the significance of their task. It is really inevitable for

achieving success in a company. The Administrative authority of

Shwapno usually seeks inter-personal human management skill while

hiring an employee. Other than that, the Accounts counter

requires accounting and financial skills.

2.6 Environmental factors

Globalization is the main element for modern business without

practicing which no organization can function properly.

Globalization affects the business environment of Shwapno by

bringing new opportunities for them. As an example, Shwapno has

most of its outlets outside of Dhaka including Narayangong,

Mymensing, Chittagong, Barishal etc. and that has become possible

because of the better infrastructure and transportation system

which is a result of globalization. But, globalization has it’s

dark side as well. It has brought new competitors and threats for

Shwapno.

PART 03

As the business has started, now we are facing more competition

in the market. Many new entrants are offering the similar product

with low price and as a result we are losing market share and

revenue share. Furthermore, recently we have found that our

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service level is also degrading and as a result receiving

customer complaints. So, in these circumstances we are trying to

follow the growth strategies. Among the intensive, integrative,

diversification, downsizing growth strategies; we are going to

figure out that in which situation, which growth strategies are

going to be appropriate in this situation, and which we will

apply into our business. We will establish our decision by the

rational decision making process.

3.1 Intensive Growth Strategies

Expanding the business always involves risk. There are

essentially two ways to do so: intensive growth strategies and

integrative growth strategies. In the former category, we have to

identify further growth opportunities within existing businesses.

In the latter category, we will look at building or acquiring

businesses that are related to your current businesses.

Each strategy has a degree of risk but the level of risk varies

per strategy. High risk activities or strategies, if implemented

successfully, can result in high growth. Low(er) risk activities

or strategies may on the other hand have a higher chance of

succeeding but have a lesser quick-growth impact. The most common

ways to expand a business are listed below (in order of lowest

risk to highest risk). Each business is different and you will

have to create the growth strategy that best suits your

business. 14

Market penetration

Market penetration is, simply put, how can you sell more of the

same product to the same customers? For example, rather than

selling individual LUX soap, we will sell them in a pack of 6,

with all the different flavor of LUX soap. In departmental shop

businesses, this may be easier to do in some sectors with some

products than in others. It is unlikely that we will be able to

use a 6-pack strategy in the case of a new soap box with

different packaging. If this technique is a chipper, then we may

be able to get away by batch sales. This strategy has the lowest

risk.

Market Development

Developing a new market for the existing company product is

called market development strategy. This is the process of

finding new market for the new customer to increase company

performance by increasing sales and profits. Companies can

develop market on geographical such as city, country, region,

state etc and demographical such as age, sex, gender, class etc.

In this strategy we are looking at ways of how we can offer our

product in adjacent markets. For example, we have a current

customer base in Dhaka and you are looking at ways to expand to

the Chittagong.

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Product Development

Product development strategy is aimed at developing new products

to sell to your existing customer base as well as a new customer

base. This may be difficult to achieve sometimes. Ideally, the

new product is attractive to both. If you have the choice to

develop a product that is attractive to the existing customer

base or a product for a new market, go for the former. Why?

Developing a new product is risky business as it is. Exploring

and penetrating a new market at the same time brings extra risk

to the activity. Unfortunately, you are not always given this

luxury choice. Sometimes, market conditions dictate that we must

create new products fornew customers.

Diversification

Growth strategies in business also include diversification, where

a small company will sell new products to new markets. This type

of strategy can be very risky, according to gaebler.com. A small

company will need to plan carefully when using a diversification

growth strategy. Marketing research is essential because a

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company will need to determine if consumers in the new market

will potentially like the new products. If we do develop a new

product and aiming to target a new market, we are essentially

diversifying your product portfolio. This is the most risky of

the intensive strategies. A solid existing product with a solid

existing customer base is essential to keep your business afloat

as you invest in this strategy. For example, Shawapno has started

garments product business.

Identifying Alternative Channels

We can also identify alternative channels. This strategy involves

pursuing customers in a different way such as, for example,

selling our products online. This works well for consumer

products and, in some cases, also for business-to-business (B2B)

products. Alternative channels for B2B can be special exhibitions

or fairs such as an annual electronic fair. But also scientific

conferences can sometimes be alternative channels to promote your

product. Hospitals sometimes organize special events for their

clients to demonstrate their newest products.

3.2 Integrative Growth Strategy

Integrative strategies are usually considered when the intensive

growth strategies have been exhausted and consist of M&A

activities. They are high risk and costly undertakings whereby

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75% of all acquisitions fail to deliver on the value or

efficiencies that were expected. These are therefore activities

that need to be thought through carefully. Nevertheless, there

are three categories of integrative growth strategies: forward

integration, backward integration and horizontal integration.

Forward integration

In this growth strategy, we acquire or merge with companies that

are part of our distribution chain. This can be a distributor or

a retailer. The advantage of this strategy is that it reduces the

number of distributors or retailers for the competition. In

addition, a reduction in cost and/or increase in efficiency can

sometimes be achieved as well.

Backward Integration

In this growth strategy, we acquire or merge with companies that

are part of your supply chain i.e. a supplier. Similar to the

forward integration strategy, this type of growth can reduce

costs and/or increase efficiency. However, not all backward

integration acquisitions lead to a competitive advantage or

increase the value of the business. For example, some suppliers

provide for many different businesses. Because of this, they can

upscale and therefore offer inputs at a lower cost than if they

were integrated with only one manufacturer.

Horizontal Integration

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Horizontal integration is when you acquire or merge with a

company that is at the same level of the value chain. The company

that is to be acquired does not necessarily need to be in the

same industry. Because the two companies are at the same level in

the value chain, they could share certain resources. If the

company to be acquired is

in the same industry,

it would be regarded as

a merger of competitors.

Another advantage of

horizontal integration is

that is offers a way to

expand into foreign markets.

3.3 Downsizing of growth strategy:

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Companies develop different strategies for growth and downsizing.

The present market is full of competition and hectic. Therefore

companies work out for different strategies to have a growth in

the market. The company's objective stays for "Profitable

Growth". Hence the strategies that companies use are Market

Penetration, Market Development, Product Development, and

Diversification.

Market Penetration is a strategy used by the companies to tap the

market or to increase sales with the current product without any

changes or modifications. Most of the companies look at low

pricing strategies to penetrate into the market. Then looking at

Market Development where the company tries to find out new market

locations and takes action to develop that market for the current

products of the company.

Then it's about Product development where the company works on to

develop the product without modifying the marketing strategies.

Here the company introduces a new or modified product to the

current market segment. Then the company looks to diversify its

business, where the company works on other business or products

which may or may not be related to the core business. Then comes

Downsizing, where the company cuts down the unnecessary products

or units which are not making any return on investment.

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Hence these are the few strategies on which the companies work to

retain profits and have a growth path. These strategies are

developed according to the market situation and competitive

analysis. These strategies work out for most of the companies.

Hence these strategies help the company to look at their growth.

3.4 Decision making:

To find out the solutions of our problems we have to go through

the Rational decision making process. Rational decision making is

a multi-step process for making logically sound decisions that

aims to follow the orderly path from problem identification

through solution. This process begins with formulating a goal(s),

analyzing the problems, identifying the criteria for making the

decision, identifying alternatives, and a final decision.

Identifying and analyze problems

Problems that are visible tend to have a higher probability of

being selected than ones that are important.

1. Easily to catch a decision maker’s attention.

2. Decision maker want to appear competent and “on top of

problems”.

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This desire motivates DM to focus on problems that are visible to

others.

If a decision maker faces a conflict between selecting a problem

that is important to the organization and one that is important

to the decision maker, self-interest tends to win out. This

tendency also is related to the issue of visibility. It’s usually

in a decision maker’s best interest to attack high-profiles

problems. It conveys to performance is later reviewed, the

evaluator is more likely to give a high rating to someone who has

been aggressively attacking visible problems than to someone

whose actions have been less obvious.

Verifying, defining & detailing the problem (problem definition,

goal definition, information gathering). This step includes

recognizing the problem, defining an initial solution, and

starting primary analysis. Examples of this are creative

devising, creative ideas, inspirations, breakthroughs, and

brainstorms.

The very first step which is normally overlooked by the top level

management is defining the exact problem. Though we think that

the problem identification is obvious, many times it is not. The

rational decision making model is a group-based decision making

process. If the problem is not identified properly then we may

face a problem as each and every member of the group might have a

different definition of the problem. Hence, it is very important

that the definition of the problem is the same among all group

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members. Only then is it possible for the group members to find

alternate sources or problem solving in an effective manner.

Developing and evaluate alternatives:

This step encloses two to three final solutions to the problem

and preliminary implementation to the site. In planning, examples

of this are Planned Units of Development and downtown

revitalizations.

This activity is best done in groups, as different people may

contribute different ideas or alternative solutions to the

problem. Without alternative solutions, there is a chance of

arriving at a non-optimal or a rational decision. For exploring

the alternatives it is necessary to gather information.

Technology may help with gathering this information.

Since decision makers rarely seek an optimal solution, but

rather a satisfying one, we should expect to find a minimal use

of creativity in the search for alternatives. And that

expectation is generally on target. Efforts will be made to try

to keep the search process simple. It will tend to be confined to

the neighborhood of the current alternative. More complex search

behavior, which includes the development of creative

alternatives, will be resorted to only when a simple search fails

to uncover a satisfactory alternative. Decision maker avoid the

difficult task of considering all the important factors, weighing

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their relative merits and drawbacks, and calculating the value

for each alternative. Instead, they make successive limited

(incremental) comparisons. This branch approach simplifies

decision choices by comparing only alternatives that differ in

relatively small degree from the choice currently in effect. This

approach also makes it unnecessary for the decision maker to

thoroughly examine an alternative and it is consequences; one

need investigate only those aspects in which the proposed

alternative and its consequences differ from the statuesque. It

acknowledges the non-comprehensive nature of choice; in other

words, decision makers make successive comparisons because

decisions are never made forever and written in stone, but rather

they are made and remade endlessly in small comparisons between

narrow choices.

Choosing the best alternative and finalize (choosing decision)

:

This step comprises a final solution and secondary implementation

to the site. At this point the process has developed into

different strategies of how to apply the solutions to the site.

Based on the criteria of assessment and the analysis done in

previous steps, choose the best solution generated. These four

steps form the core of the Rational Decision Making Model.

PART 04

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4.1 Division of Work

Shwapno have different division of work in their outlets. The

person who works as a security guard always look at the entrants

of the outlets. He also takes the badges of the customer and kept

it on the selves. Moreover the staffs and employees also help the

customers to find out their desire product. There is also a

person in the outlet who kept the record of sales in their

computer. The Operational Manager in every outlet monitors all

the employees of that outlet and report to higher level

management.

4.2 Departmentalization

Accounts & Finance

Production

Quality Control

Human Resource (HR)

Engineering

Information and Technology (IT)

Security

Commercial

Product Development

Distribution

Legal

Technical Services Department

Management Information System (MIS)

Transport Management And Logistic Support25

4.3 Hierarchy

Shwapno uses tall organogram as it is suitable with the nature of

their organization. Moreover large, complex organization often

requires a taller hierarchy. As shwapno is a large organization

with a lot of outlets so it is better to follow tall hierarchy. A

tall structure results in one long chain of command similar to

military.Shwapno also have a long chain of command. As Shwapno

grows, the number of management levels increases and the

structure grows taller. Although tall organization have more

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CEO

Operational Manager

Marketing Manager

Sales Manager

Assistant Manager

Assistant Manager

Assistant Manager

Sales Person Service

Staff Service Staff

management levels but managers from many ranks has a small area

of control.

4.4 Suggestion towards appropriate Organograom:

From our point of view the organogram they are following is

perfect for their business. As Shwapno is doing super shop

business so they need to maintain different management levels in

their organization. Firstly, within tall organizational structure

there is a close supervisory control because of low span of

managers. So, in Shwapno all the managers can supervise other

managers. Secondly,it is more authoritative structure as a

consequence, the roles and responsibilities are clearly

defined .In shwapno the roles and responsibilities of each

manager are clear so they can do their own task. Thirdly, in a

tall organization the responsible person is other accountable to

higher authorities. In Shwapno each manager are responsible and

accountable to their senior managers which is really required to

earn more profit and to increase their sales. If they follow flat

organogram than the control of top management could be weakened

as they may have too wide a span of control. So they may need to

delegate more frequently. Motivation level in flat organization

is little. The chance of promotion in flat organization is very

few than tall organization. If Shwapno follow flat organogram

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than the employees can be demotivated to work as there is a less

chance of promotion.

4.5 Responsibilities and Accountabilities of different

position

CEO

Direct and coordinate the managers Passes new plans and fixes missions

Marketing Manager

Identify, develop and evaluate marketing strategy, based on

knowledge of company objectives, market characteristics and

cost and markup factors

Develop marketing plan for launching new product to make

successful inroads under the portfolio and Prepare and

implement marketing budget efficiently

Formulate, direct and coordinate marketing activities and

policies to promote products and its brand, working with

advertising managers

Initiate market research studies or analyzes their findings

and competitor analyze.

Develop private level branding and identify new source of

product and develop existing source.

Set up Plano gram and ensure best visual merchandising

Sales Manager

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Accomplishes regional sales human resource objectives by

recruiting, selecting, orienting, training, assigning,

scheduling, coaching, counseling, and disciplining employees

in assigned outlets; communicating job expectations;

planning, monitoring, appraising, and reviewing job

contributions; planning and reviewing compensation actions;

enforcing policies and procedures.

Supervise Area Managers, outlet managers and Cluster

Operation Managers of the respective superstores

Implement special project of Shwapno Mini Shop and supervise

existing 15 mini shops.

Achieves regional sales operational objectives by

contributing regional sales.

Information and recommendations to strategic plans and

reviews; preparing and

completing action plans; implementing production,

productivity, quality, and customer-service standards;

resolving problems; completing audits; identifying trends;

determining regional sales system improvements; implementing

change.

Meets regional sales financial objectives by forecasting

requirements; preparing an annual budget; scheduling

expenditures; analyzing variances; initiating corrective

actions.

Operational Manager

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Develop and administer pricing strategies, balancing company

objectives and customer satisfaction Direct the hiring,

training, or performance evaluations of marketing or sales

staff and oversee their daily activities

Consult with buying personnel to gain advice regarding the

types of products expected to be in demand

Evaluate the financial aspects of product development, such

as budgets, expenditures, research and development

appropriations, or return-on-investment and profit-loss

projections

Consult with product development personnel on product

specifications such as design, color, or packaging.

Negotiate contracts with vendors or distributors to manage

product distribution, establishing distribution networks or

developing distribution strategies

Assistant Managers

To enhance institutional sales of the outlets

To reduce inventory shortage

To devise sales target

To achieve sales Target

PART 05

5.1 Motivational drives of Employees

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Recently Shwapno identified that some of their employees are not

working well and they are not giving their best effort in

workplace. The employees are not even showing on a regular basis.

So that the productivity, sells and revenue of company is

decreasing which is a threat to the company. Because demotivated

employees are likely to spend little or no effort in their jobs,

avoid the workplace as much as possible, exit the organization if

given the opportunity and produce low quality work. On the other

hand, employees who feel motivated to work are likely to be

persistent, creative and productive, turning out high quality

work that they willingly undertake.

So to overcome these situation the organization should develop

some motivational drives and program for the employee. There are

two types of motivation:

5.2 Financial Motivation

Sallary

Bonus

Provident Fund

Graduity

Salary:

The salary scale of the company starts from 4,500 tk. in

worker level and it maximizes up to 10,000-12,000 tk. basing

on job experience and performance. The management staff salary

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scale starts from 15,000 tk. and maximizes till 16,000-40,000

tk. per month again basing on skill, potentiality, performance

and definitely experience. The company always pays salary to

its staffs between the selected days. So, there is no chance

of discrimination in here and there is no racism in here.

Again this is a motivational step for the staffs.

Bonus:

The company can offer bonuses for the employees in different

occasion. In Eid, Durga puja, Cristmas Day and in any

religious occasion they can provide bonus to the employees

which can motivate them to work.

Provident Fund and Graduity:

Shwapno can also provide provident fund and graduity

facilities to the employees as a motivation drive.A certain

ammount of salary are saved to the provident fund which can

help the employyes in future and in a long run.

5.3 Non-Financial Motivation-

Fringe Benefits32

Working condition

Job Security

Status

Praise of Recognition

Growth and promotional opportunity

Job enrichment Vacation

Fringe benefits:

Shwapno may offer some fringe benefits for the staffs.

Doctors can provide free treatment to workers.

Mobile bill can be paid by company for selected management

staffs.

Ensure Free transportation facilities for management staffs.

These facilities encourage staffs a lot

Working condition:

Shwapno can maintain neat and clean working environment. They can

build their own cleaning team who cleans the working place every

day. Without this, they can also ensure special checking team who

check each department outlet store once in every 2 months. So,

working in Shwapno can be safe and healthy for its workers

Job security:

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Shwapno should ensure job security for its employees. They can

give newly recruited employees in passes a 3 month provision

period at first. Then he or she might be permanent. In case of

firing someone, if it is a root level worker, the firing may

depends on worker’s job performance and if it is a management

staff, then he or she can get a 2-3 months warning period. If

still the performance deteriorates, then he or she need to gets

fired. So, whatever the status of the staff is, he or she can

gets a good chance to protect his job from getting fired which is

really motivating.

Status:

Definitely identifying the status of a staff in company is really

motivating for him and in this case, Shwapno can go one step

ahead. They can provide badge for every staff whether he is a

root level worker or a top level management staff. His

designation can be written on it with a photo of his own which

clearly expresses his status in the company and makes him feeling

that he is important in the company.

Recognition:

Shwapno should recognize its valuable and potential employees.

Because that if the staffs are not recognized properly for their

effort, then they won’t be able to pay 100% concentration next

time. So, to recognize, company may kept records of every worker

to his supervisor. After a certain time, the internal audit team

can checks everyone’s records and praises them accordingly. The

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good recognition results in increasing salary, vacation period

and so

Growth and promotional opportunity

A good chance of growth and promotion must be implemented in

Shwapno . Any root level worker can start their job life in this

company with 4500 tk salary. It should be maximized till 10000-

12000 tk according to performance and experience. For management

employees, the salary starts from 15000 tk and can be maximized

above 40000 tk basing on quality performance and experience. Any

staff can start their job life from root level worker and can

reach till high level management staff through promotion. So,

this is really motivating for staffs.

Job enrichment:

As Shwapno is export oriented company, so definitely they need to

be cautious about their product quality and where the question is

about quality, Shwapno is 100% dedicated to keep the standard of

their products. Now to keep the standard of the product Shwapno

always concentrates on job enrichment rather than job enlargement

because by job enlargement Shwapno will be able to complete more

orders, but there always remains a question about quality. By job

enrichment, the quality is confirmed. Shwapno can build its own

inspection team. For every order, the inspection team inspects

the products and focuses on job enrichment. This is because job

enrichment gives the chance to employees to show their full range

of abilities. So, if the company does not focus on job

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enrichment, the staffs will not be motivated. Ultimately, the

company will not be benefited.

Vacations:

Shwapno can provide vacation according to Labor act 7, 10 days =

Sick leave, 5 days = Holiday and government holidays. They can

also provide maternal leave for the women employees.

5.4 Motivational Program

5.5 Maslow’s need hierarchy theory:

Shwapno can follow another great theory to clarify their staffs

and to motivate them. The theory is “Maslow’s need hierarchy

theory”

According to Maslow’s need hierarchy theory, Shwapno

differentiates the needs of their staffs as follows.

Physiological needs:

According to Bangladesh labor act, the minimum salary starts from

3500 Tk. and the basic salary of workers of Shwapno starts from

4500tk. Though this amount is very little, but Patriot Group

thinks that it is possible to meet the basic needs (food, cloth,

shelter, basic education) by this amount. As a workers leads a

hand to mouth life, so shopno can provide some special

arrangements for workers in Shwapno super shop.

1. They can provide doctors for workers who can fulfill workers

health facilities.36

2. They can arrange pure drinking fileted water as much workers

want. This is because, it is really hard to work 10 hours

without drinking water.

Safety:

There is always a fear among workers regarding the security of

their job, body, health etc. So, to ensure the safety, Shwapno

can follow different arrangements.

1. Wearing hand gloves needed to be mandatory as the job is

sewing related.

2. Wearing special thin cap should also be mandatory as it

helps to work in safe and protects from germs.

3. Financial help for unexpected serious injury.

4. The job need to be completely secured in Shwapno as long

the employee is not breaking any company law.

And it is essential to mention that there is a good chance of

promotion in Shwapno.

State of belonging:

According to Maslow’s theory, in this stage humans want or

involve in feelings of belongingness. Human expects love,

friendship, intimacy etc. from others. In Patriot Shwapno, the

management team can always encourages the workers to make a good

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relation with co-workers so that they can have love, friendship,

intimacy among themselves. Not only this, sometimes the

supervisors can arrange speaker and play music in loud. As a

result, the workers get inspired and work with full energy rather

than getting bored.

Esteem:

In the stage of esteem, people want to be respected by others,

valued by others. As it is not possible for Patriot Group to take

the workers in esteem stage only by giving 4500 Tk. salary, but

there is a roadmap for staffs to come in this stage called

promotion. As an example, we can mention the name of an

experienced worker named Mr. kamrul who has worked more than

3years in the company. His starting salary was 4500 Tk. only but

now he is getting more than 16,000 Tk. per month. This has been

only possible by his dedication to work. His education has also

helped him a lot. Now he is respected by fellow workers and

valued by management authority. So, in here, Maslow’s theory is

proved again.

Self-actualization:

To be very honest, it’s not possible for workers to reach in

self-actualization level but it is slightly possible for high

level management staffs. For example, we can mention the Head of

management of Shwapno is Md. Sabbir Ahmed who his patronizing work

for the society.

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So in this way, Shwapno can apply the famous “Maslow’s need

hierarchy theory” in the company

5.6 Adam’s Equity Theory:

Peoples view their outcomes and inputs as a ratio and then

compare it to someone else ratio- is the summary of equity

theory. It’s obvious that an employee will be satisfied only if

he/ she finds that there is equity exists between the outcomes

(given by company) and inputs (given by employees). According to

equity theory outcomes from a job includes pay, recognition,

promotion, social relationship and intrinsic rewards. To get

these rewards the individuals give inputs to the job such as

time, experience, effort, education and loyalty. To motivate

employees, equity theory is used by them wisely. Because they

know that if the employees think that they are getting their

salary, promotion, recognition as per their output that means

time, efforts etc. nothing is need to motivate them because they

will remember that company is doing justice with me so why not me

! Actually the comparison is done by an employee with another

employee. Whenever he/she sees that an employee sitting beside

him in same position getting more or less benefits from company

then he feels under or over rewarded. To remove this thing from

the mind of the employees’ Shwapno use this formula:

Outcomes (self)/inputs (self) = outcomes (other)/inputs (other)

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Shwapno need to ensures that the ratio is equal because only then

a state of equity or fairness will exist. We can tell about their

salary. They are giving 4500 for operators and they ensure that

all the operators get the same amount of money. This strategy can

not done only in this section but also in other sections of

Shwapno. As a result, employees of Patriot group feel that they

are treated equally and ultimately they are motivated. The

employees of Shwapno can get recognition or facility as per their

input. For example, some selected management staffs can get the

mobile bill from the company. Their inputs are more than the

average employees so they get this kind of facility.

But sometimes the ratios can be perceived as unequal in Shwapno.

Sometimes benefits, advantages, outcomes that are given by them

are failed to maintain fairness. Sometimes the employees feel

that they are under rewarded when they compare the facilities of

others with them. Whenever this inequity rises amongst the

employees, steps must be taken carefully by Shwapno to resolve

this because they know equity or fairness in work is the only way

to hold the position in this sector.

5.7 Vrooms expectancy theory

How much people want something and how likely they think they

will get it – is the theme of expectancy theory. Implying this

thing on behalf of an employee will help us to understand better

actually what the theme says. An employee wants a better position

in a company and this can be achieved by different ways he likes.

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To understand this line we have to understand the four

assumptions on which expectancy theory rests. Shwapno can use

three components of expectancy theory to motivate employees,

1. Effort - to – performance expectancy:

Individuals’ perception of the probability by which effort will

lead to high performance – is easily understood by this term.

When the individuals’ believe that effort will lead directly to

high performances; expectancy will be quite strong. Shwapno can

works in this case – they can ensure that employee can hold this

belief. They try their utmost level because they know this

strong effort is one and only way to get better performance.

Whenever there is challenge, lots of work, deadline is near,

Shwapno can ensures that the employees put their best effort to

get best performance. There is another reason for which Shwapno

gives so much try on this. The reason is if the employee believes

that efforts and performance are unrelated or the efforts are not

strong enough then nothing but frustration will come in his mind

and the result will be less effort. And that means the company

will lose their place in competition.

2. Performance – outcome expectancy:

Performance will lead to the specific outcome – is expressed by

this term. In Shwapno, outcomes can be given according to

performance. If the performance is high, employees are rewarded

by pay rise, promotion or thank you speech from their superiors.

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But if their performances aren’t appreciating, they won’t be

punished but definitely they will be deprived from these

benefits. Shwapno should be always careful in this matter that

the employees are getting proper benefits according to their

performances.

3. Outcomes and valences:

Actually this theory recognizes that individual’s behavior

results in a variety of outcomes or consequences in an

organization’s setting. Also each of the outcomes that are earned

by the employees for their better performance has an associated

value or valence – an index of how much an individual values a

particular outcome. Shwapno should know these things very well

more than other companies. Shwapno should know what the

importance has valence got. They should know if the employees

want the outcome, the valence will be positive. And the result

will be positive for company. Shwapno can ensures one thing

before giving any kind of benefits to employees for their

performances that they want it or they need it. Because whatever

Shwapno gives its employees, it will help to motivate employees

only if employee’s wants are matched by the outcomes.

PART 06

6.1 Performance Management:

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In this section I am going to evaluate the performance of Shawpno

as an outsider. There are some certain criteria to evaluate an

organizations performance, they are:

6.2 Performance criteria:

We have to go through two criteria to measure performance

criteria, the first one is organization performance and the

second one is individual performance.

Organization: we have talked with Mr. Amirul Islam an operation

manager of Shawpno and we have been informed about their set of

goals and their gains and losses in different field in 2013, and

we also talked with some regular customers then we made a

summaryof this organization like as :

Criteria Goals

Reality

1) Revenue 90,000

92,377

2) Customer Satisfaction 100%

83%

3) Service Level 100%

84.75%

4) Sales at least 85% of

production 87%

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So, here we can see that, their target revenue of their

organization was fulfilled. That is a good issue for them but on

the other hand they could not satisfy their customer much due to

their poor service level. They could make a sale of 87% which is

more than their target. So, they should concern more on their

behavior while they are communicating with the customers and if

they do so, then they will able to make more profit than this

year.

Individual :

Shawpnos customer retention is about 63% so, they should pay more

attention on this matter. In earlier part I talked about their

attitudes when they are interacting with their customers, it

obviously should be polite and humble and also helpful. Their

sales volume is now around 94% which is good. Their employee

retention is almost 67%. So, in this field they have many works

to do. As they know there are many others competitors in the

market like as: Meena Bazar, Agora, Amanaa etc. so, they will

have to be aware about their customer retention so that, they can

attract their customers and by doing this they will able to

fulfill their mission and vision.

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6.3 Performance Management Process:

Manager

Employee

Six

month

One

Year

45

Set Target

Communication

Revise

Aware

Accepted

Perform

Agreed

Evaluate

According to this performance management process chart the higher

level of authority (CEO/Manager) of shawpno will set a target

then communicate with his employee about that target. Employee

will observe the goal then they will give their opinion now here,

there are two chances either the employee will accept the

proposal or not. If not then the authority will set their goals

or target again that called revised of decision and follow

earlier steps. And if employees accept the proposal then, they

start doing their job according to their set target and at this

stage the CEO or Manager will evaluate the performance of

employees. Therefore, they have to fulfill their target through

these employees so; if the performance of employees will be

satisfactory then they will agree to run the process otherwise

not.

6.4 Performance Management Frequency:

There are three method to evaluate Performance management

frequency. They are:

1) Quarterly

2) Half-yearly

3) Annually

I will prepare first one that means “Quarterly” to evaluate the

performance management frequency because, if any employee is

doing wrong then I can make him right within a short time in this

method rather than the half-yearly and the annually method.

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Secondly, when I will evaluate each and every portion of the

organization only after 4 month then, all the employees are aware

about their duty. They would have to have the concern that, he or

she would have to accountable regarding their work. 3rd reason

is, when I will evaluate my organizations activities within this

short time then my employee will be inspired to do work and by

this way the productivity and the work capabilities of employee

will be improved. And the final one is, i can understand, who my

active employee is and who is idle. Then I will able to take the

right step regarding this matter whether, I am going to hold this

employee or not.

6.5 Recommendation:

1. The salary that is given by Shwapno to its employees isn’t

enough. They should increase the pay scale so that they can

be able to maintain their basic living expenses.

2. Some workers of Shwapno are working in standing condition

for hours after hours. This is too pathetic. Company should

arrange sitting facilities for them.

3. The feedback that is given by the authority to employees

isn’t enough. They should give it frequently.

4. The supervision of Shwapno is too strict for its employees.

They should reduce their strictness.

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At last, the theories that we explained in this term paper, are

not implied properly in Shwapno .They need to be more careful to

apply these theories

6.6 Reference

https://www.facebook.com/Shwapno

http://www.shwapno.com/about.php

http://www.aci-bd.com/sub_logistics.php

Annual report of ACI 2012

Md Amirul Islam

Operational Manager,West Kazipara Branch,

Mirpur Dhaka

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