A&E Bangladesh HR report

1. HRM Practices at American & Efird
(Bangladesh) RrLtd.
A m e r i c a n
I n t e r n a t i o n a l
U n i v e r s i t y -
B a n g l a d e s h
K e m a l A t t a t u r k
A v e n u e , B a n a n i ,
D h a k a
D a t e d : 4 / 1 3 / 2 0 1 1
Prepared by Group F
Course: Human Resource Management (MBA)
Section:E
Nuzhat Mahmud 10-93848-2
Mehnaz Ahmed Mehzabin 10-94175-3
Shamsun Nahar 10-94228-3
Labanya Nurun Nahar 10-94069-2
Parvin Most. Tanzila 10-93468-1
Sabrina Sadia 11-94458-1

2. EXECUTIVE SUMMARY
American and Efird, Inc (A&E) -Bangladesh operation, American & Efird (Bangladesh) Ltd, is a
joint venture between Brandix Lanka Ltd, Brandot International Ltd and American & Efird Inc.
USA. We have introduced to Bangladesh the brands of A&E ensuring the highest quality and
flexibility to customize our client’s needs. Which is what, in turn has helped us become one of
the preferred quality thread suppliers to world-renowned brand names. Driven with the global
technical knowledge of American & Efird Inc, we have state of the art manufacturing facilities
located in Plot # 93, Islampur, Gazipur.
The company offers a wide range of quality brands with thread constructions of Staple Spun
Polyester, Core Spun Polyester, Textured Polyester, 100% Cotton Thread, Cotton Wrapped
Polyester, Bulk Polyester and Embroidery Thread.
The broad objective of this report is to provide an overview of HRM practice of American &
Efird (Bangladesh) Ltd. The specific objectives of this report are:
• To provide Company overview
• To reveal operational, management and HRM planning.
•To provide the information about HRIS
• Discuss all HRM practice
METHOLODGY
To prepare this report we have collected data from different published materials. Then we have
conducted a secondary study. After that we have prepared a questionnaire and took interview
one of the Senior HR Executive serving in this Company. We also collect data from internet .This
way we collected primary data. Thus we have used both primary and secondary report to
prepare this report.
INTRODUCTION
This report is prepared as a requirement of the course “Human Resource Management.” We
selected American & Efird (Bangladesh) Ltd. Working on this organization we came to know
various Kind of HRM practice which are use here. In this report we have followed the guidelines
provided by the teacher. Here we have tasked the HRM practice of the Company.

3. COMPANY OVERVIEW
American & Efird Inc.
Established in 1891, American & Efird Inc. is one of the world’s largest premier industrial sewing
thread suppliers. With over 115 years of textile experience, A&E continues to assist its
customers to overcome simple to complex textile performance requirements through a culture
of innovation, creation, and delivery. Global state of the art manufacturing and a total
commitment to quality allows A&E to create premier products. A&E has always recognized that
innovating and creating industry leading products is not enough. Dependable, on-time delivery
is the key to success.
Today A&E, Inc. is a global business consisting of 38 state of the art manufacturing facilities and
59 service centers located in 50 countries. As one of the world's foremost manufacturers of
sewing threads and industrial yarns, A&E's presence extends to the Americas, Europe, and the
Far East
Brandix Lanka Ltd.
Brandix is Sri Lanka’s largest apparel exporter with an annual turnover that exceeds USD 320
million, providing employment to over 20,000 associates and generating indirect employment
to an equivalent number. Brandix also provides over 50% of value addition locally through
backward-linked operations in textiles, thread, buttons, and hangers.
With a vision “to be THE inspired solution for branded clothing” Brandix is supported by over 20
manufacturing facilities in Sri Lanka and strategically located international sourcing offices.
In line with its vision of being an inspired solution provider Brandix has now embarked upon its
latest project of the “Brandix India Apparel City”.
The apparel city is envisaged on a new revolutionary ‘fibre to store’ concept, Spread over 1,000
acres, in India, Brandix Apparel City promises a new era of value, assurance, speed, flexibility,
social compliance and technological advancement, all under one roof for the new global
apparel industry. A first of its kind in South Asia and perhaps in the world, this Apparel City is
set to revolutionize and establish new frontiers, making it a ‘Paradise’ for global apparel
solutions. When fully functional, Apparel City will be one of the largest and most advanced in
the world, generating over 60,000 jobs
Brandot International Ltd.

4. Brandot International Ltd is an investment firm that specializes in creating joint venture
partnerships with apparel and textile companies. Each of Brandot’s joint venture partners is a
leader in its area of specialization. American & Efird, Inc and Brandix Lanka Ltd are two
members of their joint ventures.
Our Philosophy
Innovate – An Innovator of thread and yarn solutions
Create- A Creator of consistent and reliable, high quality thread and yarns
Deliver- A Company that Delivers a comprehensive product line to its customer right on time.
Quality Products – Start to finish
Our quest for quality begins even as we select the raw materials that will become A&E threads.
Only the finest grades of cotton, synthetic staple fibers and filaments are selected. In
developing partnerships with our suppliers, we assure regular deliveries of superior materials.
Manufacturing processes are governed by benchmark or established standards for production
and quality control. Our in house laboratories ensure the highest levels of quality monitoring
throughout the entire production process. We compete with our own success barriers to
achieve higher levels of performance.
Environmental Conscious
At A&E we are committed to conducting our business with the highest regard to the natural
environment which we operate in. We have improved our processes, investing in equipment
and programs designed to safeguard the environment. To this effect, we house a state of the
art water treatment plant, the purification and the maintenance of which are monitored by the
Environmental Authorities.
A&E (Bangladesh) Ltd. is an ISO 9001:2000 and ISO 14001:2004 certified company.
MISSION STATEMENT :
The mission statement of American & Efird (Bangladesh) Ltd is “Our mission is realization of
vision through maximum production of goods and services strictly on ethical and moral
standards at minimum costs to the society ensuring optimum benefits to the shareholders and
other stakeholders.” This mission is envisioned by the concept of business which ensures well

5. being of the investors, stakeholders, employees and members of the society which will create
new wealth in the form of goods and services.
KEY PRODUCT / SERVICES:
As stated earlier the business line of the company is manufacturing sewing thread. It
manufactures:
· Staple Spun Polyester – Perma Spun
· Core Spun Polyester – Perma Core
· Textured Polyester – Wild Cat
· 100% Cotton Thread - Anecot
· Cotton Wrapped Polyester – D Core
· Embroidery Thread - Stylo
STRATEGIC GOALS & OBJECTIVES :
The company sets the following objectives for it to achieve:
• To strive hard to optimize profit through conduction of transparent business operations
within the legal and social framework with malice to none and justice for all
• To create more jobs with minimum investments
• To be competitive in the internal as well as external markets
• To maximize profit
• To reduce the income gap between top and bottom categories of employees.
Thus the company focuses to pole-star its mission that fulfill the objective with emphasis on the
quality of the product , process and services blended with good – governance that help build
the image of the most enable corporate – citizenship at home and abroad . The company wants
to produce such society friendly goods and services that go to satisfy the wants of all the
relevant party without disturbing or damaging the socio- economic and ecological, balance of
the mother earth and the process of human civilization leading to peaceful co-existence of all
the leaving beings. The company always strives for top quality products at the least cost
reaching the lowest rungs of the economic class of people in the country. The company values
its obligation to the greater society as well as it strives to protect the interests of it’s
shareholders and to ensure highest return and growth of their assets.

6. Human Resource Management
Human resource planning:
· .we ensure more effective & efficient use of people by creating a good structure of
management process.
Management:
The entire management process comprises the following units:
Executive Management:
The Managing Director, the CEO is the head of the Executive Management
Team which comprises senior members of the Management Apparatus.
Within the limits of delegated authority and responsibility by the Board of
Directors, Executive Management operates through further delegation of
authority at every echelon of the line management. The executive
Management operates within the framework of Policy & Planning strategies
set by the Top Management with periodic performance reporting for
guidance. The Executive Management is responsible for preparation of
segment plans / sub – segment plans for every profit centers with budgetary
targets for every items of goods & services and are held accountable for
deficiencies, with appreciation for outstanding and exceptional performances
. These operations are continuously carried out by the Executive
Management through series of Committees , sub – Committees ,Committees
& standing Committees assisting the line management .
Management Committee:
Comprising top executives , deal with entire organizational matters.
Standing Committee:
Standing Committee comprises the following committee:
Audit Committee:
• Internal Audit Committee
• ISO Audit Committee
• Social / Environment Committee
• Performance Evaluation Audit Committee

7. Employment Relations Committee:
• Remuneration Committee
• Work Environment Committee
• Performance Evaluation Audit Committee
Management Committee:
• Product Planning & Development Committee
• Quality Control & Research Committee
• Production & Inventory Management Committee
• Export Promotion Committee
· . To more satisfied & better developed employees, American & Efird (Bangladesh) Ltd
has a personal and administrative Department. The total number of employees is 223.
For the employees there are systematic in house training in home and abroad. To
motivate the employees, along with salary and benefits the company provides various
facilities like free meals , free transportation , 24 hour medical center , on site sports . A
production and accommodation facility includes full time supply of safe drinking water,
adequate lighting and ventilation facilities from sheet.
HRIS:
The Human Resource Information Systems (HRIS) at A&E provide overall:
· Management of all employee information.
· Reporting and analysis of employee information.
· Company-related documents such as employee handbooks, emergency evacuation
procedures, and safety guidelines.
· Benefits administration including enrollment, status changes, and personal information
updating.
· Complete integration with payroll and other company financial software and accounting
systems.
· Applicant tracking and resume management.
· attendance and PTO use,
· pay raises and history,
· pay grades and positions held,

8. · performance development plans,
· training received,
· disciplinary action received,
· personal employee information, and occasionally,
· management and key employee succession plans,
· high potential employee identification, and
· Applicant tracking, interviewing, and selection.
The HRIS provides information on just about anything the company needs to track and analyze
about employees, former employees, and applicants. With the HRIS, Human Resources staff
enables employees to do their own benefits updates and address changes, thus freeing HR staff
for more strategic functions. Additionally, data necessary for employee management,
knowledge development, career growth and development, and equal treatment is facilitated.
Finally, managers can access the information they need to legally, ethically, and effectively
support the success of their reporting employees.
HR Practices of A&E
Recruitment
Selection process
Training & development
Performance Management
Recruitment
Recruitment is the process through which the organization seeks applicants for potential
employment. Selection refers to the process by which it attempts to identify applicants with the
necessary knowledge, skills, abilities and other characteristics that will help the company
achieve its goals, companies engaging in different strategies need different types and numbers

9. of employees. The strategy a company is pursuing will have a direct impact on the types of
employees that it seeks to recruit and selection.
Source of recruitment
There are two kinds of source AMERICAN & EFIRD (BANGLADESH) LTD uses for recruitment
.They are
1. External source
2. Internal source.
We try to discuss all relative sources which are used for recruitment
1. Internal source
American & Efird (Bangladesh) Ltd thinks that current employees are a major source of recruits
for all but entry-level positions. Whether for promotions or for ‘Lateral’ job transfers, internal
candidates already know the informal organization and have detailed information about its
formal policies and procedures. Promotions and transfer are typically decided by operating
managers with little involvement by HR department.
a)Job-posting programs
HR departments become involved when internal job openings are publicized to employees
through job positioning programs, which informs employees about opening and required
qualifications and invite qualify employees to apply. The notices usually are posted on company
bulletin boards or are placed in the company newspaper. Qualification and other facts typically
are drawn from the job analysis information.
The purpose of job posting is to encourage employees to seek promotion and transfers the help
the HR department fill internal opening and meet employee’s personal objectives. Not all jobs
openings are posted .Besides entry level positions, senior management and top stuff positions
may be filled by merit or with external recruiting. Job posting is most common for lower level
clercal, technical and supervisory positions.
bi)Departing Employees
An often overlooked source of recruiters consists of departing employees. Many employees
leave because they can no longer work the traditional 40 hours work week .School, child care
needs and other commitments are the common reason. Some might gladly stay if they could
rearrange their hours of work or their responsibilities .Instead, they quit when a transfer to a
part-time job may retain their valuable skill and training. Even if part-time work is not a

10. solution, a temporary leave of absence may satisfy the employee and some future recruiting
need of the employer.
2. External source
When job opening cannot be filled internally, the HR department of AMERICAN & EFIRD
(BANGLADESH) LTD must look outside the organization for applicants. We discuss all the
external source of recruitment at bellow:
a)Walk-ins and Write-ins:
Walk-ins are some seekers who arrived at the HR department of American & Efird (Bangladesh)
Ltd in search of a job; Write-ins are those who send a written enquire .both groups normally
are ask to complete and application blank to determine their interest and abilities. Usable
application is kept in an active file until a suitable opening occurs or until an application is too
old to be considered valid, usually six months.
b) Employee referrals:
Employees may refer job seekers to the HR department .Employee referrals have several
advantages .Employees with hard –to –find job skill may no others who do the same work.
Employees referrals are excellent and legal recruitment technique, but they tend to maintain
the status quo of the work force in term of raise , religions , sex and other characteristics ,
possibly leading to charges of discrimination.
c) Advertising
Want ads describe the job and the benefits, identify the employer, and tell those who are
interested how to apply .They are most familiar form of employment advertising .for highly
specialist requites, ads may be placed in professional journal or out of town newspaper in areas
with high concentration of the desired skills
Example:
Position Description
Job Title: Customer Service Executive

11. Reporting To: Area Sales Manager
Purpose of the position
To coordinate & execute the production & distribution of goods/services as per the customer
needs.
Customer service executives need to interact with customers to provide information in
response to inquiries about our products & services and to handle and resolve complaints. They
will communicate with customers through a variety of means—by telephone; by e-mail, fax, or
in person.
The incumbent as Customer Care Executive is primarily responsible for assessing the customer
needs, prioritizing these needs and accordingly coordinates and follows up for the production
and distribution of goods. The jobholder’s job starts once an order has been placed by the
customer. The incumbent is supposed to assess the requirements, coordinate with the factory
production unit, give a ready date to customer and ensure on time delivery to customers.
The incumbent works closely with the sales team and supports them with relevant information
on the same. S/he is also required to keep him/her updated on all vendor programmers,
product range and new buyers.
The jobholder works closely with his/her supervisor as per the given guidelines and expected to
seek relevant information as and when required.
Responsibilities
To give an appropriate GRD (Goods Ready Dates) for all orders that comes in.
Interact with customers to provide information in response to inquiries about products and
services and to handle and resolve complaints.
Confer with customers by telephone or in person in order to provide information about
products and services, to take orders or cancel accounts, or to obtain details of complaints.
Maintain on line files for all customers and update them regularly on all orders that come in,
together with any key correspondence that maybe required for future reference. Take care of
all queries made by customers with regards to orders placed and ensure that they feel
confident of the delivery and have an overall feel good factor.

12. Coordinate with all internal units and ensure that goods are passed on from one stage to the
next to ascertain that goods are delivered on a timely basis. Check to ensure that appropriate
changes were made to resolve customers' problems.
Contact customers in order to respond to inquiries or to notify them of claim investigation
results and any planned adjustments.
Refer unresolved customer grievances to designated departments for further investigation.
Complete P.I. forms, prepare records, and issue orders.
Obtain and examine all relevant information in order to assess validity of complaints and to
determine possible causes.
Solicit sale of new or additional services or products.
Compare disputed merchandise with original requisitions and information from invoices, and
prepare invoices for returned goods.
Order tests that could determine the causes of product malfunctions.
Work cohesively with the Customer Service team for effective output.
Recommend improvements in products, packaging, shipping, service, or billing methods and
procedures in order to prevent future problems.
d) Internet
Now today no body thinks anything without internet. So AMERICAN & EFIRD (BANGLADESH)
LTD give their advertise at internet.
Example:
WWW.bdjobs.com
WWW.amefird.com
Selection practices:
Job analysis
Job analysis is the procedure for determining the duties and skill requirement of a job and the
kind of person who should be hired for it.

13. The supervisor or HR specialist of AMERICAN & EFIRD (BANGLADESH) LTD. normally collects
one of the following types of information:
Work activities
First he or she collects information about the job actual work activities such as marketing,
sewing, production. This list also include how, why and when the worker performance each
activity.
Education and qualification
Collects the information about education background and qualification.
Experience
Experience must be needed for any job in AMERICAN & EFIRD (BANGLADESH) LTD.
Sample of job analysis of AMERICAN & EFIRD (BANGLADESH) LTD :
Quality control manager
Qualification
Master in any subject
Bachelor/diploma in textile and clothing or related discipline will be given preference
Must have at least 7 years practical experiences in similar position in any garments factory.
Ware house Assistant Manger
Qualification
Masters/ bachelor in any subject preferably commerce.
Bachelor/diploma in textile and clothing or related discipline will be given preference
Must have at least 5 years practical experience experience in similar position in any garments
factory
Dying Supervisor (Sewing)

14. Qualification
Graduate /HSC
Must have at least 3 years practical experience in similar position in dying unit.
Experience and skill for all above jobs:
Candidate must have experience to work with world reputed buyers
Good writing and communication both in Bengali and English
Should be capable of making QA reports on daily basis
Computer literacy in MS word, Excel, e-mail etc.
Job Design
Job design is the process of structuring work and designating the specific work activates of an
individual or group of individuals to achieve certain organizational objectives.
The job design can generally be divided into three phases:
1. The specification of individual task.
2. The specification of the method of performing each task
3. The combination of individual tasks into specific job to be assign to an individual.
Organizational considerations for job design
Effectiveness
In the context of job design, to remain effective, organizations may have to redefine jobs,
monitoring, and using technology so that the firm can even compete against giant rivals.
Efficiency
Maximum outputs through minimum inputs of time, effort and other resources. In the context
of job design, efficiency in time, effort, labor costs, and training should be done accordingly.

15. Technological Considerations
Task Interdependence
The dependence of one task from another is task dependence. In this context, the task
interdependence can be high or low depending on the product or service.
Technical constraints
Scarcity of machines are constraints, which in turn leads to the increase and decrease of
production.
Ergonomic constraints
Greek word where Ergo = Work & Nomos = Laws, i.e Laws of work. Optimal productivity
requires a relationship between the worker and the work, thus designing a job needs this
consideration.
Employee considerations
Skill variety
Variety refers to the use of different skills and talents to complete an array of work tasks and
activities.
Autonomy
Autonomy refers to the freedom and independence to plan and schedule the work and
determine the procedures used to carry it out.
Task identity
Task identity means doing something from beginning to end rather than just part of it.
Task significance
It is the degree to which a job has substantial impact on an organization.
Feedback
Feedback is the degree to which employees can tell how well they are doing based on
information from the job.

16. Environmental considerations
Social expectations
In designing jobs, the surrounding social expectations must be considered to avoid possible
worker dissatisfaction.
Workforce availability
Job requirements should be balanced against the availability of the people who are required to
do the work.
Work practices
Work practices are set methods of performing work. These methods may arise from tradition or
the collective wishes of employees.
Selection devices:
· Interviews
· Written test
· Performance & simulation test
· Work sampling
Training and Development program
Training is a process of learning a sequence of programmed behavior. It is application of
knowledge. It gives people an awareness of the rules procedures to guide their behavior. It
attempts to improve their performance on the current job or prepare them for an intended job.
Development is a related process. It covers not only those activities which improve job
performance but also those which bring growth of the personality; help individuals to the
progress towards maturity and actualization of their potential capacities so that they become
not only good employees but better men and women. In organizational terms, it is intended to
equip a person to earn promotion and hold greater responsibility.
There are many types of method practices in AMERICAN & EFIRD (BANGLADESH) LTD .we
discuss that method at below:
On the job training

17. On the job training is a training that shows the employee how to perform the job and allows
him or her to do it under the trainer’s supervision
On the job training is normally given by a senior employee or a manager like senior
merchandiser or a manager. The employee is shown how to perform the job and allowed to do
it under the trainer’s supervision.
Job rotation
Job rotation is a training that requires an individual to teach several different some in a work
unit or department and performer each job for a specified time period.
In job rotation, individuals learn several different job within a work unit or department. One
main advantages of job rotation is that it makes flexibilities possible in the department. When
one employee like junior merchandiser absence another merchandiser can easily perform the
job.
Apprenticeship training
Apprenticeship training provides beginning worker with comprehensive training in the practical
and theoretical expect of work required in a highly skilled occupation. Apprenticeship program
combined of the job and classroom training to prepare worker for more than eight hundred
occupation such as computer operator, sewing technician.
Length of selected apprenticeship courses of AMERICAN & EFIRD (BANGLADESH) LTD
Occupation length (months)
1. Quality control manager 13
2. Quality control officer 15
3. Packing Astt. Manager 7
4. Ware house Astt. Manager 5
5. Production officer 3
Classroom training
Classroom training is conducted off the job and probably the most familiar training method .It is
an effective means of imparting information quickly to large groups with limited or no

18. knowledge of subject being presented. It is useful for teaching factual material, concepts
principle other theories .portion of orientation programs, some expects of apprenticeship
training and safety programs are usually presented utilizing some form of classroom instruction.
More frequently however, classroom instruction is used for technical, professional and
managerial employee
Development of the human resources
The long term development of human resources as distinct from training for a specific job is of
growing concern to HR departments of AMERICAN & EFIRD (BANGLADESH) LTD .Throw the
development of current employees the department reduces the company’s dependents on
haring new workers .if employees are developed properly the job openings found throw HR
planning are more likely to be filled internally promotions and transfers also show employees
that they have a career not just a job. The employee benefits from increased continuity in
operations and from employees who fail a greater commitment.
HR department is also an effective way to meets several challenges including employee
obsolescence, international and domestic diversity, technical challenges. Affirmative action and
employee turn over. By meeting these challenges the department can, maintain an effective
workforce.
Steps in the Evaluation of training and development
Evaluation criteria > pretest > trained or developed-workers
> posttest > transfer to the job > follow-up studies.
Performance Management
Performance appraisal is the process of assessing employee’s past performance, primarily for
reward, promotion and staff development purposes.
Performance appraisal (is) a process that identifies, evaluates and develops employee
performance to meet employee and organisational goals.
Performance Appraisal doesn’t necessarily use to blame or to provide a disciplinary
action.Previous management theories used to view performance appraisal as a stick that
management has introduced to beat people. Performance appraisals are now more clarified
and they concentrate on developing organizational strengths and employee performance.
Purpose of Performance Appraisal in AMERICAN & EFIRD (BANGLADESH) LTD

19. To review past performance
To assess training needs
To help develop individuals
To audit the skills within an organization
To set targets for future performance
To identify potential for promotion
To provide legal & formal justification for employment decision
To diagnose the hidden problems of an organization
Performance Appraisal Process
Who Appraises
· Supervisors
· Subordinates
· Peers
· Clients/customers
· Self appraisal
· 180/360 degree approach
Approaches to measuring performance in AMERICAN & EFIRD (BANGLADESH) LTD.
There are various kinds of methods for measuring performance appraisal. But we get
information that AMERICAN & EFIRD (BANGLADESH) LTD. uses only three type of performance
method. These are at below:
1. 360- degree feedback
2. Experience based.
We describe those at below:

20. 1.360-degree feedback
One currently popular methods of performance appraisal is called 360-degree feedback. With
this method managers peers, suppliers or colleagues are ask to complete questionnaire. The
questionnaire are generally lengthy .
2. Experience based
AMERICAN & EFIRD (BANGLADESH) LTD. measures the performance of employee by
experience. For example MR. X has been working in AMERICAN & EFIRD (BANGLADESH) LTD. for
three years and MR. Y has been working in AMERICAN & EFIRD (BANGLADESH) LTD. for two
years. So AMERICAN & EFIRD (BANGLADESH) LTD. favors MR. X for his more experience.
Performance evaluation and motivation: This is a very important issue of performance
evaluation and motivation. And for motivation we also have to make a good relationship with
our employees.
Employee relation
Employers and employees each have their own sets of needs and values, and successful
relationship between these two sides requires that some sort of balance be struck. This balance
often takes the form of a psychological contract, an understood agreement between employer
and employees that defines the work relationship. This contract with or without support of a
formal collective bargaining, agreement influence the outcome achieve by each side.
AMERICAN & EFIRD (BANGLADESH) LTD group the various into three channel categories those
are
· Employee safety
· Employee health
· Employee working condition
Employee safety
AMERICAN & EFIRD (BANGLADESH) LTD provide the employee safety .It ensure the all kinds of
job safety such as insurance of each employee not this it provide insurance to the labor.
Employee health

21. Free medical checkup, provide health card and also provide necessary medical facilities for each
employee.
. Employee working condition
The working condition of employee is very hygienic
AMERICAN & EFIRD (BANGLADESH) LTD. is ISO 9001-2000 Certified company
Incentives
Compensation fluctuates according to
– A pre-established formula
– Individual or group goals because group goals are different from individual goals
– Company earnings
Incentives adds to base pay
It controls costs because the employee is being paid for his/her extra effort and for the benefits
brought to the organization.
Motivates employees
Incentive Pay Categories
Individual
Group
Company-wide
Individual incentive plans
– Quantity of work output (How many units produced)
– Quality of work output (What was the quality of the product or service being produced or
served)
– Monthly sales (How much sales was generated)
– Work safety record (How many hazard or errors are being reduced.
– Work attendance (If the absent is reduced or attendance is good)
Group Incentive
Performance Measures

22. Group incentive plans
– Customer satisfaction
– Labor cost savings
– Materials cost savings
– Reduction in accidents
– Services cost savings
Company-Wide Performance Measures
Company-wide incentive plans
– Company profits
– Cost containment/prevention
– Market share
– Sales revenue
Individual Incentive Plans (Piecework plans)
• Awards based on individual
production vs. company standards
• Awards based on individual
performance standards using
objective & subjective criteria
• Quantity and / or quality goals
Advantages and disadvantages of Individual Incentive Plan
• Advantages
– Helps relate pay to performance
– Promotes equitable distribution of compensation
– Helps retain best performers
– Compatible with individualistic cultures and societies
• Disadvantages
– May promote inflexibility
– Unrealistic standards may hamper employee motivation
– Setting performance standards is time consuming
– Factors beyond employee’s control may affect outcomes
– Factors not rewarded may be overlooked
Group Incentive Plans
• Rewards employees for their
collective performance
• Group incentive use has increased in industry

23. • 2 types
– Team - based or small group
– Gain sharing
Company-Wide Incentive Plans
• Rewards employees when company
meets performance standards
• 2 Types
– Profit sharing plans
– Employee stock option plans
Competitive Strategies
• Lowest - cost
– Lower output costs per employee
– Individual & group incentive plans
– Behavioral encouragement plans
• Differentiation
– Unique product or services
– Creative, risk - taking employees
– Long - term focus
– Team - based incentives
Benefits of AMERICAN & EFIRD (BANGLADESH) LTD
Employee benefits & services were formerly known as fringe benefits and these benefits were
primarily the in-kind payments employees receive in addition to payments in the form of
money.
In addition to paying employees fairly and adequately for their contributions in the
performance of their jobs, organizations assume a social obligation for the welfare of
employees and their dependents
Employees benefits are usually inherent components of the non-compensation system are
made available to employees that provide:
– Protection in case of health & accident
– Income upon retirement & termination
These benefits are components that contribute to the welfare of the employee by filling some
kind of demand.

24. Legally required benefits of AMERICAN & EFIRD (BANGLADESH) LTD
• Social Security
– Social security benefits include the general benefits like unemployment insurance & benefits,
old age insurance, and Medicare facilities.
• Workers’ Compensation
– Worker’s compensation includes the compensation when an employee becomes injured or
disable due to extreme working conditions or while working at the job site.
• Family & Medical Leave
– Family leave includes the compensation continuation during the family leave such as
maternity or paternity leave and other family leave.
• Old age, Survivor, Disability Insurance requirements for getting compensation:
– Earn 40 quarters of credit, or
– Be employed for 10 years
– Be age 62 for partial benefits
– Be age 65 for full benefits
– Now the age has been extended to age 67 because more and more workers are retiring late.
– Widow aged 60 +
Medicare
Depends on the country’s policy, medicare facilities are generally government services to
citizens.Organizations add some value to medicare facilities. In some countries medicare is
financed together by employees’ tax, employers and the government.
Provided insurance coverage for
– Hospitalization - Covers inpatient & outpatient hospital care & services.
– Major doctor bills – Charges of visiting a doctor or specialist.
– Prescription drug costs.
– Provides unlimited in-home care in certain situations.
Workers’ Compensation
• Workers’ compensation is a legally required benefit is included in the compulsory disability
laws of many countries. Mostly, employer is seen liable regardless of the fault.
• Objectives of Workers’ compensation:
– Provide income & medical benefits
– Reduce litigation
– Eliminate legal fees & time

25. – Encourage employer safety
– Promote accident study & avoidance
• Workers’ compensation claims
– Injury
– Occupational disease
– Death
• Workers’ compensation benefits
– Medical services
– Disability income
– Death benefits
Discretionary Benefits
• Discretionary benefits are judgment based benefits that the organization provides to its
employees. These benefits are not legally required benefits but enhance organizational culture
and corporate image.
• Benefits include:
– Protection programs
– Pay for time not worked
– Other services
Paid Holidays (Annual Leave, Casual Leave & Government Holidays)
All full-time employees will receive holiday pay of eight straight time hours at their regular rate,
provided the following conditions are satisfied:
1. Work a full shift on the employee's last scheduled work shift prior to the paid holiday.
2. Work a full shift on the employee's first scheduled work shift following the holiday.
3. Should the employee be unable to work either of these two days because of illness,
proof of illness will be required in order to qualify for the paid holiday.
The shift differential for second and third shift employees will not be included in holiday pay.
Holiday pay will not be paid if:
1. The employee has been on the payroll for less than 90 days.
2. The employee is on lay-off status.
3. The employee is a temporary or seasonal employee.

26. 4. The employee is on leave of absence when the holiday occurs.
5. The employee is requested to work during a paid holiday and the employee refuses to
do so.
Religious Holidays
American & Efird (Bangladesh) Ltd. recognizes that there may be religious holidays (other than
those already designated at holidays) that employees would like to observe. It may be possible
to arrange these holidays as scheduled days off, authorized absences without pay or personal
time off. Requests for time off to observe religious holidays must be approved.
Vacation Time
At the end of the employee's first year as a full-time employee of American & Efird
(Bangladesh) Ltd. an employee is entitled to 14 days of paid Annual Leaves.
Vacation time must be prescheduled and preapproved. American & Efird (Bangladesh) Ltd. does
not provide paid vacation time for part-time employees.
Scheduling Vacations
American & Efird (Bangladesh) Ltd. will attempt to grant all employees vacation at the time
they desire to take it. However, American & Efird (Bangladesh) Ltd. must maintain adequate
staffing at all times. Therefore, vacations must be scheduled in advance and with prior written
approval.
Where conflicts develop, they will be resolved as fairly as possible. Preference will be given to
the more senior employee, the employee who can demonstrate the greater need for vacation
at the conflicting time or the employee who makes the earliest request.
Funeral Leave Policy
The purpose of funeral leave is to provide you with time to attend the funeral of a member of
your family and to handle personal affairs without disrupting your income. Only permanent
full-time employees are eligible for funeral leave benefits, and the benefits become effective
after you complete your training and adjustment period.
Time allowed: You may be granted up to a three-day leave (three consecutive working days)
with pay in the event of the death of an immediate family member.
Definition of immediate family member: The term immediate family member is defined as:
· Brother
· Child

27. · Father
· Father-in-law
· Husband
· Mother
· Mother-in-law
· Sister
· Wife
Funeral pay: Your funeral leave pay will be figured at your regular rate of pay.
Leave without pay: If you are not eligible for funeral leave with pay, you may be given time off
without pay in case of a death in the family. Time off without pay may be arranged to attend
the funeral of a close friend. Each day off will be counted as an absence without pay.
Sample Sick Leave Policy
Employees will become eligible to participate in the paid time for illness program as follows:
In addition to illness, sick leave may also be granted for medical, dental, or optical examinations
or when a member of your household requires your personal care and attention due to illness.
Pay and benefits during sick leave. Illness pay will be based on a regular eight-hour day at
straight time and at the employee’s base rate. Illness absence of less than three hours in a day
will not be considered for payment.
Weekly insurance benefits will continue to be paid commencing with the first day of certified
disability due to accidents and the fourth day due to illness. Thus, in accident and illness cases,
the insurance benefit will be paid rather than the paid illness allowance, and any unused illness
allowance will be available for use later in the year as needed.
Certification of illness - Certification of illness by a physician will not normally be required to
qualify for payment under this program.
Effect on performance - While the company pays you for authorized sick days, we expect you to
be honest with us in taking days off only when you are actually ill. Any abuse of this benefit will
be taken into account in evaluations of your performance. The company reserves the right to
require a statement from your doctor.
At termination - When termination of employment occurs, no payment for sick leave will be
made.

28. Nondiscrimination
American & Efird (Bangladesh) Ltd. makes it a policy not to discriminate in any way against
employees who are members of the military. The employee's job will not be in jeopardy if a
military leave of absence is requested or taken. In addition, the employee will not be
discharged by A&E for one year after returning from military leave without just cause.
Pregnancy/Maternity Leave Policy
To be eligible for a pregnancy leave of absence, the employee must be a contemporary, full-time
female employee.
Maximum Length of Leave
The maximum length of pregnancy leave allowed is 24 weeks. If the employee needs a longer
leave due to medical complications, the employee should notify American & Efird (Bangladesh)
Ltd. as soon as possible. The additional leave will be treated the same as any other medical or
disability leave.
Written Requests
A written request for pregnancy leave must be submitted within a reasonable time. The
employee must submit a written doctor's statement, indicating the anticipated delivery date.
The employee should inform American & Efird (Bangladesh) of the expected duration of her
pregnancy leave so that the company may plan around the absence efficiently until her return.
Transfers
An employee requesting pregnancy leave may also ask for a transfer to another less strenuous
or less hazardous position if so desired. The request must be in writing and must state the
reason for the transfer.
Paid Leave
American & Efird (Bangladesh) provides for paid pregnancy leave for the period of [time limit—
4 months]. The employee may use any accumulated paid sick days and/or paid vacation days
to extend her pregnancy leave beyond the paid leave period. The employee will be paid for
those designated days.
Benefits
While an employee is away from work on an approved pregnancy leave of absence, she
continues to participate in American & Efird (Bangladesh) company employee benefit
programs. American & Efird (Bangladesh) will endeavor to return the employee to the same or

29. equal job she had before taking pregnancy leave. Although American & Efird (Bangladesh) does
not guarantee a return to the identical job, the employee will suffer no loss in seniority.
Time Off to Vote
Before taking time off to vote, the employee must make a written request for time off [number
of days of advance notice] days before voting day.
Paid Absence
Time off to vote will be treated as a paid absence.
Voting Hours
The employee is allowed [number of hours] hours of time off to vote. Time off to vote is
granted if the polls open fewer than [number of hours] hours prior to work starting time or
close fewer than [number of hours] hours after quitting time. Time off to vote may be taken
before coming in to work or at the end of the workday.
Recommendations:
From the analysis with the organization structure we have seen that its span of super vision is
too large. A number of departments report directly to the general manager. If the number were
less the efficiency and productivity of the organization might be increased. Quality control
department should remain prompt always. So that it can maintain a certain level of standard as
per the market demand to capture the foreign market share it should strive more.
CONCLUSION
The flourishment of any industry requires combined efforts and co-operation from several
parties. Social, political and macroeconomic environment play pivotal role in this regard.
Though American & Efird (Bangladesh) Ltd. is a newly Ventured Company in the respective
sector, its growth and expansion is praiseworthy. It’s contributing the country and serving the
nation in different ways. If it can up hold it’s much toward advancement, it will be able to set a
role model in our country.