Bond Evaluation Project

[EMERALDS APPARELS] August 17, 2011
HISTORY OF RMG INDUSTRY IN BANGLADESH
The hundred percent export-oriented RMG industry experienced phenomenal growth during
the last 15 or so years. In 1978, there were only 9 export-oriented garment manufacturing
units, which generated export earnings of hardly one million dollar. Some of these units
were very small and produced garments for both domestic and export markets. Four such
small and old units were Reaz Garments, Paris Garments, Jewel Garments and Baishakhi
Garments. Reaz Garments, the pioneer, was established in 1960 as a small tailoring outfit,
named Reaz Store in Dhaka. It served only domestic markets for about 15 years. In 1973 it
changed its name to M/s Reaz Garments Ltd. and expanded its operations into export
market by selling 10,000 pieces of men's shirts worth French Franc 13 million to a Paris-
based firm in 1978. It was the first direct exporter of garments from Bangladesh. Desh
Garments Ltd, the first non-equity joint-venture in the garment industry was established in
1979. Desh had technical and marketing collaboration with Daewoo Corporation of South
Korea. It was also the first hundred percent export-oriented company. It had about 120
operators including 3 women trained in South Korea, and with these trained workers it
started its production in early 1980. Another South Korean Firm, Youngones Corporation
formed the first equity joint-venture garment factory with a Bangladeshi firm, Trexim Ltd. in
1980. Bangladeshi partners contributed 51% of the equity of the new firm, named Young
ones Bangladesh. It exported its first consignment of padded and non-padded jackets to
Sweden in December 1980.
Within a short period, Bangladeshi entrepreneurs got familiar with the world apparel
markets and marketing. They acquired the expertise of mobilizing resources to export-
oriented RMG industries. Foreign buyers found Bangladesh an increasingly attractive
sourcing place. To take advantage of this cheap source, foreign buyers extended, in many
cases, suppliers' credit under special arrangements. In some cases, local banks provided part
of the equity capital. The problem of working capital was greatly solved with the
introduction of back-to-back letter of credit, which also facilitated import of quality fabric,
the basic raw material of the industry. The government assigned high priority to the
development of RMG industry.
Till the end of 1982, there were only 47 garment manufacturing units. The breakthrough
occurred in 1984-85, when the number of garment factories increased to 587. The number
of RMG factories shot up to around 2,900 in 1999. Bangladesh is now one of the 12 largest
apparel exporters of the world, the sixth largest supplier in the US market and the fifth
largest supplier of T-shirts in the EU market. The industry has grown during the 1990s
roughly at the rate of 22%. In the past, until 1980, jute and jute goods topped the list of
merchandises exported from Bangladesh and contributed more than 50% of the total export
earnings. By late 1980s, RMG exports replaced jute and jute goods and became the number
one in terms of exports.
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PRODUCT TREE
Bangladesh exports about 63 items to different apparel markets. These products include
suits, jeans, embroidery cloths, shirts, trousers, children wares, sweaters, knitwear etc.
However, major portions of Bangladesh's exports are shirts, blouses, T-shirt, pullovers and
these products are produced mainly to cater middle and lower market segments of US and
EU. It needs to be mentioned here that Bangladesh produces a very limited categories of
expensive and fashion oriented garments. Main apparel items exported from Bangladesh is
shown in the tree – diagram drawn below:
Ready Made Garments
Woven Knitwear
Trousers Shirts Jackets T – shirt Sweater

Polo Shirt
The following graph shows the trend of apparel product export in the international market.
Woven Knit Total
Countries July-June July-June

% July-June July-June % July-June July-June %
Change Change Change
2002-03 2003-04 2002-03 2003-04 2002-03 2003-04
Total EU 1,553.29 1,871.23 20.47% 1,208.43 1,780.60 47.35% 2,761.70 3,651.82 32.23%
% of Total 47.67% 52.89% - 73.07% 82.89% - 56.22% 64.22% -
Canada 95.94 185.74 93.60% 48.67 70.66 45.18% 144.61 256.4 77.30%
% of Total 2.94% 5.25% - 2.94% 3.29% - 2.94% 4.51% -
USA 1,517.00 1,391.80 -8.25% 350.62 236.79 -32.47% 1,867.63 1,628.59 -12.80%
% of Total 46.56% 39.34% - 21.20% 11.02% - 38.02% 28.64% -
Japan 11.74 16.00 36.29% 3.54 3.79 7.06% 15.28 19.79 29.52%
2
% of Total 0.36% 0.45% - 0.21% 0.18% - 0.31% 0.35% -
Australia 1.68 2.47 47.02% 1.08 1.27 17.59% 2.76 3.74 35.51%
% of Total 0.05% 0.07% - 0.07% 0.06% - 0.06% 0.07% -
Other
78.62 70.85 -9.88% 41.5 54.92 32.34% 120.12 125.77 4.70%
Countries
% of Total 2.41% 2.00% - 2.51% 2.56% - 2.45% 2.21% -
Grand
3,258.27 3,538.09 8.59% 1,653.84 2,148.02 29.88% 4,912.10 5,686.11 15.76%
Total
Source: BGMEA
THE CHARACTERISTICS OF RMG SECTOR IN BANGLADESH
Growth in the Industry
The growth in the RMG sector in Bangladesh can be explained by a combination of favorable
factors, the abundant availability of cheap but easily trainable labor force and the policy
incentives, particularly bonded warehouse facilities for duty free import of inputs. Total
number of garment manufacturers in Bangladesh as at the close of fiscal year 2001-2002
was around 3,618. Number of new entrants in this industry followed a steady trend over the
last decade. People from all walks of life have undertaken this venture mainly due to the
following reasons:
• Low capital intensive
• Technological involvement is not very high
• Easy-to-manage operations
• Opportunities elsewhere is very limited
Trading Pattern
Traditionally export in the RMG industry has been done through back to back L/C. However,
presently this tradition is changing. The concept of "Open Account Trading" is now in place.
Under this situation, large buyers aside themselves from arranging export L/Cs for cost
saving purpose . The bargaining power of these large buyers bind the exporters from LDCs
like Bangladesh to enter into a contract under which no export L/C is issued and payment is
made directly after receiving satisfactory quality shipment of goods. Here lies the risk of
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performance and accountability. If the buyer is not reputed enough, problems may arise. In
Bangladesh, large RMG factories tend to maintain direct contact with the large buyers to
safeguard themselves from unforeseen accountability risks.
Growth Trend over the Years
Graph shown in the figure below shows the growth trend of the RMG sector in terms of
export value and quantity:
Export trnd of RMG secotor
4000
Value in M USD
3000 Woven Export Trend

2000
Knit Wear Export
1000 Trend
0
3
5
-9
-9
-9
-9
-0
-0
-0
92
94
96
98
00
02
04
19
19
19
19
20
20
20
Year
Source: EPB and BGMEA [* the year is July 2004 to April 2005]
List of Top Players in the Market
The following is the list of Knitwear Manufacturer who leads the market:
Serial
Factory Name
No.
1 Minar Industries (Pvt.) Ltd.
2 N. R. Knitting
3 Knit Concern Ltd.
4 Rahman Knit Garments Ltd.
Shovon Silk & Knitting Mills (Pvt.)

5
Ltd
6 Iqbal Texwear Ltd.
4
7 Samrat & Co. (pvt.) Ltd
8 Wisdom Attires Ltd.
9 Rony Knitwear (pvt) Ltd.
10 Fakir Knitwear Ltd.
11 Miswar Hosiery Mills (pvt) Ltd
12 Fuji Knitwear Ltd.
13 Fakir Apparels Ltd.
14 Adron Fabrics (pvt) Ltd.
15 Crony Apparels Ltd.
16 SP Fashions Ltd.
17 Krishnachura Fashions Ltd.
18 Martin Knitwear Ltd.
19 Knit Asia Ltd. Unit – 2
20 Niagra Textiles Ltd.
21 Pantex Dress Ltd.
22 Abanti Color Tex Ltd.
23 Taufiq Sweater Ltd.
24 Aboni Textile Limited
25 Anowara Fashions Ltd.
26 Square Knit Fabrics Ltd.
27 Metro Kniting & Dyeing Mills Ltd.
28 M/S Time Sweaters Ltd.
29 Ayman Textile & Hosiery Ltd.
30 Falcon International Knit Composit
Source: BKMEA
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Following is the list of leaders in woven Product Manufacturering:
Serial
Group Name
No.
1 Envoy Group
2 Alana Group
3 Youth Group
4 Mohammadi Group
5 Hamim Group
6 Opex Group
THE CHANGED MARKET SCENARIO
At the Global level:
The country exports about USD 5.5 billion worth of RMG products or 2.6 per cent of the
world’s USD 195 billion RMG market. This market has been estimated to reach USD350
billion by 2007. The challenge that Bangladesh faces is two-pronged. It has to retain its
present 2.6 per cent market share and then also try to maintain it in fast expanding markets
by competing with the world. Indeed, it is a daunting agenda.
Bangladesh should continue to press for zero tariff access to the US market. About USD
310.0 million worth of tariff is imposed annually on Bangladesh’s export to the US market.
On the process of on going negotiation, BGMEA, at a reception hosted by them to Betsy
Stillman, special trade policy advisor for South Asia at the office of USTR reiterated the
demand for Duty free access to US market on July 18, 2004. Mr. Stillman suggested
continuous lobbying with the US government for getting the duty-free facility. (July 19, 2004;
the daily Star)
CPD modeling exercise shows that a zero tariff access is likely to substantively enhance
Bangladesh’s competitive strength in US market and increase exports by about USD 1.0
billion or 50%. Zero tariff access to Canadian market in 2001 has helped Bangladesh to
increase her apparel export from USD 105.8 million in 2002 to D 162.8 million in 2003, a
growth of about 54%.
Bangladesh has sought a 30 percent increase in market share of all primary and
manufactured products of least developed countries (LDCs) in EU, the USA and Japan in line
with the commitment made in the Tokyo Round of GATT. To overcome the possible disaster
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in the LDC exports after the expiry of MFA (Multi-fibre arrangement) regime in 2004,
Bangladesh has made the appeal to consider this, official sources said. It was feared that
about 30 to 50 percent of the garment factories in Bangladesh and other LDCs will be closed
down in the post-MFA era throwing a large number of workers mostly women out of jobs. In
last six months after 1st January 2005 no record of such mishap in the country has seen.
"So if the market share of LDCs is not retained they will face serious economic and social
problems and the existing poverty condition will further be aggravated," commerce minister
Altaf Hossain Chowdhury said in separate letters to US Trade Representative Robert B
Zoellick, EU Trade Commissioner Pascal Lamy and Japanese Minister for Economy, Trade and
Industry Shoichi Nakagawa. The commerce minister in the letters sought special and
differential treatments for primary and manufactured products including ready-made
garment frozen food, tea, Raw Jute and Agricultural products, sources in the commerce
ministry said. Over 90 percent of the country’s total exports go to these three markets, with
EU topping the list following by the US.
"The LDCs including Bangladesh will benefit much should there be further prolonging of the
transition period i.e. an extension of the ATC (agreement on textile and clothing beyond
2004. It is certain that the LDCs will loose guaranteed markets. They will be forced to
compete with suppliers from countries with backward linkages and skilled labor force such
as Hong Kong South Korea, India, Pakistan and particularly China," the letters read.
Awarding such treatment in favour of LDCs will not be against the spirit of the World Trade
Organization, agreed upon by the member countries at the Tokyo Round of the General
Agreement on Tariff and Trade in 1979, the commerce Minister pointed
out. "Notwithstanding the provision of Article 1 of the general agreement contracting
parties may accord deferential and more favorable treatments to developing countries
without according such treatment to other contracting parties" the GATT signatories
decided at the Tokyo Round.
The Commerce Minister felt the need for a decisive strategy to raise the LDCs market share
of primary and low-tech labour intensive manufactured goods by 30 percent letter to John
McCain, US senator and Chairman, senate committee on commerce, science and
transportation sought duty-free market access in the US for ready-made garments to help
Bangladesh avert possible debacle after 2005, official sources said. In the letter, he also
urged US government to include the name of Bangladesh in the list under its Trade
Development Act (TDA) 2000 which provided duty-free to 72 sub Saharan and Caribbean
basin countries to the US market.
Bangladesh export to the US fell about 12 percent over the last two years because of TDA
2000 and signing of a number of bilateral and regional free trade agreements between the
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US and some apparel producing countries, Sources in the commerce ministry told New
Age. The United States International Trade Commission in a recent study said the fate of
Bangladesh RMG export to the US will face uncertainty after 2004. Another study report by
the American Textile Manufacturers Institute in December 2003 cautioned that Bangladesh
will lose 1.05 billion dollars in US market by 2006 due to elimination of Multi-Fibre
Arrangement from 2005.
Post-MFA Development Strategy & Technical Assistance for RMG sector
The warnings for Post MFA era were:
Final report on “Post-MFA Development Strategy & Technical Assistance for RMG sector”
prepared by Gherzi Textile Organization, Switzerland suggested that Bangladesh will need to
set up 45 more spinning mills to meet the challenges after 2004.
A meeting of the Commerce Ministry on Post-MFA observed, “Studies by the international

agencies, including IMF and World Bank and local think tank Centre for Policy Dialogue,
however, apprehended a severe negative impact on the RMG sector and million of
unemployment during the quota free regime. But the reality is that neither single factory
was closed down nor a single person was jobless in the first three months after the decade
old MFA expired December 31, 2004. Even the Ministry could not utilize a fund worth Tk 200
million that was allocated to train and rehabilitate retrenched workers by the Export
Promotion Bureau (EPB) as no jobless worker sought assistance from the special cell under
the EPB during the last three months and as such the Commerce Ministry finally returned
the fund to the Finance Ministry. However, business leaders of the RMG and textile sector,
donor agencies, high officials of the different ministries, who attended the meeting noted
that no firm conclusion should be drawn evaluating the scenario of such a short period of
three months. The Commerce Ministry is preparing the post MFA action plan worth USD 40
million, keeping in mind the long-term effect of the quota free era. According to EPB export
statistics, export of knitwear and woven garments have experienced an increase of 38.05%
and 6.09% respectively in February in 2005 over the corresponding period of previous year.
(Source: The Financial Express, April 2005)
In the post MFA period after 2004 the import cost of yarn or fabrics is assumed to be very
high, consequently backward linkage would be sine qua non. This is a token of Government’s
concern for strengthening Backward Linkage, which in turn, justifies the viability of new
spinning units.
The freeing of quota from January 2005 would result in additional world trade of USD 100
billion, hence post MFA will offer immense scope of garments export due to decrease in unit
price. Bangladesh may be an important player in the international market especially in knit
garments because of i. Cheap Labor ii. Available Gas to produce electricity iii. Growth of
Backward linkage like spinning mills contributing towards the reduction of lead time from
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90-120 days to 30-45 days. With the increase in the volume, the demand of yarn will
increase significantly on the other hand the export of the same to Bangladesh from India will
decline for the following reason: I. WTO provisions do not allow dumping in a competitive
world market II. Increase in price of Indian Yarn due to withdrawal of subsidies III. Increase in
demand by their RMG Industries resulting a shortfall in supply of yarn. Moreover, to meet
the changes of 2004, Bangladesh will need to set up additional 45 Spinning Mills, 82 Weaving
Mills, 81 Knitting & Knit processing unit, 51 Woven processing unit (Source: Final Report on
“Post MFA development strategy & Technical Assistance for the RMG Sector” prepared by
Gherzi Textile Organization, Switzerland)
Change after January 2005
Analysis of data shows various interesting findings on RMG industry after the scary January
2005
Value and Volume of RMG Export:
Total Apparel Export in Value M USD Total Apparel Export in Qty M Dzn
Year
Woven Knit Total Woven Knit Total
1992-93 1240.48 204.54 1445.02 36.05 10.66 46.71
1993-94 1291.65 264.14 1555.79 34.35 10.81 45.16
1994-95 1835.09 393.26 2228.35 47.21 15.30 62.51
1995-96 1948.81 598.32 2547.13 48.82 23.18 72.00
1996-97 2237.95 763.3 3001.25 53.45 27.54 80.99
1997-98 2844.43 937.51 3781.94 65.59 32.60 98.19
1998-99 2984.96 1035.02 4019.98 64.79 36.66 101.45
1999-00 3081.19 1268.22 4349.41 66.63 45.27 111.90
2000-01 3364.32 1495.51 4859.83 71.48 52.54 124.02
2001-02 3124.82 1458.93 4583.75 77.05 63.39 140.44
2002-03 3258.27 1653.82 4912.09 82.83 69.18 152.01
2003-04 3538.07 2148.02 5686.09 90.48 91.60 182.08
2004-05* 2907.63 2263.32 5170.95 74.55 96.43 170.98
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Trend of Unit Price Change:
Unit Price of Woven

Unit price in USD/Dozen
50.00
40.00
30.00
Unit Price
20.00
10.00
0.00
19 3
19 4
19 5
19 6
19 7
19 8
19 9
20 0
20 1
20 2
20 3
20 4
5
-9
-9
-9
-9
-9
-9
-9
-0
-0
-0
-0
-0
-0
92
93
94
95
96
97
98
99
00
01
02
03
04
19
Year
Unit Price of Knit

Unit Price in USD/Doz
35.00
30.00
25.00
20.00
Unit Price
15.00
10.00
5.00
0.00
19 3
19 4
19 5
19 6
19 7
19 8
19 9
20 0
20 1
20 2
20 3
20 4
5
-9
-9
-9
-9
-9
-9
-9
-0
-0
-0
-0
-0
-0
92
93
94
95
96
97
98
99
00
01
02
03
04
19
Year
Factors which became crucial as quota is phased-out:
 A reduced lead time: from 90-120 days to 30-45 days.

 Ability to service Full Spectrum of Supply Chain Management (Vertical Capabilities)
 Raising Price Competitiveness (it means either reducing wage arte) or raising
productivity and lowering cost of doing business.
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 Ethical Sourcing (Introduce of Compliance stickers: SA-8000, ISO-9000, ISO-14000;

Minimum Wage, Freedom of Association, Working Environment, Health & Safety
concerns).
 Creation of Central Bonded Warehouse.
 Economies of Scale (Small may not be beautiful).
 New concepts Documents on Payment / Documents on Acceptance (DP/DA) are going
to replace LC mechanism.
Present Situation (as on July 2005):
The knitwear export registered a 169 percent growth and oven 18 percent in the USA
market in the first five months of the quota free era compared to the corresponding period
of last year, reports BDNEWS.
 Up to the month of May 2005 during the last 11 months, knitwear of USD 370 million
and oven worth USD 1.44 billion were exported to the USA.
 During these 11 months exports increased by 78.85 % and 15.47% in Knitwear and
Oven respectively. [EPB]
 Total Knit export to USA in Jan – May 2005 is USD 150 million.
Causes for No Negative Change:
 RMG has achieved more expertise than its competitors due to the depreciation of
money.
 High growth rate in US economy, the purchasing capacity of Americans has risen
resulting in positive influence on both the sections.
RMG growth Continues:
84 new garment units were established since the beginning of the quota free era in 1
January 2005.
 BGMEA members stood at 4,107 until July 2005 where the same was 3,957 in the
corresponding period of the previous fiscal.
 New set up: 13 knit units, 24 sweater factories, 8 jacket factories, 1 dyeing factory and
7 woven and knit factories.
An article published in The Daily Star on Sunday, the 30th July 2005 says the country’s
exporters have put the post MFA doomsayers to shame by fetching approximately US$ 8.58
Billion in fiscal year (FY) 2004-2005 or nearly US$ 1.0 Billion more than US$ 7.60 Billion in FY
11
04. According to Export Promotion Bureau (EPB) the total export earnings in the 11 months
of FY 05 was US$7.785 Billion. The EPB is yet to finish calculating June’s export figure but
estimates it to be more than US$ 800 Million, which puts the annual earnings at US$8.585
Billion, slightly more than the targeted US$ 8.565 Billion.
The reporter has detected following reasons behind the growth although prominent
doomsayers, international monetary fund had forewarned of Bangladesh losing a quarter of
its exports and a huge number of jobs in 2005 due to quota elimination.
 Bangladesh has become well known in the Global apparel market as reliable sources of
cheap garments. Unit cost of apparel in Bangladesh is the cheapest in the South Asian
region. For Bangladesh the unit cost of shirts comes to 11 cents, which is 26 cents for
India, 43 Cents for Pakistan and 79 Cents for Srilanka.
 Bangladesh labor force is also skilled for the low end products, which comprise the
bulk of its exports.
 Another big reason is that China was unable to immediately cash in on the open
market system because of the special safe guard clause the US imposed on its exports.
EXPORT EARNINGS IN LAST FIVE YEARS
Fiscal Years Income in Million USD. Growth in Million USD.
FY 05 8,585 Around 1,000
FY04 7,603 1,055
FY03 6,548 562
FY02 5,986 (-481)
FY01 6,467 715
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VALUE CHAIN
Raw Material Spinning Mill Knitting Mill for Knit Products

(Cotton)
(Yarn) Weaving Mill for Oven Products
Finished Fabrics Washing

Marketing / Show Knitting Garments
(Finished Goods) &
Oven Garments
Dyeing
International Market
(Consumer)
Sources of Raw Materials:
1. America
2. Uzbekistan
3. India
 Cotton and Yarn are imported from different countries of the world.
 This is one of the advantages for our RMG industry.
 Depending on the buyer’s requirement Bangladesh can import raw materials from best
sources.
 Moreover to set up a spinning mill huge investment is required.
 About 70% knit raw materials are produced in Bangladesh
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COMPANY PROFILE OF EMERALDS APPARELS
With a vision of putting a successful mark in the field of business of apparels the company
emeralds apparels has intended to start the business operation in the territory of
Bangladesh, the most prospective area for garment and apparel division throughout the
world. The lucrative production facility, intense labor availability, factors of production,
emerging market condition, prospective areas to flourish and lot of other things inspired the
innovator to put a mark in this industry in this country despite giving lot of draw backs here.
With the collaborative strategy being placed in a single community EMERALDS APPRELS
want to achieve the wider range of success in order to maintain the strategic mission which
is set forward by wider vision of economic prosperity as well as corporations prosperity with
the help of Governments Peoples republic of Bangladesh.
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Mission statement
Our mission is to sustain responsible commercial success as a global manufacturing company
in Denim Apparels and the like. We must balance goals of superior profitability and return
on investment, leadership market positions, and superior products and services. We will
conduct our business ethically and demonstrate leadership in satisfying our responsibilities
to our communities and to our society.
Corporate Vision
The deepest part of Emeralds Apparels goal is to spread the message of hope, love and
joy that we have found to anyone who is willing to hear it. If one thing that we release on
our site or through our merchandise shows you a deeper love, passion or hope that you
haven't found elsewhere than we've accomplished something what we've set out to do!
Emeralds Apparels is all about respectfully and creatively showing people the joy of life that
we've found: both in our faith in GOD - the way that we live our personal lives and the way
we display the identity of our companies. We believe that as people we are meant to step
out in the unknown of life at times and make a life that we’ll one day look back on and say “I
didn’t waste it”! Emeralds Apparels in short is striving to be a creative resource that people
look to and get inspired to live life more fully.
Work environment
Our work environment will be safe, productive, and characterized by fair treatment,
teamwork, open communications, personal accountability, and opportunities for growth and
development. Building on the foundation, we have inherited affirming the best of our
company's traditions. Where differing points of views will be sought, honesty rewarded not
suppressed. Information is actively shared, sought, and used in ways that lead to
empowerment that works, improved performance, meaningful feedback.
Continuous development
Every employee has the necessary perspective, skills, and knowledge to be successful in
their job. The Company's stated mission and foremost priority is to continuously adopt the
most advanced technology throughout the manufacturing process and the most stringent
test and inspection systems, always tailoring processes to customer needs and providing all
necessary ancillary services.
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Product Range
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Quality Policy
"Emeralds Apparels is committed to produce quality

products and promote health, safety, environmental and
social performances at its workplace for its customer’s
satisfaction. Emeralds Apparels will achieve this by
continual improvement of its processes and cooperation of
employees."
Machinery and equipments
Cutting
1. Eastman Cutters. 04
2. Cutting Tables 03 Total Length 106'
3. Fabric Stands 02 03
Wet & Dry

Qty
Washers 500 lbs. Each (Ngai Shing) 06
Hydro Extractors 03
Tumble Dryers 05
Steam Generators 3 Tons 01
Sand Blast 02
Baking Oven 01
Wrinkle Makers 05
17
Stitching
Single Needles Juki 115
Double Needles Juki 09
Double Needles Chain Stitch Juki 06
Safety Over-Lock Juki 14
Pocket Facing Union Special 02
Feed of Arm Juki 09
Waist Band Kansai Special 05
Loop Make Kansai Special 02
Bartak Juki 12
Eyelet Reece- USA 03
Eyelet Durkopp Adler 01
Press Room
Hot Head Irons Ngai Shing NS-370 12
Finishing and Packing

Avery Dennison. Plastic Staple Attacher 02
Strap Machine 01
Stain Removing Guns 02
Inspection Tables 30
Snap Button Machines 04
PU Labels Attach Machines 06
Steam Boilers
Made in UK 100 Heating surface 01
Power Generators
100 KVA Cummins 01
18
Support Vehicles
Hyundai Shehzore Truck w/cabin 01
Suzuki Van 01
Computers
Personal Computers Dual Core 160
19
20
Sampling Facility
A Complete in-house sampling facility with experienced Designer, Pattern makers and
sample makers with latest machinery’s able to make any type of sample within 2-3 days.
Quality Control System
10 % fabric of each color is inspected as per “FOUR POINT SYSTEM”. CHAITY GROUP has
spreader and cut block quality checkers in cutting section.
Sewing Quality
Sewing section has process checkers doing 100% check of important process. There are also
End line checkers who inspects 100 % of the complete garments, beside process checkers
there are Roaming Q.C. who are doing Skip bundle check on bundles passed by the
operators, they inspect based on AQL 2.5. We also have Line Quality Controllers who takes
daily measurement of the garments and also look after the quality of the garments in the
sewing floor.
Finishing Quality
Finishing section has quality checkers checking garments for faults after pressing as after
pressing if there are oil spots then it becomes visible after being pressed. Random checks of
the packed garments are conducted twice daily based on AQL 4.00 by Finishing Quality
controller. If this controller finds that the garments are OK to pack in the carton then only it
can be packed.
Printing
We have our own in-house screen printing facility where we do the printing by ourselves.
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CODE OF CONDUCT
We operate in full compliance with the applicable laws, rules and regulations, including
those relating to labor, worker health and safety and the environment.
Child Labor We employ only those workers who meet the applicable minimum
legal age requirement and do not employ any child labor.
Work Environment We encourage developing lawful workplace apprenticeship

programs for the educational benefit of our workers.
Discrimination We employ workers on the basis of their ability to do the job, not on
the basis of their personal characteristics or beliefs.
Force Labor. We don’t use in voluntary labor of any kind. We do not

force any worker to remain in employment, for any period of
time against his or her will. We do not force the workers to do
overtime.
Wages and Hour We set working hour, wages and overtime pay in compliance with all
applicable laws.
Medical Facilities We provide free medical facilities & consultancy to workers.
Working Conditions We treat all our workers with respect and dignity and provide them
With a safe and healthy environment. We comply with all

applicable laws and regulations regarding working conditions.
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PESTLE Analysis
The environment we live in can be very volatile. All organization has its considered
internal weaknesses and strengths, but the outside world will also have a major impact on
the organization’s future. PEST Analysis is a popular marketing management tool and
method of examining the many different external factors affecting an organization. The
acronym PEST stands for the following: Political, this is the current and potential influences
from political pressures; Economic, the local, national and world economy impact;
Sociological, the ways in which changes in society affect the organization; and Technological,
the effect of new and emerging technology.
Since the company is offering clothing designs for all ages which depend on the needs
and demands of their customers, there are some external factors that the company must
consider in order to stay in the competitive world of business. The following are some of the
factors within the external environment that the management of the company must
consider.
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POLITICAL SITUATION
Bangladesh is a parliamentary democracy largely influenced by the British

parliamentary system. Executive power is in the hands of the prime minister, who is
the head of the cabinet, and who must be a member of the 300-seat Jatiya Sangsad
(unicameral parliament). She/he recommends the council of ministers to the
president. The president is the
constitutional head of state and is
elected for a 5-year term by the
parliament, but plays a largely
ceremonial role. The president can act
only on the advice of the prime
minister, as the presidential power
was significantly reduced in
accordance with constitutional
changes in 1991.
Bangladesh has pursued a neutralist

policy in international relations in a continuing effort to secure economic aid from
every possible foreign source. Bangladesh in 1988 was one of the few countries in
the world on good terms with both the United States and the Soviet Union and their
allies and with China, the Islamic world, and most Third World nations. Bangladesh
has played an active role in the United Nations (UN), the Nonaligned Movement, and
other international groupings, and it was the driving force behind the establishment
of the South Asian Association for Regional Cooperation, which offered promise for
economic cooperation. Bangladesh was neutral, but it was forceful on a number of
international issues. The Cambodian, Palestinian, and South African issues have
elicited strong stands from Dhaka, and complicated bilateral problems with India
have invoked intense displays of hostility and national pride among Bangladeshis in
the years since independence.
All adult citizens (18 years old and over) are eligible to vote, including women and
ethnic minorities. One of the unique features of the political system in Bangladesh is
that 30 seats (10 percent) in the parliament are reserved for female members, and
they are elected by the members of the parliament.
24
STRUCTURE OF GOVERNMENT
Constitution
The Constitution of Bangladesh has formed the basis for the nation's political organization
since it was adopted on November 4, 1972. Many abrupt political changes have caused
suspension of the Constitution and have led to amendments in almost every section,
including the total revision of some major provisions. It is notable, however, that every
regime that came to power since 1972 has couched major administrative changes in terms
of the Constitution and has attempted to legitimize changes by legally amending this basic
document.
According to the Constitution, the state has a positive role to play in reorganizing society in
order to create a free and equal citizenry and provide for the welfare of all. The government
is required to ensure food, shelter, clothing, medical care, education, work, and social
security for the people. The government must also build socialism by implementing
programs to "remove social and economic inequality" and "ensure the equitable distribution
of wealth among citizens." These far-reaching goals represented the viewpoints of many
members of the 1972 Constituent Assembly and the early Awami League (People's League)
government, who were deeply influenced by socialist ideology. Another sector of public
opinion, however, has always viewed private property and private enterprise as the heart of
social and economic development. This viewpoint is also part of the constitutional principles
of state policy, which equally recognize state, cooperative, and private forms of ownership.
The Constitution thus mandates a high degree of state involvement in the establishment of
socialism, although it explicitly preserves a private property system. In practice, the
Constitution has supported a wide range of government policies, ranging from those of the
nationalized, interventionist state of Mujib's time to the increasing deregulation and reliance
on market forces under presidents Ziaur Rahman (Zia) and Ershad.
LEGISLATURE
The legislative branch of the government is a unicameral Parliament, or Jatiyo Sangsad
(House of the People), which makes the laws for the nation. Members of Parliament, who
must be at least twenty-five years old, are directly elected from territorial constituencies.
Parliament sits for a maximum of five years, must meet at least twice a year, and must meet
less than thirty days after election results are declared. The president calls Parliament into
session. The assembly elects a speaker and a deputy speaker, who chair parliamentary
25
activities. Parliament also appoints a standing committee, a special committee, a secretariat,

and an ombudsman.
Judiciary
The government operates courts in the regions, districts, and sub districts that make up the
local administrative system. The judges in these courts are appointed by the president
through the Ministry of Law and Justice or the Ministry of Home Affairs. Most cases heard by
the court system originate at the district level, although the newer sub district courts
experienced an increased caseload in the late 1980s. Upon appeal, cases may go up to the
Supreme Court, but litigation may be very slow; in 1987 there were 29 Supreme Court
judges dealing with 21,600 pending cases. The Supreme Court, as of June 1988, had
permanent benches--called the High Court Division-- in Dhaka, Comilla, Rangpur, Barisal,
Sylhet, Chittagong, and Jessore. It hears appeals from district courts and may also judge
original cases. The Appellate Division of the Supreme Court in Dhaka reviews appeals of
judgment by the High Court Division. The judges of both divisions are appointed by the
president.
POLITICAL DYNAMICS
For the vast majority of Bangladeshis, politics revolves around the institutions of the village
or the union of neighboring villages. Traditionally, the main base for political influence in
rural areas has been landownership. During the British colonial period, zamindars controlled
huge estates as if they were their personal kingdoms. With the abolition of zamindar tenure
in 1950, a new local elite of rich Muslim peasants developed. The members of the new elite
owned far less land than the zamindars had once possessed, but they were able to feed their
families well, sell surplus produce, send their children to school, and form new links with the
bureaucracy of East Pakistan and later Bangladesh. Amid the large majority of poor and
generally illiterate peasants, well-to-do farmers formed a new rural leadership that
dominated local affairs.
26
ECONOMIC ANALYSIS
Tax policy
Income tax rate

• 25%
Corporate Tax Rate

• 27.5%
Sales Tax/Vat Rate

• 15%
INCOME TAX RATE
Income tax is one of the main sources of revenue in Bangladesh. It is a progressive tax
system. Bangladesh Income tax is imposed on the basis of ability to pay. The more a
taxpayer earns the more tax he should pay. This is the basic principle of charging income tax
in Bangladesh. The tax system aims at ensuring equity and social justice. Tax rates in
Bangladesh also differ between male and female individuals.
If an individual has been in Bangladesh for a period/period totaling 182 days or more in the
income year, he/she is considered a resident. In case an individual has been in the country
for 90 days in the income year and 365 days in four years proceeding this year, he/she will
also be considered a resident.
Bangladesh personal income tax rates for assessment year 2010 - 2011 is progressive up
to 25%.
Following is the allocation of Tax liabilities by different individuals defined by the People’s
Republic of Bangladesh.
27
Bangladesh Income Tax Rates for individuals other than female

taxpayers, senior taxpayers of 65 years and above and retarded
taxpayers - Assessment Year 2010 - 2011
First 165000 Nil
Next 275000 10%
Next 325000 15%
Next 375000 20%
Rest Amount 25%
Bangladesh Income Tax Rates for female taxpayers, senior taxpayers of

age 65 years and above - Assessment Year 2010 - 2011
First 180000 Nil
Next 275000 10%
Next 325000 15%
Next 375000 20%
Rest Amount 25%
Bangladesh Income Tax Rates for female taxpayers, senior taxpayers of

age 65 years and above - Assessment Year 2010 - 2011
First 180000 Nil
Next 275000 10%
Next 325000 15%
Next 375000 20%
Rest Amount 25%
BANGLADESH CORPORATE TAX RATES

The standard rate of corporate tax in Bangladesh is 27.5% in 2010 - 2011 tax years.
This is the standard corporate tax rate applicable to publicly traded companies in
Bangladesh, a list including tax rates for other corporations are as follows:
Industry Tax rate

Publicly Traded Company 27.5%
Non-publicly traded company 37.5%
Bank, finance and insurance companies 42.5%
Mobile phone operator company 45%
Publicly traded mobile operator company 35%
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Tax Rebate for Investment
Amount of allowable investment is either actual

investment in a year or up to 25% of total
income or Tk. 10, 00,000/-
whichever is less. Tax rebate amounts to 10%
of allowable investment.
Types of investment qualified for the tax rebates are -

Life insurance premium
Contribution to deferred annuity
Contribution to Provident Fund to which Provident Fund Act, 1925 applies
Self contribution and employer's contribution to Recognized Provident Fund
Contribution to Super Annuation Fund
Investment in approved debenture or debenture stock, Stocks or Shares
Contribution to deposit pension scheme approved by the government
Contribution to Benevolent Fund and Group Insurance premium
Contribution to Zakat Fund
Donation to charitable hospital approved by National Board of Revenue
Donation to philanthropic or educational institution approved by the Government
Donation to socio-economic or cultural development institution established in
Bangladesh by Aga Khan Development Network
Donation to ICDDR,B, Dhaka Community Hospital
Donation to philanthropic institution- CRP, Savar, Dhaka
Donation upto five lac to
o Shishu Swasthya Foundation Hospital Mirpur, Shishu Hospital, Jessore and

Hospital for Sick Children, Satkhira run by Shishu Swasthya Foundation,
Dhaka
o Diganta Memorial Cancer Hospital, Dhaka
o The ENT and Head-Neck Cancer Foundation of Bangladesh, Dhaka; and
o Jatiya Protibandhi Unnayan Foundation, Mirpur, Dhaka;
Asiatic Society of Bangladesh

Muktijudha Jadughar;
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MAJOR AREAS FOR FINAL SETTLEMENT OF TAX LIABILITY

Tax deducted at source for the following cases is treated as final discharge of tax liabilities.
No additional tax is charged or refund is allowed in the following cases:
Supply or contract work

Band rolls of handmade cigarettes
Import of goods
Transfer of properties
Export of manpower
Real Estate Business
Export value of garments
Local shipping business
Royalty, technical know-how fee
Insurance agent commission.
Auction purchase
Payment on account of survey by surveyor of a general insurance company
Clearing & forwarding agency commission.
Transaction by a member of a Stock Exchange.
Courier business
Export cash subsidy
TRADE POLICY AND INTEGRATION
Trade openness and integration

Bangladesh launched a deep and wide-ranging trade reform strategy in the early 1990s. This
included substantial reduction and rationalization of tariffs, removal of quantitative
restrictions, move from multiple to a unified exchange rate system, convertible current
account and an overall outward orientation of trade policy regime. As a result, the country’s
trade integration, measured by the trade-GDP ratio, rose from 18% in 1990 to 43% in 2008.
30
Tariffs and QR’s

Historically, like many other developing countries Bangladesh relied on tariffs and
quantitative restrictions to protect domestic activities and raise revenue. Roughly 40% of its
total tax revenue still comes from import taxes. Average protective tariffs are currently at
20.1%, with average agricultural tariff at 28.8% and non-agricultural tariff at 18.5%. A
noteworthy feature of the present tariff structure is the significant application of para-tariff
called supplementary duties, which account for about 31% of the average protection. The
average customs duty, which registers a decrease over time, is currently 13.8% with four
non-zero duty slabs of 3%, 7%, 12% and 25%. Food stuff, fertilizer, seed, plastic trays used in
poultry and dairy, medicines and raw cottons are not subject to any custom duty. Some
consumer goods, mainly the non-food luxury items, have high protective rates even up to
463%- well beyond the top custom duty rate.
Future Trade Agenda
Despite the trade liberalization reforms initiated in 1990s, Bangladesh is still saddled with
one of the least liberal trade policy regimes in the world. Although half of the country’s GDP
comes from the service sector, liberalization of this sector leading to export of services is not
satisfactory yet. Bangladesh faces a more favorable market access in developed markets
because of its LDC status, but is yet to fully exploit this opportunity. Cumbersome customs
and border procedures and an inefficient duty drawback system, in addition to the high
import duties, contributed to this outcome.
The remaining trade barriers work against the emergence of new export activities and
expansion of the export activities to non-enclave areas. It is no surprise then that the
export base is heavily concentrated in garments, the sector facing the most liberal import
regime largely because of its access to bonded warehouse facility. RMG exports account for
about 75 percent of merchandise exports. The extension of the bonded warehouse facility in
2008 to all hundred percent export-oriented sectors should help promote greater export
diversification. Recent measures to liberalize the banking and telecommunication sectors are
also welcome.
Future trade liberalization program needs to focus on
reduction in the dispersion and average level of protection,

promotion of services export,
reduction of the reliance on limited number of goods through diversification of
exports,
promotion of more efficient handling of custom and border procedures, and
a more efficient duty drawback system.
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A Snapshot of Bangladesh’s Trade Regime
Policy Criteria Status

Exchange Rate Unified
Exchange Rate determination Free Float
Payment convertibility
Current account Yes
Capital account No
Import restrictions
Import licensing No
QRs on imports No
State monopolies No
Tariff structure
Top Rate, 2009 25
Average Protective Rate 2009 20.1
Tariff slabs (customs duty) 3, 7, 12, 25
Para-tariffs Supplementary Duties
Existence of high level of NTBs No
Trade Openness (trade-GDP ratio) 43
32
Social
Companies are facing the challenges of adapting effectively to the

changing environment in the context of globalization and in particular
in the export sector in Bangladesh. Although Consumer Rights
Movement, enforcement of government regulations and a structured
view regarding the economic importance of Social responsibility are
not yet so widespread in the corporate world in Bangladesh,
companies have gradually attaching more importance to Social
responsibility in the local market as well. They are increasingly aware
that Social responsibility can be of direct economic value. Companies
can contribute to social and environmental objectives, through
integrating Social responsibility as a strategic investment into their
core business strategy, management instruments and operations.
This is an investment, not a cost, much like quality management. So,
business organizations can thereby have an inclusive financial,
commercial and social approach, leading to a long term strategy
minimizing risks linked to uncertainty.
SOCIAL IMPACTS OF THE RMG SECTOR
Women Empowerment
It is well recognized that women’s participation in income generation activities lends them a
better status within the family and provides them with considerable freedom. A job ensures
equitable access to household resources (nutrition) and larger investment on female human
capital (health and education). Employment opportunities draw attention to women’s needs
for public facilities such as transportation, communication, safety etc. and creates a demand
for policy response in these areas. It also has created a demand for education and health. As
the income by the female member reduces dependency on male income it reduces their
vulnerability. It also reduces the possibility of domestic violence against women. Expansion
33
of women’s employment has contributed positively to the improvement of the savings

behavior of the poor people since women tend to be better savers.
Employment in the RMG industry has provided direct access to cash income for the first time
to many poor women. A survey, conducted by the BIDS in 1997 showed that for 96 percent
of the female workers in the non-EPZ areas, work in the garment industry was the maiden
wage employment.
The survey also showed that women were taking up such roles paying for house rents and
schooling expenses for their children or brothers and sisters. Despite the fact that they have
lower incomes, the female garment workers were spending the same amount as the male
workers on the studies of their family members. The same survey further showed that
female workers were spending their earnings on their marriage, thus taking a big burden off
their families. The independent earnings also allow these women to have a greater share in
household decision making. Evidently, wage work at the garment industry has empowered
women and improved their status.
Savings
Regular earning enables a large number of the garment workers to go for some savings.
Workers investments on family pension schemes etc. create savings. A BIDS survey
conducted in the early 1990s found that 21 percent of both male and female workers aged
15 years and above had their own bank accounts. A higher proportion of workers
(30percent) had bank accounts in the EPZ. Findings showed that women are on average
better savers than men and save about 7.6 percent of their otherwise small income.
Child Labor
In recent years, international debate on child labor has intensified. The elimination of child
labor is also among the core labor standards in the ILO Convention. The Harkin Bill placed at
the US Senate entitled “The Child Labor Deterrence Act of 1993” which called for the
elimination of child labor in the export oriented manufacturing and mining Industries. As a
consequence many garment industries had to retrench child workers from their factories. In
many countries these retrenched children ended up in more strenuous and less-
remunerative jobs, or worst, turned to begging in the street. The Bangladesh RMG sector set
34
a unique example through collective efforts which eventually led to the development of a
safety-net programme for the child labors. The BGMEA/ILO/ UNICEF Child Labor Project in
the garment industry of Bangladesh, funded by the US Development of Labor was the first
of a series of child labor programmes executed by the International Program on the
Elimination of Child Labor of the ILO. This project, initiated in 1995, is based on a
Memorandum of Understanding (MOU) signed by the BGMEA and two international
organizations, the ILO and UNICEF, with the aim of progressively phasing out child labor
from more than 2,500 factories that are members of the association.
The key elements of the MOU were:
(a) A fact-finding survey to determine the extent of child labor in the garment industry.
(b) The establishment of an education programme in which identified child workers
should be enrolled.
(c) The establishment of a monitoring and verification system.
(d) The provision of income compensation in the farm of a monthly stipend of Tk. 300,
the equivalent of (at that time) US$ 7. The costs are to be shared by on fifty-fifty
basis by BGMEA, the ILO and other donors.
Many of the retrenched child workers have been placed in schools and are receiving a
monthly stipend. Football manufacturing industry of Pakistan has been following the globally
acclaimed BGMEA Model of Child Labor Elimination. BGMEA has so far spent over 600,000
US dollars for the project. Successfully addressing of this issue has created a very favorable
image about Bangladesh abroad and has promised continued market access for the sector.
Population Control
Employment opportunities especially for women created positive impact on family planning
and population control in the country. Independent working-women are getting more
conscious about the advantage of a small family, and are exposed to modern family planning
methods. Working adolescent girls tend to avoid early marriage as they have their own
source of income and are self-dependent. The mean age at marriage for girls working in
RMG factories tend to be higher than the national average.
35
SOCIAL WELFARE PROGRAMMES OF BGMEA
BGMEA, the Trade Association of over 3000 garment factory owners in Bangladesh, has
undertaken a number of projects under its social welfare programmes to ensure better
Occupational safety and health and enforcement of labor rights as per the local laws and ILO
convention guidelines.
BGMEA Healthcare Activities for Workers
Since 1994, BGMEA has established seven Medical Centers for the garment workers in
Dhaka, Narayanganj and Chittagong, where most of the factories are concentrated. The
medical centres are providing free primary health care, medicine and advocacy services on
reproductive health issues to the garment workers. From July 1994 to June 2002, a total of
1,72,917 workers have been provided services from these seven centres. BGMEA plans that
an estimated number of 8,60,000 workers from1687 factories will be brought under these
services in phases. In addition, construction of a 150-bed modern hospital at Mirpur, Dhaka
has been initiated at the initiative of BGMEA. The hospital will be equipped with burn and
emergency units. An estimated Taka 10.96 crore will be spent for the hospital project.
BGMEA-UNFPA-GOB Project
Since October 1998, with the technical assistance from the United Nations Population Fund
(UNFPA) and the Government of Bangladesh, BGMEA is implementing a project titled
"Family Welfare and Reproductive Health Education Services for Garment Workers" in
Dhaka. BGMEA has already contributed US dollars 323,000 to this project, while UNFPA
share is US dollars 216,000. More than 160,801 workers have so far benefited from the
project.
Following successful outcome of the project, UNFPA, under its sixth country programme has
included the project for yet another phase between 2003-2005. Two other areas (one in
Dhaka and the other in Chittagong) will be covered by the project. The BGMEA will
contribute US$ 430,000 and the UNFPA will provide US$ 290,000 for its implementation.
BGMEA-MSH-TAI Initiative
According to the MOUs signed on 10 May 2001 between BGMEA and two US-based
organizations, Management Science for Health (MSH) and Technical Assistance Inc., two of
36
the BGMEA's health centers have been upgraded with the technical support provided by
these organizations.
Workers' Health Check-up Project
Under this project, BGMEA and BRAC have provided annual health check for more than
20,000 garment workers during the period of 1998-2001.
Non-formal Education Programme
Under this component of the Child Labour Elimination Project, 8,200 students were enrolled
in 336 schools, run by two local NGOs, Bangladesh Rural Advancement Committee (BRAC)
and Gono Shahajya Sangstha (GSS). At present, 36 schools are providing education to the
remaining 650 students from the target group.
Earn and Learn Programme
Under this programme, BGMEA has provided part time job to 900 students through BRAC
and GSS. ILO and UNICEF are also providing skill development training on tailoring,
embroidery, garments machine maintenance, manufacturing and wool knitting to these
students.
BGMEA-ILO Extended Projects
The BGMEA, with support from the ILO Dhaka office, has undertaken another two projects
for the former child laborers. This project will cost 1.2 million US dollars. Under the project,
over 1400 students will be provided skill development training and 450 families of them
would be provided micro-credit ranging from Taka 5000 to 15,000 for income generating
activities. The Underprivileged Children Education Programme (UCEP) and SUROVI, two
reputed local NGOs, along with Singer Bangladesh, a multinational company, have been
providing skill development training to the students.
BGMEA-ILO New Partnership
ILO has initiated a three-year (2002-2004) project with BGMEA on improving labor relations
and working conditions in the garment sector of Bangladesh. Financial involvement of
BGMEA is 600 thousand dollars and ILO will contribute US$ 1.5 million with assistance from
the US Department of Labor. The project is basically aimed at raising awareness on national
labor laws and ensuring occupational health and safety, human resources management,
labor and welfare and continued monitoring of child labor elimination.
37
Work Place Safety Programmes for Workers
BGMEA has been implementing a number of programmes to ensure work place safety for
workers as well as management personnel of its member units. In addition to providing
support to the members to comply with the safety rules set by the government, BGMEA has
been organizing training and awareness building programmes for the workers and the
management staff. The association regularly monitors and follows up proper
implementation of safety compliance by individual member factories.
The BGMEA Safety Measures Cell,
Which organizes the awareness and training programmes, has provided fire prevention and
safety training to 9,194 employees of 794 factories from Dhaka and Chittagong between
December 1997 and July 2002.
The BGMEA is also providing compensation to the affected workers and their families. In
case of death or injury on work, BGMEA pays the cost of treatment and extra compensation
to the affected worker or his family. The association also employs the members of the
victim's family to help them support financially. Between December 1990 and September
2001, BGMEA has paid Taka 5.4 million as compensation to the affected workers from the
association's fund.
The Crash Programme to Avert Work Place Accidents
BGMEA took up a Crash Programme in September 2001 to further raise awareness among
the workers and management to avert work place accidents. The programme included
awareness building on fire prevention, first aid, firefighting equipment, and proper electric
wiring and evacuation facilities.
Teams formed of experts from the Fire Service and Civil Defense Department, visited and
checked the fire safety measures of 3,409 factories where they demonstrated the fire
prevention and evacuation drills in the factories both in Dhaka and Chittagong.
Garment Village
BGMEA is also working towards setting up of garment village to relocate the garment
factories from the busy and crowded cities to suburbs.
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Technological
The need for faster technological development is increasingly felt in

Bangladesh. Development plans of Bangladesh have emphasized science
and technological research to develop technologies through adoption of
imported technology as well as development of indigenous technologies. As
the country is heavily dependent on imported technologies, proper planning
is required for its effective transfer through acquisition, assimilation and
adoption.
A National Science and Technology Policy has been formulated and adopted
by the Government. It has laid down the directions for S and T activities and
research, institutional and manpower development. Dissemination and
documentation facilities. The National Council for Science and Technology
(NCST) determines S and T policies, reviews the activities of different
institutions and provides direction towards S and T research and activities.
39
HR POLICY
EMERALDS apparels is a dynamic company in the apparels industry in Bangladesh territory.

From the very beginning of the initiation of the company it has been trying to be a leading
firm in the industrial sector of Bangladesh Ready Made Garments. Because of the fierce
competition in the global market place in terms of price sensitive issues and cheap labor
issues EMERALDS have to fight harder to be a sustainable player in the industrial sector.
Not only in the global market place it has to face fierce competition in the local marketplace
as there are hundreds other player in the apparel sector in Bangladesh. Labor issue and is a
major source of potentiality which has bring upon the fierce rivalry among the player in this
country. These all sorts of determinants has forced the company to be a dynamic one, which
always customizes its policy and procedures to remain competitive in the market as well as
satisfying its potential stakeholders with a greater profit margin.
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Recruitment Plan
The first step in your recruiting plan should be to select likely industries where your
candidate could be working. Of course you should look at competitors of the company you
are recruiting for but also keep in mind that other related industries (and often unrelated
industries) can also be sources for the talent you are searching for. Ideally this should be
discussed with your client or hiring manager. A wide selection of potential target industries
will broaden your search universe and the pool of potential candidates available to you.
However focusing on more than one industry can be very time consuming. Most
professional headhunters use an idea called ‘The logic of concentric to execute their
searches. Think of an archery target with a bull’s eye in the middle and 2-3 circles
surrounding it. They tend to focus their activities in the bulls eye (A) where candidates
working at direct competitors are located and then move their search gradually out to (B)
where candidates working in parallel or similar industries may be located. Finally, if this
doesn’t surface the candidates they ideally require they expand out to (C) and look at
candidates working in companies that utilize the product or service provided by the client
manager. I often encourage recruiters new to headhunting to adopt the ‘logic of concentric
circles’ in a slightly different way by making their initial approaches in (B) and (C) until the
recruiter perfects and refines their pitch and then go for (A) targets.
The Second step looks at ideal target companies. You should always look to their
clients/hiring managers to help compile this list. Often clients will respond with ‘Well that’s
your job and that’s what we pay you to do’! It is important to remember that ‘your job’ is to
ask questions of everyone involved in the recruitment process in order to find the ‘best
candidate IN the market as opposed to the best candidate ON the market’. Ask your client
different questions that may encourage them to contribute to your list, i.e. what companies
have your most successful employees been recruited from? When you lose people to your
competitors, what companies do they go to? What companies do you ‘share’ client business
with? When you lose on competitive pitches to your clients, what companies may they
choose to go with? What companies in your industry do you most admire and why? Which
companies would you gain competitive advantage over / an insight into by interviewing their
top talent?
It is as important to ask clients and hiring managers where they don’t want someone to
come from and why. Their answers can help define your search. Knock out any companies
where the reasons are irrelevant (‘we recruited someone from XYZ ltd and they didn’t work
out’). The best potential candidate may be working at one of the ‘NO’ companies and
desperate to get into your clients environment if the opportunity is good enough. Do check
41
if there are any ‘hands off’ agreements with any competitive companies and beware of
targeting any subsidiaries of your client’s parent company.
The Third major component of any recruiting plan is to track down specific
candidates who may be appropriate for your search. The first place that you should look is
your existing database of candidates or your own network from previous searches. Hopefully
you have spent time building a suitable network of qualified experienced individuals that
could be motivated to move if the opportunity is right for them or as importantly
they may know someone that could do the job. You also need to name gather at the target
companies you identified earlier. Social networking sites like and Face book make this job far
easier than it ever was in the past. Do not ignore professional associations or trade bodies
attached to your chosen marketplace. These sources will know of relevant directories (if you
don’t already) and often publish membership lists/books that you will find invaluable. An
often overlooked source for most recruiters is journalists from relevant trade journals,
newspapers and magazines in your chosen marketplace /specialization. Journalists will often
know the ‘movers and shakers’ within their specialist areas and know that as a professional
headhunter/recruiter you have access to large networks of people and inside working
knowledge of the companies they write about. It makes good business sense to cultivate
relationships with key journalists within your industry.
The Fourth component in your recruiting plan is your time schedule. Sure ‘Time kills
all deals’ and it is important to complete each step of your sourcing process as soon as
possible. But it is vitally important that you set goals as to when you should complete each
step. Getting started quickly is a good goal but concentrate on building your recruiting plan
and compiling your target list before ‘tearing down the road’. Allow yourself sufficient time
in your recruiting plan to define your search by ‘interviewing’ key people at the client
company to get a 360 degree picture of the ideal candidate. Build in time to compile your
target list (online searching and name gathering) and to start sourcing (contacting everyone
on your target list). Candidates will have to be qualified and invited in for interviews by you
or your senior recruiters before a shortlist is prepared. Plan for any adverts you place,
waiting time for response and qualification and any direct mail you may choose to send to
candidates previously qualified for past assignments. Always work backwards from the
proposed start date of the candidate and plot project milestones. Get client buy-in and
commitment at the outset of your search to communication agreements, pre-
booked interview slots and decisions being made in order to achieve their target start date.
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The following steps can help make sure your business has an effective recruitment plan:
Determine recruitment goals
A recruitment plan should be based on your business goals. For example, are you planning
to expand or change your business? What skills are required to accomplish this objective?
From there, you should establish specific recruitment goals. One goal will be attracting the
best people to work in your business. The best people will make a direct difference to your
bottom line, helping to raise your service and quality level. People who are less than
dedicated to your business can compromise customer experiences.
Some other recruitment goals are:
 Attracting a higher standard of candidate

 Attracting a candidate who has skills you currently do not have in your organization
 Promoting your company as a dynamic place where people want to work
Determine overall recruitment needs through having well established business goals.
Review job descriptions
Take time to review the job description, which may need to be changed since the last person
was hired. Or, if it is a new position, you may need to create a new job description. You may
want to talk to the previous person in the position and get their input on how the job
description could be improved, and what the highlights of the job were. Make sure the
description includes all of the critical job related components.
Consider people-finding strategies
How you find staff for your business can be divided into short-term and long-term recruiting
techniques. Short-term techniques are designed to generate an immediate selection of
candidates. Long-term techniques involve developing relationships with key people and the
community, and promoting your company as a rewarding place to work. The focus is on
keeping long-term relationships with people who have the potential to work for your
organization.
It may be a good idea to plan to use both short and long-term recruiting strategies.
Developing long-term relationships can include strategies like offering scholarships to
university students, donations and sponsorships to community organizations, or opening up
your business for high school practicum’s.
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As well, there are always two pools of candidates available: employees already working for
you, and external candidates. Promoting from within can help create a culture that shows
that hard work is rewarded, and you may find that the most qualified person for your job
posting is already working for you. Friends and acquaintances of employees are always a
good place to start. You may want to think about offering a recruitment incentive to
encourage employees to spread the word (for example, a cash incentive or gift certificate if
the person they recommend is hired).
When posting your advertisements, ask yourself if you’ve selected newspapers, journals,
websites and mailing lists that reach a diverse pool of applicants. Be sure to allow sufficient
time for both internal and external recruitment.
Use alternative labor pools
Have you considered hiring co-op students, immigrants, aboriginals, people on social
assistance or EI, persons with disabilities, or young retirees? Sometimes the right person for
the job may not be from the most obvious pool of applicants.
Appreciate the perception of your workplace from the outside
How your workplace is perceived or positioned will affect how candidates respond to job
postings. To stand out in the job market, employers must offer something different from
competitors. For example, many tourism employers provide seasonal hiring; an inability to
offer permanent, full-time positions can set limits on the selection of candidates. Yet this can
be turned into something more appealing by offering ongoing summer employment from
year to year.
If you’ve had trouble in the past generating suitable responses from job postings, ask
yourself how you are perceived as someone to work for and how your employees feel about
the business. An anonymous employee survey might prove helpful to find out how you
compare to competitors in terms of salary, work environment, vacation, and job duties. And
remember that money is not always what people are looking for—frequently, it’s the
intangible benefits that keep potential employees interested.
Keep a short list
Once your job ads are posted be sure that you are clear about your selection criteria. What
skills do you need to add to your business? How will you choose one candidate over
another?
Short-listing is the first step in identifying the candidates who display the skills and selection
criteria you are looking for. Short listing—when done well—can cut down on interviewing
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time later on. You may want to draw a simple grid with your selection criteria on one side
and the names of candidates on another. Your selection criteria can then be listed in order
of importance, with marks assigned to each candidate according to whether or not to
interview when you review resumes and cover letters.
Be sure to notify short-listed candidates of the interview date and time as soon as
possible. It’s also often a good idea to keep a small number of applicants on a reserve list in
case some of the short-listed candidates are unavailable.
Hone the interviewing technique
Before interviewing, develop job-related questions so there are no awkward pauses, and so
you remain in charge of the interview. Be sure to ask open-ended questions that allow the
candidate to tell you about themselves, such as "What are some things you would like to
avoid in a job? Why?" and "In your previous job what kind of pressures did you face?"
Check thoroughly before making a job offer
Have you obtained a signed application, conducted reference checks and scheduled
background checks? Have you determined a salary offer based upon market, qualifications
and internal comparisons?
Follow through after a candidate has accepted
Have you confirmed the offer in writing and advised other employees within the company?
Be sure to make arrangements for the candidate’s start date well ahead of time. You’ll also
want to advise the other candidates that the position has been filled.
With the right recruitment plan in place, you'll be in a better position to hire the best people
for your company.
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GENERAL POLICY REVIEW
Job Advertisement policy
When there will be need of employees it is quite

usual to place an advertisement in local
publications and newspapers where they will be
seen and hopefully, attract qualified people to
reply. Ad space is sold by the line or size in the
classified section of a newspaper, for example.
Trained staff will help with creating the ad which
contains details such as job requirements and
contact information, and are published for a
specific period of time.
The following steps should be followed to run on the Job Advertisement policy
1. Draft an advertisement for the specific job to be filled, such as title of job, skills
required, responsibilities and duties, work hours/shift, name of company hiring,
location, contact person and telephone number. If desired, include a fax number or
email address for applicants to send a resume.
2. Call the publication where an advertisement will be placed, and speak with a person
in the classified department. That person will provide the costs of ads (depending on
size/length), how long the ad may run, terms of payment and billing information.
Decide which of these you will use.
3. Tell the classified clerk what you want to say in your advertisement. If your proposed
ad is longer than you want or is more than you want to pay, the clerk will eliminate
unnecessary words, and help you compose it to meet your budget.
4. Watch for the advertisement to appear in the newspaper or other publication where
it has been placed. Check for errors, and contact the classified department to correct
the errors before it is published again.
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Interview Process
Developing Search Committee/Interview Panel

The academic appointment process requires the use of a search committee. For classified
searches, it is optional, but recommended. Supervisors may ask a committee to participate
in the overall process including evaluating written materials and serving on an interview
panel, or the company might choose to evaluate written materials themselves and convene
a panel to participate in interviews only. Panel members are valuable because they can
provide different perspectives on the qualifications of candidates. The search
committee/interview panel could be comprised of other staff members, managers in other
departments on campus, or "customers" from campus departments. Company may want to
include an individual who holds a similar position to the one being filled. It is recommended
that panel members include both men and women and, if possible, members of different
racial or ethnic groups.
It is the responsibility of the top management to give the committee or panel members
information about the position such as the position description, the essential functions of
the job, and the qualifications the company is seeking. Company should also charge the
committee with advancing the university's affirmative action goals.
Interviewing
The purpose of the interview is to elicit information from an applicant to determine his or
her ability to perform the job. Successful interviewers learn how to ask the right kind
questions, how to keep the applicant talking about relevant information, and how to listen.
Much of what is to learn about applicants in an interview is based on their past experience.
Past performance is our best indicator of future performance. This does not mean that
someone who had performed poorly in the past cannot improve in skills and attitude.
Generally, however, you can see a trend in performance through several jobs or
assignments. Sometimes interviewers assume that a candidate who has done something has
done it well or that longevity on a position is a sign of success. These are not well founded
assumptions! A reference check can verify the quality of the work performance.
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Non-Directive and Directive Questions

How the panel phrase a question can affect the type and amount of information you get
from the candidate. The main characteristic of non-directive questions is that they do not
give the applicant any indication of the desired answer. Structurally, the questions are in the
news reporter's style of who, what, when, where and how. Often they begin with the words
"describe" or "explain". Examples of non-directive questions include:
You may need to ask follow-up questions if the responses to your questions are unclear or
incomplete. Clarify and verify any piece
of information you do not understand by
asking the candidate to explain his or her
1. What do you consider to be the most
answer again or to elaborate on the
important responsibilities of an office
given answer.
manager?
2. Why does this position interest you?
3. How has your background prepared you
for this position?
4. What types of equipment did you operate
regularly on your job at XYZ Company?
5. Describe your experience with word
processing on your last job.
Directive questions are useful for

drawing out specific information. In 1. Do you currently have a Limited
direct questioning, the interviewer asks, Maintenance Electrical license?
directs, or guides the applicant to 2. Are you still employed at XYZ Company?
specifics. Often, these questions result in 3. Can you set up a computer spreadsheet
a "yes"; or "no" response. Directive using Excel?
questions can be:
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Special Questions
There are several types of questions that can elicit important information as well as add
interest and variety to your interview.
A good technique to learn about an applicant's problems solving skills and judgment is to ask
"situation-problem" questions. Create a scenario that is common on the job, and ask the
applicant how they would handle it. As a follow up, ask if they ever faced this situation on a
job before. An example of this type of question:
The question format can be like this...
Assume you are hired as a receptionist in our department. Our front desk is very busy with
walk-in traffic and phone calls. There are several people waiting at your desk for assistance
and you are on the phone
with someone who is very
upset because of an error on 1. What did you like best about that job (class,
her transcript. This phone teacher, supervisor, etc.)?
conversation seems to be 2. How would your last supervisor rate your ability to
going on and on. How would deal effectively with the public?
you handle this situation? 3. What do you see as your strengths? Weaknesses?
Have you faced this situation 4. Why were you the one promoted to lead worker
on a previous job? on that job?
Another type of information

that is frequently asked of
applicants is self-evaluative information. One type of question asks about the applicant's
likes and dislikes. Self-evaluation questions are also a good way to learn about an applicant's
perception of their strengths and weaknesses. Keep in mind, however, that the answers are
highly susceptible to different interpretations. Examples of self-evaluation questions include:
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During the Interview

After the questions are developed for interviewee, it is recommended to develop a form
that includes the questions, interviewer name, date, name of applicant, position being filled.
The form should have plenty of room for noting responses to questions, follow-up questions,
and space for additional comments. Each interviewer should have an interview form for
each applicant.
Some interviewers find that they spend a lot of time in interviews describing the position
and providing general information for applicants. Think about what you want applicants to
know about the job, your department, the University as a whole, UO benefits, and so forth.
Instead of sharing information verbally in each interview, it may be more efficient to provide
written materials for applicants. The focus of the interview can then be on the applicant and
their qualifications.
When calling applicants to schedule interviews, let them know who will be present during
the interview and the approximate duration. Schedule the interview in a room that is
accessible to people with disabilities and free of interruptions or other distractions.
The first step of a successful interview includes building rapport with the applicant.
Introduce interview panel members including their title and relationship to the position
being filled. Let the applicant know that they will be given the opportunity to ask questions
at the end of the interview. Give a time frame.
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Selection Process
Once you have identified the technical skills

and job attributes you are seeking in a new
employee, you should consider the most
effective way to identify and assess these in
candidates. Go over the position description,
point by point, and ask yourself, "How best
can I learn about the applicant's ability to
perform this function?"
The job interview will be a primary source of

information about applicants. However, it
may not be the best source for some
information. A job reference may be the most
effective way to learn about dependability,
follow through, and ability to get along with
coworkers written application materials may
provide insight into educational background
and general written communication skills.
Consider using work samples to ascertain

specific job skills. For an office position,
applicants can be asked to complete a word processing exercise in which they prepare, edit,
and/or print documents. The supervisor evaluates and documents the quality and quantity
of work completed in the time allotted. Other examples include setting up a spread sheet,
creating a database, preparing correspondence, or prioritizing a list of tasks to complete a
project. For maintenance positions, applicants could be asked to identify repairs needed in a
room or to actually perform a repair. One supervisor, hiring a Plasterer, asked applicants to
mix and apply plaster to a wall. The supervisor evaluated and documented the results and
used this information in determining the most qualified candidate. In setting up a work
sample exercise, as with other parts of the selection process, you may need to make
reasonable accommodations for applicants with a disability. The Employment Manager can
assist you with the reasonable accommodation process.
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Offering job to candidates
After you decide which job applicant you want to hire, you need to take care in how you
offer the job to that person. If you don't make the actual job offer to the applicant carefully,
you can lose the candidate or at least start the relationship off on a bumpy note:
 Ignoring delay After making up mind about a candidate makes the offer
Immediately, especially if you’re in a tight labor market.
Remember, even a day or two delays
can cost the employee of choice.
 Put the offer on the table Call the person you want to hire and give him or her all the
Details about pay, benefits, and anything extra. Most
businesses make job offers verbally by phone and then
follow up with an official letter.
 Set a deadline. Give candidates a reasonable amount of time to decide

whether To accept the offer. What’s “reasonable” generally
depends on the type of job. The time frame for an entry-
level job may be a few days, but for a middle or senior-level
candidate in a competitive market or for a position that
involves relocation, a week isn’t excessive.
 Stay connected. While a candidate is considering an offer, stay in touch with
him Or her. You want to reinforce your excitement about
the candidate potentially joining your team.
 Know how to negotiate salary. After receiving a candidate’s response to your offer,
you must be prepared to negotiate. If the candidate
suggests a higher figure than you’ve offered, you can choose
to raise the amount of your proposal, wait for the candidate
to respond or counteroffer, and ideally, arrive at an
agreement that’s within the salary range you’ve set for the
position.
If you’re not able to match a candidate’s salary request,
consider expanding other components of the package.
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 Know when to draw the line. Try to identify the source of the applicant's hesitation
and make reasonable accommodations. But don’t get so
caught up in negotiations that you lose sight of what is
appropriate for your business.
 Stay in touch Even after a candidate accepts your offer and you agree ona
starting date, keeping in touch with the new employee is
still a good idea. Two to three weeks is the customary time
between an acceptance and start date. Use the
transition period to mail all informational brochures and
employment forms.
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Orientation of new employees
Welcoming a new employee is more than

making a company announcement and a boss
assignment. Welcoming a new employee, to give
the new employee the best possibility of
integrating successfully in your company,
requires a series of steps that start after your
job offer is accepted.
These welcoming steps for the new employee

continue right into his or her employment. If you
do these welcome and on boarding steps well,
you will create a successful new employee.
Here's how to welcome your new employee.
New Employee Welcome Steps

If you follow these recommended steps, your new employee is set up for success.
Contact the new employee shortly after he or she signs and returns your job
offer. The purpose of the note or phone call is to express your excitement that
the new employee has joined your team. This call is best made by the hiring
manager, the employee to whom the new employee will report. Set up the
expectation that the new employee will hear from you regularly during the
normal two - four weeks before the start day.
Send benefits information and the employee handbook early so that the new
employee may review them at his or her leisure and arrive for the first day
with questions. You may have other documents that are pertinent to your
business to share as well. If these are online, provide the employee with a link
and early access.
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If your organization has an online wiki or other Intranet, provide the new
employee with early access. This is especially important if you have an online
staff directory with photos of employees. Your new employee will feel as if he
or she is getting to know coworkers early. Lacking an online photo album,
consider setting up an employee bulletin board in each department with
employee photos and other business and employee information.
Send an official company welcome letter from Human Resources. This

welcome letter for the new employee should contain a confirmation of such
items as start date, start timework, where to go, the first day's schedule, and
other details that the new employee needs to know.
Assign a new employee mentor, a more experienced employee with no

reporting relationship to the new employee. The mentor should call the new
employee to get to know him or her prior to the start date.
Prepare for the employee’s first day by having everything ready for his or her
arrival. I have written about the ten best ways to turn off a new employee.
Many of them have to do with the organization’s failure to prepare to
welcome the new employee from day one. These items seem so simple. For
example, don’t ask an employee to start during a week when his or her new
boss is out of town. Demonstrate respect for the new employee.
Develop a checklist for new employee preparation that includes assigning a

computer or laptop, installing software programs necessary, preparing a desk
and cubicle or office, providing mail access and an email account, and so forth.
Every office needs a list and an employee assigned to making the items
happen before the new employee starts work.
Decorate the new employee’s office area with welcome signs, flowers, and
snacks. Let the quirkiness of your employees and work culture shine through
in the items that you provide to welcome the new employee. Company swag
is appreciated, too. A mug with the company logo and other items welcome
the new employee will make him or her feel quickly at home.
Make sure that the first days schedule is full of meeting people and on
boarding activities. Schedule a good portion of the morning with the new
employee’s boss and mentor. This is your last chance to make a positive
impression on your new employee. Don’t let the day go to waste and
contain nothing but paperwork and HR meetings. The day is for bonding
with the boss, the mentor, and coworkers.
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Prepare an on boarding schedule in advance that is customized to the needs

of the department and the new employee. Make sure that the on boarding
schedule fills only part of each day so that the new employee can feel
productive immediately in his or her new job. One client company required
that the employee’s manager put together a 120 day on boarding plan that
provided something new for the employee to learn every day. The
employee’s boss and mentor are responsible for creating, sharing, and
monitoring the on boarding schedule.
Make sure that the new employee meets with Human Resources staff on the
first day so he or she can ask questions about benefits and so forth. HR
cooperates with managers and mentor to tell the new employee what he or
she needs to know and to introduce the culture and the organization’s
expectations of employees. This is also an opportunity to begin
communicating the value of your benefits package.
Schedule lunch on the first day with the new employee’s coworkers and set
up a schedule to make sure that he or she has a coworker with whom to eat
each day of the first week. The new employee’s boss and mentor should also
attend this lunch.
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Compensation & Benefits
When it comes to employee compensation, most

managers are busy asking: "What do I have to pay
to…?" That is not an easy question to answer. A better
question might be: "What do I want my compensation
package to say?"
Compensation packages can be linked to business

structure, employee recruitment, retention,
motivation, performance, feedback and satisfaction.
Compensation is typically among the first things
potential employees consider when looking for
employment. It is important, therefore, to give a lot
of consideration to your business's compensation
structure. After all, for employees, compensation is
the equivalent not to how they are paid but,
ultimately, to how they are valued.
Elements of compensation EMERALD will follow
a. Non-monetary Compensation.
Includes benefits that do not involve tangible value.
b. Direct Compensation.
Employee's base wage.
c. Indirect Compensation.
Everything from legally required programs to health insurance, retirement,

housing, etc.
Direct compensation is an employee's base wage. It can be an annual salary, hourly wage or
any performance—based pay that an employee receives, such as profit-sharing bonuses.
Indirect Compensation is far more varied, including everything from legally required public
protection programs such as Social Security to health insurance, retirement programs, paid
leave, child care or housing.
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Employers have a wide variety of compensation elements from which to choose. By

combining many of these compensation alternatives, progressive mangers can create
compensation packages that are as individual as the employees who receive them.
The general consensus of recent studies is that pay should be tied to performance to be
effective. However, with traditional farming operations, that is not easily done. Business
performance can be affected by many factors over which employees have no influence,
specifically—weather. Successful managers must search for things employees influence and
base performance objectives on these areas. Your operation may benefit from the following:
tenure bonuses for long-time employees, equipment repair incentives to encourage good
equipment maintenance, or bonuses for arriving to work on time.
The more production information data your business has, the easier this is to accomplish.
Measures such as feed conversion rates, somatic cell count or mortality can offer great
sources for performance incentives.
Non-Monetary Compensation can include any benefit an employee receives from an

employer or job that does not involve tangible value. This includes career and social rewards
such as job security, flexible hours and opportunity for growth, praise and recognition, task
enjoyment and friendships.
Direct Compensations
Basic Pay:
Cash wage paid to the employee. Because paying a wage is a standard practice, the
competitive advantage can only come by paying a higher amount.
Incentive Pay:
A bonus paid when specified performance objectives are met. May inspire
employees to set and achieve a higher performance level and is an excellent
motivator to accomplish farm goals.
Bonuses:
A gift given occasionally to reward exceptional performance or for special

occasions. Bonuses can show an employer appreciates his/her employees and
ensures that good performance or special events are rewarded. Some indirect
compensation elements are required by law: social security, unemployment and
disability payments. Other indirect elements are up to the employer and can offer
excellent ways to provide benefits to the employees and the employer as well. For
example, a working mother may take a lower-paying job with flexible hours which
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will allow her to be home when her children get home from school. A recent
graduate may be looking for stable work and also an affordable place to live. Both of
these individuals have different needs and, therefore, would appreciate different
compensation elements.
Indirect and non-monetary compensations
Vacation
Employer's hands might be tied in raising your salary, but vacation time is more
discretionary. If can't give more time, at least get the right time - name the days
employees want to be on vacation. Most entry-level employees are expected to take
off when it's convenient for the higher-ups, but if any one name the dates up front
(or explain that he have long-standing plans to be away) any one could win that time
off.
Commuting Expenses
EMERALDS will be paying workers a stipend for commuting expenses, whether it be

for public transportation, parking fees, or gas. Before anyone apply for commuting
expenses tally all the commuting expenses for a typical month, or by year. Always
try to reimburse part of the expenses that employees have asked for.
Tuition Reimbursement
EMERALDS have a set policy for tuition reimbursements. The policy for tuition
reimbursements will be applied on a case-by-case basis. If the company feels that
any further education of an employee is going to help to do the job better by
remaining in the same company (for any employee) only then can the management
committee will decide to reimburse tuition fees to that particular employee under
some common terms and condition.
Company Car
If the job requires any one to be on the road, it may be perfectly reasonable to
request a company car or car allowance by an employee. Life without car payments
and auto insurance is a dream.
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Flextime
Adjust the time card based on the convenience of every employees so that they can
work the best on their most suitable time on the day/night hour. It is the common
habitual of human being as they got adjusted from the pre mature stage of their life.
Remember, though, that flextime works only if your coworkers are not dependent
on you being in the office during certain times.
Telecommuting
Like flextime, telecommuting is a way to make employees schedule more convenient

for you. If anyone not needed physically in the office, he could work from home part
of the day or a couple days each week.
Moving Allowance
If an employee is negotiating a salary for a new job in another city or state and will
have to relocate, he will definitely hit the employer up for moving expenses. And
EMERALDS will have this advantage open for its employees. Before offering rates to
the employee for his expense definitely gather some data on how much that move is
going to cost that employee.
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Absenteeism Management and attendance policy
A policy that provides guidance within an

organization about how to manage the state
of chronic absence from work. Absenteeism
is usually addressed through progressively
stricter disciplinary measures that can result
in the termination of the individual's
employment. This is generally governed by
the organization’s attendance policy.
The Attendance Management Policy

provides feedback to employees regarding
their attendance. It is intended to provide
the basis for a consistent and equitable
approach towards the management of attendance.
The ability to make best efforts to punctually attend work, in good mental and physical
condition, is a condition of employment.
REPORTING ABSENCES
All employees unable to report to work shall notify their supervisor DIRECTLY, as much in
advance as reasonably possible, prior to the commencement of their scheduled day of work.
Also, employees must contact Reception to inform The Employer of the absence. Employees
must also ensure Reception has their current telephone number.
In the event of an absence, or tardiness, employees are expected to give their Supervisor a
reason. Similarly, when leaving work early, employees must have the permission of their
Supervisor.
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CERTIFICATES FROM QUALIFIED MEDICAL PRACTITIONERS
Article 99 of the collective agreement. :
“When required, and at the Employer’s expense, an Employee will produce a doctor’s
certificate to verify her/his sick leave.”
The Employer shall request a doctor’s note from employees who have been absent for three
or more consecutive days, or who have demonstrated a repeat problem in attending work
regularly.
The medical certificate shall state clearly the expected date of the return to work, if possible
for the physician to determine. All requested certificates shall be paid for, or reimbursed, by
The Employer in accordance with the collective agreement.
Employees absent for periods in excess of 4 weeks, or returning from an absence of greater
than 4 weeks, may be required to renew their doctor’s certificates from time to time, in
accordance with Article 90.1.b of the collective agreement.
CONFIDENTIALITY
Employees are not required to reveal to the Employer the exact nature of an illness or
disability. This is designed to preserve the dignity and privacy of each employee, particularly
for those suffering from ailments which might be the subject of gossip or discrimination.
Rather, employees are required to state whether they are unable to attend work for reasons
of health, and whether they are seeking medical attention.
DISABILITY
Employees suffering from disabling conditions are protected by the provisions of local
human rights codes and s. 97 of the Collective Agreement. The Employer recognizes its duty
to reasonably accommodate disabled employees in consultation with the Union.
ILLNESS IN FAMILY
In accordance with article 90.10 of the collective agreement, the Employer allows employees
to use four calendar days of paid leave to care for their immediate family members. In these
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cases, employees need not produce a certificate from a qualified medical practitioner.
Employees are expected to report how long they will be away from work and leave a
telephone number to be reached while they are away.
COUNSELLING STEPS
Employees who have a demonstrated pattern of repeated innocent absenteeism will be

counseled. Counseling will meet the goals of giving feedback to employees regarding their
attendance, setting expectations, and encouraging those expectations to be met.
The steps taken to counsel employees shall begin with an informal meeting. If this does not
improve attendance, then a formal meeting will be held and a written letter will be
submitted to the employee. These counseling sessions may be repeated, as necessary.
A Long Term Disability program is provided for employees who qualify under the insurer’s
plan, and whose medical condition prevents them from performing the essential duties of
their position, even with reasonable accommodations.
The collective agreement states, with respect to non-culpable discharge for absenteeism,
the following:
The Employer will make every reasonable effort to accommodate an Employee where the
Employee incurs a mental or physical disability. Such accommodation shall be made in
consultation with the Employee and the Union. In the case of a non-culpable discharge due
to the fact such accommodation is not possible.
Thus, in accordance with this article, non-culpable dismissal of an employee for absenteeism
will only occur where the following three criteria are met:
a. Where the absenteeism has become severe enough to demonstrate the employee is
incapable of fulfilling the essential duties of the position;
b. Where all reasonable steps at counseling, accommodation of disability, or
enrolment onto a long-term disability plan have failed;
c. Where there is no probability of future improvement in attendance.
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ROLES AND RESPONSIBILITIES
Employees:
 to attempt best efforts to be physically and mentally fit for work;

 to attend work, on time, for every scheduled day of work;
 to provide reasons for absence, tardiness, or leaving early;
 to contact the Supervisor and Reception if unable to attend work;
 to seek medical care when necessary; and,
 to provide doctor’s notes when requested under this policy
Supervisors:
 counsels employees regarding attendance;

 requests doctors’ notes in accordance with this policy;
 stay in touch with employees who are away from work, and record reasons given for
absences, lateness, and leaving early; and,
 report absenteeism concerns, including absence of staff in excess of 3 days, or those
who demonstrate patterns of repeated absenteeism, to Human Resources.
Human Resources:
 distributes this policy and answers questions and concerns regarding its
Implementation
 provides employees with information concerning their personal rate of absenteeism;
and,
 Provides Supervisors with information regarding the absenteeism rates for their
Team and The Employer, as a whole.
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EMPLOYEE ENGAGEMENT
The Employee Life Cycle (ELC) model has been around for a while but seems to be
underutilized as a great tracking tool to identify the stage an employee is at in his or her
time with the organization.
The basic employee life cycle model that an employee might go to face during his life in
EMERALDS is –
Stage 1:
Orientation – new employees need to become socialized to the organization, learn
priorities and, and become more proficient in their job.
Stage 2:
Settling In – within six months the employee should be engaged, socialized ,and
understand what is expected of them. They should find the work challenging and
motivating.
Stage 3:
Competent Performance – after another six to twelve months the employee
should have gained confidence and motivation is still high. Learning opportunities
may be diminished.
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Stage 4:
Monotony – this may set in within three to seven years from hire. The employee
can perform their job with little effort or thought and the job provides little
challenge. Disengagement may begin.
Stage 5:
Disengagement – boredom results in disengagement and dissatisfaction with the
work and the organization. The employee’s attitude and performance may suffer
and their intent to stay with the organization may be affected.
In stages one through three, HR should play a monitoring role and track the progression of
employee’s performance, motivation, engagement and attitudes. In stages four and five, HR
may have to play an interventionist role to help revitalize motivation through initiating job
rotation or job enrichment strategies.
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Employee Record Keeping
When hiring a new employee you should consider what information is vital to maintain on
your employees. The table below is an example of the kind of information you should
consider retaining in your employee files. Much of this information and certain documents
are required by the Internal Revenue service (IRS), Department of Labor (DOL) and State
agencies, as well as the purpose of facilitating company’s decision making.
Sample of employee master file
Employee Data
 Name (match with social security card)

 Address (with Zip code and apartment number)
 Sex
 Date of birth
 Work location
 Social security number
 Company-assigned employee number
 Occupation/classification
 State where employee works
Employment/Wage-Hour Data
 Hire date/time
 Termination date
 Payment date
 Exempt/nonexempt status (FLSA)
 Regular rate of pay
 Additions to and deductions from pay
Shift differential or bonus
 Frequency of payment/pay period
 Hours worked per day
 Hours worked per week
 Workweek
 Straight time hours/pay
 Overtime hours/pay
 Tipped wages
 Amount of Tip credit taken
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Tax and Payroll Data

 Employers Allowance Certificate
 State withholding allowance certificate,
 Local withholding allowance certificate or certificates of residence or non-
residence. If required by the local jurisdiction where the work is performed
or the employee resides
For the pay period and Calendar Year
 Total wages subject to federal/state/local taxes

 Total wages subject to social security tax
 Total wages subject to Medicare tax
 Total compensation
 Total federal/state/local income taxes withheld
 Total social security taxes withheld
 Total Medicare taxes withheld
 Total state unemployment and/ or disability taxes withheld
 Tax paid by employer but not deducted from wages
Record keeping requirements (other than those dealing with federal income or employment
taxes), are controlled by the Wage and Hour Division of the Department of Labor. These
records need to be kept for at least 3 years. The Internal Revenue Code requires all
employers that withhold and pay federal taxes to also maintain the information above for at
least 4 years after the due date of the tax for which the records relate.
You must ensure you can easily and orderly access your employee files. If the records are
required by the ILO or local agencies they must be available for inspection by the Wage and
Hour division within 72 hours of a notice of inspection.
Now that you know how to stay in compliance with the DOL and IRS, you may have just
avoided costly penalties. If you were to willfully violate these recordkeeping requirements,
you could receive a criminal penalty of up to $10,000 and/or imprisonment for up to 6
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months (although a jail sentence can only be imposed for second and subsequent
convictions).
So EMERALDS keep accurate files on current or past employees for up to 4 years, AND it may
be inspected at any time.
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Health & Safety Issue
The responsibility for the health and safety of

assigned employees is primarily vested in the
supervisor. Supervisors play a critical role in
ensuring understanding of safety practices, and
providing incentive to do things right.
Supervisors have an affirmative responsibility to

set up and maintain a safety program. The key
principles include: personal protection, the
work environment, proper equipment
maintenance, safety education, departmental
supervision and control, records, inspections,
investigations and analysis.
The supervisor must continually review safety

measures for their relationship to the physical
well being of every student, visitor, and
employee on the campus. The following is a list
of some of the principle responsibilities that
supervisors have in the area of health and
safety for all employees under his or her
supervision.
The following is a list of some of the principle responsibilities that supervisors have in the
area of health and safety:
a. Development of Proper Attitudes
The supervisor is responsible for the development of the proper attitude

toward health and safety in all workers under his/her supervision. There is no
single way to develop such an attitude. However, the following two activities
will help promote the development of a positive attitude:
Example - the supervisor must set the proper example by his/her personal
behavior. When a work area or situation requires personal protective
apparel, the supervisor must also use the necessary apparel. In addition, the
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supervisor must never act unsafely or violate a safety rule or an established

safe work practice.
Acceptance of Responsibilities - the supervisor can best convince other

employees of the importance of health and safety issues by carrying out
his/her safety responsibilities conscientiously and with conviction.
b. Knowledge of Safe Work Procedures
The supervisor is responsible for knowing the safe work procedures that must
be used to perform each job task. It is also his/her responsibility to know
what personal protective equipment is needed for each task and how this
equipment must be properly used and maintained.
c. Orientation and Training of Employees
It is the supervisor's responsibility to train and instruct employees so they can

perform their work safely. This includes the proper use of machinery, hand
tools, and the use of chemicals and other hazardous materials. The
supervisor should also stress the importance of proper body mechanics and
lifting techniques to prevent back and other related injuries. Special attention
and instruction should be given to new employees or employees who have
been recently assigned to a new job. All training provided by the supervisor
should be documented.
d. Detection of Employee Personal Difficulties
The supervisor should make every reasonable effort to observe each worker
under his/her supervision some time during each workday. It is the
supervisor's responsibility (within reasonable limits) to detect personal
difficulties such as illness or disability among his/her workers. When such
conditions are detected, proper action should be taken.
e. Enforcement of Safe Practices and Regulations
It is the supervisor's responsibilities to enforce safe work practices and

procedures. Failure to do so invites in an increase in unsafe acts and
conditions.
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f. Conducting Planned Observations
The supervisor should conduct planned observations of his/her employees

for the purpose of insuring compliance with safe work procedures. Whenever
unsafe acts are observed, the supervisor should inform the worker
immediately and explain why the act was unsafe. Depending upon the
circumstance, disciplinary action may be warranted.
g. Prevention of Unsafe Conditions
Many unsafe conditions are the result of what employees do or fail to do

properly. It is the supervisor's responsibility to train and periodically remind
employees of what conditions to look for, and how to correct or report these
conditions.
h. Conducting Planned Safety Inspections
The supervisor should conduct periodic inspections of tools, vehicles,

machinery and assigned work areas. Planned inspections are an effective
and systematic method of discovering physical conditions that could
contribute to a work injury.
i. Conducting Safety Meetings
The supervisor should periodically conduct safety meetings to help increase

safety awareness and keep employees informed about their organizations
health and safety programs. Safety meetings should be kept short and cover
relevant topics such as recent job accidents or specific job hazards.
j. Correcting Unsafe Conditions
The supervisor should take immediate steps to correct unsafe conditions

within his/her authority and ability. When an unsafe condition cannot be
immediately corrected, the supervisor should take temporary precautionary
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measure. A follow-up system should also be used to ensure that corrective

measures are completed in a timely fashion.
Investigating Unsafe Conditions
The supervisor is responsible for conducting accident investigations as soon

after the accident as possible. All the facts and opinions regarding the causes
of the accident should be compiled and documented.
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Leave Plans
EMERALDS provide the following types of leave to non-union

benefits eligible employees. Those employees covered by a
bargaining unit agreement should refer to their specific contract
for information pertaining to their leave benefits.
Using the leave tracking features of our Human Resources

Information System (HRIS), vacation hours for benefits eligible
employees will accrue for each pay period in which they are
normally scheduled to work and have submitted time. The
amount of time accrued is calculated by dividing the expected
annual vacation time by the number of checks scheduled. (For
example, a newly hired, full time, full year non-exempt employee
normally receives 26 checks. The annual amount of vacation time
for this employee is 2 weeks of full-time days (75 hrs). 75 hrs/26
checks = 2.88 hrs/pay period.) Employees who work less than full time or an academic year
schedule will accrue vacation hours accordingly.
Sick time hours for non-bargaining unit, benefits eligible employees will accrue in the same
way as described above for vacation hours. Full time, full year employees accrue a total of
15 sick days/year. Employees are permitted to convert up to 6 of their accrued sick days to
accommodate personal emergencies. Also, employees are permitted to anonymously
donate a single accrued vacation day to a fellow employee who has exhausted their own
leave banks.
Vacation & Sick Leave (Upper level employees)
Twelve-month Employees are entitled to 24 days of vacation leave and 12 days of sick leave
per calendar year. The amount of annual leave is adjusted proportionately for part-time
faculty members in covered positions who work half time (50% FTE) or more. Leave is
earned on a monthly basis. The monthly earnings amount is equal to one-twelfth (1/12) of
the annual leave accrual rate for each month the Employee works or is on an approved least
with pay at least half the working days of the month.
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Nine-month Employees do not earn either vacation or sick leave. They are eligible for paid
serious illness and parental leave.
Vacation & Sick Leave (Mid level employees)
Mid level Employees are entitled to 24 days of vacation leave and 12 days of sick leave per
calendar year. The amount of annual leave is adjusted proportionately for part-time
employees in covered positions who work half-time (50% FTE) or more. Leave shall be
earned on a monthly basis. The monthly earnings amount is equal to one-twelfth (1/12) of
the annual leave accrual rate for each month the employee works or is on an approved least
with pay at least half the working days of the month.
Vacation & Sick Leave (Lower level employees)

Permanent lower level employees regularly scheduled to work at least 20 or more hours per
week, and who are in pay status for at least one-half of the days in a month, are eligible to
earn leave. Permanent full-time employees (40 hours per week) earn vacation and sick leave
according to the chart below. Employees who work less than 40 hours per week earn leave
on a pro-rated basis according to the number of scheduled work hours each week. This
chart reflects accrual rates as of January 1, 2011.
Shared Leave Program
EMERALDSS has a voluntary “Shared Leave” program that allows one employee to assist
another employee in the case of a prolonged medical condition that exhausts the
employee’s available leave and would otherwise force the employee to be placed in leave
without pay status, resulting in a loss of income and benefits.
Community Service Leave

EMERALDS recognize the importance of community involvement and encourage employees
to participate in volunteer activities by providing flexibility in work schedules and paid leave
opportunities. Community Service Leave is a paid time off program for participation in the
educational process of children through the high school level and to support other
community service volunteer activities for non-profit organizations
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Leaves of Absence
EMERALDS make available a variety of leave programs for employees including:
Civil Leave
Faculty Serious Illness Leave
Faculty Parental Leave
Family & Medical Leave (FMLA)
Family Illness Leave
Military Leave
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Training and Development Policy and Procedures
Policy
The company is committed to excellence in people development in order to maintain and
enhance its position as a world class spectrum manager. We aim to create a culture of
learning throughout where individuals take responsibility in partnership with the Company
for their development. The Company recognises the need to develop its people so that they
are fully equipped to deliver the Company's business objectives; both now and however they
may change in the future.
Objective
To ensure that the Company has people with the appropriate knowledge, skills and
behaviours to meet its business objectives in both the short and longer term. And to allow
our people to achieve their potential and career aspirations both within the Company and
the wider Civil Service.
Aims
 To equip people with the technical skills required
 To provide leadership and management development to all managers within the
Company.
 To identify the development needs of the Company and those of individuals and
balance the two.
 To ensure that development needs are identified as part of the business planning
process and reviewed regularly.
 To promote the use of the full range of development opportunities, ensuring that
where a formal course is chosen it is the most appropriate solution.
 To ensure equality of access to all development opportunities.
 To provide career development for all.
 To provide personal and tailored consultancy services to help individuals and teams
meet their needs.
 To provide effective induction for all new appointees and people moving jobs.
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 To ensure the effective delivery of mandatory training e.g. Health and Safety, Equal
Opportunities etc
 To ensure the appropriate skills are in place to deliver the e business strategy
Procedures
Identifying Needs
Individual - these should be identified as part of the PAP process. When individuals work
objectives have been agreed they should, with their line manager, then consider the
development needs to enable them to meet those work objectives. At the same time
individuals should consider their longer-term career aspirations and identify the
development needs arising from these. These should always be discussed with line
managers who will need to take account of the needs of the whole team and operational
requirements before agreeing.
Team - these too should be identified by team leaders and HBUs as part of the BARP process
and notified to the Head of Training and Development.
Organisational - these may arise as the result of new IS projects, changes in legislation, the
introduction of new policies or procedures etc and should be considered by directors and
HBUs as part of the Business and Resource Planning (BARP) process which takes place in
September/October each year. They should be included in business plans and notified to the
Head of Training and Development at the same time to allow for money to be bid for. Other
needs may be identified through the year as a result of specific interventions e.g. the
communications audit, an IP assessment, reviews etc. Again, the Head of Training and
Development should be advised at the earliest opportunity to allow for resources to be
made available and the appropriate planning to take place
Development needs should be reviewed formally at least twice a year during the appraisal
process.
Meeting needs
Individual - once the PAP is received in the T&DU the individuals Development Advisor will
contact them to discuss the detail of the need and how that need might best be met.
Depending on how the need is to be met the Development Advisor or the individual will
need to take appropriate action completing Form RA2101 as part of this process. Before
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undertaking any development opportunity the individual needs to set specific learning
objectives. This should take place in a discussion with the line manager to determine
precisely what is to be gained in terms of knowledge, skills and behaviour from the event.
Team - again the training and development unit will support line managers in carrying out a
training needs analysis and identifying the most appropriate solution. Wherever possible
they will provide a tailored solution to the particular need identified.
Organisational - once a broad need has been identified a more specific training needs
analysis will be carried out by the training and development unit. This will enable them to
specify the requirement and determine the most appropriate way of meeting the needs.
With large programmes this will be discussed and agreed in principle with the Training
Development Policy Committee, and in certain circumstances, the Management Board.
More specific details will then be discussed and agreed with HBUs to ensure their
requirements are taken into consideration.
Evaluation
Learning must contribute to both business success and personal development and
overarching this is the need to ensure that the Company achieves value for money. For these
reasons there must a robust process of evaluation in place. All development activity will be
evaluated in accordance the Company's Evaluation Guide.
Roles and responsibilities
Individual - the prime responsibility for identifying training and development needs and co-
ordinating the process of addressing those needs is that of the individual with their line
manager. Support to achieve this can be obtained from the Development Advisors.
Line manager - helping to identify needs, identifying options to meet those needs and
measuring the impact of development on the business of the team or unit; inducting new
members of the team
Head of the Engineering Profession - has the overall responsibility for the development of
engineering skills within the Company. Also has a key role in the Career Development
Programme for Engineers supporting individuals to meet their career aspirations and
ensuring the Company has the appropriate skills to meet its long term business challenges.
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(Other specialists statisticians, economists and IT staff also have heads of profession but
these are located within the DTI)
Head of Training and Development - identifying Companywide development programmes in

conjunction with the policy/business sponsor; owner of induction process
Training and Development Manager - managing the Leadership Development Programme,

Growing Leaders programme and the induction course. IiP Project Manager. Managing
Companywide evaluation programmes
Technical Training Consultant - ensuring that technical development needs are met across
the Company. Managing the Wray Castle contract and ensuring that additional providers are
identified where appropriate. Career development Co-ordinator for the engineering Career
Development Programme
Development Advisors - working with individuals and their line managers to correctly
identify needs and the most appropriate solutions. Where appropriate organising the
development activity
Ensuring the needs of the Company are met
The Training and Development Policy Committee has recently been reformed to consider
training and development needs more strategically. The Committee is made up of
representatives from across the Company who will in addition to the processes described
above provide a view of the broader business issues that will influence the longer-term
needs of the Company.
They will also contribute to setting and prioritising the budget although accountability rests
with the Head of Training and Development. They will also, on behalf of the Board, evaluate
the contribution of training and development to the business success of the Company.
Equal Opportunities and Diversity
The Company is committed to ensuring equality of opportunity in the development of its

people. This means that we have a range of initiatives to ensure that this is achieved. These
include: diversity and equal opportunities awareness; the monitoring of the take up of
different development events; and a range of development opportunities to meet
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individuals needs and personal circumstances. If any individual feels they have been denied
access to development they should in the first instance discuss the matter with their line
manager.
Technical Development
Technological changes in radio communications are occurring all the time and the Company
and its people must be equipped to take on these changes. The emphasis will be on
identifying individual needs and meeting those needs very specifically. External and
commercial courses and seminars will continue to be offered, however there will be an
increasing use of internal expertise.
The responsibility for the technical development of RA3 Field Officers has now transferred to
the T&DU who will be working closely with colleagues in RA3, Enforcement Policy and Wray
Castle, the current training providers, to ensure that core technical needs are met in an
appropriate and timely manner. A list of these core subject areas, and the course
specifications, is available here
Leadership/Management Development
The development of all managers within the Company is a key strand of the training and
development strategy. The identification of leadership/management potential will happen
via the Growing Leaders Programme. The Leadership Development Programme is designed
to equip all middle and senior managers with the necessary skills and behaviours to lead the
Company to meet business challenges. All managers are expected to participate in the
programme and actively pursue their own development plans with the support of their line
manager and the Training and Development Manager.
Induction
Everyone new to the Company and existing people who change jobs within the Company
must receive an appropriate induction. For new people this includes attending the three-day
programme run by T&DU.
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Career Development
All members of the Company have the right to expect their careers to be developed and line
managers have a key role in ensuring that individuals receive the support and practical help
required to meet their aspirations. There will always be a balance between meeting day to
day business requirements and allowing individuals the scope to develop more widely and
line managers are accountable for achieving this balance.
The Career Development Programme for Engineers is specifically designed to meet the
needs of engineers from RST to RS7. A separate policy exists here. Further information can
be obtained from the Technical Training Consultant within T&DU who acts as the overall co-
ordinator for the Programme.
A similar programme for administrators will be developed and implemented within the
financial year 2001/02.
The Unified Training and Development Budget
The budget is developed annually through the BARP process and is managed by the Training
and Development manager on behalf of the Head of Training and Development who is
ultimately accountable to the Chief Executive.
Travel and subsistence to attend development events
Management of and accountability for the budget are the same as for the unified Training
and Development Budget. It covers only UK T&S. Any overseas travel and subsistence
relating to attendance at conferences must be met from business unit budgets.
Individuals are expected to make use of the most economical means of travelling to
development activities. Standard rate of mileage will only be authorised if it is the most
efficient and effective use of public funds. T&DU should be consulted if there is any doubt
and will reduce claims to public transport rate if they have not been consulted and there is
doubt as to the reason why standard rate has been claimed.
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Lunch will only be provided at in house events if there are participants who have traveled or
it is important to the smooth running of the event and participants would benefit from
networking e.g. the induction course
Conferences
The cost of attending conferences will only be met from the UT&D budget if the conference
is developmental i.e. it keeps an individual up to date with what is happening in their
particular field. The need to keep abreast of current thinking must be identified on the PAP.
Residential Events
Development events are run residentially for a number of reasons: the nature of the event
means there is benefit to be gained from working in a less formal setting; the content of the
event requires a more flexible approach to the organisation and length of sessions; optional
evening sessions may be part of the programme etc. The cost of running a residential event
is considerably higher than running it on a daily basis; therefore there are always sound
business reasons for taking this option.
It is accepted that for some people their domestic commitments will not enable them to
attend such events. This is quite understandable and alternative means of delivering the
development will therefore be determined in consultation with the individual. However, if
people do not have domestic commitments that prevent their attendance they will be
expected to participate on a residential basis. This may mean working longer hours than the
normal working day. This is to enable people to get the most out of the event and it is
expected that you treat the experience in this spirit. If you return from the event and feel
that you have worked considerably more hours than you would normally and feel that some
time off in lieu would be appropriate then it is for you to discuss this with your line manager.
It is however expected that this would be the exception rather than the rule.
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Performance appraisal
Purpose of performance appraisal

 Provide an opportunity for the manager and his/her supervisor to set
mutual objectives.
 Provide a fair and effective means for making personnel decisions.
 Recognize the importance of the manager’s contribution to institutional success.
 Provide a forum for open discussion of the manager’s individual strengths and for
the identification of areas where improvement is needed.
 Improve the performance of the manager and, consequently, of the unit
administered.
 Enhance the credibility of the management process, including the process by which
decisions are made, in the eyes of those affected by the process.
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Contends
1. Identify performance criteria:
• The number of appraisal criteria for each position is from 3 – 10 criteria.

• The standards set should be clear, easily understandable and
in measurable terms
• The appraisal criteria can be changed but must be the authority for approval and
must be implemented for the relevant level before applying.
• HR department and managers/ supervisor will set up weight of each criteria and
must be approved directors.
2. Communicating performance criteria:
• HR department should inform this procedure to all level of management and

employees.
• The employees should be informed and the standards should be clearly
explained in order to help them understanding their roles and to know what
exactly is expected from them.
• Performance criteria should also be communicated to the appraisers or the
evaluators and if required.
3. Measuring performance
Prepare.
HR dept should prepare all materials, notes agreed tasks and records of
performance, achievements, incidents, reports etc – anything pertaining to
performance and achievement.
Inform the appraise:
 To ensure the appraise is informed of a suitable time and place

and clarify purpose and type of appraisal.
 Give the appraise the chance to assemble data and relevant
performance and achievement records and materials.
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Review and measure
HR dept and managers / supervisors review the activities,

tasks, objectives and achievements one by one, keeping to distinct separate
items one by one.
Agree an action plan
 An overall plan should be agreed with the appraise, which

should take account of the job responsibilities and
review strengths and weaknesses.
 The plan can be staged if necessary with short, medium and long
term aspects, but importantly it must be agreed and realistic.
4. Comparing with desired criteria
• The actual performance is compared with the desired or performance criteria.

• The result can show the actual performance being more than the desired
performance or, the actual performance being less than the desired
performance depicting a negative deviation in the organizational performance.
5. Discussing results
The result of the appraisal should be communicated and discussed with the employees.
• The feedback should be given with a positive attitude as this can have an effect
on the employees’ future performance.
• The purpose of the meeting should be to solve the problems faced and motivate
the employees to perform better.
• The results, the problems and the possible solutions are discussed with the aim
of problem solving and reaching consensus.
360 degree performance appraisal

In the formatted from of 360-degree performance appraisals, the performance of an
employee will be assessed based on ideas of many other different people, for example
customers, suppliers, peers and direct reports. If the assessed is a manager, his/her staff will
be often asked for feedback on how that manager is doing his task. In case of using 360-
degree performance appraisal, it is vital that the process be implemented by the manager
of Human Resources Department so that the subordinate reviewers (or staff) are made sure
that all their assessments on performance are kept anonymous.
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360 degree measures manners and capacities.

360 degree improves such skills as listening, planning and goal-setting.
360 degree concentrates on subjective areas, for example efficiencies of teamwork,
character, and leadership.
360 degree supplies on the way others think about a specific staff.
Advantages of 360 degree appraisal
Offer a more comprehensive view towards the performance of employees.

Improve credibility of performance appraisal.
Such colleague’s feedback will help strengthen self-development.
Increases responsibilities of employees to their customers.
The mix of ideas can give a more accurate assessment.
Opinions gathered from lots of staff are sure to be more persuasive.
Not only manager should make assessments on its staff performance but other
colleagues should do, too.
People who undervalue themselves are often motivated by feedback from others.
If more staff takes part in the process of performance appraisal, the organizational
culture of the company will become more honest.
Disadvantages of 360 degree appraisal
Taking a lot of time, and being complex in administration

Extension of exchange feedback can cause troubles and tensions to several staff.
There is requirement for training and important effort in order to achieve efficient
working.
It will be very hard to figure out the results.
Feedback can be useless if it is not carefully and smoothly dealt.
Can impose an environment of suspicion if the information is not openly and
honestly managed.
Who should conduct the performance appraisal system?
Subordinates.
Peers.
Managers (i.e. superior).
Team members.
Customers.
Suppliers/ vendors.
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Anyone who comes into contact with the employee and can provide valuable
insights and information.
Criteria’s to conduct 360 degree appraisal system
Self appraisal
Subordinate’s appraisal
Peer appraisal.
Superior’s appraisal
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Sample Sub-ordinate Appraisal form
I/ Employee info:
1. Subordinate name:
2. Position:
3. Department:
4. Appraisal period:
5. Appraise:
6. Position:
II/ Appraisal questions:
1. Does the manager map out the projects, set the directions, and then assign small
pieces to the subordinates?
2. Do the subordinates actually make decisions comparable to their abilities?
3. For subordinates who have been reporting to the manager for at least one year, can
you, independently, observe unusual skill growth in the subordinates?
4. Does the manager encourage or criticize individuals who have opposing positions?
5. At meetings, do subordinates express their opinions or confirm agreement?
6. Which type of questions do the subordinates tend to ask?
7. What does (the manager) want?” or “What does this situation require?”
8. Does the manager rely on a small inner circle, excluding others from responsibility?
Subordinate signature:
Sample PEER PERFORMANCE APPRAISAL FORM
Employee name:
Position:
Department:
Date:
Appraisal period:
I. Names of your peers.
a. Name__________________________ Position:__________________
b. Name__________________________ Position:__________________
c.Name__________________________ Position:__________________
d.Name__________________________ Position:__________________
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II. Peer Appraisal:

Please rank each member (a,b,c,d) with a 4,3,2,1,0 (4=highest,0=lowest)
1. Contributes ideas to the group
a.__________ b.__________ c._________ d. __________
2. Respects each group member’s opinions
a.__________ b.__________ c._________ d.___________
3. Contributes his/her share to discussions
a.__________ b.__________ c._________ d.__________
4. Reliable for meetings
a._________ b.__________ c.__________ d.__________
5. Reliable with meeting deadlines for work in progress and final project
a._________ b.__________ c.__________ d.__________
6. Knowledgeable about assignments and her/his role and fulfills that role
a.__________ b.__________ c._________ d.__________
7. Gives input for work-in-progress promptly and with a good faith effort
a.___________ b.__________ c._________ d.__________
III. Future of group:
If given the opportunity, would you want to work with this team member again?
(“Yes”= 4 points; “Maybe”= 2 points; “No”= 0 points)
a.___________ b.__________ c._________ d.__________
IV. Overall appraisal:
In one sentence, what is your overall impression of each member’s performance?
a) ___________________________________________________________
b) ___________________________________________________________
c) __________________________________________________
d) __________________________________________________
Employee signature:
90
Self appraisal sample
In the process of the Performance Appraisal, self-appraisal is considered a vital factor, in

which the staff gives out his own feedback or ideas, points on his working. Basically,
employees will do this thanks to using a form of self-appraisal, which allows him to rates
himself based on a number of parameters, such as his demands for training, if any, his
achievements, strong points, weak points, current difficulties…
To perfectly conduct self appraisal…

Be honest: When talking about your achievements or failures;
stay
honest and be true. You should not overstate your
strong points or ignore your weak points. In
addition, do not have any personal ideas on others.
Well-prepared: Before the meeting, you are advised to have good

preparations. Put everything needed in an
appropriate order; prepare all the evidences and
references.
Be objective: In self-appraisal, being objective is of great

importance.
Do not just overstate or just ignore your
accomplishments or failures. Be focused and concise
in any idea you give and if allowed, provide them
with possible examples, references or dates. For
instance, it will be much nicer to say: “I replied all
questions within 48 hours”, instead of saying “I
offered good service to the customers.”
Positive attitude: Within the process of appraisal, try to have a

positive
attitude. Prove that you are a cooperative staff. Be
willing to take accountability for your failures and
accomplishments also. Show your enthusiasm to
make improvements in the future and calmly take
all recommendations. Do not give any complaint or
have any negative attitude.
91
Cover all the aspects: In addition to your strong points, weak points,
failures
or achievements, try to quote such chances of
development and improvement you would like to
have. Make recommendations for resolve the
arising issues. Valuate your abilities, attitudes and
skills as well as competencies.
Seek future responsibilities: Based on your job description and such

valuation of
the KSA’s, make short-term and long-term plans
for your future working year. Do not hesitate to
seek tasks in addition to such current
accountabilities of your job. This will bring out
chances for personal improvement while helping
you contribute to the productivity of the company.
In self appraisal process, you should quote your achievements, goals gained, the failures as
well as your own improvement (including new skills achieved, such plans for the future…),
the difficulties during the working period, such effort to resolve them, recommendations,
areas of training as well as development suitable for you.
92
An example of Self-Appraisal
Self appraisal form

Employee: _____________________________
Date: _________________________________
Company: _____________________________
Position Title: __________________________
Review Period: _________________________
Office: ________________________________
Department: ___________________________
From/To: ______________________________
I. Job descriptions and responsibilities:
__________________________________
________________________________________________________________
________________________________________________________________
II. Specify ways that you feel you met or exceeded job requirements and any reasons why.
1. ______________________________________________________________
______________________________________________________________
2. ______________________________________________________________
______________________________________________________________
3. ______________________________________________________________
______________________________________________________________
III. Specify the ways that you feel you did not meet job requirements and any reasons why.
1. ______________________________________________________________
______________________________________________________________
2. ______________________________________________________________
______________________________________________________________
3. ______________________________________________________________
______________________________________________________________
IV. In what specific areas would you like to improve your job performance?
1. ______________________________________________________________
______________________________________________________________
2. ______________________________________________________________
______________________________________________________________
3. ______________________________________________________________
______________________________________________________________
V. List the steps you would like to take to improve your preparation for future
opportunities.
1. ______________________________________________________________
______________________________________________________________
2. ______________________________________________________________
______________________________________________________________
93
3. ______________________________________________________________
______________________________________________________________
VI. What job-related goals would you like to accomplish in the next 6 (12) months?
1. ______________________________________________________________
______________________________________________________________
2. ______________________________________________________________
______________________________________________________________
3. ______________________________________________________________
______________________________________________________________
VII. List additional items you would like to discuss.
1. ______________________________________________________________
______________________________________________________________
2. ______________________________________________________________
______________________________________________________________
3. ______________________________________________________________
______________________________________________________________
Employee’s Signature: ____________________Date: ______________________
Reviewer’s Signature: ____________________Date: ______________________
Reviewer’s Manager’s Signature: ____________Date: ______________________
94
Sample Supervisor performance appraisal form

Name of Supervisor Being Reviewed:
Name of manager:
Supervisor’s Position:
Faculty/Section:
Date Form to be Returned:
Date Form Completed:
This review is an evaluation of the competencies of your supervisor as they apply to you and
your position in the past.
The information you provide on this form will be confidential. This form should be submitted
to the your manager. This person will summarize and discuss the results of the questionnaire
with your supervisor without identifying the source of the comments. Your supervisor will
NOT see the completed feedback form.
Please indicate with an “X” the appropriate rating from N (never) to A (always) and write
comments as required.
1. My supervisor clearly explains my job responsibilities.
Rating: N R A
Comments:
2. My supervisor discusses performance issues with me when they arise.
Rating: N R A
Comments:
3. My supervisor is receptive to feedback from me.
Rating: N R A
Comments:
4. My supervisor provides me with constructive advice on my performance.
Rating: N R A
Comments:
5. My supervisor shows interest in my career development.
Rating: N R A
Comments:
6. My supervisor supports training as an aid to my development.
Rating: N R A
Comments:
7. My supervisor is an effective coach with regard to my own development.
Rating: N R A
Comments:
8. My supervisor gives recognition when deserved.
Rating: N R A
Comments:
9. My supervisor is discreet in handling matters of some sensitivity.
95
Rating: N R A
Comments:
10. My supervisor practises transparency in matters that affect my work unit.
Rating: N R A
Comments:
11. My supervisor is fair in dealings with me.
Rating: N R A
Comments:
12. My supervisor has my respect.
Rating: N R A
Comments:
13. My supervisor actively helps to build positive working relationships.
Rating: N R A
Comments:
14. My supervisor promotes independent decision-making.
Rating: N R A
96
Succession Plan
Plan Implementation
The Board of Directors authorizes the Board Chair to implement the terms of this emergency
Succession plan in the event of a planned or unplanned temporary or short-term absence.
It is the responsibility of the Particular employee to inform the Board of Directors of

a planned temporary or short-term absence, and to plan accordingly.
It is the responsibility of the Strategic Initiatives Director to immediately inform the

Board Chair of an unplanned temporary or short-term absence.
As soon as feasible, following notification of an unplanned temporary or short-term

absence, the Board President shall convene an Executive Committee meeting to
affirm the procedures prescribed in this plan, or to modify them if needed.
Succession plan in the event of a temporary, planned or unplanned absence -

Short-Term
a) Definitions
A temporary absence is one in which it is expected that the Particular employee

will return once the events precipitating the absence are resolved.
An unplanned absence is one that arises unexpectedly, in contrast to a planned
leave such as vacation or a sabbatical.
A temporary absence is 30 days or less.
A temporary short-term absence is between 30 and 90 days.
b) Temporary Staffing Strategy
For temporary planned or unplanned absences of 30 or fewer days, the

Temporary Staffing Strategy described above may become effective.
In the event of a temporary short-term planned or unplanned absence, the
Executive Committee shall determine if the Temporary Staffing Strategy is
sufficient for this period of time.
97
c) Appointing an Acting Employee
Based on the anticipated duration of the absence, the anticipated return date,
and accessibility of the current employee, the Executive Committee may appoint
an Acting Employee, as well as continue to implement the Temporary Staffing
Strategy.
d) Standing Appointees to the Position of Acting Employee
The first position in line to be Acting Employee is the current Board Chair. If the
current Board Chair accepts the position he/she will take a temporary leave
from the Board of Directors.
The second position in line is a previous Board Chair or current Board Member.
The third position in line is Director-level staff.
In the event the available staff is new to the position or fairly inexperienced with
the company, the Executive Committee may consider another appointee or the
option of splitting executive duties among designated appointees.
e) Cross-Training Plan
The Employee shall develop a training plan for each Director-level position for
each of the key functions of the Employee.
An up-to-date training plan shall be attached to this document.
f) Authority and Restrictions of the Acting Employee
The Acting Employee shall have full authority for day-to-day decision making and
independent action as the regular Employee.
Decisions that shall be made in consultation with the Board Chair and/or
Executive Committee include staff hiring and terminations, financial issues,
taking on a new project, and taking public policy positions on behalf of the
organization.
For additional communication guidelines refer to the organization’s operating
policies on transitions.
g) Compensation
Director-level staff appointed as Acting Employee may receive an end of year

bonus or additional benefit. This shall be determined by the Executive
Committee based on the duration of the assignment and available resources.
98
If staff serves as Acting Employee for 6 months or more, the Executive

Committee may consider a salary adjustment.
A current or former board member appointed as Acting Director may enter into
an independent contractor agreement, depending on the circumstances of their
availability.
The Employee on leave is eligible for disability insurance. ABAG maintains a self-
insured 30-day policy and a long-term disability policy that becomes effective at
90 days.
h) Board Oversight and Support to the Acting Employee
The Acting Employee reports to the Board Chair. In the event the Board Chair
becomes the Acting Employee, the Vice President shall be appointed Board
Chair.
The Executive Committee shall be alert to the special support needs of the
Acting Employee in this temporary role. The Executive Committee shall convene
monthly when an Acting Employee is appointed.
i) Communications Plan
Within 48 hours after an Acting Employee is appointed, the Board Chair and the
Acting Employee shall meet to develop a communications plan including the
kind of information that will be shared and with whom.
The following chart identifies key supporters and a primary contact to facilitate
communication.
As soon as possible, the Board Chair and Acting Employee shall implement the
communications plan to announce the organization’s temporary leadership
structure to staff, the Board of Directors, and key supporters.
Updated contact information shall be maintained in the organization’s database
with the following designations:
• Key Contact List
• Extended Key Contact List
• Past Board Officers/Members List
• Foundation CEOs and Members
• Other Organization Contacts
Within 5 business days, the Board of Directors shall distribute a press release
with general information appropriate to the situation.
99
Succession plan in the event of a temporary, unplanned absence –

Long-term
a) Definition
A long-term absence is 90 days or more.
b) Procedures
Procedures and conditions to be followed shall be the same as for a temporary

short-term absence with the following addition:
 The Executive Committee shall give immediate consideration, in

consultation with the Acting Employee, to temporarily filling the
management position left vacant by the Acting Employee, or reassigning
priority responsibilities where help is needed to other staff. This is in
recognition that, for a term of 90 days or more, it may not be reasonable
to expect the Acting Director to carry the duties of both positions.
 The Board Chair and Executive Committee are responsible for gathering
input from staff and reviewing the performance of the Acting Employee
according to the organization’s Performance Review Policy. A review
shall be completed between 30 and 45 days.
Succession plan in the event of a PERMANENT unplanned absence.
a) Definition
A permanent absence is one in which it is firmly determined that the person will not
be returning to the position.
b) Procedures
Procedures and conditions to be followed shall be the same as for a temporary

short-term absence with the following additions:
 The Board of Directors shall consider the need to hire an Interim

Employee from outside the organization instead of appointing an Acting
100
Employee. This decision shall be guided, in part, by internal candidates

for the particular vacant position, the expected time frame for hiring a
permanent executive, and the management needs of the organization at
the time of the transition.
 The Board of Directors shall appoint a Transition Committee to

implement the organization's Executive Succession Policy to transition
to a new permanent employee. A copy of this policy is attached.
c) Hiring an Interim Employee on that vacant position
If an Interim Employee is hired, the Board Chair and Executive Committee shall
negotiate an independent contractor agreement with a defined scope of work.
The scope of the agreement with an Interim Employee shall be determined
based on an assessment of the organization's needs at the time of the
leadership transition.
The rate of compensation shall be based on guidelines for Interim Employees
followed by the Maryland Association of Nonprofit Organizations.
d) Responsibilities of the Interim Employee
An Interim Employee shall have full authority for day-to-day decision making
and independent action as the regular Employee.
Decisions that shall be made in consultation with the Board Chair and/or
Executive Committee include staff hiring and terminations, financial issues,
taking on a new project, and taking policy positions on behalf of the
organization.
For additional communication guidelines, refer to the organization's operating
policies on transitions.
e) Board Oversight and Support to the Interim Employee
The Interim Employee reports to the Board Chair.

The Executive Committee shall be alert to the special support needs of the
Interim Employee in this temporary role. The Executive Committee shall
convene monthly when an Interim Employee is hired.
The Board Chair and Executive Committee are responsible for gathering input
from staff and reviewing the performance of the Interim Employee according to
the organization's Performance Review Policy. An initial review shall be
completed between 30 and 45 days and 90 days thereafter.
101
Approvals and maintenance of record
a) Emergency Succession Plan Approval
This emergency succession plan shall be approved initially by the Board of

Directors.
Thereafter, annually, the Executive Committee shall review the plan and
recommend amendments to the full Board as needed.
b) Signatories
The Board Chair, the Employee, and the appointees designated in the
Emergency Succession Plan shall sign the plan.
At all times the Board Chair and Treasurer and at least one Director-level staff, in
addition to the Employee, shall have signature authorization for checks and
contracts for the organization.
c) Maintenance or record
Copies of this plan shall be maintained by all members of the Board of Directors,
Director-level staff and the organization's auditor in accordance with document
retention requirements.
d) Financial Considerations
1. It shall be the responsibility of the Executive Committee to review the

organization's finances during an unplanned absence of the particular
employee post
2. EMERALD maintains an operating reserve that the Board Chair is authorized
to access with Executive Committee approval.
102

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[EMERALDS APPARELS] August 17, 2011

HISTORY OF RMG INDUSTRY IN BANGLADESH

Ready Made Garments

Trousers Shirts Jackets T – shirt Sweater

Woven Knit Total

Countries July-June July-June

% of Total 47.67% 52.89% - 73.07% 82.89% - 56.22% 64.22% -

% of Total 2.94% 5.25% - 2.94% 3.29% - 2.94% 4.51% -

% of Total 46.56% 39.34% - 21.20% 11.02% - 38.02% 28.64% -

% of Total 0.36% 0.45% - 0.21% 0.18% - 0.31% 0.35% -

% of Total 0.05% 0.07% - 0.07% 0.06% - 0.06% 0.07% -

% of Total 2.41% 2.00% - 2.51% 2.56% - 2.45% 2.21% -

THE CHARACTERISTICS OF RMG SECTOR IN BANGLADESH

Growth in the Industry

• Low capital intensive

• Technological involvement is not very high

• Opportunities elsewhere is very limited

Growth Trend over the Years

Export trnd of RMG secotor

3000 Woven Export Trend

List of Top Players in the Market

1 Minar Industries (Pvt.) Ltd.

3 Knit Concern Ltd.

4 Rahman Knit Garments Ltd.

Shovon Silk & Knitting Mills (Pvt.)

6 Iqbal Texwear Ltd.

7 Samrat & Co. (pvt.) Ltd

8 Wisdom Attires Ltd.

9 Rony Knitwear (pvt) Ltd.

10 Fakir Knitwear Ltd.

11 Miswar Hosiery Mills (pvt) Ltd

12 Fuji Knitwear Ltd.

13 Fakir Apparels Ltd.

14 Adron Fabrics (pvt) Ltd.

15 Crony Apparels Ltd.

17 Krishnachura Fashions Ltd.

18 Martin Knitwear Ltd.

19 Knit Asia Ltd. Unit – 2

20 Niagra Textiles Ltd.

21 Pantex Dress Ltd.

22 Abanti Color Tex Ltd.

23 Taufiq Sweater Ltd.

24 Aboni Textile Limited

25 Anowara Fashions Ltd.

26 Square Knit Fabrics Ltd.

27 Metro Kniting & Dyeing Mills Ltd.

28 M/S Time Sweaters Ltd.

29 Ayman Textile & Hosiery Ltd.

30 Falcon International Knit Composit

Following is the list of leaders in woven Product Manufacturering:

THE CHANGED MARKET SCENARIO

At the Global level:

Post-MFA Development Strategy & Technical Assistance for RMG sector

The warnings for Post MFA era were:

A meeting of the Commerce Ministry on Post-MFA observed, “Studies by the international

Change after January 2005

Value and Volume of RMG Export:

Trend of Unit Price Change:

Unit Price of Woven

Unit Price of Knit

Factors which became crucial as quota is phased-out:

 A reduced lead time: from 90-120 days to 30-45 days.

 Ethical Sourcing (Introduce of Compliance stickers: SA-8000, ISO-9000, ISO-14000;