CHAPTER – 1

INTRODUCTION
 HUMAN RESOURCE MANAGEMENT
INTRODUCTION

Human resource management is the strategic approach to the effective and efficient management
of people in a company or an organization such that they help their business gain a competitive
advantage. It is designed to maximize employee performance in service of an employer’s strategic
objective. Human resource management is primarily concerned with the management of people
within organizations, focusing on policies and systems. HR departments are responsible for over-
seeing employee benefits design, employee recruitment, training and development, performance
appraisal, and reward management such as managing pay and employee benefits systems. HR also
concerns itself with organizational change and industrial relations, or the balancing of
organizational practices with requirements arising from collective bargaining and governmental
laws.

The overall purpose of human resources is to ensure that the organization is able to
achieve success through people. HR professionals manage the human capital of an organization
and focus on implementing policies and processes. They can specialize in finding, recruiting,
selecting, training, and developing employees, as well as maintaining employee relations or
benefits. Training and development professionals ensure that employees trained and have
continuous development. This is done through training programs, performance evaluations, and
reward programs. Employee relations deals with the concerns of employees when policies are
broken, such as cases involving harassment or discrimination. Managing employee benefits
includes developing compensation structures, parental leave programs, discounts, and other
benefits for employees on the other side of the field are HR generalists or business partners. These
HR professionals could work in all areas or be labor relations representatives working with
unionized employees.
DEFINITIONS

Human resource management as “planning, organizing, directing, controlling of procurement,

development, compensation, integration, maintenance and separation of human resources to the
end that individual, organizational and social objectives are achieved”. -EDWIN FLIPPO

NIPM of India defined human resources personal management as “that part of management which
is concerned with people at work and with their relationship within an enterprise. Its aim is to bring
together and develop into an affective organization of the men and women who make up enterprise
and having regard for the well-being of the individuals and of working groups, to enable them to
make their best contribution to its success”. OBJECTIVES
1. To help the organization to attain its goals effectively by providing motivated employees.

2. To utilize the available human resources effectively.

3. To increase to the fullest the employee’s job satisfaction and self-actualization.

4. To help maintain ethical policies and behavior inside and outside the organization.

5. To establish and maintain cordial relations between employees and management.

6. To reconcile individual/group goals with organizational goals.

IMPORTANCE

Human resource management is a modern approach of maintaining people at workplace which

focuses on acquisition, development, utilization and maintenance of human resource to maintain
the quality of work life.

1. To increase productivity and profit.

2. To produce employees who are easily adaptable to change.

3. To match demand and supply of human resource.

4. To retain employees and motivate them to accomplish company’s goal.

5. To recognize merit and contribution of employees.

 TRAINING AND DEVELOPMENT

INTRODUCTION

Training and development refer to educational activities within a company created to enhance the
knowledge and skills of employees while providing information and instruction on how to better
perform specific tasks.

Training is a short-term reactive process meant for operatives and process while development is
designed continuous pro-active process meant for executives. In training employees' aim is to
develop additional skills and in development, it is to develop a total personality.

In training, the initiative is taken by the management with the objective of meeting the present
need of an employee. In development, initiative is taken by the individual with the objective to
meet the future need of an employee.

DEFINITIONS

Employee training and development implies a program in which specific knowledge, skills and
abilities are imparted to the employees, with the aim of raising their performance level, in their
existing roles, as well as providing them learning opportunities, to further their growth.

Training implies a process of upgrading an individual’s knowledge, skills and competencies.

When an employee joins the organization, he/she is given job-related training to ensure satisfactory
performance of the tasks and duties assigned, so that the employee can contribute more to the
organization.

On the other hand, development has a long-term view. It is all about preparing the employee for
the current as well as future jobs, by providing them with learning opportunities to increase their
capacities, to undertake more challenging and complex tasks.

OBJECTIVES
Training and development program helps employees learn specific knowledge or skills to improve
performance in their current roles.

The objective of training and development: Objective of training and development in the public
organization of a country are discussed below –

Increase in efficiency: Training improves skills and efficiency that can help in operating.

Knowledge about new methods: if a new method of work/service is introduced in the organization,
the employees are given proper knowledge on new method through training and development.

Knowledge of company policy: The new entrants are not supposed to have sufficient knowledge
of company policy. Through training and development, some knowledge can be furnished.

Attitude changing: in some cases, change of attitude is very important for successful formulation
and implementation of company plans and decisions. An objectives-oriented organization can
serve the purpose and employees’ attitude may be changed as per the expectation of management.

Career planning and development: For personal growth and career development employee
needs career planning. Training and development program is one of the most effective counseling
methods. It creates motivation among the employees.

Loyalty: Usually employees want to be loyal to the management, employer. But some of them do
not know the actual way of loyalty. Training and development can help them in this regard.
Reduction of labor turnover: Through participation in training and development programs,
employees are convinced about their dunes and responsibilities and ways to solve the problem.
The turnover rate may thus be reduced.

Productivity: Another objective of training and development is to increase productivity through

the use of skill, efficiency, and more committed employees.

Quality: Quality of goods and services is the permanent asset of the organization. Trained
employees can increase the quality of goods and services.

Development of self-confidence: Successful change describes the change of self-confidence. If

employees accept the change easily and try to implement the plan of action limitedly, it becomes
easier for management.

IMPORTANCE
Training and development offer innumerable benefits to both employees and employers. It makes
the employee more productive and more useful to an organization

1. To increase productivity – Instruction can help employees increase the level of performance.

2. To improve quality of work – Trained workers use machines, tools and materials in proper way.
They maintain uniformity in work methods and thus make less mistakes.

3. To decrease learning period – A systematic training and development program helps to reduce
the time and cost involved in learning. They need not waste their time and efforts in learning
through trial and error.

4. To Reduce Cost – Trained employees make more economical use of materials and machinery,
thereby reducing wastage and spoilage. Maintenance cost is also reduced due to fewer machine
breakdown and better handling of equipment.

5. To improve Health and safety – Proper training and development can prevent industrial
accidents. Trained employees follow right work method and make use of the prescribed safety
devices.
6. To help in personal growth of employees – Training and development helps employees to
enhance their individual knowledge and skills. It is beneficial for the employees by ways of
increasing.

7. Self-confidence – Training and development helps to improve the self-confidence of an

employee. They tend to become self-reliant and motivated.
NEED FOR THE STUDY

The need for the study arises because of the reason that the trainee must understand the
company, it's achievements and tasks, products and services and also to collect information about
its competitors. It is helpful to practically understand the importance and effectiveness of the
training and development programs in an organization.
SCOPE OF THE STUDY

In this project I have tried to present details about the training and development programs being
presently followed in ORION KNIT TEXTILE LIMITED and the feedback I had collected from
employees and employers of different departments during my interaction with them. The scope of
training and development can be explained with the help of following points.

 Exact position of performance of employees through their feedback.

 Development of employees through various training and development programs.
 Developing unbiased treatment to all employees.
METHODOLOGY OF THE STUDY

The sources of data are as follows;

PRIMARY DATA

 Internal data about working of HR department gathered from the organization,

 Interview,
 Observation,
 Sufficient data collected through feedback forms by the employees.

SECONDARY DATA

 Magazines, journals, brochures, etc.

 Website of the company,
 Books,
 Earlier researches on similar topic.

Samples:

We always have to work with a sample of objects rather than the full population. But people are
interested in the population, not the sample to generalize from the sample to the population, the
sample has to be representative of population. The safest way to ensure that is the usage of random
sampling method.

Sample size:

In this study random sampling technique has been used. I have selected 30 employees randomly
from the Human resource department of the Orion knit textile limited.

Data Collection:
Survey questionnaire: Behaviors, beliefs and observations of specific groups are identified,
reported and interpreted.

OBJECTIVES OF THE STUDY

1. To have a thorough understanding about the training and development programs in the
Orion knit textile limited.
2. To measure the attitude of employees toward training.
3. To evaluate the employee performance after getting training session.
4. To provide some recommendations that may be necessary to redesign the training and
development programs of knitting industry.
5. To measure the differential changes in output due to training.
LIMITATIONS OF THE STUDY

 Due to COVID and limited time, sample size is reduced to only 30 employees which may
affect the accuracy of the study.
 Reluctance in the part of respondents may affect the accuracy of the study.
 On the account of ethical and moral obligation of a manager, disclosure of all pertained
and particular policies has got limitation because of his positional accountability and
responsibility.
 CHAPTER-2

REVIEW OF LITERATURE
 A LITERATURE REVIEW ON TRAINING & DEVELOPMENT

INTRODUCTION

In the changing phase of the market, all organizations have a number of opportunities to grab and
number of challenges to meet. Due to such environment, the dynamic organizations are smoothly
surviving in the present competition. While facing these challenges, there is a great pressure of
work on the shoulders of management. It is a responsibility of the management to make necessary
changes at the workplace as per the requirement of the job. To survive in the competition and to
meet the requirements, the management needs to change their policies, rules and regulations. The
organizations face a lot of pressure in the competence for a talented work force, for constantly
improving the production methods, entrants of advanced technology and for the employees who
are inclined to achieve work life balance. The success of any organization depends upon the quality
of the work force, but in order to maintain the quality of the work force, many organizations come
across a number of obstacles. These obstacles include attraction of the qualitative workforce
towards the organization, recruitment of intelligent, dynamic as well as enthusiastic people in the
organization, motivation of current employees with different techniques and retention of the
current workforce for maintaining the organizational status in the competitive market. For
surviving the business and becoming a successful pillar in the market; training is a tool that can
help in gaining competitive advantages. Training proves to be a parameter for enhancing the ability
of the workforce for achieving the organizational objectives. Good training programs thus result
in conquering of the essential goals for the business. Hence, training is significant for giving a
dynamic approach to the organization. This dynamic approach is necessary because every
organization that adopts a controlled way of functioning may not be able deliver consistent results
but a dynamic and flexible organization may do so. This is possible only because of improved
quality of work life through implementation of training programs. A high degree of quality of work
life in the organization results in increased profits, higher employments and accentuating demands
in the market. Improving the quality of work life is a continuous and progressive process of the
organization. Quality of work life concerns with the requirements, needs, working environment
and job design of the employees at workplace. According to Guna Seelan Rathnam Maymunah
and European foundation for the improvement of Living Conditions (2000), Quality of work life
is a multi-dimensional construct, made up of interrelated factors. Quality of work life is associated
with job satisfaction, job involvement, job security, productivity, health, safety, competence
development, professional skills, balance between work and non-work life of the employee.

The focus of Human Resource Development is on developing the most superior

workforce which helps the organization for successive growth. All employees are needed to be
valued and they should apply collective efforts in the labor market every time. This can only be
achieved through proper and systematic implementation of employee training and development
programs. Employees are always regarded with development in career-enhancing skills which
leads to employee motivation and retention. There is no doubt that a well-trained and developed
staff will be a valuable asset to the company and thereby will increase the chances of their
efficiency and effectiveness in discharging their duties. Training is a learning experience which
has a capacity to make positive changes and reach up to the desired objectives of the organization.
It improves the ability of the employee to perform the job efficiently and with excellence. Training
and development programs are the basic structural and functional foundations for the development
of the employees. These foundations are important for guiding the employees through different
situations. Training and Development programs are the framework for helping employees to
develop their personal and professional skills, knowledge, and abilities. Training imparts
knowledge to the employees regarding different issues in the organization and the proper execution
of these programs result in number of benefits such as development of profitable, adaptable as well
as efficient organization and productive & contented employees. It is useful in the following
manner:

 Employees are able to balance their work life and personal life in a better manner which
leads to reduction of stress.
 Such programs help in improving physical and psychological health of the employees,
thereby bringing down the absenteeism rate.
 These programs develop the employee morale, increase the productivity, job satisfaction
and commitment of the employees towards the organizational goals.
 These programs also aim at the progress of the individuals in their personal and
professional lives.
 They improve the communication between all levels of management which helps in
minimizing conflicts between different levels of employees
 Such types of programs lead to effective negotiation and enable the designing of the
contracts which satisfy all sorts of employees.
 These programs enhance efficiency of management and strengthen employee organization.
 These programs improve the leadership, problem solving, interpersonal and conflict
resolution skills of the employees.
 They are important for sharpening and utilization of the employees’ creative and innovative
skills.

LITERATURE REVIEW: TRAINING AND DEVELOPMENT

According to the Michel Armstrong, “Training is systematic development of the knowledge, skills
and attitudes required by an individual to perform adequately a given task or job”.

(Source: A Handbook of Human Resource Management Practice, Kogan Page, 8th Ed.,2001)

According to the Edwin B Flippo, “Training is the act of increasing knowledge and skills of an
employee for doing a particular job.”

(Source: Personnel Management, McGraw Hill; 6th Edition, 1984)

The term ‘training’ indicates the process involved in improving the aptitudes, skills and abilities
of the employees to perform specific jobs. Training helps in updating old talents and developing
new ones. ‘Successful candidates placed on the jobs need training to perform their duties
effectively’.

(Source: Aswathappa.K, Human resource and Personnel Management, New Delhi: Tata
McGraw-Hill Publishing CompanyLimited,2000, p.189)

The principal objective of training is to make sure the availability of a skilled and willing
workforce to the organization.

In addition to that, there are four other objectives: Individual, Organizational, Functional, and
Social.

 Individual Objectives – These objectives are helpful to employees in achieving their

personal goals, which in turn, enhances the individual contribution to the organization.
 Organizational Objectives – Organizational objectives assists the organization with its
primary objective by bringing individual effectiveness.
 Functional Objectives – Functional objectives are maintaining the department’s
contribution at a level suitable to the organization’s needs.
 Social Objectives – Social objectives ensures that the organization is ethically and socially
responsible to the needs and challenges of the society.

Further, the additional objectives are as follows:

 To prepare the employees both new and old to meet the present as well as the changing
requirements of the job and the organization.
  To prevent obsolescence.
 To impart the basic knowledge and skill in the new entrants that they need for an intelligent
performance of a definite job.
 To prepare the employees for higher level tasks.
 To assist the employees to function more effectively in their present positions by exposing
them to the latest concepts, information and techniques and developing the skills they will
need in their particular fields.
 To build up a second line of competent officers and prepare them to occupy more
responsible positions.
 To ensure smooth and efficient working of the departments.
 To ensure economic output of required quality.

TYPES OF TRAINING AND DEVELOPMENT PROGRAMS WHICH ARE

PROVIDED TO THE EMPLOYEES

Different practices are followed in different industries and in different organizations too. So, the
need of training and development programs is depending up on the requirements of the job profile.
Therefore, there are various types of programs shared by different authors. The types of training
and development programs are as follows:

Types of Training

On- the -Job Training Off –the- Job Training

Job instructions Programmed Instructions

Apprenticeship and Coaching - Classroom lectures

Job Rotation - Simulation exercises

Committee Assignment Business Games

Internship Training - Case Study Method

Training through step-by-step - Audio-Visual Method

- Experiential Exercises
 - Vestibule Training

- Computer Modelling

- Behavioral Modelling

- Role Playing

- Conference/Discussion Method

- Workshop/Seminar

STAGES OF TRAINING AND DEVELOPMENT PROGRAMS

Training should be conducted in a systematic order so as to derive expected benefits from it. The
training system involves four stages, namely:

a. Assessment of training and development program's needs.

b. Designing the training and development programs.

c. Implementation of the training program.

d. Evaluation of the training program.

DEVELOPMENT

Employee Development Programs are designed to meet specific objectives, which

contribute to both employee and organizational effectiveness. There are several steps in the process
of management development. These includes reviewing organizational objectives, evaluating the
organization’s current management resources, determining individual needs, designing and
implementing development programs and evaluating the effectiveness of these programs and
measuring the impact of training on participants quality of work life. In simple way, it can be
denoted as per the following formula. Employee Development = Employee Education + Employee
Skills + Training Effectiveness + Employee Quality of work life There are various authors who
shared their views regarding the role of training and development in different aspects.

The following Table 1 provides the opinions of different authors regarding the view of training
and development.
 Author Opinions of different authors regarding Training and Development

Oatey (1970) Training improves a person’s skill at a task. Training helps in socially,
intellectually and mentally developing an employee, which is very
essential in facilitating not only the level of productivity but also the
development of personnel in any organization.

Yoder (1970) Training and development in today’s employment setting is far more
appropriate than training alone since human resources can exert their full
potentials only when the learning process goes for beyond the simple
routine.

Hesseling (1971) Training is a sequence of experiences or opportunities designed to modify

behavior in order to attain a stated objective.

Kane (1986) If the training and development function is to be effective in the future, it
will need to move beyond its concern with techniques and traditional roles.
He describes the strategic approaches that the organization can take to
training and development, and suggests that the choice of approach should
be based on an analysis of the organization’s needs, management and staff
attitudes and beliefs, and the level of resources that can be committed. This
more strategic view-point should be of use in assessing current efforts as
well as when planning for the future.
Raymond (1986) The influences of trainees’ characteristics on training effectiveness have
focused on the level of ability necessary to learn program content.
Motivational and environmental influences of training effectiveness have
received little attention. This analysis integrates important motivational
and situational factors from organizational behavior theory and research
into a model which describes how trainees' attributes and attitudes may
influence the effectiveness of training.
Adeniyi (1995) Staff training and development is a work activity that can make a very
significant contribution to the overall effectiveness and profitability of an
organization.
Chris (1996) Training and development aim at developing competences such as
technical, human, conceptual and managerial for the furtherance of
individual and organization growth.
Seyler, Holton III, The continuous changing scenario of business world, training is an
Bates, Burnett and effective measure used by employers to supplement employees’
Carvalho (1998) knowledge, skills and behavior
Akinpeju (1999) The process of training and development is a continuous one. The need to
perform one’s job efficiently and the need to know how to lead others are
sufficient reasons for training and development and the desire to meet
 organizations objectives of higher productivity, makes it absolutely
compulsory.
Oribabor (2000) Training and development aim at developing competencies such as
technical, human, conceptual and managerial for the furtherance of
individual and organization growth.
Isyaku (2000) The process of training and development is a continuous one. It is an
avenue to acquire more and new knowledge and develop further the skills
and techniques to function effectively.
Tan, Hall and Companies are making huge investment on training programs to prepare
Boyce (2003) them for future needs. The researchers and practitioners have constantly
emphasized on the importance of training due to its role and investment.
Stavrou et al., The main goal of training is to provide, obtain and improve the necessary
(2004) skills in order to help organizations achieve their goals and create
competitive advantage by adding value to their key resources – i.e.,
managers.
Chih, Li and Lee Training program is dependent on the following parameters for its success
(2008) (i) perceived value of leaning program (ii) attitude to teacher (iii) response
to learning conditions (iv) desire to learn: the degree to which trainees
really want to learn and do well
Giangreco, The key determinants of overall satisfaction with training (OST) are
Sebastiano, and perceived training efficiency (PTE) and Perceived usefulness of training
Peccei (2009) (PUT).
Bates and Davis Usefulness of training program is possible only when the trainee is able to
(2010) practice the theoretical aspects learned in training program in actual work
environment. They highlighted the use of role playing, cases, simulation,
mediated exercises, and computer-based learning to provide exposure to a
current and relevant body of knowledge and RealWorld situations.
Kalaiselvan and Training cost and business benefits are drawn on X and Y axis
Naachimuthu respectively. Four quadrants were identified to highlight (i) strategic
(2011) (Lower training cost and higher business benefits), (ii) Payback (Higher
training cost and higher business benefits) (iii) Think (Lower training cost
and lower business benefits) (iv)Drop (Higher training cost and higher
business benefits).
Karthik R (2012) Training objectives tell the trainee that what is expected out of him at the
end of the training program. Training objectives are of great significance
from a number of stakeholder perspectives; Trainer, trainee, designer,
evaluator.

QUALITY OF WORK LIFE:

The term ‘Quality of work life’ appeared in research journals in 1970s. The quality of
work life is not only concerned with the monetary aspects but conditions of employment,
interpersonal conflicts, job pressure, lack of freedom and absence of challenging work, etc. QWL
is a comprehensive program designated to improve employees' satisfaction. It is a way of thinking
about people, work and organization and creates a sense of fulfilment in the minds of the
employees and contributes toward greater job satisfaction, improving productivity, adoptability
and overall effectiveness of an organization. QWL is defined as the favorable conditions and
environments of a workplace that support and promote employee satisfaction by providing them
with rewards, job security, and growth opportunities. The following table shows that the different
author has shred different components regarding quality of work life.

According to the Walton (1975) QWL covers the Adequate and Fair Compensation,
Safe and Healthy Working Conditions, Immediate Opportunity to Use and Develop Human
Capacities, Opportunity for Continued Growth and Security, Social Integration in the Work
Organization, Constitutionalism in the Work Organization, Work and Total Life Space and Social
Relevance of Work Life. As per the view of Stein (1983) QWL deals with the components like
Autonomy or being independent, being recognized and prized, Belongings, progress and
development, External reward for employees. Levine, Taylor and Davis (1984), focused on the
factors such as Respect from supervisor and trust on employee’s capability, change of work,
Challenge of the work, Future development opportunity arising from the current work, Self-
esteem, Scope of impacted work and life beyond work itself, Contribution towards work. Mirvis
and Lawler (1984) explain the safe work environment, equitable wages, equal employment
opportunities and opportunities for advancement.

Baba and Jamal (1991) talk about the Job satisfaction, job involvement, work role
ambiguity, work role conflict, work role overload, job stress, organizational commitment and turn-
over intentions. CAI Hui-ru (1994) focused on the Living quality of workforce which involves the
compensation, welfare, work safety, work protection for the employees, it also includes the social
quality which explains the relationship with the boss, colleagues, and customers; the next
important component is Growth quality of employee that consists participation management,
promotion, self-growth, self-esteem and work characteristic. As per the view of Lau RSM, Bruce
EM (1998), QWL deals with the Job security, Reward systems, Training, Carrier advancements
opportunities, Participation in decision in decision making.

According to the Ellis and Pompili (2002), poor working environments, resident
aggression, workload, inability to deliver quality of care preferred, imbalance of work and family,
shift work, lack of involvement in decision making, professional isolation, lack of recognition,
poor relationships with supervisor/peers, role conflict, Lack of opportunity to learn new skills are
the major barriers in the improvement of QWL of employees. CHEN Jia-sheng and FAN Jingili
(2003) also focuses on the Working environment of the organization, Salary and bonus, Welfare,
Promotion for the employees. It also involves the Work nature, Training and development,
Leadership style of the boss, Cooperation among colleagues, Enterprise image, Communication,
Organizational regulations, Organization climate and culture, Working time and workload of the
employees. G Nasal Saraji, H Dargahi (2006) Fair Pay and Autonomy, Job security, Reward
systems, Training and career advancements opportunities, participation in decision making,
Interesting and satisfying work, Trust in senior management. Recognition of efforts, Health and
safety standards at work, Balance between the time spent at work and the time spent with family
and friends, Amount of work to be done level of stress experienced at work occupational health
and safety at work. Seyed Mehdi Hosseini and Gholamreza Mehdizadeh Jorjatki (2010) explain
the following parameters for QWL. This includes Fair and adequate pay and benefits rights,
Observance of safety and health factors, Opportunities to continue growth and security of staff,
Acceptance work organization, Work life and social dependence on society and individual life,
Governing the overall living space in the environment, Integration of social improved human
abilities.

According to the Chandranshu Sinha (2012), there are twelve important factors of
quality of work life. These working factors are important for the development of organizations’
most valuable assets (employees). These factors are also useful for gaining competitive advantage
in the market. These factors are communication, career development and growth, organizational
commitment, emotional supervisory support, flexible work arrangements, family response culture,
employee motivation, organizational climate, organizational support, job satisfaction, rewards and
benefits and compensation. Likewise different authors have suggested different suggestions for
the improvement of quality of work life.
 CHAPTER-3

PROFILE OF KNITWEAR INDUSTRY

KNITWEAR INDUSTRY

INTRODUCTION

Bangladesh’s entry into the “modern” textile trade is relatively new, but knitwear
entrepreneurs have been able to quickly adapt to the nature of demands. The knitwear sector in
Bangladesh is generating large efficiencies through operating as groups of spinning, fabric
knitting, dyeing, finishing. In other words, knitwear firms are effectively operating as
conglomerates; thereby reaping many of the efficiencies of vertical integration.

Within Bangladesh’s RMG exports, there has been a significant shift towards the knitwear sub-
sector from the woven wear sub-sector. During the FY1991-FY1995period, the ratio of exports of
woven RMG to knit RMG was about 85:15; by FY2010, this had changed to 48:52 (see table).
The shift towards RMG exports and the ascendancy of the knitwear sub-sector within RMG were
heavily influenced by preferential market access and Bangladesh’s ability to take advantage of the
favorable treatment that was offered.

In Bangladesh, normally the knitwear production process starts from cotton. Then the next
processes are done in our country. We are to import 98% of our required cotton from foreign
countries- the only impediment to become a vertically integrated knitwear industry. Bangladesh
knitwear industry is playing a vital role in value addition of Gross Domestic Product (GDP )

Table: Value Addition and Net Retention Rate of Bangladesh Knitwear Sector
Year 1994 2000 2008 2012 2013 2014
Value 50% 70% 75% 72% 75% 75%
Addition
Net 40% 55% 61% 53% 50% 48%
Retention
The domestic value addition in this sector is about 75%, which is much higher than woven
products. The Knitwear sector’s value addition contribution in the GDP is about 10%. In the export
field, the knitwear industry of Bangladesh has managed to make a big name across the world.
BKMEA has taken different initiatives to promote the export growth of knitwear products.
BKMEA is working to incorporate the latest technology, which in turn will increase the domestic
value addition.
Backward linkage Development:
The core strength of the knitwear sector is its backward linkage. The entrepreneurs of the sector
have not only increased their stitching capacity overtime, but also invested in the allied industry
to augment the overall capacity of the total sector with the same pace. Over the period of time,
knitwear sector gradually became almost self-sufficient in fabric and yarn development. This
improvement has become possible because of the integrated growth of spinning factories in line
of the growth of country’s stitching capacity and increased need of the yarn and fabric.

As the export has increased in the knitwear sector, the capacity of backward linkage has also
increased accordingly. The result is local suppliers can provide now 95% of the total fabric
requirement of the sector (source: BTMA). The growth of spinning mills is also stepped with the
growth of knitwear exports. In 2010-11, total number of Yarn Manufacturing Member Mills was
383, whereas Fabric Manufacturer Member Mills was 743. But now-a-days, there are more than
500 Yarn Manufactures Mills in Bangladesh. As of now, the total investment in the backward
linkage in knitting, dyeing and spinning industry is more than US$ 5.03 billion or € 4.00 billion.

In 2013-14, the contribution of knitwear in national export earnings is 39.81%. The Direct
contribution of Knitwear sector on GDP of Bangladesh is almost 7%, but the backward
linkage sector of Knitwear sector has another 2% contribution on GDP.
This has resulted because of the backward linkage industry that has grown over time which helped
the knitwear sector to have the higher value addition and therefore a much higher net retention
rate.

In course of time, the sector has become almost self-sufficient in production of fabrics and yarn.
This improvement has become possible due to the integrated growth of spinning factories with the
growth of country’s stitching capacity and increased need of yarn and fabrics. As a result, local
suppliers at present can provide up to 90% of the total fabric requirement of the sector and local
yarn suppliers provide around 75% of the total requirement of the sector.

The backward linkage industry has helped the knitwear industry to have the higher value addition
and much higher net retention rate. This makes the knitwear sector as the highest contributor in
terms of both gross and net export earnings. Besides, the sector opened unemployment
opportunities for many individuals through direct and indirect economic activities, which
eventually helps the country’s social development; woman empowerment and poverty alleviation
(see, Bakht, Yamagata, and Yunus, 2009).

It is evident that technical efficiency in knitwear sector is increasing in Bangladesh. While this is
true of most of the manufacturing industries, knitwear sector warrants extra consideration because
of its contribution to the foreign exchange earnings and employment with value addition through
backward linkage industry.

A closer analysis of the growth pattern, performance, problems, and prospects of the knitwear
sector is necessary for evolving a policy regime that is beneficial for the optimal development.

Comparative Advantages of Bangladesh Knitwear Industry:

The core strength of the Knitwear sector is its backward linkage. The entrepreneurs of the sector
not only increased their stitching capacity overtime but also invested in the allied industry to
augment the overall capacity of the sector with the same pace. As the earning from export increased
the development of the sector also increased in the same row. Now a days, The Knitwear sector of
Bangladesh has the unique structure as well as the competitive advantage not only in terms of price
but also the product quality. There are many other advantages of Bangladesh Knitwear sector, such
as:

 High quality diversified products.

  Duty-free and quota-free access to the markets of several developed and developing
countries, such as EU, Canada, Australian, Japan etc.
 Strong backward linkage industry in the knit sector & growing capacity in the woven sector
 Socially and environmentally compliant factories
o Child labor free factories
o Environmentally compliant ISO, BSCIS, WRAP, OKETEX etc. certified factories
o Vertically integrated
 Implementation of social compliance, fire safety mechanism in the factories.
 Productivity campaign to ensure the best quality products.
 Ensuring quality assessment process for the products-to-be-made.
 Linkage the factories with environmentally and chemical sustainability program.
 Adopting the Green factory mechanism for a sustainable industrial build-up.
 Application of CPM (Clean production mechanism) into the factory production strategy.
 Structural adjustment policies of the factories according to the demand of ILO, ACCORD,
ALLIANCE & Other related international bodies.
 Most factories being inspected by Bangladesh University of Technology and Engineering
(BUET), thus ensuring structural safety for the importers of the world.

Vision 2050: The Future of Bangladesh Knitwear Sector

Vision, mission and values are key elements of an organization’s strategic planning process and
these guide the development and delivery of program services and activities. When approaching
Vision, Mission and Values (VMV), as a process to be undertaken in an organization, it’s important
that everyone involved understands the concept and its components parts. A realistic, credible,
and attractive vision statement attracts commitment and energizes people. In addition, a well-
thought-out vision statement bridges the present with the future while establishing a standard for
excellence. BKMEA, as an internationally reputed business organization, has its own strategic
vision that is to knit the future with the present for a strategic goal to be achieved over the passage
of time. However, the vision has been set by dissecting all geo-political, economic and business
trends of the world. So, our vision is based on market economy, labor economy, apparel business
trends with economic caprice and consolidation process across the globe. An educative approach
to a business expansion model!
As we are aware of fact that Market management of the world heavily hinges upon the equation
of economic stability and upward trend of the development index. With the meteoric advent of
BRICS and their subsequent economic activity of product diversification has made the world
market even more competitive and posed great threat for Bangladesh. This is the reason; the largest
exporting sector (Knit sector) of Bangladesh is faced with competitive international market
strategies coupled with the negative effect of the world economic depression and adversities
sprung from loan difficulties in the Euro zone. The huge scale debt of euro zone countries, political
turmoil and economic depression and at the same time, weaker economic states of the developed
countries including USA gives indication of weaker export statistics of Bangladesh in future.

The growth rate of knit products is already exhibiting negative tendencies. In these changing times
of the world market, to keep the Knit industry of Bangladesh reigning supreme in the international
circle, there is no alternative to the exploration of new markets besides the USA & European
markets and expansion of business possibilities in those markets. It is a universal truth that if the
economy of the developed world is at risk, it negatively affects the economies of the developing
countries of the world. Ripple effect factor! Most often, unfortunately, economic problems give
rise to social chaos and it dampens individual’s purchasing capacity, which is an ominous sign for
an exporting nation like Bangladesh.

BKMEA, as per the instructions and guidelines of the Honorable Prime Minister, has, so therefore,
undertaken projects to explore potential, yet untapped new markets besides the USA & European
markets; and expansions of business possibilities in those markets. Especially the gradual increase
of exports of knit product in Japan, Russia, Mexico, Brazil, South Korea, Malaysia, India, South
Africa and China has proved that the new markets are highly potential for Bangladesh. BKMEA
has taken an endeavor to integrate the knit sector with the world markets by making a long-term
plan through innovative research activities and taking strategic measurements.

A worrying fact is, 11 out of 28 countries of the European Union are sliding towards low growth
rate in their respective economies and 7 out of those 11 countries are experiencing economic crisis.
At the same time, the growth rate of the USA economy is also on the low ebb. As a result, in the
next 4 to 5 years the principal two areas of Bangladesh’s knit products export—The USA and the
EU— (approx. 71% of the total export) may see fall in their economic growth rate. This induces a
possibility to see a decrease of 20-30% of Bangladesh export products in those zones. 8 billion
dollars out of the total 12.05 billion dollars of knit products exports are exported to USA &
European markets. A decline of 20-30% in this export statistic means it will reduce export of 1.5-
2.5 billion dollars (approx.) worth of products. In that case the industrialists will be left with no
other choice, but to export their products to alternative potential markets.

Future Projection of Bangladesh Knitwear Industry:

Fact FY 2014-2015 Vision – 2021 Vision – 2050
Knitwear Export $13.25 Billion $21.08 Billion $32.62 Billion
(Targeted)
Growth of Knit (%) 15.6 20.9 32.1
Share in Apparel 49.75 52.3 69.4
Export (%)
Share in National 39.93 41.7 53.2
Export (%)
Share in GDP (%) 6.9 7.2 12.12
Employment 1.6 million 2.8 million 4.9 million
Generation
Female 45 52 67
Empowerment (%)
Enhancement of 8.8 13.69 29.2
Women Savings (%)
Poverty Reduction 6.4 7.5 9.1
(%)
Banking & Insurance BDT 176 billion BDT 187 billion BDT 201 million
Shipping & Logistics $ 79 Million $ 84 Million $ 91 Million
Industry
Forward & Backward BDT 212 million BDT 221 million BDT 254 million
Linkage Industry
Engineering Sector $ 10.1 Million $ 14.1 Million $ 19.4 Million
 Econometric forecasting methods: Autoregressive moving average with exogenous inputs
(ARMAX), Forecast skill (SS) and Regression analysis

BKMEA was established in 1996 as a National Trade Body to represent Solely the Knitwear Sector
of Bangladesh. BKMEA’s Mission is to Promote and Enhance Knitwear Sector’s
Competitiveness, Productivity and Profitability in The Global Market through Support Service to
more than 1900 Members. Capacity Building of The Sector and Networking with all Stakeholders
is another key commitment of BKMEA. BKMEA is contributing to Employment Generation,
Involving Women in the Formal Sector, Increased Substantial Export Earnings, Women
Empowerment, Reduction Child Labor, Gender Equality, Health & Nutrition, Diminishing Child
Marriage etc. through knitwear export to across the globe.

Here at the BKMEA, we strongly believe that if business policy and conduction procedure is
determined by keeping the social and political indexes at their rightful place, Bangladesh
Knit industry will become a role model for the world by 2050.
 CHAPTER-4

PROFILE OF ORION KNIT TEXTILES LTD

ORION KNIT TEXTILES LTD

INTRODUCTION

Orion Knit Textiles Ltd. is a 100 % export oriented composite knit textile unit established with the
commitment to cater the Global needs in knit and casual clothing lines, employing the State-of-
Art technology. Aiming at the context of the changing Global demand, international environment
on trade, the project encompassed the Knitting, Dyeing, Processing of fabrics, Ready-made
Garments production, Printing, Embroidery to be available from one stop service.

The machines and equipment setup are procured from world-class brand, renowned
for their high quality, product integrity and dependable production. The manpower engaged to
carry out the day-to-day business are all highly skilled, purely professional, vastly experienced.
The unique combination of organized Managerial and Technical team in one hand and latest,
advanced and balanced technology on the other hand made the project one of the top to be referred
in this field in the Country. The best use of continuous development of Human Resources by
providing them International Standard Environment, Trainings, Orientations and equal
opportunity is the keys for achieving comprehensive competence in all the level of the
Organizational Hierarchy. It has been established with the objective and vision to cater the needs
of 21st century of worldwide knit apparels market from one stop service being committed to On-
time Delivery, Short Lead Time, Quality Assurance, Price Affordability and Social Accountability.

As a commercial organization, the basic function of Orion Knit textiles ltd. is to earn healthy profit
for the Company. However, such basic function is insulated with other collateral functions, e.g.,
creating working environment compatible to international standard, concentrating high on HRD
including lucrative welfare for the employees, carrying out social responsibilities for the
employees and, to some extent, for the nation, maintaining high quality reputation management,
etc. OKTL being a good Corporate Company gives priority to Environment Management, Social
Responsibility and Compliance Issues. These are well acknowledged and have reflection in various
reviews, audit and visit reports.

LOCATION & AREA OF ORION KNIT TEXTILES LTD.

About 70 kilometers (2-hour drive) from the International Airport of Dhaka, Bangladesh the
project is located in Jamirdia, HabirBari, Valuka under the District of Mymensingh in a well-
developed road Communication.

Surface Area: Five Acres of land area and a total of 183,000 square feet of factory premises.
Floor Area: Garments Factory Area: 70,000 Sq. Ft. Production Space for Fabrics Dyeing &
Finishing: 83,000Sq.Ft. Storage, Utility and others: 30,000 Sq. Ft.

ORION KNIT TEXTILES

Company Name : LIMITED (A Sister Concern
of ORION GROUP)
100% export oriented knit
Business Type :
garments manufacturer
Managing director : Md. Salman Obaidul Karim.
 info@orionknittex.com
Contact : Cell: +88- 01730792891
Cell: +88- 01755607458
153-154, TEJGAON I/A,
Corporate Office Address :
DHAKA - 1208.
House -4, Road -8, Block F,
Textile Division Office :
Niketan, Gulshan, Dhaka.
Jamirdia, Habirbari ,Valuka,
Factory :
Mymensingh.
Telephone : 02-8836278.
www.orion-group.net,
Website :
www.orionknittex.com
Agrani Bank
Bank : Principal Branch
Moti Jheel C/A, Dhaka.

Company’s View Point

Orion Knit Textiles Ltd is a 100 % export oriented composite knit textile unit established with the
commitment to cater the Global needs in knit and casual clothing lines, employing the State-of-
Art technology. Aiming at the context of the changing Global demand, international environment
on trade, the project encompassed the Knitting, Dyeing, Processing of fabrics, Ready-made
Garments production, Printing, Embroidery to be available from one stop service.

The machines and equipment setup are procured from world-class brand, renowned for
their high quality, product integrity and dependable production. The manpower engaged to carry
out the day-to-day business are all highly skilled, purely professional, vastly experienced. The
unique combination of organized Managerial and Technical team in one hand and latest, advanced
and balanced technology on the other hand made the project one of the tops to be referred in this
field in the Country.

The best use of continuous development of Human Resources by providing them

International Standard Environment, Trainings, Orientations and equal opportunity is the keys for
achieving comprehensive competence in all the level of the Organizational Hierarchy. It has been
established with the objective and vision to cater the needs of 21st century of worldwide knit
apparels market from one stop service being committed to On-time Delivery, Short Lead Time,
Quality Assurance, Price Affordability and Social Accountability.

Function of the Organization

As a commercial organization, the basic function of Orion Knit textiles ltd. is to earn healthy profit
for the Company. However, such basic function is insulated with other collateral functions, e.g.,
creating working environment compatible to international standard, concentrating high on HRD
including lucrative welfare for the employees, carrying out social responsibilities for the
employees and, to some extent, for the nation, maintaining high quality reputation management,
etc. OKTL being a good Corporate Company gives priority to Environment Management, Social
Responsibility and Compliance Issues. These are well acknowledged and have reflection in various
reviews, audit and visit reports.

Aim of the Company

1. To deal fairly, open and honest with all employees, customers and suppliers.
2. To value and support each other contribution.
3. To always obtain the best value from the resources available.
4. To achieve and maintain position of world class manufacturing.
5. Continuous development of people competency.
6. Recognizing individual contribution.
7. Introducing new and innovative products and technologies.
8. Assuring quality products from advanced manufacturing facilities.
9. Exceeding customer satisfaction and granting trust through quality services.

Moreover, the Management and Employees of Orion Knit Textiles Ltd. works to implement
quality in all steps of their activity starting from selecting raw materials through all steps of
productions to the ultimate finished products.

Values:

To achieve its aspired vision, Orion subscribes the following values:

1. Live up to their commitments.

2. Transparent and fair in all their dealings.
 3. Take initiative to exceed standards.
4. Trust and respect to each other.
5. Work as a team.
6. Share social responsibility.

Code of Conduct

1. Prohibition of child labor.

2. Prohibition of forced labor.
3. Provide salary and wages within first 07 working days.
4. Wages and leave facility according government laws & legislation.
5. Working time 8 hours.
6. Keeping record of each employee.
7. They provide medication & general health care requirements, pick and drop facilities,
maternity leave to their workers.
8. Prohibition of Discrimination.
9. Prohibition of Harassment or Abuse.

Dyeing & Finishing Unit

As a key process unit, the dyeing and finishing section have been set by the latest state of
machinery. The plant is OEKO-TEX and Aero free certified. All dyeing machine are high
temperature & high-pressure.

Dyeing Production capacity: 13,750 kg of Fabrics per Day.

Garments Unit

The export capability of the company is ably supported by its progressive attitude that has made it
to have a vertical set-up of its own Knitting factories, Dyeing, Finishing and Garments Division.
The company's developed infrastructure has the capability to meet any level of demand from their
buyers and thus creating a high degree of credibility to the company, in international market.

Quality Control & Assurance

OKTL has honed its Quality Control System, which is comprised of thorough material, process
and product checks. By remodeling & refining the system continuously, OKTL features now a
unique capability in terms of industry-low rework and repair rate, thereby high-quality product in
quickest possible time. Rules like “fit for purpose” and “do it right first time” is not mere slogans
rather deeply embedded cultures in Base. As a result, OKTL can meet whatever AQL requirement
is placed by the value-savvy clients. OKTL succeeds because of its strict adherence to ethical
business practices in dealing with its clients, suppliers and other stakeholders. Base’s capability to
extend short lead-time is being possible because of the mutual trust and commitment it shares with
its suppliers.

The company’s products

OKTL’s product range covers Polo Shirt, Sweat Shirt and Ladies rib tops, basic & fancy polo shirt,
sweat shirt, T-shirt, as well as men’s, kids and ladies' knitwear garments. Following the dictate of
the fashion trend, OKTL has improvised its technologies, broadened its raw-materials sources and
trained its workforces. The result is superior garments, which offer consumers variety in terms of
materials, forms, style and ultimately, the superior experience. OKTL has been serving every
possible knitwear requirement of some the world’s top retailers over a decade.
 CHAPTER-5

DATA ANALYSIS AND INTERPRETATION