Internship Report on Human Resource Practices at Ultra Design and Fashion Limited

Internship Report On
Human Resource Management Practices of

Ultra Design & Fashions Limited
Department of Human Resource Management

University of Chittagong
Submitted To
Ayesha Akter
Assistant Professor
Submitted By
Md. Jobair Hossain
ID: 17305107
Session: 2016 – 2017
Date of Submission: 30 April, 2024

Internship Report
On
Human Resource Management Practices of

Ultra Design & Fashion Limited
Department of
Human Resource Management
Page | ii
Letter of Submission
Date: 30th April, 2024

Ayesha Akter
Assistant Professor
Subject: Submission of the Internship Report.
Dear Sir,
With due respect. I am delighted to present you with the internship report titled “Human
Resource Management Practices of Ultra design & Fashions Ltd” as a partial
requirement for completing my Bachelor of Business Administration (BBA) degree at the
University of Chittagong. This report is a combination of my work experience at Ultra
design & Fashions Ltd and my academic expertise at the Department of Human Resource
Management.
During my internship at Ultra design & Fashions Ltd, I was able to investigate and evaluate
the organization's contemporary HRM practices. I have devoted my best efforts to
addressing any deficiencies and submitting a thorough report.
I'm extremely grateful for the unique direction you provided me in this internship program.
I believe that this report will meet your approval and will serve its purposes. However, I
would always be available to provide clarifications if necessary.
Sincerely yours,
____________________
Md. Jobair Hossain

ID: 17305107
Session: 2016 - 2017
Page | iii
Acknowledgements
Praise and gratitude are due to the Almighty
I would like to thank all the Faculties of Human Resources Management at the University
of Chittagong who have provided us with the best possible assistance during the BBA
program. My deepest gratitude towards Ayesha Akter, Assistant Professor, Faculty at
Human Resource Management, University of Chittagong, who has been an irreplaceable
guide throughout the compilation of this report. The report was completed and submitted
on time, thanks to her direction and supervision.
I am grateful to Md. Sarwar Alamgir, Managing Director of Ultra Design & Fashions
Limited for permitting me to complete an internship with the organization.
I want to thank Mrs. Rokeya Begum Rumee, HR & Compliance Manager, and Mrs.
Sharminur Rahman, Employee Welfare Officer for their compassion, patience, and
guidance throughout the internship program. I also want to thank all the staff in the office
for allowing me to collect information and assisting me in every way possible to learn and
collect the data I needed to complete my internship report.
In addition, I would like to acknowledge my family's unwavering support throughout this

time. With their motivation and cooperation, I could complete my internship without
difficulty and stress.
Finally, I want to express my appreciation to everyone who has contributed to this

endeavor.
Page | iv
Supervisor's Declaration
This is to certify that this internship report title “Human Resource Management
Practices of Ultra Design & Fashions Ltd” has been prepared by Md. Jobair Hossain,
ID: 17305107, Session: 2016 - 2017, for the submission at the Department of Human
Resource Management under the Faculty of Business administration, University of
Chittagong, for the fulfillment of the requirements for the degree of Bachelor of Business
Administration.
He is permitted to submit the internship report. I wish him every success in his life.
Supervisor,
___________________
Ayesha Akter
Assistant Professor
Faculty of Business Administration
Page | v
Executive Summary
This internship report examines the complex Human Resource Management Practices
employed by Ultra Design & Fashions Limited, offering a comprehensive analysis of its
HR underlying forces. Throughout my internship tenure, I have gathered invaluable
insights into the rational functioning of an organization's human resource department,
witnessing its actual fundamental role in organizing seamless operations across all levels.
A primary focus has been on ensuring optimal workforce allocation, ensuring the right
individuals are employed at the right time for optimal task performance. Moreover, I have
observed how the department promotes a favorable working culture, introducing values
and empowerment among employees to boost motivation and enhance performance.
The initial chapter serves as a foundational groundwork, encompassing the report's

introduction, objectives, methodology, and any innate limitations. Transitioning into the
second chapter, an in-depth exploration of Ultra Design & Fashions Limited describes,
shedding light on its corporate philosophy, product portfolio, mission, vision, and code of
conduct, among other pertinent aspects. The next chapter is the discussion of the
theoretical foundations of human resource management, offering a thorough
understanding of its conceptual framework and core functionalities.
The core of the report lies in the fourth chapter, where the spotlight is cast upon the Human
Resource Management Practices unique to Ultra Design & Fashions Limited. This
segment thoroughly defines the company's major HR functions, providing invaluable
insights into its organizational beliefs and operational methodologies. Finally, the fifth
chapter sums up the culmination of findings relating to the company's HR practices,
offering practical recommendations for potential enhancements and closing in with a
conclusive summary.
Page | vi
Table of Contents
Letter of Submission ....................................................................................................... iii
Acknowledgements .......................................................................................................... iv
Supervisor's Declaration .................................................................................................. v
Executive Summary ......................................................................................................... vi
List of Figures................................................................................................................... xi
List of Tables ...................................................................................................................xii
List of Abbreviations .................................................................................................... xiii
Chapter – 01 Introduction ............................................................................................... 1
1.1 Origin of the Study ................................................................................................... 2
1.2 Objectives of the study ............................................................................................. 3
1.2.1 Primary Objectives: ........................................................................................... 3
1.2.2 Specific Objectives: ........................................................................................... 3
1.3 Scope of the Study .................................................................................................... 3
1.4 Methodology of the Study ........................................................................................ 4
1.4.1 Primary Sources ................................................................................................. 4
1.4.2 Secondary Sources ............................................................................................. 4
1.5 Limitations of the Study ........................................................................................... 5
Chapter – 02 Company Profile ........................................................................................ 6
2.1 Overview of Ultra Design & Fashions Limited ........................................................ 7
2.2 Company Profile at a glance ..................................................................................... 8
2.3 Company Mission, Vision & Objectives .................................................................. 9
2.3.1 Mission .............................................................................................................. 9
2.3.2 Vision ............................................................................................................... 10
2.3.3 Objectives ........................................................................................................ 10
Page | vii
2.4 Organogram of HR Department ............................................................................. 10
2.5 Code of Conduct ..................................................................................................... 11
2.6 Worker’s Grading System of Ultra Design & Fashions Limited ............................ 12
2.7 Administrative Departments ................................................................................... 13
2.8 Import & Export Countries ..................................................................................... 14
2.9 Competitors of Ultra-Design & Fashion Ltd .......................................................... 15
2.10 Documents and License of Ultra Design & Fashions Limited ............................. 16
Chapter – 03 Theoretical Background of Human Resource Management .............. 17
3.1 Introduction to Human Resource Management ...................................................... 18
3.2 Importance of HRM ................................................................................................ 18
3.3 Fundamental HRM Functions................................................................................. 19
3.4 Job Analysis ............................................................................................................ 20
3.4.1 Steps in Job Analysis Process .......................................................................... 20
3.4.2 Methods of Job Analysis Process .................................................................... 21
3.5 Human resource Planning ....................................................................................... 22
3.5.1 Process of Human Resource Planning ............................................................. 23
3.6 Recruitment & Selection......................................................................................... 24
3.6.1 Sources of Recruitment.................................................................................... 24
3.6.1.1 Internal Sources of Recruitment ............................................................... 25
3.6.1.2 External Sources of Recruitment .............................................................. 26
3.7 Selection ................................................................................................................. 26
3.7.1 Some Selection tests ........................................................................................ 28
3.8 Training and Development ..................................................................................... 29
3.8.1 Steps in Training Process ................................................................................. 29
3.8.2 ADDIE Five step Training Process .................................................................. 30
3.8.3 Training Methods ............................................................................................. 30
3.8.3.1 On the Job Training .................................................................................. 31
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3.8.3.2 Off the Job Training .................................................................................. 31
3.9 Performance Appraisal............................................................................................ 32
3.9.1 Purpose of the Performance Appraisals ........................................................... 33
3.9.2 Methods of Performance Appraisal ................................................................. 33
3.10 Compensation and Benefits .................................................................................. 34
3.10.1 Benefits .......................................................................................................... 36
Chapter – 04 Human Resource Practices of Ultra Design & Fashion Ltd ................ 37
4.1 Department of Human Resource at Ultra Design & Fashions Ltd ......................... 38
4.1.1 Workforce planning ......................................................................................... 40
4.1.1.1 Workforce Planning for Employees .......................................................... 40
4.1.1.2 Workforce Planning for Workers .............................................................. 41
4.1.2 Recruitment and Selection ............................................................................... 41
4.1.2.1 Recruitment Sources of Ultra Design & Fashions Limited ...................... 41
4.1.2.2 Recruitment and Selection process for managerial employees ................ 42
4.1.2.3 Recruitment and Selection process for Workers ....................................... 44
4.1.3 Training and Development at Ultra Design & Fashion Ltd ............................. 46
4.1.3.A Training process for managerial employees............................................. 46
4.1.3.B Training for Workers/Hourly waged and non-managerial staffs .............. 47
4.1.4 Compensation and Benefits ............................................................................. 48
4.1.4.1 Compensation and Benefits for Employees .............................................. 49
4.1.4.2 Compensation and Benefits for Workers .................................................. 50
4.1.4.3 Compensation and Benefits for Others ..................................................... 52
4.1.4.4 Leave grants for Employees and Workers ................................................ 53
4.1.5 Performance Appraisals ................................................................................... 53
4.1.5.1 Performance Appraisal Methods at Ultra Design & Fashion Limited ...... 53
4.1.6 Operational Activities ...................................................................................... 54
4.2 Promotional Procedure ........................................................................................... 55
Page | ix
4.2.1 Promotional Procedure for Employees ............................................................ 55
4.2.2 Promotional Procedure for Workers ................................................................ 55
4.3 Employee or Worker Termination, Laid off and Retrenchment ............................. 55
Chapter – 05 Findings, Recommendations & Conclusion ........................ 56
5.1 Findings .................................................................................................................. 57
5.2 Problems in HR Practices at Ultra Design and Fashion Ltd ................................... 57
5.3 Recommendations................................................................................................... 59
5.4 Implications ............................................................................................................ 63
5.4.1 Organizational Implications............................................................................. 63
5.4.2 Academic Implications .................................................................................... 63
5.5 Learnings ................................................................................................................ 64
5.6 Conclusion .............................................................................................................. 64
References ........................................................................................................................ 66
Appendices....................................................................................................................... 67
Appendix 1: Internship certificate from Ultra design & fashion Limited ................ 67
Appendix 2: Turnitin Report ..................................................................................... 68
Page | x
List of Figures
S.L No Figure No. Figure Name Page No.
1 Figure 2.1 Organogram of Human Resource 10

Department
2 Figure 2.2 Competitive advantages of Ultra Design & 15

Fashion Ltd
3 Figure 3.1 Job Analysis Process 21
4 Figure 3.2 Steps In Human Resource Planning 23
5 Figure 3.3 Steps In Selection Process 27
6 Figure 3.4 Selection Test Types 28
7 Figure 3.5 ADDIE Five Step Training Process 30
8 Figure 3.6 On The Job and Off the Job Training 32
9 Figure 3.7 Methods Of Performance Appraisals 34
10 Figure 4.1 Organogram Of Human Resource 39

Department
11 Figure 4.2 Steps In Selection Process for Employees 43
12 Figure 4.3 Steps In Selection Process for Workers 45
13 Figure 4.4 Procedure For Promotions 55
Page | xi
List of Tables
S.L. No Table No Table Name Page No
1 Table 2.1 Company Profile 8&9
2 Table 2.2 Grading System of Ultra Design & 13

Fashion Ltd
3 Table 2.3 Import And Export Countries 14
4 Table 3.1 Internal And External Sources of 25

Recruitment
5 Table 4.1 Salary Structure of Workers 52
6 Table 4.2 Salary Structure of Other Workers and 52

Staffs
Page | xii
List of Abbreviations
RMG Ready Made Garments
EPZ Export Processing Zone
BGMEA Bangladesh Garments Manufacturers and Exporters Association
HRM Human Resource Management
HR Human Resource
HRP Human Resource Planning
ILO International Labor Organization
WRAP Waste and Resource Action Program
BSCI Business Social Compliance Initiative
CCCI The Chittagong Chamber of Commerce and Industry
SEDEX Supplier Ethical Data Exchange
CTPAT Customs Trade Partnership Against Terrorism
ERC Export Registration Certificate
IRC Import Registration Certificate
Page | xiii
Chapter – 01
Introduction
Page | 1
1.1 Origin of the Study
The Readymade Garments industry (RMG) serves as a stimulus and as a savior for the
absolute development of our country. The clothing industry is super important for
Bangladesh's economy. It's a top export sector and employs millions, especially women,
helping them be more independent. Selling clothes brings in a lot of money from other
countries, which helps Bangladesh grow and reduces poverty. Bangladesh is good at
making clothes because labor is cheap and workers are skilled. Even though there are
problems like safety issues and fights over workers' rights, the clothing industry keeps
going, attracting investments and helping Bangladesh develop. Last year, the RMG sector
has contributed significantly which is approximately 10.35% of our GDP (Source:
Bangladesh Bank Report). Export Promotion Bureau (EPB) statistics shows that
Bangladesh’s RMG industry shipped $35.25 billion in garments from July to March of
FY2022-23. This sector employs approximately 4 million workers, primarily females from
underprivileged social classes. So, it is evident that the RMG sector is playing a pivotal
role in uplifting industrial development.
Ultra Design & Fashions Ltd operates its manufacturing unit by optimally using 14
production lines and manpower of around 600 decently trained and motivated workers.
The following company is certified by WRAP, SEDEX and CT-PAT compliance.
The HR department at Ultra Design & Fashion Limited has been managing its employees
and workers since its inception. The HR department is responsible for the recruitment,
selection, training and development and compensation of the employees. The HR
department is consistently maintaining balance in workforce by ensuring right people at
the right place at the right time.
Today, Human Resource Management (HRM) is getting more important. It deals with
things like hiring, training, and paying workers, which are getting more complicated. This
is a big deal worldwide, especially in industries like RMG, where a lot of manual work is
needed. For this reason, the decision was made to conduct a proper study on the functions
of Human Resource Management in Ultra Design & Fashions Ltd. Besides, as a student
of Human Resource Management, my interest fully complies with the functions of HR
Department at Ultra Design & Fashion Limited. That’s why I took the decision to pursue
my internship at Ultra Design & Fashion Limited.
Page | 2
1.2 Objectives of the study
The study has been conducted by keeping several objectives in mind. To simplify, two
categories are made to distinguish these objectives. The most significant objective is
regarded as the primary objective and the rest of the objectives are regarded as specific
objectives.
1.2.1 Primary Objective:
i. To know and inspect the Human Resource Practices at Ultra Design & Fashions
Ltd.
1.2.2 Specific Objectives:
i. To comprehend the theoretical aspects of Human Resource Management

Practices
ii. To acquire an overview of the HR functions at Ultra Design & Fashion Ltd.
iii. To identify the underlying problems in the HR & Compliance department of
Ultra Design & Fashions Ltd and offer suggestions in accordance with that.
1.3 Scope of the Study
The study outlines human resource operations at Ultra Design & Fashions Ltd., serving
academic purposes while offering insights into the organization's challenges and
opportunities. During the internship tenure, I have studied and inspected the company’s
HR practices such as recruitment, selection, pay design and performance appraisal. Also,
I have assisted them in such Human Resource undertakings. As a result of such cooperative
work and discussions, I have gained valuable practical knowledge regarding HRM
practices. Besides, the following report includes areas of improvements, challenges,
opportunities and so on which may provide valuable insights to improve the thorough
effectiveness of the HR department at Ultra Design & Fashions Ltd.
Page | 3
1.4 Methodology of the Study
To complete this study, two sources are used to collect information. The sources are as
follows:
1.4.1 Primary Sources
i. Face to face conversation
Through direct interaction with the employees and workers of Ultra Design &
Fashions Ltd, data has been gathered to prepare the report. The advantages of using
face-to-face interviews include the ability to establish a rapport with the
participant, which can lead to more in-depth and honest responses.
ii. Participation in several HR related functions
During the internship, I participated and assisted the company in several HR related
functions such as maintaining personal files, recruiting and selecting workers. Such
collaborative works are the primary source of my information.
iii. Close Observation of the organizational activities
Physical observation of day-to-day HR operations allows us to understand the

activities of an organization. For this reason, direct observation of daily activities
was done to collect significant data.
1.4.2 Secondary Sources
i. Website of Ultra Design & Fashions Ltd.

ii. Different documents, News articles
iii. Annual Reports
iv. Internet
v. Study of the official documents
vi. Company Policy and Guidelines
vii. Audit Report
viii. Salary Maintenance sheet
Page | 4
1.5 Limitations of the Study
Although attempt has been made with utmost diligence and care to observe and gather
meaningful information throughout the study, it is important to address and acknowledge
the limitations of the study so that the complete study can make sense of the findings and
recommendations and may leave opportunities for future studies. While conducting the
study, the following limitations were faced:
1. The employees were reluctant to share information to keep their strategy safe and
secure. As a result, some pertinent information could not be collected.
2. It is difficult to bring out the actual information as the remarks and information
shared by the internal stakeholders may include bias.
3. Limitation of time played a negative role in completing the study. The study could
have been done more properly if sufficient time had been provided.
4. Most of the documents of the organizations pertinent to HR activities were found

to be outdated.
5. The daily workload and work pressure of the employees hindered the interview
process. Besides, some interviews could not be taken due to the busy schedule of
the employees.
6. The website of Ultra Design & Fashions Ltd was not updated and unorganized.
Besides, the website was missing some regular information and did not work
properly.
Page | 5
Chapter – 02
Company Profile
Page | 6
2.1 Overview of Ultra Design & Fashions Limited
Ultra Design & Fashions Limited started their journey in April, 2011 with a goal to create
products of excellent quality and to meet the buyers’ needs. In the beginning, the company
used to operate business with a small number of workforce but after creating a goodwill
globally they were forced to expand their manufacturing process which resulted in
employment of a large number of workforces in the factory. Converging on the markets of
Europe and North America, this company runs its business and gets maximum orders via
different national and international acquaintances. This company holds an excellent
relationship with every stakeholder and has consistently satisfied them with suitable and
standard products.
Currently, Ultra Design & Fashions Limited mainly manufactures Polo T-shirts, Boxer,
Boxer Short, Chemises, A-Shirt, Tank Top, Hoody, and Jogger etc. They mainly receive
order from USA, Canada, Singapore, Italy, UK, Germany, South Korea, Japan, Spain and
India etc.
The company has 14 production lines and has a capacity to produce 14000 pcs per day.
Nearly 600 employees currently work in the factory, including both managerial and non-
managerial staff. The male-female ratio of the organization is 25% male and 75% female.
The workforce is mainly divided into four categories. These are: Sewing, Cutting,
Finishing and Quality Control. The company comprises of five departments. These are:
HR & Compliance, Finance, Accounts, Merchandising and Quality.
By producing and distributing export-oriented garments, the company is constantly

contributing to the Bangladeshi economy. The company respects the moral and social
values of its employees and is committed to providing the best possible working
conditions, welfare, and safety. Their goal is to establish trust with their buyers through
quality, commitment, and social ethics.
With its many years of knowledge and experience in readymade garments industry. They
offer advantages and efficiency to their customers with quality garments in a timely
manner. While achieving their high quality of work they are following all local laws,
regulations, child labor policy, human rights policies, and sustainable environment
practices. For their commitment to the welfare of the workers and for maintaining safety
and ensuring no child labor in the factory, they are certified by WRAP, BSCI and SEDEX.
Page | 7
The company does not only comply with the ILO conventions but also follows and
maintains a high standard of green production and performs social responsibility.
Presently, with a factory area of 75000 square feet and organized with 166nos fire
extinguishers, 10nos first aid, independent facilities and 740 sets of modern sewing and
cutting machines, they are constantly satisfying buyers around the world and uplifting the
name of our country in the global market.
2.2 Company Profile at a glance
Table 2.1 provides a detailed overview of Ultra Design & Fashions Limited.
Table 2.1: Company Profile
Name Ultra Design & Fashions Limited
Types of Business Manufacturer and Export
Concern of Halda Group
Category of the company B
Factory Area 75000 square feet
Legal Status Private Limited Company
Year of Establishment 2011
Location South Pahartoli, Ward No 1, Fatehabed,

Hathazari, Chittagong, Bangladesh.
Chairman Md. Sarwar Alamgir
Managing Director Md. Sarwar Alamgir
Director Abul Monsur
No of Workers 600 (approximately)
Male & Female Ratio (Workers & 75% Female

Employees) 25% Male
Page | 8
Absenteeism Rate 2% to 3%
Turnover Rate 3% to 4%
Minimum Wage 12,500/- (As per govt.)
N.F.Z Teri Textile Ltd.

Raw Material Sourcing (A concern of Halda Group)
& Taiwan, China, India, Pakistan
Production Capacity 14000 pcs per day
Compliance Audit WRAP, BSCI
Security Audit ACCORD
Safety Audit SEDEX
Number of Production Line 14
Preferred Bank for Trading Standard Bank Limited, Agrabad Branch
Web www.haldagroup.com
Products T-Shirt, Polo Shirts, Boxer, Chemise,

Hoodie, Sweaters, Gents and Ladies under
garments
Export Outlet USA, UK, Italy, Qatar, Germany, UAE.
Member BGMEA, CCCI
Email info@haldabd.com
2.3 Company Mission, Vision & Objectives
2.3.1 Mission
To provide comprehensive service and quality benefits by strengthening relationships with

our employees, customers and business partners in Bangladesh’s growing textile and
apparel market. (Halda Group, 2019)
Page | 9
2.3.2 Vision
To be the world’s most vibrant and leading exporter of fabrics, dyeing fabrics and
readymade garments with TQM lead will set the benchmark for the industry and will create
option value for the customer. (Halda Group, 2019)
2.3.3 Objectives
i. To manufacture high-quality end products

ii. To lessen the cost of production
iii. To lessen the turnover rate
iv. Ensure workforce security.
2.4 Organogram of HR Department
Figure 2.1 depicts the organogram of the Human Resource department of the company.
The HR department comprises of a total number of 6 (six) employees and managers. The
positions are divided based on HR functions and Admin functions of the company. It is
demonstrated in the following figure:
Head of Human
Resource
Management
Employee HR Manager & HR Executive

Relationship Manager Admin Officer
Officer – HR & Employee Welfare

Compliance Officer
Figure 2.1: Organogram of Human Resource Department
Source: Authors own Compilation (2024)
Page | 10
2.5 Code of Conduct
Ultra Design & Fashions Ltd has a very clear code of conduct and social responsibility
outline that is stated clearly in their Group Profile and clearly placed on the walls of the
factory. It outlines the core beliefs under which they conduct business and ensure their
responsibility towards society. These codes are as given below:
No Forced Labor
Ultra Design & Fashions Ltd does not use forced or indentured labor. Following reasonable
notice, employees are not required to submit “deposits” or identification documents to
their employer. The process of selection includes applications, interviews, and individual
qualifications. There is no requirement for the selected candidates to provide a security
deposit or performance bond. The notice period is compliant with Bangladeshi labor law.
No Child Labor
Ultra Design & Fashions Ltd does not employ anyone younger than the age of 18. They
strictly adhere to all child labor laws as an organization. They adhere to all international
standards set for preventing child labor.
Adequate Wages
Workers at Ultra Design & Fashions Ltd are compensated in accordance with the law. In
the appointment letters, both the grade and salary are explicitly stated. They adhere to
Bangladesh Labor Acts,2006 and international standards in terms of compensation
policies. The minimum wage of the workers is BDT 12,500 TK as per the official gazette
(No. 40.00.000.016.32.021.13.30) which was declared on 18th December, 2023.
No Discrimination or Racism
Hiring, working hours, working conditions, remuneration, and promotion standards are the
same for everyone, irrespective of gender, race, caste, nationality, religion, age, disability,
marital status, sexual orientation, union membership, or political affiliation.
Medical Services & Health Care

Ensuring a healthy and work friendly environment is a top priority for Ultra Design &
Fashions Ltd. Full-time physicians and paramedics are employed to manage employee
medical emergencies and general health complaints.
Page | 11
Workplace Well-being
Ultra Design & Fashions Limited invests significantly in its employees’ welfare. They
orchestrate fire and machinery safety training programs and simulations. In addition, they
ensure that all firefighting equipment is up-to-date and functioning properly. They are
extremely compliant with Bangladeshi labor law and deeply concerned about worker
health and safety. They take all feasible precautions to prevent workplace accidents.
Harassment & Abuse

At Ultra Design & Fashions Limited, no employee is subject to physical, sexual, mental,
or verbal harassment and abuse. In the event of an incident of this nature, disciplinary
procedures are followed.
Working Hours
Ultra Design & Fashions Limited operates in accordance with local legislation and
industry norms regarding working hours. Employees are not expected to put in more than
48 hours each week. A daily break of at least 01 (One) hour is provided. Overtime hours
is also in accordance with the Bangladesh Labor Acts, 2006.
2.6 Worker’s Grading System of Ultra Design & Fashions

Limited
Ultra design & Fashions Limited has its own worker grading system that comply to the
Bangladesh Labor Act, 2006. Besides, the company offers other additional benefits and
non-monetary rewards to the workers and employees. Also, the company makes changes
to pay grades and compensation packages when needed. Ultra design and Fashion Limited
believe in equality and equity and they offer fair pay treatment to all the employees and
workers.
Table 2.2 provides the new grading system of Ultra Design & Fashions Limited after
adjusting to the new minimum wage policy which was declared by the Government of
Bangladesh on 18th December, 2023. This grading system was put into effect from the 1st
day of December in 2023.
Page | 12
Table 2.2: Grading System of Ultra Design & Fashions Ltd
Old Grade New Grade Designation
Grade 3 1 Senior Operator
Grade 4 2 Operator
Grade 5 & 6 3 Junior Operator
Grade 7 4 MSOP
2.7 Administrative Departments
Merchandising
Understanding customer requirements, developing product lines, negotiating with
buyers, and coordinating the production and delivery of garments are the main focuses of
this department.
Accounts Management
Budgeting, financial reporting, cash flow management, and payroll are a few of the
responsibilities of this department. In addition, they supervise accounts payable and
receivable, financial analysis, and compliance with financial regulations.
Production Management
This department manages the entire manufacturing process. It includes cutting, sewing,
finishing, and packing. They manage production schedules, quality control, resource
allocation, and ensure timely and efficient production of garments.
Human Resources Management

This department is responsible for managing recruitment, selection, training and
development, performance appraisal, developing compensation, managing conflicts, and
compliance by adhering to the local and international labor laws. Besides, the HR
department performs several daily operational activities such as recording daily
attendance of the workers and daily productivity.
Page | 13
Store & Inventory Management
This department administers the raw materials, accessories, and completed garments
inventory. They maintain stock levels, monitor inventory movements, coordinate with
suppliers, and guarantee efficient resource utilization.
Quality Assurance Department

The Quality Assurance department checks the raw materials quality, production
procedure and lastly the finished goods which are ready for export. It ensures that the
best raw materials are procured and the best goods are being delivered to the buyers.
2.8 Import & Export Countries
Ultra-design & fashion Ltd is mostly involved in foreign trade for its imports and
exports. It’s a 100% export-oriented company and depends very little on local companies
for the supply of raw materials. The Company frequently deals with buyers in FOB terms
and provides special offers and facilities for the buyers. Ultra design & Fashions Limited
ensures conformity to buyers’ requirement of superior quality of products.
Table 2.3 represents the countries with which the company conducts most of the imports
and exports.
Table 2.3: Imports and Exports Countries
Imports Exports
India USA
Pakistan UK
Taiwan Germany
China Canada
Singapore
Italy
Source: Authors Own Compilation, (2024)
Page | 14
2.9 Competitors of Ultra-Design & Fashion Ltd
Ultra-design & fashion Ltd contends with a large number of firms in this age of cutthroat
competition both in the local and global market. For this reason, it acknowledges the
local and worldwide competitors while creating its products and trying to achieve
sustainable competitive advantages over its rivals. Apart from local producers and
exporters, it faces severe competition from international competitors like Cambodia,
China, Vietnam, Pakistan & India.
Fig 2.2 portrays the competitive advantages held by the company.
Operation Low production

Management cost
Branded Quality raw

Products materials
Competitive
Advantages
Inventory Efficient
Management distribution
Committed In time delivery

Buyers
Figure 2.2: Competitive advantages of Ultra Design & Fashions Ltd
Source: Author’s Own Compilation, (2024)
Page | 15
2.10 Documents and License of Ultra Design & Fashions
Limited
Ultra Design & Fashion Ltd fairly adhere to the laws and policies of local government.
The company believes in fair and ethical business practices that create a sustainable
effect in the society. The documentation and license under government’s rules and
regulation are given below:
1. Factory License No: 3700/ctg

2. Trade License No: 173406
3. Vat Registration No: 24091047275
4. Tin Certificate No: 842488236933
5. ERC No: RA 73866
6. IRC No: BA 0166758
7. Bond License No: 5(20) KABAK/AKA/BGMEA/2001/PART-1/1079
8. Incorporation No: CH-6172 of 2007
9. Fire License No: 7923/07-08
10. Group Insurance No: BGMEA-4549/1988
11. BGMEA No: 4549
12. SEDEX - Audit ID 21963
13. BSCI- Audit ID 21913
14. Accord ID 11491
15. Alliance ID 10895
Page | 16
Chapter – 03
Theoretical Background of
Human Resource Management
Page | 17
3.1 Introduction to Human Resource Management
Human Resource Management includes various activities and operations. Human

Resource Management mainly deals with people who are considered as resources for an
organization. The various HRM activities are such as recruiting, selecting, and inducting
employees, providing orientation, imparting training and development, appraising the
performance of employees, deciding compensation and providing benefits, motivating
employees, maintaining proper relations with employees and their trade unions, ensuring
employees' safety, welfare, and health in accordance with labor laws of the land, and
finally adhering to the Orders / Judgments of the Supreme Court. Thus, HRM mainly
covers all the activities from an employee being employed in an organization to
termination of the employee's employment.
According to DeCenzo, (2010), Human Resource management as a branch of

management study that specifically focuses on recruiting, training, motivating, and
retaining people.
HRM is the planning, organizing, directing, and managing of human resource

acquisition, development, compensation, integration, maintenance, and separation in
order to achieve individual, organizational, and social goals (Flippo, 1984)
Armstrong, (2009) defines Human Resource Management (HRM) as a strategic,

comprehensive, and coherent approach to employee employment, development, and
well- being.
Human resource management is the process of recruiting, training, evaluating, and

compensating employees, as well as managing their labor relations, health and safety,
and impartiality. (Dessler G. , The Good of Organization HRM in Company, 2017)
3.2 Importance of HRM
Management of human resources occupies a position of paramount importance. Peter F.

Drucker argues that human desires determine whether certain production aspects are
used effectively. Therefore, human resources, in addition to other resources, need further
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development. Human capital has the potential to improve teamwork, but it must be
managed well.
The justifications highlight the significance of human resource management:
• It helps administration with personnel policy and program development,

acceptance, and ongoing refinement.
• It provides qualified labor via a scientific selection process.
• It ensures the greatest return on investment for training and development funds
and values employees as assets.
• Employees are inspired and improved in this way, bringing the company closer to
its aims.
• It helps in lowering costs and increasing productivity through innovation and
experimentation in the areas of human resources.
• It helps immensely in restoring labor peace and friendly ties between businesses
and their staff. Employee performance and retention now a days heavily rely on
the strategic management of human resources, which cultivates the achievement
of the firms’ goals and missions in the long run.
3.3 Fundamental HRM Functions
Core human resource management function means the basic functions of the HR
department. According to Dessler (2013), there are multiple core functions in human
resource management. These are pointed out below:
1. Job Analysis
2. Human resource planning
3. Recruitment and Selection
4. Training and Development
5. Performance Appraisal
6. Compensation Management &
7. Industrial Relations
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3.4 Job Analysis
Job analysis refers to examining a job to identify different components of it and the
circumstances in which it is to be performed. It is an essential human resource tool in
that it is imperative for every individual to have an adequate understanding of the jobs
assigned to them and the relative job differentials in terms of their level of difficulty,
responsibility, knowledge and skills. Job Analysis studies and collect information
relating to job operations & responsibilities associated with a specific job. The output
from a job analysis is used to develop a job description and its job specifications (Mathis,
Jackson, & Valentine, 2015)
Job Description
The job description identifies a job's core and additional tasks, duties, and
responsibilities and other job-related information.
Job Specification
Job Specification are the knowledge, skills, and abilities (KSAs) that an individual must
possess in order to perform a job reasonably. In other words, this can be best defined as
the qualification one needs to perform some specific job tasks.
3.4.1 Steps in Job Analysis Process
As it is said before, Job Analysis is the process of determining the job tasks and
identifying the qualities and abilities to perform those job tasks. The process consists of
several stages and each task must be done sequentially. Before conducting job analysis,
management needs proper planning and the mission or objectives of the job analysis
need to be identified. Since job analysis can be performed for various reasons, it is
important to follow different guidelines for different objectives.
Management may conduct job analysis for recruitment process or for pay design. Job
analysis is also used for performance appraisal. Sometimes, job analysis is conducted to
create new jobs or new job roles.
The job analysis process must be conducted logically, following appropriate management
and professional psychometric practices. Therefore, analysts usually follow a multistage
process, regardless of the specific job analysis methods used. Job analysis planning is the
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initial stage. The second stage is introducing and preparing for job analysis. The third
stage involves performing a job analysis. Developing a job description and employment
specifications is the next step. Maintaining and updating the job description and
specifications is the final phase.
Figure 3.1 illustrates the sequential stages of Job Analysis:
Identify the purpose of job analysis
Select the jobs to be analyzed and collect job

analysis information
Analyze the job data
Document job descriptions and develop job

specifications
Update and maintain job analysis data
Figure 3.1: Job Analysis Process
Source: (Dessler G., 2013)
3.4.2 Methods of Job Analysis Process
There are several strategic approaches which are utilized in job analysis, which are given
below with little description:
Personal Observation
An analyst must be aware of the materials and apparatus used, the working conditions
and potential dangers, and the nature of the action being analyzed.
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Sending Questionnaires
Precisely drafted questionnaires are sent to jobholders for completion and return to
administrators.
Maintenance of Long Records

The employee maintains a regular log of the duties he performs, noting the start and end
times for each task.
Critical Incidents
In this method, job candidates are asked to describe incidents related to their previous
employment. The collated incidents are then analyzed and categorized according to the
job field they describe.
Personal Interviews
The analyst may conduct personal interviews with employees and record their responses
to related queries. This system is time-intensive and expensive.
Technical Conference Method

This technique employs supervisors with extensive job knowledge. Here, specific job
characteristics are derived from "experts."
Functional Job Analysis

Functional job analysis (FJA) is an analytical technique of job analysis that focuses on
the employee. This method attempts to describe the employee as a whole.
3.5 Human resource Planning
Ideally, recruitment and selection begin with HR planning. Human resource planning is
the process of determining which positions will need to be filled, how they will be filled,
and when. It includes positions ranging from maintenance clerk to chief executive officer
(Dessler G., 2013)
According to Bartholomew, (1979), human resource planning is the first step in the
process for all HR specialists. It involves figuring out how many people will be needed
and developing a plan to meet those needs.
A company's human resource plan is essential as it allows the company to utilize people's
skills best for both the employee and the company. It can also help the company cut costs
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related to low output, having too many employees, training programs that need to be
improved, and so on. The human resource plan ensures that the right number and kind of
people are in the right place and at the right time to help the company reach its goals.
One of the major goals of HRP is to make qualified employees available when needed. It
simply means, NO SURPLUS, NO SHORTAGE!
3.5.1 Process of Human Resource Planning
Human Resource Planning focuses on the future availability of employees and it ensures
the right number of employees at the right time. The whole process includes several
stages. As described by Dessler, (2013) , the various stages of HRP are shown below in
Figure 3.2.
Forecasting personnel needs (Trend Analysis, Ratio

Analysis, Scatter Plot)
Forecasting the supply of inside candidates

(Replacement Charts, Markov Analysis, Skill
Inventories)
Forecasting the supply of outside candidates
Identify supply-demand gaps
Develop action plan to fill the projected gap
Figure 3.2: Steps in Human Resource Planning
Source: Dessler, (2013)
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3.6 Recruitment & Selection
Normally, In HRM process, after conducting the human resource planning process,
recruitment & selection activities take place to fill up the vacant places in the
organization if necessary.
Once the required number and type of human resources have been determined, the
management must identify the locations where the necessary human resources are or will
be available, as well as ways to attract them to the organization, prior to selecting
candidates for open positions. All of this is commonly referred to as recruitment. Some
individuals use the term recruitment to refer to employment. Recruitment is only one
stage in the employment process as a whole. Others use the term selection through
recruitment. Also, these two terms are not synonymous. Recruitment is defined as the
process of identifying sources of manpower to meet the requirements of a staffing plan
and employing effective methods for attracting that manpower in sufficient numbers to
facilitate the effective selection of an efficient workforce. Recruitment is the process of
searching for potential employees and enticing them to apply for positions within the
organization. (Phillips & Gully, 2015)
3.6.1 Sources of Recruitment
Mostly, two very common sources of recruitment are used for further selection
processes. The sources of recruitment are:
▪ Internal Source of Recruitment

▪ External Source of Recruitment
An organization may use only sources of recruitment or it may use both sources at the
same time. However, the effective sourcing method depends on the company strategy
and HRM policies. Besides, the values, beliefs and culture of a company also affect the
source of recruitment.
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Table 3.1 shows several internal and external sources of recruitment.
Table 3.1: Internal and External sources of recruitment
Internal Sources External Sources
Internal Job posting Job Portals & Company Websites
Employee Referral Campus Placement
Promotions & Transfers Recruitment Agencies
Talent Management Job Fair & Career events
Succession Planning Social Media
Direct Application
Source: (Phillips & Gully, 2015)
3.6.1.1 Internal Sources of Recruitment
Internal Job Postings

Companies can let their present employees know about job openings so they can apply
and be considered for promotions or transfers. This method helps people in the company
move up in their careers.
Referrals from Current Employees

Current employees can recommend possible job prospects from their networks.
Employee referral programs often reward successful recommendations, leading to high-
quality candidates who fit well with the organization's culture.
Promotions and Transfers

Finding talented people within an organization and promoting them to higher-level
positions or moving them to different areas or locations is an excellent way to keep
skilled workers and fill open positions.
Talent Management and Succession Planning

Organizations can create talent management and succession planning programs to find
high-potential workers and train them for future leadership roles. This makes sure that
there is a steady stream of suitable internal candidates for critical jobs.
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3.6.1.2 External Sources of Recruitment
Job portals and company websites

By posting job ads on popular job portals and the company's website, businesses can
reach many people actively looking for work.
Recruitment Agencies
Hiring recruitment agencies or "headhunters" lets you use their networks and knowledge
to find qualified people who may not be actively looking for work.
Campus employment
Companies can connect with recent graduates and interns entering the job market by
going to schools and holding recruitment drives or participating in career fairs.
Job fairs and career events

When companies participate in job fairs and industry-specific career events, they can
show off their brand, talk to possible candidates in person, and find people with the right
skills and interests.
Social Media
Organizations can reach a wide range of people by using social media sites like
LinkedIn, Facebook, and Twitter to share job openings, discuss business culture, and
interact with potential candidates.
Direct Applications
Taking applications directly from people who want to work for the organization through
email, snail mail, or drop-in applications can bring in people who are interested in the
organization.
3.7 Selection
A successful recruitment campaign should yield numerous applications from qualified

candidates. The next step is to select the most suitable candidate. Employers are
responsible for determining who should be involved in this task and assisting with
policies, procedures, and training. Organizations can employ a strategic selection
strategy as with all other facets of human resource management. Effective selection
processes aligned with the organization’s strategic objectives add value by ensuring that
Page | 26
the necessary human resources are in place to achieve these objectives. Consequently, it
is prudent to view selection processes in this broader context (Jenkins, Foot, & Hook,
2015)
Though some scholars and researchers suggest many ways to conduct selection of
employees, it is best to use the method that complies to the organization's mission and
objectives. Besides, the culture and availability of other resources should be kept in mind
while choosing a selection method. But in most cases, currently, management uses
combination of several selection methods to find the right person for the organization.
Figure 3.3 suggests some steps to be followed while conducting a selection process.
Short listing the candidates
Setting up tests for the short-listed
Interviewing the candidates
Choosing the successful candidate
Obtaining references
Offering the position
Organizing the induction process
Evaluating the result
Figure 3.3: Steps in Selection Process
Source: (Stredwick, 2013)
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3.7.1 Some Selection tests
Organizations practice different types of selection tests for choosing the right employees
from many candidates. Some tests may take several days or months whereas some tests
may take only a few hours to find the right employees for the organization.
The selection process starts by inviting candidates to apply for the job posts but only a
few potential candidates qualify for the selection tests. Selection tests may occur in
several parts or may use combination of various tests.
Figure 3.4 shows the most common selection tests used by the organizations.
General
Aptitude
Test
Personality
Test Knowledge
Test
Work
Dexterity
Sample
Test
Test
Physical
Honesty Test
Test
Cognitive
Test
Figure 3.4: Selection Test Types
Source: (Elina, 2011)
Page | 28
3.8 Training and Development
Training and Development refers to the systematic process that focuses on enhancing the
work-related abilities, knowledge, skills and performance of the employees. Training and
development process is undoubtedly an essential part of Human resource functions.
Training and development start after a candidate is employed in the organization. But it
is different than socialization which occurs at the initial days of a new employee.
Training and Development just aimed at improving the current performance and making
employees fit for future job assignments.
According to Dessler G., (2017), training is "the process of providing employees with
specific skills or helping them correct deficiencies in their performance" (p. 269). This
involves structured programs, workshops, and activities designed to impart new
knowledge, refine existing skills, and foster professional growth.
On the other hand, development focuses on long-term career growth and succession
planning. Dessler G., (2017) defines development as "the acquisition of knowledge,
skills, and behaviors that improve an employee's ability to meet changes in job
requirements and in client and customer demands" (p. 271). Development initiatives
often include mentoring, coaching, job rotations, and educational opportunities tailored
to individual career aspirations.
3.8.1 Steps in Training Process
Training is a short-term objective-oriented activity that only focuses on improving the

present work performance of the employees.
Training process consists of the following steps:
1. Identify and compare the specific knowledge and skills required by the job with
those of the prospective trainees during the first stage of need analysis.
2. In the second stage of instructional design, designers create measurable learning
outcomes, assess the feasibility of course materials and estimate the training
program's budget.
3. The third stage is to implement the program by training the targeted employee
group using methods such as on-the-job training or online training.
4. In the final stage, evaluate the program's success (or failures).
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3.8.2 ADDIE Five step Training Process
Planning, Designing and Conducting training in the organization is a complex task.

Management must observe and identify many factors that may affect the training process
which may result in failure of the training initiative. The gold standard here is still the
basic Analysis-Design-Develop-Implement-Evaluate (ADDIE) training process model
that training experts have used for years (Dessler G., 2013)
Figure 3.5 illustrates the ADDIE Five step Training Process.
Conducting the Training Needs Analysis
Designing the Training Program
Developing the Program
Implementing Training Programs
Evaluating the Training Effort
Figure 3.5: ADDIE Five Step Training Process
Source: (Dessler G. , Human Resource Management, 2017)
3.8.3 Training Methods
DeCenZo & Robbins,( 2010) described two ways of providing training to the emoloyees.
The two categories are:
▪ On the Job Training

▪ Off the Job Training
The above categories are described below with different training methods from each of the
categories.
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3.8.3.1 On the Job Training
Job Rotation
Job rotation provides employees with the opportunity to work in a variety of environments
and acquire experience with a vast array of duties.
Internships
Organizations typically value internships as a means to reduce hiring costs without
requiring permanent employment.
Job Instruction
This entails enumerating the essential duties for each position alongside pertinent
information in order to provide employees with step-by-step guidance.
Committee Assignments
A group of trainees is entrusted with resolving an organizational issue by debating the issue
and honing their problem-solving and analytic skills through debate.
Understudy Approach
The employee receives mentoring or training as an understudy from an experienced
employee or trainee supervisor.
Action Learning
A training method that allows management learners to work full-time analyzing and
resolving problems in various departments.
3.8.3.2 Off the Job Training
Lectures in the Classroom

To convey a great deal of information rapidly, many organizations combine classroom
instruction with other methods.
Audiovisual-Based Learning
Instructing using films, television programs, videos, lectures, etc., to make students
proficient in topics that are easy to comprehend.
Vestibule Learning
The training makes learning simpler by employing the same tools that will be used on the
job, but in a virtual work environment.
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Simulations
The trainee must become familiar with the operation of machines and apparatus that are
accurately modelled after those installed.
Case Study Method

Development process in which a manager identifies and resolves an organizational
problem and presents the results.
Role-Playing
It is a form of education in which managers assume roles in a realistic management
scenario.
Figure 3.6 depicts the On-the-Job training and Off the Job training at a glance.
On the Job Training Off the Job Training
Job Rotation Lectures

Training Methods
Internships Audio – Visual Training

Job Instructions Vestibule Learning
Committee Assignments Simulations
Understudy Case Study Method
Action Learning Role Playing
Figure 3.6: On the Job Training & Off the Job Training
Source: (DeCenZo & Robbins, 2010)
3.9 Performance Appraisal
Performance appraisal is another basic function of Human Resource Management. Here,

it means evaluating the performance of the employees after a certain period. Performance
appraisal can be undertaken for several reasons. For example, to understand the training
needs of an employee or to update the compensation package of an employee based on
one’s performance. This function shows the current work performance of the employees,
which helps the management to take decisions on training needs and pay mixing.
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Performance appraisal can be defined as "the process of evaluating an employee's job
performance and productivity in relation to pre-established criteria and organizational
objectives" (Robbins & Coulter, 2017)
Performance appraisal is also referred to as a tool for evaluation of employee performance.

It’s also known as annual review used identify the contribution of the employees to the
organization. (Anguinis & Kraiger, 2009)
3.9.1 Purpose of the Performance Appraisals
Performance appraisal can serve various purposes. Though the major goal of performance
appraisal is to understand the training needs of the employees, it can satisfy other
management needs as well.
Three fundamental purposes of performance appraisal:
1. Evaluation: Evaluating the performance of employees based on predetermined

criteria such as work ethics, productivity, attendance and attitude.
2. Feedback: It provides feedback and understanding of the employee’s strengths and
areas of improvement.
3. Goal Setting: Appraisal assists in setting goals and guiding the management and
employees.
3.9.2 Methods of Performance Appraisal
Performance appraisal methods can vary widely and there could be no best performance
appraisal method as the method selection largely depends on the availability of some
essential resources and the goal of the performance appraisal. Some methods are highly
costly and some methods are very time consuming. Some methods may include bias or
some may include errors. Therefore, management must select performance appraisal
method based on firms’ available resources and objectives of the appraisal process.
Figure 3.7 depicts various performance appraisal methods narrated by (Dessler G. ,

Human Resource Management, 2017)
Page | 33
360 Degree Straight Ranking
Method Method
Forced
Graphical Rating
Distribution
Method
Method
Performance
Appraisals
Behaviorally
Alteration
Anchored Rating
Ranking Method
Scale (BARS)
Management By
Paired
Objective
Comparison
(MBO)
Figure 3.7: Methods of Performance Appraisal
Source: (Dessler G. , Human Resource Management, 2017)
3.10 Compensation and Benefits
Compensation is the reward or return that an employee receives for his or her contribution
to the organization. This is the biggest motivation for any personnel to work. Without the
presence of quite fair compensation, any management may fail to get the work done by the
employees. Fundamentally, the whole compensation includes three elements. One is Base
Pay, which is fixed by the company and the performance of the employees or workers
won’t affect the base pay. It means employers cannot make any deductions from the base
pay. Another element is Incentives. These are considered to be a reward for good
performance. The last one is Indirect Compensation/Benefits which is provided to the
employees in addition to the salary/wages. The components are further discussed below:
Page | 34
Base Pay
Base pay is the initial salary paid to personnel of an organization, excluding benefits and
incentives.
Merit Increase
An employee receives a merit increase when their performance is considered satisfactory.
It serves as a method for rewarding individuals who produce above-average results.
Cost of Living Adjustments

To compensate for the erosion of purchasing power caused by inflation, the cost-of-living
adjustment is a periodic salary increase—the dearness allowance, for example.
(Milkovich, Newman, & Ratnam, 2016)
Incentive
Staff members receive variable compensation for achieving a predetermined employment
objective. It is given to motivate employees to perform efficiently. Three categories of
incentives exist. The first is a Personal Incentive plan, then Group incentive program, and
lastly, Companywide incentive program. (Milkovich, Newman, & Ratnam, 2016)
1. Individual incentive plans

a) The piecework plans
b) The time-based plan
c) The management incentive plan
d) The behavioral encouragement plans
e) The referral plans
2. Group Incentive Plans
a) Team-based or small-group incentive plan
b) Gain-sharing plan
3. Companywide incentive plans
a) Profit-sharing scheme
b) Plan for employee stock options
Allowance
It is a sum of money provided or allotted for specific purposes. Certain allowances are
taxable under the head salaries, while others are primarily or entirely exempt from
taxation. Some of these allowances include the Dearness Allowance, the House Rent
Page | 35
Allowance, Food allowance, and the Transportation Allowance. (Milkovich, Newman, &
Ratnam, 2016)
Discretionary Benefit
These bonuses are discretionary employee benefits that are not permitted by law. They
may include a variety of benefits, such as health and safety insurance, vacation leave, sick
leave, life insurance, payment for unworked leisure Premium pay. Mostly high levels of
employees enjoy such discretionary benefits. (Milkovich, Newman, & Ratnam, 2016)
Legally Required Benefits

To avoid legal action, all businesses must provide legally required benefits to their
employees. The maternity benefit, night shift allowance, employee savings account, and
gratuity are some of the essential benefits. (Milkovich, Newman, & Ratnam, 2016)
Management's relationships with employees and employment conditions. It has both a

political and an economic basis; both parties are concerned with the distribution of power
and the distribution of income. Collective bargaining is an exchange relationship in which
wage–work negotiations occur between employers and employees through the mediation
of a trade union. Historically, the function of trade unions as bargaining agents has been
viewed as compensating for differences in individual bargaining power between
employers and employees on the labor market (Armstrong, 2009).
3.10.1 Benefits
Benefits are indirect financial and non-financial payments employees receive for
continuing their employment with the company. There are several types of benefits:
a. Supplemental Pay Benefits
b. Insurance Benefits
c. Vacations and Holidays
d. Sick Leave
e. Parental Leave and Family Leave
f. Medical Leave
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Chapter – 04
Human Resource Practices of
Ultra Design & Fashion Ltd
Page | 37
4.1 Department of Human Resource at Ultra Design &
Fashions Ltd
Workers are the lifeblood of every sector, and maintaining their well-being is paramount.
Companies like Ultra Design & Fashions Ltd. rely on their Human Resource Department
to handle vital tasks crucial for production, despite not being directly involved in it.
Beginning with approximately 550 employees in 2012, the company has now grown to
approximately 600 full-time staff, with a gender distribution of 75% women and 25% men.
The significance of Ultra Design & Fashions Ltd.'s Human Resource Department
continues to escalate, as it plays a pivotal role in effectively managing the workforce and
achieving organizational objectives.
At Ultra Design & Fashions Ltd., the Human Resource Department is instrumental in
managing its most valuable asset: its people. Responsible for employee recruitment,
training, development, and overall well-being, the department ensures the smooth
functioning of the workforce comprising around 600 individuals. With its own HR
department staffed with highly qualified professionals, Ultra Design & Fashions Ltd.
fulfills critical roles such as -
▪ Maintaining liaison with the Administrative Manager

▪ Handling worker grievances
▪ Educating employees on their rights and obligations
▪ Organizing motivating seminars
▪ Ensuring workplace cleanliness
▪ Health, and safety
▪ Conducting skill development training programs
▪ Addressing ethical issues and codes of conduct, among others.
Ultra Design & Fashions Ltd boasts a well-established Human Resources division crafted
in accordance with principles of efficient and cost-effective management. This department
stands as a pivotal element enabling the factory to sustain its competitiveness in the
market, even amid challenging circumstances. Established with the purpose of proficiently
overseeing personnel and fostering conducive working environments, the Human
Resources (HR) department aligns with the organization's mission and vision. Its primary
aim is to comprehend, identify, and augment the effectiveness of HR practices to enhance
the national and international competitiveness of the organization. Furthermore, it
Page | 38
highlights personal development to reinforce performance, work-related attitudes, and
overall well-being. Emphasizing the cultivation of positive relationships between
employees and management, the HR department proactively addresses any potential
issues, striving to nurture a constructive professional atmosphere benefiting all
stakeholders, including staff and the broader community. Upholding the rights of workers,
it ensures the provision of necessary amenities in compliance with international
management standards and local labor laws, notably the "Bangladesh Labor Code 2006."
The overarching objective is to optimize organizational efficiency while duly considering
the interests and welfare of all involved parties. Prioritizing practicality over theoretical
approaches, the HR Department of Ultra Design & Fashions Ltd remains steadfast in
achieving its goals.
Currently, the HR department consists of six members. The Head of Human Resource
oversees all HR processes, with the Manager of HR and Admin reporting to them. Two
HR officers assist the HR Manager. In the hierarchy, the Head of HR is at the top, and the
officers work at the root level.
Figure 4.1 depicts the hierarchical structure of the HR department of Ultra Design &
Fashions Limited, where the Head of HR occupies the apex position, and the officers
operate at the foundational level.
Head of Human
Resource
Management
Employee HR Manager & HR Executive

Relationship Manager Admin Officer
Officer – HR & Employee Welfare

Compliance Officer
Figure 4.1: Hierarchy of Human Resource Department

Source: Authors own compilation, (2024)
Page | 39
The company has three levels of employees:
1. Managerial employees & Office Staff

2. Staff
3. Worker
For the conciseness of the report, Managerial Employees & Staff are referred to as
employees in the report.
The Human Resource Department of Ultra Design & Fashions Limited currently executes
the following major functions:
1. Workforce Planning
2. Recruitment and Selection
3. Orientation
4. Training and Development
5. Employee and Worker Compensation & Benefits
6. Performance Appraisal
7. Operational activities
4.1.1 Workforce planning
An essential role of the HR & Admin department at Ultra Design & Fashions Ltd. is
workforce planning, emphasizing the placement of suitable individuals in appropriate roles
at optimal times. The company prioritizes maintaining a steady flow of human resources
across all departments, achieved through strategic hiring, downsizing, and timely
promotions. This proactive approach ensures organizational efficiency and adaptability to
evolving needs. Additionally, HR conducts regular assessments to align staffing with
business objectives and foster a dynamic, skilled workforce. The main goal of the company
is “Right people at the right place at the right time.”
4.1.1.1 Workforce Planning for Employees
HR planning for employees at Ultra Design & Fashions Ltd. lacks a formal structure.
Vacant positions are promptly addressed by the HR department upon an employee's
departure, with a preference for internal recruitment. Besides, favoritism and nepotism
exist in the employee recruitment process.
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4.1.1.2 Workforce Planning for Workers
The HR planning for workers at Ultra Design & Fashions Ltd. prioritizes short-term
personnel requirements. The HR department forecasts the need for operators by analyzing
current and projected order volumes while considering workforce turnover rates. This
entails maintaining regular communication with the merchandising department to stay
abreast of current and anticipated order levels. The company strategically recruits
additional staff when order volumes are expected to rise beyond current capacity, ensuring
timely production and delivery. Conversely, during periods of decreased order volumes,
surplus workforce is retrenched to align with operational needs.
4.1.2 Recruitment and Selection
Ultra Design & Fashions Ltd. offers equal employment opportunities to all candidates
without discrimination based on sex, gender, religion, or nationality. The company ensures
fair assessment procedures for all applicants and does not consider individuals under the
age of 18 for employment.
4.1.2.1 Recruitment Sources of Ultra Design & Fashions Limited
The company uses two types of sources for recruiting employees and workers. These are:
I. Internal Source
II. External Source
I. Internal Sources for employees

a. Promotion: Ultra Design & Fashions Ltd. promotes current employees to
higher positions based on their job performance and experience.
b. Recommendations: Recommendations from senior management, close
relatives, influential figures in society, shareholders, etc., are considered in the
promotion process.
c. Employee Referrals: Current employees are encouraged to refer qualified
colleagues for open positions within the company.
II. External Sources for employees
a. Newspaper: Ultra Design & Fashions Ltd. advertises open positions in local
newspapers to attract talented candidates.
b. Poaching: The company endeavors to recruit skilled employees from
competitors by offering competitive salaries and benefits.
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c. Employee Referrals: Current employees are encouraged to recommend
qualified candidates from outside the organization for open positions. They
may receive a reward if their referral is hired.
III. Internal Sources for Workers
a. Promotion: Sometimes, a worker with experience gets promoted to fill the
vacant post. For example, a Helper is promoted to General Operator.
b. Previous workers: When there is high demand for labor, the company tries to
recruit the previous workers who were retrenched before.
IV. External Sources for Workers
a. Banner: Ultra Design & Fashions Ltd. displays banners outside the factory to
attract potential workers.
b. Poaching: The company seeks to hire workers from other factories by offering
competitive salaries.
c. Referrals: Current employees are encouraged to refer skilled workers for
vacant positions within the company.
4.1.2.2 Recruitment and Selection process for managerial employees
The concept of "Person Job Fit" holds significant importance in the recruitment and
selection process at Ultra Design and Fashions Ltd. Their procedure for acquiring and
selecting employees is detailed in Figure 4.2, illustrating a nine-step process.
Step 1: Requestion for Personnel
Initiates with a personnel requisition received by the HR Manager, typically triggered by

an employee's departure, which undergoes review by the Head of Human Resource
department for approval.
Step 2: Sourcing
Involves sourcing candidates, utilizing internal and external channels as per the situation.
Internal sources are prioritized initially, shifting to external ones if necessary.
Step 3: Shortlisting
Focuses on shortlisting candidates based on criteria such as educational background,

relevant work experience, and management competencies. The HR department evaluates
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resumes, compiling a list of potential candidates sent to the respective department heads
for final selection.
STEP 1 STEP 2 STEP 3
Request for Sourcing Shortlisting

personnel

Verification & Assessment Communicate
Selection
Issue offer letter Appointment Orientation
Figure 4.2: Steps in Recruitment and Selection Process for Employees

Step 4: Contacting Final Candidates

Once the HR department receives the list of final candidates from the respective
departments, designated officers reach out to them via SMS, email, or phone to extend
invitations for the assessment process.
Step 5: Assessment
Candidates undergo evaluation primarily through interviews or, if needed, through written
tests followed by interviews, depending on the role's nature and significance. But written
tests are not very common in the company.
The interview panel typically comprises the Head of HR & Admin, the General Manager,
the HR & Admin Manager, and the relevant department's Manager. During the interview,
the panel assesses technical knowledge, communication skills, and other pertinent
competencies. Additionally, discussions regarding salary and benefits occur with the
candidates.
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Step 6: Background Verification & Selection
Following the interview, the board identifies the candidate deemed most suitable for the
position and proceeds with a background check, verifying references, employment history,
and any criminal records.
Step 7: Offer Letter Issuance
Upon receiving final approval from the Managing Director, the designated HR officer
issues an offer letter to the selected candidate. The offer letter outlines all terms and
conditions of employment.
Step 8: Appointment
If the selected candidate agrees to the terms and conditions of employment, top
management officially appoints them.
Step 9: Orientation
During orientation, the selected employees familiarize themselves with the company's
mission, vision, and objectives, gaining insight into the company culture. Typically, the
HR officer, along with the relevant department head, conducts the orientation. Depending
on the position, top management may also lead the orientation program.
4.1.2.3 Recruitment and Selection process for Workers
In adhering to national laws, Ultra Design and Fashions Ltd. follows a structured process
for recruiting and selecting workers:
Step 1: Needs Assessment
New employees are typically recruited when departments foresee the necessity for
additional staff or when a significant number of employees exit the organization. The
concerned department sends a manpower requisition to the HR & Admin Department,
which undergoes review by the Director of HR & Admin for approval.
Step 2: Sourcing
Upon approval, the HR department initiates the sourcing of workers, utilizing internal and
external sources as required based on the workforce demand.
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Step 3: Initial Screening
All interested applicants are directed to report to the factory gate on a designated day for
the initial screening. Conducted by HR & Admin officials and a representative from the
relevant department, this screening assesses age, fitness, and relevant qualifications.
Candidates deemed underage or unfit are not selected.
Figure 4.3 shows the recruitment and selection process for workers.

Need Analysis Sourcing Primary Selection

Selection Interview Medical Check
STEP 7 STEP 8
Issue letter Orientation
Figure 4.3: Steps in recruitment & selection process of workers
Step 4: Document Verification and Health Assessment
Following the primary selection, chosen candidates proceed to the factory building for
assessment. HR officials inquire with general questions and verify several documents,
including:
1. National ID or Birth Certificate

2. Chairman/Commissioner certificate
3. Experience Certificate (if applicable)
4. Educational Certificate (if applicable).
Subsequently, a medical evaluation is conducted by a registered practitioner to ensure

physical fitness.
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Step 5: Interview and Technical Evaluation
Candidates who clear the medical assessment undergo a structured interview with
departmental officers regarding their job responsibilities. Machine operators undergo a
technical evaluation to ensure proficiency in equipment operation.
Step 6: Final Selection and Salary Determination
Upon successful completion of the interview and technical test, candidates are selected,
and their salary is determined based on their designation. Selected workers are required to
submit additional documents, including:
1. 3 Photocopies of Birth Certificate/NID

2. 3 Passport-sized and 2 stamp-sized photographs
3. The nominee's documents. (NID and Passport size photos)
Step 7: Appointment Letter and Service Book Issuance
Following approval from the Director of HR & Admin, an appointment letter detailing
employment terms such as pay, allowances, and benefits is issued to the selected candidate.
Additionally, a service book is created in the employee's name.
Step 8: Orientation
During orientation, HR officials acquaint newly recruited workers with their colleagues
and supervisors. They also provide guidance on organizational rules and regulations.
4.1.3 Training and Development at Ultra Design & Fashion Ltd
Ultra Design and Fashions Ltd., like other small to medium RMG plants, does not provide
specific off-the-job training for its white-collar staff, preferring to emphasize on-the-job
training. However, for Hourly Waged personnel, they offer specific training sessions
crucial to enhancing production efficiency and meeting local and international standards.
4.1.3.1 Training process for managerial employees
Even though there is no well-defined structure and regularity in the training process for
white-collar and managerial employees, there is a decent system in place at Ultra Design
and Fashions Ltd. The system of training such employees is hardly integrated into the
company's culture. Following new employee orientation, the department head or a
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designated individual sometimes supervises daily activities and assists in workflow
development, emphasizing on-the-job training. Job rotation is employed to familiarize
employees with new duties and procedures. Furthermore, the HR department offers
consultation services in this regard occasionally. However, management provides some
basic and general training to the employees. Regrettably, the company doesn’t put much
effort into such training efforts and it conducts training rarely for the employees. The
training programs are as follows:
▪ Orientation:
New white-collar employees at the company attend a brief orientation after starting their
job. They learn about the company's goals and what it aims to achieve. They also get basic
information about their own department and a little bit about other departments too. They
meet their co-workers in their department and sometimes in other departments as well. The
orientation is usually led by HR officials and department heads, but sometimes top
managers run it depending on the employee's job.
▪ Skill Development Training:
When the top management thinks it is necessary, employees participate in different training
sessions to improve their skills and knowledge, making them better at their jobs. But such
training programs are very rare and aren’t provided to the employees on a regular basis.
▪ General Training:
The company also provides general training for its employees occasionally. This includes
workshops on how to behave at work, training in what to do in case of a fire, learning
about first aid, and understanding company rules and regulations.
1. Organizational Behavior Workshop

2. Fire Safety Training
3. Compliance Training
4. First Aid Training
4.1.3.2 Training for Workers/Hourly waged and non-managerial staffs
The company doesn’t have any dedicated training programs for the hourly waged and
non-managerial staffs. Even though management sometimes take the initiative and
provide general training to workers but those are inadequate and not very regular.
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Workers are provided with on-the-job training and given knowledge of company culture
and work ethics during the orientation process. In most cases, the supervisor only guides
the workers and provides them with the basic rules and regulations. However, I have
depicted some of the training programs that are more common and experienced by me
during my internship tenure. The training programs are as follows:
▪ Job Instruction:
New employees without previous work experience receive training in their job
responsibilities through this program. They learn how to do their tasks and operate any
machinery involved in their work. Usually, their direct supervisor is their trainer. The
supervisor demonstrates how to use the equipment, then lets the trainee practice while
observing. They also learn from their colleagues while working on tasks together.
Whenever new machinery is installed, all workers are trained in how to use it.
▪ Fire Safety Training:
Sometimes once a year, Ultra Design and Fashions Ltd conducts fire safety training for
all employees, which is mandatory for everyone to attend. During this training,
employees learn how to use fire extinguishers, hose pipes, and fire alarms. They also
learn about emergency exits and what to do in case of a fire.
▪ First Aid and Health Safety Training
This training teaches participants how to handle medical emergencies and provide first
aid when needed. It covers topics like identifying and reducing workplace hazards to
promote safety. But such training initiatives are rarely conducted in Ultra Design &
Fashions Limited
4.1.4 Compensation and Benefits
Ultra design & Fashion's compensation process is carefully crafted to maintain

competitiveness in the market. Their policy aims to strike a balance between attracting
skilled employees and controlling costs. The company's compensation policy can be
understood from two perspectives:
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I. Negotiated Salaries for White Collar and Managerial Staff:
The salaries for white-collar and managerial staff are determined through negotiation,
allowing flexibility to meet individual needs and market standards.
II. Wages According to Bangladeshi Labor Law for Blue Collar Staff:
Blue-collar staff receive wages as per Bangladeshi labor laws. Besides, workers get
additional non-monetary and monetary reimbursements from the management as per the
company policy.
4.1.4.1 Compensation and Benefits for Employees
At Ultra Design Ltd, the absence of a well-defined compensation policy for its white-
collar workforce poses challenges. The complex process of establishing a fair salary for
newly onboarded employees often involves extensive negotiations aimed at reaching a
mutually agreeable decision. However, the final say in these matters’ rests squarely with
the upper management tiers, while the HR department assumes a pivotal role in
facilitating the decision-making process. Despite the efforts invested in this process, the
absence of an overtime compensation scheme further complicates matters for these
employees.
Moreover, white-collar staff members at Ultra Design Ltd are entitled to enjoy the
benefits of two annual bonuses, coinciding with Eid-Ul-Fitr and Eid-Ul-Adha
celebrations. Bonus eligibility regulations apply consistently to employees of all
religions, including those who identify as Muslim. Additionally, managerial employees
receive a bonus equivalent to their basic salary during the two Eid periods. The
determination of the basic salary is based on gross salary and this research could not
determine if there was any process of determination of the salary. It seems the salary of
such employees is done solely by negotiation.
Though the salary of the managerial employees depends on the negotiation skills of the
onboarding employees, the minimum salary at Ultra Design & Fashions Ltd is BDT TK
15,000/- and can reach up to a maximum of BDT TK 22,000/- for employee level staff.
The factors that determine the amount of Basic pay of the employees are as follows:
• Education
• Experiences
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• Job Designation
• Task Complexity
• Promotability
Besides basic pay, the employees are also given the following compensation packages:
1. Medical, Travel & Food Allowance

Employees are eligible for a combined allowance of BDT TK 2450/-, covering medical
expenses, travel costs, and meals.
2. Night Allowance
When employees are required to remain at the factory past 10 P.M., they receive a night
allowance.
3. Holiday Allowance
Employees who work at the factory on holidays receive a holiday allowance of BDT Tk
450/-.
4. Mobile Allowance
Top management receives BDT Tk 2000\- per month as a mobile allowance, while first-
line managers receive BDT Tk 1000\-.
5. Festival Bonus
Employees receive two festival bonuses annually during Eid-Ul-Fitr and Eid-Ul-Adha,
equivalent to one month's basic salary.
6. Increment
Ultra Design & Fashions Ltd Limited employees receive a 5% to 8% increment in their
basic salary based on performance.
4.1.4.2 Compensation and Benefits for Workers
Ultra Design & Fashion Limited provide wages to its workers in accordance with official
gazette (No. 40.00.000.016.32.021.13.30) which was declared on 18th December, 2023 by
Bangladesh Government.
According to the gazette, the Minimum Salary of the RMG workers is BDT 12,500 TK/-
only.
The gross wage of a worker includes the following:
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1. Basic Wage
The Basic salary of the workers of Ultra Design & Fashion Limited is calculated in the
following manner:
Basic Salary = (Gross salary- Medical Allowance- Travel Allowance- Food allowance)
÷ 1.5
2. House Rent
Every worker gets 50% of their basic salary for house rent as per the law.
3. Medical Allowance
Every worker is eligible for a medical allowance of BDT 750 Tk per month.
4. Travel Allowance
Every worker receives BDT 450 Tk as a travel allowance.
5. Food Allowance
According to the law, each worker receives a food allowance of BDT TK 1250 per month.
6. Overtime Pay
Workers at Ultra Design & Fashion Limited are allowed to work overtime for 2 hours as
per the law. When a worker works overtime, they are paid twice their average basic wage.
7. Attendance Bonus
To reduce absenteeism at Ultra Design & Fashion Limited, an attendance bonus is
provided. The bonus is provided in the following manner:
a. Senior Operator- BDT 300 Tk
b. Junior Operator- BDT 250 Tk
c. Operator- BDT 200 Tk
8. Referral Bonus
A worker receives BDT Tk 100 for every operator he/she can collect during recruitment.
9. Festival Bonus
Workers at Ultra Design & Fashion Limited get two festival bonuses per year at Eid-Ul-
Fitr & Eid-Ul-Adha. The bonus is equivalent to their one-month basic salary.
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10. Increment
Every worker gets a 5% increment of their basic salary at the end of each year as per the
law.
Table 4.1 provides the salary structure of the workers at the company. Here, a total of 4
grades of workers are shown and their gross wage is mentioned including basic wage,
house rent, etc. The previous grades are also shown in the table below for better
understanding of the salary upgradation.
Table 4.1: Salary Structure of Workers at Ultra Design & Fashion Ltd
Previous Present Basic House Medical Travel Food Gross

Grades Grades Wages Rent Allowance Allowance Allowance Salary
3 1 8,390 4,195 750 450 1250 15,035
4 2 7,882 3,941 750 450 1250 14,273
5&6 3 7,400 3,700 750 450 1250 13,550
7 4 6,700 3,350 750 450 1250 12,500
Apprentice Same 4,950 2,475 750 450 1250 9,875
4.1.4.3 Compensation and Benefits for Others
Table 4.2 below shows the compensation and benefits of other managerial and non-
managerial and temporary or Casual workers.
Table 4.2: Compensation of Other Employees and workers
S.L. No Worker Type Salary Range

1 Doctor 30,000 to 35,000
2 Driver 15,000 to 18,000
3 Security Guards 8,000 to 11,000
4 Electrician 8,500 to 11,500
5 Cleaner and Sweeper 7,500 to 9,000
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4.1.4.4 Leave grants for Employees and Workers
All employees and workers at Ultra Design and Fashion Ltd. are entitled to the following
types of leave:
1. Weekly Holiday
Each employee and worker are granted a weekly rest day, which falls on Friday.
2. Sick Leave
Employees and workers can avail themselves of sick leave for up to 14 days without any
deduction from their pay.
3. Casual Leave
A provision of 10 days of casual leave is allocated to every employee and worker.
4. Earned Leave
Employees and workers who have completed at least one year of service are eligible to
earn 1 day of leave for every 18 days worked.
5. Festival Holiday
Employees and workers are granted 11 days of holiday annually for festival celebrations.
6. Maternity Leave
In accordance with local regulations, female workers or employees with a tenure of at least
six months are entitled to a total of 16 weeks of maternity leave during their pregnancy.
4.1.5 Performance Appraisals
Unfortunately, Ultra design & Fashion Ltd has no formal structure for evaluating employee
and worker performance. But sometimes the management casually assesses the work
performance of the employees and workers for particular purposes. The company follows
some classical appraisal methods for evaluating workforce performance. The methods are
given below:
4.1.5.1 Performance Appraisal Methods at Ultra Design & Fashion Limited
I. Work Attendance
Their attendance is tracked biometrically via facial and finger recognition. The
software generates an automated report every month and sends it to the section heads.
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II. Performance Consistency
Workers are evaluated by monitoring whether they are meeting the production target
regularly.
III. Productivity
Workers are evaluated based on their productivity levels.
4.1.6 Operational Activities
Operational activities encompass the routine tasks conducted within an organization as

part of its ongoing workflow and established policies. This description highlights how the
organization administers its workforce, focusing on leave entitlements, work schedules,
overtime regulations, punctuality guidelines, compliance with laws, and mechanisms for
handling complaints. The subsequent sections briefly elaborate on these topics.
Working Hours Policies
Full-time employees and workers adhere to an eight-hour workday, commencing at 8:00

a.m. and concluding at 5:00 p.m. A one-hour lunch and devotional break from 1 p.m. to 2
p.m. is observed, during which work is suspended (provided there are no late arrivals).
Late Arrival Policies
Employees arriving after 8 a.m. are marked as late. If an employee exceeds the allowed
tardiness three or more times within a month, their superior issues a written warning.
Habitual tardiness may result in classification as "Person of Misconduct," prompting
disciplinary measures as per established protocols.
Grievance, Complaints, & Punishment Procedures
Disciplinary actions and complaints against Ultra Design & Fashion Ltd workers adhere
to procedures outlined in the Bangladesh Labor Code 2006. Employees are granted the
opportunity to voice their concerns and provide evidence in their defense, depending on
the circumstances. In cases of substantiated sexual abuse allegations, stringent measures,
including termination, follow thorough investigations conducted by established
committees. Malicious intent behind complaints is treated seriously, with complainants
subject to disciplinary measures.
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4.2 Promotional Procedure
Ultra Design and Fashion Ltd doesn’t follow any non-conventional promotional strategy
for promoting its workforce. Rather the company mostly relies on seniority-based
promotion and sometimes it may promote employees or workers based on their work
performance.
4.2.1 Promotional Procedure for Employees
For white-collar employees, promotions follow a straightforward seniority-based process.

After a designated tenure with the company, employees undergo evaluation and are
promoted based on both seniority and performance (if satisfactory).
4.2.2 Promotional Procedure for Workers
For blue-collar employees, promotions are at the discretion of the production management,
with recommendations communicated to the top management by the HR department. Final
approval for any promotion rests solely with the top management of the company.
Recommendati Request to HR Approval by

ons from Confirmation
Manager & DGM of
Production of Promotion
Admin Admin
Head
Figure 4.4: Procedure for Promotions
4.3 Employee or Worker Termination, Laid off and

Retrenchment
In case of employee or worker termination, laid off and retrenchment; the company strictly
adheres to the law provided in the Bangladesh Labor Act,2006. The company pays gratuity
(if any) or payment due to the workers or employees in the manner prescribed by the labor
act.
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Chapter – 05
Findings, Recommendations &
Conclusion
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5.1 Findings
The accomplishment of the internship program allows us to see and experience the real-
life HR practices of an organization. It provides the opportunity to enhance theoretical
knowledge of HRM. In theories, I have learned about various recruitment sources and
selection processes. But in the practical world, we have seen organizations use only a few
of them. In theory, I learned about the methods and strategies for worker retention. But in
reality, the organization often fails to apply them and faces high worker turnover. Also,
different types of training programs and training methods were discussed in the theoretical
aspect. But organizations focus only on a few. During my time at Ultra Design and Fashion
Ltd., I was able to learn a lot about how HR is handled at this company and how it is
handled in the industry. In the previous chapters, we talked about different theoretical
frameworks and HR standards that already existed. However, in practice, some of these
frameworks are only partially used by the company. So far as I can tell, this is because the
company's culture is built around getting the most work done and because the top
management wants to keep all processes simple and cost-effective. Because of this, they
don't follow a lot of the forms that are usually used for Human Resources. For example,
they like to hire only from inside the company and keep all HR operations under the control
of the different departments. They also don't have set ways of training and evaluating
people. Instead, they use a mix of on-the-job training and informal, unplanned evaluations.
Even though these practices have led to a lot of success for the organization, they are now
a cause for worry because the organization has grown too big for the top management to
keep track of everything on their own. They need to take a more traditional, well-
structured, and disciplined method if they want to keep growing and making money.
During my internship at Ultra Design and Fashion Ltd, I found certain shortcomings and
some strong areas. Now, the problems and recommendations will be discussed in the later
part of this chapter.
5.2 Problems in HR Practices at Ultra Design and Fashion Ltd
After two months of thorough internship under the administration of Ultra Design &
Fashion Limited, I have found some areas of improvement in the company. They are:
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1. Only Focusing on Poaching and Recommendation-based Internal Recruitment
This company has an over dependence on employee recommendations for recruiting

white-collar employees. Additionally, the management also assists nepotism and shows
favoritism in recruiting and selection process. Management hardly employee staffs without
recommendations. They also try to poach employees from their competitors. By focusing
on these easy methods, they are missing out on a diverse range of recruitment methods,
such as online and offline job postings, hiring external agencies, etc. This limits the
company's ability to attract more qualified candidates. This practice may lead to a lack of
diversity, limited perspectives, and potential nepotism within the organization in future.
2. Lack of Training and Development Initiative
The company's limited focus on the training and development of its white-collar
employees is concerning. They only focus on on-the-job training, such as job rotation at
times and consultation from the supervisor. They only provide casual training for the
employees. Ignoring professional off-the-job training sessions hinders white-collar
employees' growth and skill development. This lack of comprehensive training and
development opportunities may result in inactive skill sets, lower employee motivation,
and reduced potential for career advancement.
3. Lack of Automation
This company has not been able to utilize technology and automation to streamline and
improve its HR operations. More dependence on paper-based record-keeping systems
instead of adopting efficient digital solutions results in inefficiencies and a slower pace of
work. The HR department's failure to utilize proper HR tools and software has been the
cause of various issues till now, such as hampering their ability to effectively manage
workflow, track employee data, etc. Still now, the HR department uses pen and paper for
recording workforce details and issuing notices.
4. Negotiation-based Compensation and Lack of Overtime Benefits
This company mainly determines the compensation of white-collar employees through

negotiation. They do not have any specific compensation policy or grading structure. The
lack of clearly defined and fair compensation practices can create inequalities and make
attracting and retaining qualified and talented employees challenging. Also, the absence of
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a transparent and competitive compensation structure may discourage potential candidates
from applying to this company. Moreover, there’s no overtime benefit for their employees.
Though overtime is not a regular practice here and employees are not encouraged, still
lack of any monetary and non-monetary benefits can discourage those working extra hours
occasionally for the betterment of the company.
5. No Formal Performance Appraisal Method
Ultra Design & Fashion Limited has no formal structure for evaluating the work
performance of the employees. Management rarely takes the initiative to measure the
performance of the workforce. Besides, there are no predetermined criteria for measuring
work performance. The employees and workers are merely judged by their attendance and
productivity rather than other reasonable criteria. This may create frustration among the
staff.
6. Other Problems
a) The grievance handling method for Ultra Design & Fashion Ltd. employees is
insufficient and weak.
b) Ultra Design & Fashion Ltd. does not have a structure in place to ensure the future
security of its employees by providing a provident fund.
c) Ultra Design & Fashion Ltd. lacked a well-thought-out employee retention
strategy.
5.3 Recommendations
Although the HR department of Ultra Design & Fashion Limited is doing a decent job at
present, there is a need to enhance their work internally and externally. To reorganize and
boost the overall activities of the factory, the following areas have been identified:
1. Diversifying the Recruitment and Selection Process
Currently all recruitments of Managerial staff are done behind closed doors under very
narrow scopes. This process is followed to make the process quick and efficient and to
keep the cost of recruitment low. But due to this very reason only similar standards
employees and employees that are of certain characteristics are being hired. This is causing
inertia in the work environment as new ideas and concepts are not coming to light. Itsides
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it may be observed that certain departments have their own biases while recruiting and are
missing out on the opportunity to employ quality human resources that can bring about
new changes or innovations to these departments. It is also causing issues while developing
new managers as new recruits are lacking leadership abilities. It might be recommended
for them to adopt a much broader scope of their managerial and white-collar staff, leading
them to ensure higher quality Human Resources with fresh perspectives and different
capabilities. They can do so by following the given measures:
a) Post job openings online and offline on various websites, social media sites,
magazines, and newspaper, mostly specific to RMG industry. This will increase the
number of candidates and draw people from diverse backgrounds. They can also
utilize job specific platforms such as LinkedIn, Bdjobs.com, Glassdoor, etc.
b) They can work with well-known recruitment firms that are experts in finding
outstanding employees. These organizations have broad networks and know how
to find suitable people who might not be reachable through traditional means.
Some of such agencies are ManpowerGroup Bangladesh, Adecco Bangladesh, etc.
c) As this company does not have any written exam system in their selection process,
it is important to create a structured interview procedure with several rounds and
participation from various stakeholders. This strategy guarantees impartial
evaluation and lessens the possibility of biased judgment. Competency-based
assessments and interviews can give a more thorough evaluation of candidates'
skills and abilities. For example, for a production manager candidate, the company
can evaluate the candidate's production management skills, problem-solving
capabilities, resource allocation strategies, and ability to drive operational
excellence in an RMG production environment.
2. Take Initiative for Training Programs and Build Structure for Training
The company does not have any strong or well-structured training programs for the sake
of keeping things simple and cost effective. Even though it is saving on costs it has some
long-term impacts. As the business itself is changing and becoming more technology
dependent and requires integration of more managerial excellence and logistical
superiority, a strong foundation of training programs for white collar workers and training
centers for blue collar workers can greatly benefit Ultra Design & Fashion Ltd. They can
take the following measures:
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a) They can develop customized training programs for each department, considering
their specific skill requirements and career development needs. These programs
can include a mix of on-the-job training, workshops, seminars, and external
training opportunities. For example: Production Department employees can be
trained in Lean Manufacturing to enhance efficiency, quality control, and waste
reduction. In case of Commercial department, training programs can include
courses like International Trade Practices and Regulations, Negotiation Skills and
Contract Management to help them handle contracts and negotiate good terms with
clients and suppliers.
b) They can implement mentoring programs that pair experienced employees with
newer or less experienced colleagues. This facilitates knowledge transfer, skill
development, and career guidance within the organization. For example: Junior
merchandisers can be paired with senior merchandisers to learn negotiation skills,
supplier management, and order processing.
3. Invest In HR Automated Tools and Technology
This company already takes attendance in automated manner but this is the only HR
function that is digital here. But they can go a long way in automating the whole process
in HR department, such as:
a) They can invest in innovative HRIS that streamline and automate HR processes,
including employee records management, payroll, performance evaluation, and
training management. Integrated HR management software, for instance, which
can centralize data, automate workflows, and provide real-time analytics.
b) They can offer training programs and seminars to familiarize employees with the
technology infrastructure and tools of the organization such as HRIS platforms to
ensure that they have the skills necessary to utilize HR software, digital record-
keeping systems, and other technology resources effectively.
4. Transparent Compensation Practices and Overtime Benefits
To deal with concerns arising in case of compensation and benefits of white-collar

employees, the company can take following approaches:
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a) They can develop dedicated salary grades, salary range, incentive pay based on
work performance. This will ensure that compensation practices are consistent and
fair and explicit. They can also conduct salary surveys to benchmark salaries
against industry standards. Therefore, such an explicit compensation framework
may attract potential employees and may help to retain some.
b) They can establish a formal overtime standard that specifies the eligibility
requirements, pay rates, and procedures for overtime work. This will provide
employees with clarity and ensure that they are compensated reasonably for
additional hours worked. Both monetary and non-monetary awards can be included
here such as monthly or yearly bonuses, yearly recognition awards, higher marks
in performance appraisal, etc.
5. Develop A Proper Performance Appraisal system for Employees
A formal and structured performance appraisal system for employees can help identify
poor performers and improve their performance. This will also motivate employees to
become more efficient and productive. A formal performance appraisal system will
identify the skill gap any employee has that might be an obstacle to company growth. They
can take the following initiatives into consideration:
a) Set criteria for employee performance on which management can evaluate

employee performance.
b) Develop some specific performance appraisal methods based on company
resources and manpower effectiveness.
6. Other Recommendations
a) Ultra Design & Fashion Ltd. should provide security for the employees’ future
through providing provident fund facility.
b) Ultra Design & Fashion Ltd. should develop an employee retention policy.
Page | 62
5.4 Implications
This internship report has both organizational and academic implications.
5.4.1 Organizational Implications
This report has the following implications for the organization:
a) Recognition of the Problems and Recommendations
This report identifies some of the problems regarding the HR practices of Ultra Design &
Fashion Ltd and provides some recommendations to resolve those problems. These will
help the organization to take necessary and appropriate actions to improve the
effectiveness and efficiency of their HR department.
b) Decision making resource
This report can be a good source for making decisions regarding any changes the
company’s wishes to make in its Human Resource Procedures as this report showcases the
various strengths and weaknesses of the whole HR procedures.
c) A Basis of organizational learning
With the help of this report the organization can receive a different outlook regarding how
they operate. It can showcase a wide-angle view of the organization and be a source of
learning for the organization.
5.4.2 Academic Implications
The followings are some of the potential academic implications that could result from
studying this internship report:
a) Linking the gap between practical application and established theories
This report hopes to contribute to reducing the gap between practical application and
theoretical understanding. It shows us the various theoretical frameworks and the variance
of the organization from such frameworks and at the points where they intersect with
practical situations.
Page | 63
b) Aid to HR Literature
This report wishes to contribute to the existing poll of HR literature in a way that provides
a new perspective towards what we already have identified regarding highly labor
intensive and price sensitive industries such as RMG manufacturing.
5.5 Learnings
I obtained the opportunity to work as an intern at Ultra Design & Fashion Ltd. for six
weeks. Although it was not a big company during that period, I was able to see and gain
real experience about the HRM practices of an actual organization. What I have learned
from the internship program are listed below:
a) Learned about the Basic functions
During my internship journey, I have got the opportunity to get in-detailed knowledge
about the fundamental tasks performed by the HR department of an organization. This has
enriched the knowledge I previously had about HR activities.
b) Gained Practical Experience
I've seen how the HRM concepts such as recruitment, selection, training etc., which I've
read about in books, are exercised in a real organization. I was able to compare and connect
my academic learning and practical learning.
c) Learned Organizational Behavior
I have learned about the individual organizational behavior a person should maintain in a
workplace. This has allowed me to understand the appropriate workplace culture.
5.6 Conclusion
A strong Human Resource Department is an asset for every organization. The success of
an organization depends on its human resources, and the efficient and effective use of its
human resources depends on the Human Resource Management of that organization. Ultra
Design & Fashion Ltd is an RMG factory which produces 100% export-oriented products.
Despite being a mid-size company, the organization has a strong HR practice and complies
Page | 64
with local rules and regulations. The company provides a positive work environment for
its employees, and workers & tries to meet their needs.
In regard to the HR practices at Ultra Design & Fashion, it might be said that they hold
true to the company’s principles and beliefs of effectiveness and efficiency. Even though
the process followed is effective and is highly accepted by their employees and
management alike it does not mean there is no scope of improvement. Keeping in mind
the changing industrial needs and growth of the company itself, the HR management must
be better structured with a keen focus on its corporate management. Even through the
empowering of functional departments in the HR management process can be seen as very
progressive, it might not be effective for this industry.
As per my observation during my internship period the companies HR practices do connect

with my academic understanding but in many ways, they diverge from it and find their
own way adapting to this industry and culture of the organization. I am very grateful to
this company for allowing me to broaden my knowledge and being highly supportive
through-out the process.
Page | 65
References
Anguinis, H., & Kraiger, K. (2009). Benefits of Training and Development for
Individuals, Teams, Organizations, and Society. Annual Review of Psychology,
60.
Armstrong, M. (2009). Armstrong’s handbook of human resource management practice

(Vol. 11th edition).
Bartholomew, J. D. (1979). Manpower Planning: Selected Reading. Penguin Books.
DeCenZo, D. A., & Robbins, S. P. (2010). Fundamentals of human resource

management. John Wiley & Sons.
Dessler, G. (2013). Human Resource Managemet. Pearson.
Dessler, G. (2017). Human Resource Management (15th ed., Vol. Chapter 8). New York:
Pearson.
Dessler, G. (2017). The Good of Organization HRM in Company. Addison- Wesley

Publishing Company.
Elina. (2011, September 11). Retrieved from Slide Serve:

https://www.slideserve.com/elina/employee-recruitment-and-selection
Flippo. (1984). Personnel Management. New York: McGraw-Hill.
Jenkins, A., Foot, M., & Hook, C. (2015). Introducing Human Resource Management
(Vol. 7th edition). UK: Pearson.
Mathis, R. L., Jackson, J. H., & Valentine, S. R. (2015). Human resource management:
Essential Perspectives. Cengage Publications.
Milkovich, G. T., Newman, J. M., & Ratnam, C. V. (2016). Compensation Management

(Special Indian Edition ed.). MC Grew Hill.
Phillips, J. M., & Gully, S. M. (2015). Strategic Staffing. Pearson.
Robbins, S. P., & Coulter, M. (2017). Management (17 ed.). Pearson education.
Stredwick, J. (2013). . An introduction to human resource management. Routledge.
Page | 66
Appendices
Appendix 1: Internship certificate from Ultra design & fashion Limited
Page | 67
Appendix 2: Turnitin Report
Page | 68

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Internship Report On

Human Resource Management Practices of

Department of Human Resource Management

Date of Submission: 30 April, 2024

Human Resource Management Practices of

Date: 30th April, 2024

Subject: Submission of the Internship Report.

Md. Jobair Hossain

Praise and gratitude are due to the Almighty

In addition, I would like to acknowledge my family's unwavering support throughout this

Finally, I want to express my appreciation to everyone who has contributed to this

The initial chapter serves as a foundational groundwork, encompassing the report's

Letter of Submission ....................................................................................................... iii

Supervisor's Declaration .................................................................................................. v

Executive Summary ......................................................................................................... vi

List of Tables ...................................................................................................................xii

List of Abbreviations .................................................................................................... xiii

Chapter – 01 Introduction ............................................................................................... 1

1.1 Origin of the Study ................................................................................................... 2

1.2 Objectives of the study ............................................................................................. 3

1.2.1 Primary Objectives: ........................................................................................... 3

1.2.2 Specific Objectives: ........................................................................................... 3

1.3 Scope of the Study .................................................................................................... 3

1.4 Methodology of the Study ........................................................................................ 4

1.4.1 Primary Sources ................................................................................................. 4

1.4.2 Secondary Sources ............................................................................................. 4

1.5 Limitations of the Study ........................................................................................... 5

Chapter – 02 Company Profile ........................................................................................ 6

2.1 Overview of Ultra Design & Fashions Limited ........................................................ 7

2.2 Company Profile at a glance ..................................................................................... 8

2.3 Company Mission, Vision & Objectives .................................................................. 9

2.3.1 Mission .............................................................................................................. 9

2.3.2 Vision ............................................................................................................... 10

2.3.3 Objectives ........................................................................................................ 10

2.5 Code of Conduct ..................................................................................................... 11

2.7 Administrative Departments ................................................................................... 13

2.8 Import & Export Countries ..................................................................................... 14

2.9 Competitors of Ultra-Design & Fashion Ltd .......................................................... 15

Chapter – 03 Theoretical Background of Human Resource Management .............. 17

3.1 Introduction to Human Resource Management ...................................................... 18

3.2 Importance of HRM ................................................................................................ 18

3.3 Fundamental HRM Functions................................................................................. 19

3.4 Job Analysis ............................................................................................................ 20

3.4.1 Steps in Job Analysis Process .......................................................................... 20

3.4.2 Methods of Job Analysis Process .................................................................... 21

3.5 Human resource Planning ....................................................................................... 22

3.5.1 Process of Human Resource Planning ............................................................. 23

3.6 Recruitment & Selection......................................................................................... 24

3.6.1 Sources of Recruitment.................................................................................... 24

3.6.1.1 Internal Sources of Recruitment ............................................................... 25

3.6.1.2 External Sources of Recruitment .............................................................. 26

3.7 Selection ................................................................................................................. 26

3.7.1 Some Selection tests ........................................................................................ 28

3.8 Training and Development ..................................................................................... 29

3.8.1 Steps in Training Process ................................................................................. 29

3.8.2 ADDIE Five step Training Process .................................................................. 30

3.8.3 Training Methods ............................................................................................. 30

3.8.3.1 On the Job Training .................................................................................. 31

3.9 Performance Appraisal............................................................................................ 32