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INTRODUCTION
Garments sector is one of the important export sectors of our country. Today readymade garments sector not only earn maximum foreign currency but also engage a lot of unemployed people in productive industry. For this industry, various bank and insurance business are now in better position, transportation business now expanded in the country, shipping business is increasing inside and outside the country, cargo handling, clearing and forwarding business, buying house, hotel, tourist all this sectors found possibility of their business by this readymade garments export. There are more than 18 lucks people engaged in this sector. So their purchasing powers increases and a group of consumer also created by this sector. More than 8 lucks people are engaged in different accessories industry to earn their money. As a result our unemployment reduces beside our socioeconomic position also developed. It is true that, for bright future of Bangladesh the contribution of this sector cannot be neglected. But now a days there are some internal socio- political problem and for international depression there is a possibility to reduce our export. We have to carefully assess our internal problem and try to overcome this problem as early as possible. Otherwise we fail to attract foreign buyers for export from our country. Before 2005 multi fiber agreement (MFA) limit us specific export but after 2005 our export increases in different new country including previous country. If we want development of Bangladesh and to survive this industry in long run, our position and
opposition party must work together to continue this industry. For developing this industry we have to look our labor who are always neglected. Labor are the key of this industry. So we have to give them sufficient salary and other benefit for their well living. Backward linkage industry, bonded warehouse facility, garments village must be established for smooth export.76% of Bangladeshs total export income earn through RMG. Now Bangladeshis is in the 7Th position in EU, in exporting ready-made garments (RMG). This is the appropriate time for solve problem and capture foreign market otherwise we cannot increase our market share for readymade garments. The following report is prepared on PACIFIC JEANS Ltd., which is the largest among locally invested garments. And it is the 2nd largest among all garments in Bangladesh. The main objective of the study is to evaluate the production, marketing, accounting, financial principles as well s overall performance of the PACIFIC JEANS Ltd.
Pacific Jeans Limited is a 100% export oriented garments manufacturing industry. It has started commercial production in 1994. It is a private limited company and it is a C categories company that means there are 100% local investors. It is located in Chittagong Export Processing Zone known as CEPZ, Bangladesh. Md. Nasir Uddin is the Managing Director of this company. He is a well experienced business personnel and industrialist. He has the vast marketing experience and for exploring the export business he had the opportunity to travel all over the world and established a good business relationship with the overseas buyers.
Communication Media
Phone: 880-31-741006-8, 880-31-741338
Fax: 880-31-741339, 880-31-740153
Email: info@pacificjeans.com
Pacific Jeans Ltd. is one of the foremost manufactures of the garment industry in this country. Pacific Jeans Ltd. is a 100% export oriented garments manufacturer. To maintain world-class quality garments Pacific Jeans concentrates on the following factors
Quality of the input (such as fabrics, accessories, chemicals etc.) Quality of sewing. Quality of sewing thread. Quality of washing. Quality of packing. Quality of Finishing.
Date of incorporation
: march in1993
: 12 December 1994
: 1. Md. Nasir Uddin 2. Mrs. Syeda Umme Habiba Begum 3. Mr. Sayed Mohammed Tanvir.
Banking Corp. Ltd. 2. Credit Agricole Indosuez 3. Agrani Bank 4. City Bank NA
Floor Area
4,25,000 SFT
Material Searching Area: Hongkong, Indonesia, Taiwan, China, India, Dubai, Pakistan, Mexico, Japan, South Korea, Bangladesh .
Canada -3%
Other Concerning organizations of Pacific Jeans Ltd. NZN Fashion Wears Ltd. NZN Garments Ltd. Diamond Fashion Wear (Pvt.) Ltd. Jeans 2000. Pacific Accessories.
The
Company
is
established
to
fulfill
the
following
achievements through its business operation, which are directly or indirectly related with the social supplement of the nation.
1. Employment Opportunity. 2. Working Environment for women. 3. Educational Program for the Child Labor (through BGMEA & UNDP) as BGMEA member factory. 4. Not to employ the child labor. 5. Donation and rehabilitation program for the distressed people affected by natural catastrophe like flood, storm, tornado etc. 6. Creating business opportunity for the linkage or support industry. 7. Training of the local people working in the factory through foreign experts.
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Chairman
Managing Director General Manager Deputy General Manager ACCOUNTS Asstt. General Manager CUTTING MAINTENANCE Manager
HRD MERCHANDISING ACCOUNTS PRODUCTION STORE
WASHING
ACCOUNTS
STORE
SENIOR EXECUTIVE JUNIOR EXECUTIVE STAFF WORKERS
PRODUCTION
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The key points of management practices of PACIFIC JEANS Ltd. Are discussed below
MISSION:
The mission is to Maintain Code of conduct or maintain Labor Law (2006).on time shipment and to maintain quality products. In our visiting organization, the main mission or purpose of PACIFIC JEANS Ltd. is to create or increase profit as a production oriented company. Goals and Objectives: Objectives or goals are defined as the important ends toward which organizational and individual activities are directed. Objectives state end results. Clear and verifiable objectives facilitate measurement of the surplus as well as the effectiveness and efficiency of managerial actions. PACIFIC JEANS Ltd. considers the increase of production, quality of product, market share and achieving target as organizational goals and objectives.
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term objectives and courses of action and allocations of resources to achieve these aims. On the other hand, Policies are general statements or understandings, which guide managers thinking in decision making. They ensure that decisions falls under certain boundaries. PACIFIC JEANS Ltd. has the established rules, procedures, policies or strategies. But they could not provide that for their business secrecy.
Planning Process:
Planning involves selecting missions and objectives and the actions to achieve them, it requires decision making. PACIFIC JEANS Ltd. also has a strong planning process in which the authority has to formulate these plans. Most of the times top-level management make decisions.
MBO or MBE:
Management by Objective (MBO) is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and that is consciously directed toward the effective and efficient achievement of organizational and individual objectives. But PACIFIC JEANS Ltd. does not encourage MBO or Management by Exception (MBE) as a basis of decision-making.
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particular field. PACIFIC JEANS Ltd. does not follow generalization. And the company generally follows the product departmentalization. Span of Control: The number of subordinates a manager can effectively and efficiently direct. Wider span are more efficient in term of cost. However at some point wider span reduce effectiveness. That is, when the span becomes too large, employee performance suffers because supervisors no longer have the times to provide the necessary leadership and support. Narrow span have three major drawbacks. 1. They are expensive because they add level of management 2. They make vertical communication in the organization more complex 3. Narrow span of control encourage overly tight supervision and discourage employees autonomy.
PACIFIC JEANS Ltd. follows narrow span of control and manage effectively.
Decision Making:
Decision-making is defined as selection of a course of action from among alternatives; it is at the core of planning. Decision-making may be either centralized or decentralized. The decision making process of that company is centralized by the authority. The lower level managers cannot participate in the decision-making.
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In my visit I know that there is a separate HRD or personnel department in the company. There are about 3 Human Resource Managers in PACIFIC JEANS Ltd. The basic Organ gram of the Human Resource Department is as follows:
GENERAL MANAGER
MANAGER (SEC-1)
MANAGER (SEC-2)
MANAGER (SEC-3)
Roles of HR department
Maintain Liaison with the Administrative Manager. Grievances handling of the workers. Undertaking training programs for skill development. Counseling the rights and responsibilities among the workers. Conducting motivational programs. Taking care of in-house cleanliness, health and safety. Ethical issues and codes of conduct etc
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Manpower Planning:
We know that the starting point in attracting qualified human resource is planning. HR planning, in turn, involves job analysis and forecasting the demand and supply of labor. Basically the personnel manager is responsible for manpower planning, but before taking any decision he consults with line managers. In fact, Manpower planning is the process by which an organization can engage the right number of people for the right job at the right time
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Casual
10%
Recruitment
Selection
Orientation
Training
Career Development
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Recruitment:
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Recruitment is a process to find out quality people for the organization. It is directly related to a number of personnel or human resource activities are as follows: Employment planning Recruiting providing Job application selection
The various types of recruitment procedures are as follows: 1. Internal source 2. Advertisements 3. Employee referrals 4. Private employment agencies 5. School placement In my practical findings, PACIFIC JEANS LTD follows the internal sources and advertising procedures to recruit the people. And for recruiting employees through advertising, the company follows the daily newspaper, Internet and others. The company also collects the applications from applicants by post or courier service and others.
Alternatives to Recruitment
Personnel Recruitment
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External sources
External Method
Recruited Individual
Selection Procedure:
After recruitment, the company maintains selection procedure. PACIFIC JEANS LTD makes a short list of applicants from among all before selection test. This type of short list is prepared as qualification and experience. There are various types of selection test for employee selection. These are: Written (subjective type) test, Written (objective type) test, Oral test Medical test Others PACIFIC JEANS LTD usually follows the written (subjective type) test; oral test and medical test for employee selection but this selection procedure can vary person to person. Such that
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Job Analysis:
Job analysis is the process of studying and collecting information related to operation and responsibilities for specific job. This is the primary and pre-condition before recruiting and selecting a person. PACIFIC JEANS LTD follows job analysis before employee recruitment.
Job description:
Job description is an organized and factual statement of the duties and responsibilities for a particular job. PACIFIC JEANS LTD follows job analysis, job specification and job description for every job.
Job Specification:
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It is a statement of minimum acceptance of human qualities necessary to perform a job properly. The company selects employees according to job specification.
PACIFIC JEANS LTD provides promotion and extra benefits to retain quality people to the organization. There are basically two types of benefits provided by the company. These are: (i) (ii) Financial benefits Non-financial benefits
(i) Financial Benefits: Financial benefits are as follows: a. Salary b. Bonus c. Incentives
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(ii) Non-financial Benefits: Non-financial benefits are as follows: a. Communications/transport b. Free medical services c. Entertainment d. Others
Promotion/Demotion:
The most important policy question in promotion is the relative significance of seniority and competence. In recent times potentiality and competency are considered as most important basis for promotion. Though there is an increasing pressure and tendency, to give more weight to seniority in making promotions, because of the great importance that worker attach to length of service. PACIFIC JEANS LTD considers the followings as the basis for promotion. Seniority Experience Performance Academic Qualification Like public concerns, they do not have any system of demotion. HRM urged that the incompetent employee has to be trained.
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For increasing the knowledge, skill and improvement of competency of employees both in-house and out-door system are followed. There are some training methods for developing employees. They are: On the job training, Apprenticeship method, Lecture and conference method, Sensitivity training, Vestibule training
PACIFIC JEANS LTD follows on the job training. It means informing the trainees about the nature of work, conditions, and environment within a short period of time. The company has a separate training department in which a continuing training system is maintained. Employees are also sending to train up in foreign country.
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f. Academic qualification g. Personal relation h. Others Average Pay Scale per Month for employees US$50.00.Theminimum wages for worker is BDT 2100.00.PACIFIC JEANS provide two Eid bonuses to employees and workers
Motivation:
Motivation can be defined as the process that account for an individuals intensity, direction, and persistence of effort toward attaining a goal. The three key elements in this definition are important. In motivating the employees the HR department of PACIFIC JEANS Ltd. has introduced financial incentives, increment, profit sharing, job security. PACIFIC JEANS LTD follows the two-factor theory of motivation. Intrinsic factors or Motivational factor which is related to job satisfaction such as recognition, growth, advancement, work itself and achievement etc. Extrinsic factors are associated with dissatisfaction such as company policy, administration, supervisions and salaries. If extrinsic or hygiene factors are available than employees will not be dissatisfied, it does not mean that employees are satisfied. Because, these are very common factors and exist in every organization. PACIFIC JEANS Ltd motivates their employees through some facilities. These are:
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a. Handsome basic pay b. Increment in basic pay d. Job security e. Job status f. Good behavior
Performance Appraisal:
Performance appraisal is a process for evaluating the past performance of an employee by his supervising officer who is conversant with the employees job performance. There are two types of performance appraisals. 1. Traditional performance appraisal 2. Result oriented performance appraisal In PACIFIC JEANS, result oriented performance appraisal is followed. There is a continuous evaluation system for performance appraisal. The company has professional appraisers to evaluate the performance. For evaluating performance, this company uses an appraisal form to be filled by nominees associates and superior.
Job Rotation:
PACIFIC JEANS Ltd. follows job rotation strongly when employees feel fatigue and monotony because of continuation of job. It indicates change the job for sometimes in order to minimize fatigue and monotony of particular employees.
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Interpersonal Relationship:
In PACIFIC JEANS there is a good management-worker relationship. The company always tries to maintain good interpersonal relationship of employees. It improves employee morality and organizations citizenship. The company improves their interpersonal relationship through attending party, meeting, counseling, annual picnic and official festival.
Participative Decision-making:
Participative decision-making is one of the core concepts of industrial democracy. Industrial democracy is the modern global world phenomenon. PACIFIC JEANS takes participative decision making, but do not encourage CBA. Their workers are well satisfied and do not want CBA. Although they do not encourage CBA but take participative decision.
Labor turnover:
Labor turnover of company is 2-3%. There are various effects of labor turnover. These are:
Deceases of team spirit. Increasing the training cost Increasing the administrating expenses. Difficulty of optimum use of machinery.
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PACIFIC JEANS also faces problem in case of labor turnover. But there is only 10% labor turnover in previous 5 years due to the employees personal interest. To reduce the employee turnover the company gives the promotion and increases the salary.
Industrial disputes:
There are various forms of industrial disputes like: 1. Strike 2. Sit-down 3. Lock-out 4. Go slow, etc. In PACIFIC JEANS, there is no industrial disputes and conflicting situation.
Employee Morale:
The company emphasis on group moral rather than personal. It has no particular system in measuring the morale of employee. Being an employee of this concern the entire employee possesses good social status and therefore, they have high morale. The organization has good reputation in practicing ethical business. To ensure the ethical behavior of the employees it follows basic policies.
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Avoiding market and price manipulation practices. Giving tax (Customs, Income, duty, others). Not to offer and receive bribe for doing anything. Social welfare involvement.
INDUSTRIAL RELATIONS
Industrial relation occurs within dynamic conflict situation. Which is permanent and unalterable so long as the structure of society of the social remains unaltered. PACIFIC JEANS follows the industrial relation ordinance of 1969 properly. The existence relationship between labor and management is good. The management tries to develop the relation with the labors. There are no trade union activities in the organization. The worker welfare committee discussed with BGMEA to solve the any problem. The company also emphasizes on the following factors to develop industrial relation Payment the proper wages within due time. Ensure better working condition. Arrangement training facilities. Ensuring participatory management.
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PACIFIC JEANS has a separate production department, which is the vital for that organization. The production department is responsible for: Maintaining liaison with the marketing and sales department and to accept the order for specific floor according to the capacity. Managing the machine lay out plan of the production floor. Study the order/products carefully before start the production. Arrangement of required raw materials, machine and manpower. Arrangement of production according to the delivery schedule. Take care of the products quality. Facing buyers inspection. Preparation of the production planning in advance and coordinate with the marketing team to avoid any late delivery, over/less booking Taking care of the safety issues like Products Safety, Workers Safety, and Safety of the Industry.
The production department has capacity to produce 40,000.00 units per day. The production system of PACIFIC JEANS is continuous. Production procedure is 80% automatic and the rest is manual. The organizations Total Production is 12.48 Million Per Annum.
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R e q i r e m e n t s
S a t i s f a c t i o n
DELIVERY
After finishing all formalities ensure the buyers by fax or email. Ready for exporting the garments
FINISHING Production Labeling according to customers order. Checking & Packing Communicate with C&F
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In this company the manufacturing manager directly administers production task. The production target for the whole year is fixed on the basis of estimates of the marketing department. The annual target is divided to weekly target. An adjustment in manufacturing target is made from time to time as per the change of the world market situation. In order to ensure the achievement of production target regarding product quality and quantity a weekly and regular review is made. In my practical findings during our visiting, I observed a organized production system which is fully controlled by the newly sophisticated technology, that is, the production system is basically computer based. Besides this there are some latest technological production systems which can really surprised me. As a result, the whole production system is operated with fully disciplined way. This production system is basically divided into two parts. They are: 1. Production By CAD: Since this company is mostly based on manufacturing of garments wear so the cutting and designing of cloth is most important task. As a consequence Computer Aided Design (CAD) is largely used for producing the products. And the other hand to cut the cloth on the basis of size of the shirt, pant, trouser, etc made by the CAD. It reduces the wastages and creates an effective cutting on the cloth. In this way, the
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shirt, pant, coat, trouser and other dress have been producing by the computer equipment. Design has been monitoring by the computer monitor and this output as a design on GGT printing machine. That designs have to place on the cloth correctly and cutting for final production by the workers. 2. Production By CAM: Similar as CAD, Computer Aided Manufacturing (CAM) is largely used for manufacturing concern. The CAM is technique applied by the modern sophisticated equipment of PACIFIC JEANS Ltd. Some sort of product would not made possible totally by the hand of human being which is easily operated on the computer aided machine. In order to produce high quality product to set up CAM system which mark on their quality of product as a level of brand. In this way, the company to proper used on CAM is effective performance for production and marked by the computer level seal to their product remain.
Production Capacity of PACIFIC JEANS (Items Per Day) Total Capacity: 40,000.00
ITEM 1. 2. 3. 4. Mens Ladies & Boys 5 pocket Jeans Cargo Pants/Shorts/Mens Carpenters Chinos Overall/Short all Unit 15000.00 7500.00 7500.00 4000.00
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5. 6.
2000.00 4000.00
PACIFIC JEANS Ltd. is a basically a garment manufacturing company. It produces mainly jeans pants & trousers. The contribution of garments sectors towards the total export is a great percentage of this company.
Marketing Department:
PACIFIC JEANS Ltd. attaches much importance to its marketing tasks for which the Managing Director himself takes personal interest. The marketing department is responsible for sales, distribution, market research and handling marketing of individual products. The total manpower engaged in the marketing department is only 20-40 persons.
Target Market:
In PACIFIC JEANS Ltd, there target market is especially for foreign market. They are marketing their products to USA, European countries, Canada, Brazil, germany, netherland etc.
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Market Structure:
It is a production oriented manufacturing concern. The nature of production is garments wear and it produces the consumer goods. PACIFIC JEANS is 100% export oriented and it produces for foreign market. The organizations close competitors are India, Pakistan, China, and Hong Kong.
Package:
The company feels that packaging is more important task to protest the freshness of their products. The company always conscious on there product, and so that package is more attractive which attraction to the customer and also describe the product application. PACIFIC JEANS Ltd have been realizing at the long period, the power of good packaging to create instant customer/buyer recognition of the company or brand .In this regard the company, before the final packaging to check properly on product defaults, if any defaults fined out and instant to attention concern and rejection of that product. After checking at first to pack on individual poly bag and wrapper on the carton, which is printed by board paper?
Marketing of product:
Marketing of quality product is the main function of the company. Therefore, there are no difficulties in case of marketing new product. In shipping there is no problem, only port and custom problem is not well
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satisfied about their market demand. There are no traditional promotional activities in this manufacturing organization. Because there is a 100% export volume in this organization.
Transportation:
Transportation is a necessary function of marketing because most of the markets are geographically separated from the area of production. On the basis of products to required the various types of mode of transports to the place of consumption. In this context the company likes the sea, air and land transportation to carry on their products. On the above conditions to depend on urgency need which use to the company requirement. But the company normally prepared on the sea transportation because it contains on large volume of product at a time. Frequently, the transportation cost would be minimized. The company has an own transport department and have cargo carrier. The air transportation use only for urgency met the customer demand. Sometimes, this air transportation is used for emergency treatment of any top-level executive or their family members.
Advertisement:
This company does not follow any advertisement strategy for creating market demand. PACIFIC JEANS Ltd always tries to maintain the product quality. This is their only promotional activity for attracting the foreign buyers. Because this company is completely different from any other type of production oriented company in regard of buyer attractiveness,
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buyer convince and getting order from buyer. As a result, in most of the times, the company get the order from world reputed branded products.
Sales Target:
The company have sales target only for international market. PACIFIC JEANS Ltd follows the research and development program for developing their sales volume or product quality. In PACIFIC JEANS Ltd, there is a sales center, but do not follow the traditional price discount system even not provide after sales service. There are some sorts of samples for foreign buyers in this sales center. Besides this, there is only the particular target for delivering timely the quality products to the enlisted foreign buyers.
Marketing Problem:
Because PACIFIC JEANS Ltd is a private organization. Although it is worldwide experience, skilled management and rich compensation policy has played vital role to minimize some of the problem like worker unrest, absenteeism and administrative etc. Some problems are: 1. Sometimes govt. rules and regulation restrict PACIFIC JEANS Ltd normal processing operation. The govt. of Bangladesh always keeps close eyes on its activities. For changing prices, new plant installation, raw materials, and procurement etc. the company
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has to seek necessary permission from the govt. obviously the govt. cannot always meet its expectation. 2. PACIFIC JEANS Ltd uses packaging materials for local suppliers, printing, paper, wrapper, carton making etc, of this company which are relatively inferior in quality than those of developed countries. The supplier often fails to honor time commitment in delivery. 3. Political instability is another serious operational concern for PACIFIC JEANS Ltd. Particularly we have to see that Bangladesh witnessed frequently changes in govt. policies and regulations.
The financial management is the custodian of the finance of the organization. The department keeps all records of the payment and earnings, operating companys account with the bank, arrange funds as per requirement and deals with income tax for the tax matter of the company. This department is responsible for maintaining proper account of the companys property and maintaining liaison with the owner for the financial matters regularly. The key elements of financial management of PACIFIC JEANS Ltd. Are discussed below:
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But in my practical findings, the company does not provide any type of financial statement due to their business secrecy.
Market Share:
PACIFIC JEANS Ltd. does not enter share market. Therefore the company has no market share. It is a private limited business entity.
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PACIFIC JEANS Ltd. provides short-term finance from companys own sources. Long term finance provide by directors and banks. The company has no problems of internal financing. Bank Name: The Hong Kong and Shanghai Banking Corp. Ltd. Credit Agricole Indosuez Agrani Bank Citi Bank NA
INFORMATION TECHNOLOGY
Information technology is a very crucial and important sector for all organization. In the view point of todays complex business world an organization cannot survive without the help of information technology. PACIFIC JEANS Ltd. also has separate information technology.
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PACIFIC JEANS Ltd. is fully resourceful about information technology. A short description about their capability of information technology is given below: 1) 30 computers for IT department where all records of the company are kept. 2) 12 IT specialist to maintain all the work of this department. 3) 18 computer literate officers to use the computer. 4) Own centrally located server, which coordinate all the computers. 5) All the computers are equipped with Internet facility PACIFIC JEANS Ltd. use customized software for their IT department. This company uses their IT facility: 1) For payroll. 2) To keep the accounts for all departments. 3) To get the latest data about garments sector. 4) To communicate with buyers. 5) To keep the record of Accounts and Finance departments. 6) To get orders and send price catalogue to the buyers by email. 7) To easy retrieve of data and print the data.
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Fire extinguishers Fire alarms Manila rope Face mask Emergency lights Smoke detector Exhaust fan Fire hoses First aid boxes Water bucket with stand
: ABC-26pc, CO2-30pc : 12 alarms : 10 pcs : 30 pcs : 50 lights : All floors : 130 fans : 10 hoses : 10 boxes : 20 pcs
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During my visit, I notice some problems of PACIFIC JEANS. These are mentioned below:
The organization does not have adequate promotional programs for its product. There is no child care center for female worker There is no provident fund for employees and workers. The organization does not maintain any educational standard for workers. It does not provide educational facility to its workers
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Recommendations:
On the basis of findings of the study, I would like to recommend the followings:
1. Pacific Jeans is supposed to arrange some training program to improve the efficiency of the helpers & operators.
2. Company be capable of arrange half yearly get together to improve the relationship between the Management & workers.
3. Customer
service
can
be
improved.
For
this
purpose
management can arrange yearly get together with the consumers (Buyers). 4. The Company must have to appoint at least medium educated & Skill person.
6. The salary system should be well structured regarding the job responsibilities.
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CONCLUSION
At last, I can say that the management portion of all departments of Pacific Jeans Ltd. is performing its job efficiently. In fact the all departments are most important equally to increase the productivity by low cost and to maintain the well reputation. Beside the executives are very industrious and serious in performing their jobs. Though there are also some who are not much committed. The executives hardly try to achieve 90% efficiency. The organization is maintaining a high quality work environment in accordance with the labor Act of Bangladesh. Workers get adequate wages and they get their wages timely. So the workers are satisfied and there is no industrial dispute or labor unrest. If the Company follows the recommendations made in this report, I believe that it can overcome the present problem. And in the long run the company will be benefited and it may become the market leader in near future. There is no doubt that Pacific Jeans has created a good reputation in the market by its quality product and service. It should maintain the quality and try to diverse its business.
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Bibliography
Profile of Pacific Jeans Ltd. Standard questionnaire. Officials of Pacific Jeans Ltd. Personnel Management, -Decenzo Robbins. Website Pacific Jeans Ltd.