Nashid Hossain Khan
ANALYSIS OF THE STRATEGIC ENVIRONMENT OF READYMADE GARMENTS IN EVERSMART APPARELS LIMITED
Thesis
CENTRIA UNIVERSITY OF APPLIED SCIENCES International Business
June 2020
Centria University of Applied Sciences
Date June 2020
Author
Nashid Hossain Khan
Degree programme
Bachelor of Business Administration, International Business Name of the thesis
ANALYSIS OF THE STRATEGIC ENVIRONMENT OF READYMADE GARMENTS IN EVERSMART APPARELS LIMITED
Instructor Pages
33+3 Supervisor
Johanna Österberg-Högstedt
Organizations in today's world are facing several challenges due to the changing environment. One of the numerous challenges for a trade is to educate its employees to manage up with the ever-changing and advancing environment and to attain victory and stay in the competition. To see new ways of working the organization must move away from the comfort zone. They have to make a work environment where individuals appreciate what they do, feel like they have a reason, have pride in what they do and can reach their potential. The study is aimed at knowing the perspective of the working environment that influence the workplace.
The purpose of the thesis was to give a clear idea about the working environment of an industry and to show the importance of the workers in the industry as workers play an important role in the industries. On the other hand, what workers think about their industry because the production of the company depends on them. The quantitative research will show the work environment condition of Eversmart Apparels Limited and give an idea about what the workers think about the firm.
The quantitative research will lead to the strategic working environment analysis of Eversmart Apparels Limited. The study will reveal problems that workers faced in their workplace. The workers of the Eversmart Apparels Limited will take an interest in this survey and the review.
Based on the research of the thesis, the administration of the organization should discover ways and means of communicating its objectives and methods to its employees in order to understand what the business is and its goals and vision.
Keywords
Fair wages, importance of workers, industry environment, influencing factors, job security, work-life safety, working environment.
CONCEPT DEFINITIONS
RMG = Ready Made Garments
SEAN = Strategic Environment Analysis WTO = World Trade Organization NGO = Non-Government Organization
BGME = Bangladesh Garment Manufacturers and Exporters Association GM = General Manager
AGM = Assistant General Manager MD = Managerial Director
USA = United States of America
BSCI = Business Social Compliance Initiative SEDEX = Supplier Ethical Data Exchange
ACCORD = Administration and Control of Contracting and Regional Data
ABSTRACT
CONCEPT DEFINITIONS CONTENTS
1 INTRODUCTION ... 1
2 COMMISSIONER ... 3
3 ENVIRONMENT OF GARMENT INDUSTRY ... 4
3.1 Work-Life Safety ... 5
3.2 Job Security ... 6
3.3 Work Pressure ... 6
3.4 Working Environment ... 7
3.5 Political Unrest ... 7
3.6 Fair Wage ... 8
4 INTERNAL ENVIRONMENT... 9
4.1 Owners ... 10
4.2 Board of Directors ... 10
4.3 Employees ... 11
5 EXTERNAL ENVIRONMENT AND ITS FACTORS ... 12
5.1 General Environment ... 13
5.1.1 Political-Legal Dimension ... 13
5.1.2 Economic Dimension ... 14
5.1.3 Socio-Cultural Dimension ... 14
5.1.4 Technological Dimension ... 15
5.1.5 Legal Dimension ... 15
5.2 Task Environment ... 16
5.2.1 Competitors... 17
5.2.2 Customers ... 18
5.2.3 Suppliers ... 18
5.2.4 Regulators ... 18
6 CONDUCTING RESEARCH AND METHODS... 20
6.1 Research Outcome ... 21
6.2 Findings and Recommendations ... 27 7 CONCLUSION ... 30 REFERENCES... 31 APPENDICES
FIGURES
FIGURE 1. Working Environment of Eversmart Apparels Limited. ... 5
FIGURE 2. Internal Environment ... 9
FIGURE 3. External Environment ... 12
FIGURE 4. General environment ... 13
FIGURE 5. Task environment ... 17
FIGURE 6. Gender grouping... 21
FIGURE 7. Age grouping. ... 22
FIGURE 8. Work-life safety. ... 22
FIGURE 9. Work time. ... 23
FIGURE 10. Working environment. ... 23
FIGURE 11. Fair wages. ... 24
FIGURE 12. Relation between worker and leaders. ... 24
FIGURE 13. Political influence. ... 25
FIGURE 14. Bonus, increment and promotion. ... 25
FIGURE 15. Modern technological condition. ... 26
FIGURE 16. Recommendation. ... 26
FIGURE 17. Feelings of the worker for the firm. ... 27
1 INTRODUCTION
Strategic Environment Analysis (SEAN) is a process to identify the external and internal element which is involved with the organization’s performance and focus on firm’s opportunities, problems and development (Joost Kessler 2000, 295). The working environment is part of the industry environment and business planning. It focuses on environmental and socio-economic issues of sustainability. The framework of this thesis is divided into four clusters; environmental context analysis, problem analysis, opportunity analysis and working environment analysis. There are mainly two types of Strategic Working Environment; internal environment and external environment. Both of these environments are strictly involved with the financial position of the firm. (Mital, Robinson & Pearce II 2012).
The aim of this study is finding out the current working environment in Eversmart Apparels Limited which may help to make the environment better and comfortable for the employees to work. As the working environment is the key issue for an organization and the working decisions are highly dependent on the working environment therefore the firm needs to ensure a comfortable working environment. The thesis will find out the complexity and barrier to the strategic decisions of the firm. Furthermore, this thesis will also dive into the issues regarding making improvements to the environment while also helping the working manager in making decisions which lead to the firm reaching their aim.
The study objectives include identifying the current working environment at Eversmart Apparels Limited, finding out the problems this working environment is facing and offering justified solutions that can help in overcoming those problems, thereby improving the working condition in the company. The study will look at the overall condition of the working environment in the company and analyze its condition to better explain what is going wrong and how that can be amended. Additionally, the identified problems will be cross-referenced and suitable solutions will be generated, which can help the manager in the company take decisions more effectively.
The study will also figure out how the firm is managing its working environment, and if there any separate working management departments for taking the working decision and to handle the working environment.
This thesis provides an overall picture of the working environment of Eversmart Apparels Limited. The thesis will also explain how the working environment can be more flexible and supportive to the managers,
workers, suppliers and others. Workers and employees always prefer an adjustable working environment which improves their performance and productivity by providing the right amount of comfort. This thesis will provide the policy to make a good relationship between the owners and management which may help to consist of a comfortable working environment. It may also help the employees to get fair wages and desirable facilities. The suggestions which will be provided here may be helpful to the owners in ensuring that the working environment is more comfortable.
The theoretical part of the thesis will describe the working environment of Eversmart Apparels Limited which consists of some functions. These functions are political environment, social environment, economic environment, technological environment and legal environment. It also includes the customers, the suppliers, the competitors and the employees. I will draw some figures and tables to show the overall scenario of the working environment of Eversmart Apparels Limited. In this thesis, I will contact the Merchandising Manager, The Assistant General Manager, The IE Manager and The Managerial Director of Eversmart Apparels Limited. Because I am not living in the same country as the company, online communication is the only feasible solution, which will be used to contact the aforementioned people.
This is quantitative research and the main objective of this thesis is to know the current working environment of Eversmart Apparels Limited. The study on strategic environment analysis helps the firm to show the working environment situation of Eversmart Apparels Ltd. The working environment is considered as the key point of an organization. Therefore, it has an important role to play in achieving organizational goals.
This thesis will discuss all the factors which are involved in the working environment. It will also help to find out the current scenario of the working environment in Eversmart Apparels Limited. This study can be a helpful tool for the managers to pay more attention to the aspects where the firm is lacking, which may result in improvements to both their reputation and ranking. Findings of the study may enrich the present literature and it can help future researchers in conducting their studies.
2 COMMISSIONER
Eversmart apparels is a 100% export-oriented and a leading knit factory. The official name is Eversmart Apparels Limited. It is located in Nawjor, Bypass, Gazipur. Since 2019 it has been known for knit production. Eversmart apparels are the world-leading brand in the fashion industry. Eversmart export the best quality T-shirt, polo shirt, jacket etc. Eversmart export mainly in Europe, USA, Russia, Japan, Africa, Canada, Turkey etc. To produce and export Eversmart follow Business Social Compliance Initiative (BSCI), Supplier Ethical Data Exchange (SEDEX), Administration and Control of Contracting and Regional Data (ACCORD) standards. The owner of Eversmart Apparels Limited is Md. Manirul Islam, Managing Directing (MD) Ashfaqur Rahman, and Director Noor Islam Mintu. The company employs many tactics and strategies to improve its production and quality, thereby its overall performance. For instance, developing the team for optimizing production, reducing rejection and rework, appropriate inventory management, energy conservation, ensuring compliance of the buyers need and adequately equipped for the ever-changing challenges. The continuous process of the job training and development of the employees as the resources of the company. For higher accuracy of product quality, the company ensures the best possible use of the fabrics, proper cutting and decent stitching to keep the wastage at the minimum level. (Mahmudul 2019.)
The vision of the Eversmart Apparels Limited is to be world-class knit manufacture with state of the art and outstanding quality for ultimate buyer satisfaction (Mahmudul 2019). They have some mission to be a market leader in Eversmart Apparels Limited, to produce the innovative product at a competitive price, to exceed customer’s satisfaction with outstanding quality, to fulfil commitment toward society and sustainability. Eversmart apparels values deliver the value for money, employees’ satisfaction and customer delight, innovation and improvement, care for dignity and practice ethical business (Rahman 2019).
The major buyers of the firms are Unlimited, Ego Fashion, News Trading, Larva etc. The primary market destinations include the United States of America (USA), Europe, Canada, Japan, Turkey etc. The current production rate of the company is 1.2 million pieces annually and 120,000 pieces per month. Their total employees are 250 and they also have 4 lines in total, where each line has 25 operators/machine. The company offers a working hour of 8 hours per day and 2 hours overtime but not more than 60 hours per month. Child labor is strictly prohibited. (Masud 2019.)
3 ENVIRONMENT OF GARMENT INDUSTRY
The study on analyzing the working environment of Eversmart Apparels Limited. The environment of the garments industry refers to all the factors that have an impact on the garments industry, Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The garment industry is the main catalyst for the economy of Bangladesh. Lower costing workers and sufficient labor in RMG sector is a competitive advantage for Bangladesh. Recently the environment of Bangladesh has been unstable since 2014 due to the Tazreen garment and Rana plaza incident damage the international market image. It could give the buyer a negative perception of Bangladesh. Fire accident of Tazreen garment and Rana plaza accident gave us the alarm that our working environment is not safe for our workers. We should ensure the working environment safety. Because that accident made the working environment unstable and as a result, workers feel insecure.
Political unrest and unfair wages are the main causes of violence in the garment industries environment in Bangladesh. Since 2014 it has been increased in the overall industry in Bangladesh. Political unrest has a great impact on the RMG industry it causes to destroy the market goodwill and buyer safety. Violence in garment industry gives a message to the buyer to think about labor safety and the fair wages. The current scenario of the working environment in Bangladesh is fully disappointed. Which decrease the economic growth and export in other countries. Sometimes local political leader handles the working environment like working hour, promotion, bonus etc. They force the firm to follow their order by hook or by crook.
Workers do not get fair wages due to political unrest and its impact on the working environment. Below it has been described in broadly. (Feng 1997.)
FIGURE 1. Working environment of Eversmart Apparels Limited (Ahmed & Hossain 2009.)
Safety and Security
Work life safety
Job security
Working Condition
Work life pressure
Working environment
Conflict Issues
Political unrest
Unfaire wages
3.1 Work-Life Safety
The issue of safety at RMG sector is in an alarming position that is becoming more complex with the passing of time. Tazreen garment and Rana plaza accident makes us anxious it also gives us a message to be more conscious about the employees’ safety. Government and BGMEA also try to mitigate this unrest situation.
Workers feel the risk to their life. There are very few garments has group insurance and health insurance for their workers. When the firm ensures the employees work-life safety it will make the employee more satisfy and comfortable which lead to more productive. The firm should ensure the workers life safety first because workers are the key factors for the company. (Ahmed & Hossain 2009.)
Tazreen’s story is the mentionable fire accident (boeufblogginon 2013). About 200 workers were killed by this unexpected accident. Tazreen authority didn’t take the proper step to save the people. This fire accident makes us worried about the safety of the employees in Eversmart Apparels Limited. Another tragedy of Rana plaza collapse, about 1100 garment workers died. Rana Plaza collapse shocked all over garment workers. Many of the garment workers were seriously injured and they will not be able to come back to the work ever. Due to these accidents, many families face an economic problem by losing their earner. Though some of the institutions such as Non-Governmental Organization (NGO), Trade Union, BGMEA and World Trade Organization (WTO) were worried to see the historical tragedy in RMG sector in the world and they helped to them for a while, but it’s not enough for leading their life. (boeufblogginon 2013.)
These accidents affect the garment’s export, the buyer takes the issues consciously and force to ensure the workers’ life first. Bangladesh garment industry sees the same scenery in before, but nobody come forward to stop the tragedy. After Tazreen fire accident and Rana plaza collapse, many institutions come forward to stop the accident and to ensure the workers’ life first. BGMEA impose the necessary action on the garment factory. Though all the acts are not applied yet after that some of them has been applied. The situation has been developed from before though the firms don’t ensure the workers’ life safety fully. The firm should ensure the workers’ life safety first. (Faruq & Omar 2013.)
3.2 Job Security
Job security is an important issue in the Garment industry because most of the garments don’t follow the rules and regulations to fire their employees. As a result, they feel insecure about their job security. Though the government impose the rules on to apply and fire or discharge the employee. In recruitment, the bias to recruit the employees as their own way or personal benefit. Sometimes employees face job politics and they discharge from the job. When a garments worker cannot be ensuring his/her job security they can’t do the job or take the responsibility properly. On the other hand, if they inform about their job security then they will be more responsible and productive. To apply or fire someone without a proper or logical reason is a great offence according to the business law. Job security work as a motivator. To recruit the employee, they prioritize their relatives, as a result, they recruit the inept or unskilled man force and the firm fails to achieve their goals and objectives. (Ahamed & Ferdous 2011.)
3.3 Work Pressure
Employees must work overtime regularly and it’s the major hindrance to balance with work life and personal life. They are unable to maintain their social life and make a good relationship with their relatives. Lack of technology is another reason for work pressure because technology makes the task easier and faster than a human being. Technology reduces the human labor and workload. (Majumdar 1998.)
The organization should provide weekly holidays and other holidays which they deserve legally. Mangers think if they work more time, they produce higher product or services. But working manager thinks the production will be high if they perform with a skilled hand. The employee gets motivation and satisfactory if they get workspace. If the employee does not get enough space to balance their personal life, as a result, they feel tired and bored and unable to give the effort or his/her performance properly (Ahamed & Ferdous 2011.)
3.4 Working Environment
The lack of a comfortable and supportive working environment can lead to the dissatisfaction of the employees, thereby resulting in the dissatisfaction of the customers as well. It also a negative impact on productivity which is the causes of lower production. Workers don’t get enough space to work which is the major cause to diminish the employees’ performance. There no sunlight or wind weather in the working segment. Such an environment employees feel boring and uncomfortable sometimes they feel sick or unproductive. The working environment directly involves the production and overall performance.
(Bhuiyan 2012.)
Industry environment should be neat and clean. The working environment helps the worker to work. Dirty environment makes the employees bore even workers can be sick. On the other hand, in a fresh working environment employee get the fresh air which makes the worker fresh and lively. The environment must be supportive of the workers to work. The environment is different based the firm activities, in different industries have a different environment. The working environment is the most important for the firm’s production. (Paul & Quadir 2013.)
3.5 Political Unrest
Political unrest refers to conflict or violence due to political parties. Political unrest makes the environment unstable and creates a movement of violence. The political leader instigates the employees and agitates them to the infelicitous environment to achieve their own benefit. During this present decade, political unrest has been increased alarmingly. They influence the environment and make the environment fearful and less productive. Political unrest in 2014 damage RMG sectors heavily, buyer fear the political unrest because they feel insecure their life. In 2014 some buyers were killed brutally, as a result, many of the foreign buyers cancel their order. Buyer and consumer always expect a stable political environment. Working environment deeply hampered by political unrest, fearing worker can’t work properly due to this problem. (Feng 1997.)
3.6 Fair Wage
A fair wage is another important part of the working environment. If the employees do not get a fair wage and the facilities which they deserve then it affects the firm’s production. They deprive of their deserving facilities. Employees work hard but they are always deprived of their fair wages. Buyer and customer are highly conscious of each part of the environment of the garment industry. External and internal both environments have a great impact on buyer customer perception. They are highly conscious about the suppliers, competitors, employees, owners, substitution etc. (Bhuiyan 2013, 3-4).
4 INTERNAL ENVIRONMENT
Internal environment consists of the parties who have the right to use the internal term of the firm. Internal environment includes the owners, the board of directors and the employees of the firm. Internal environment influences the firm directly. Owners provide the capital for the firm and board of the directors are top-level management who take the working decision. Owners may be an individual or more than one person. In the working environment, owners have a great impact because the owner has the right to take the decision.
Employees are directly involved with operation and production. Employees are part of the working environment. Employees play an important role in the working environment in an organization. Board of directors the member of the firm who takes the decision. They are the top-level management of the firm.
(Kangal 2017.)
As the working environment is part of the internal environment so the internal environment is directly involved with the working environment. For an organization, the internal environment is the most important factor to make the environment comfortable and adjustable to the workers. Because the parties of the internal environment take the decision about the working policy such as working hour per day, working day per week. (Kangal 2017.)
FIGURE 2. Internal Environment (Kangal 2017.) Owners
Board of Directors
Employees
4.1 Owners
Owners are the persons who provide the capital and has a property right on the firm. Owners can be individual or group of people who invest the capital or launch the business. Owner may buy the company that’s known as acquisition. Owners have the right to change the company’s policy at any time. The owner would be individual in sole proprietorship business except this all others have more than one. In a private company, stockholders are limited by 20 members for banking sectors and other companies are limited by 50 members. Private company’s shareholders can’t sell or transfer the share to anyone. On the other hand, in public company, the shares are transferable. There is no hindrance to transfer the shares to others. The number of allowed stockholders is also unlimited in a private company (Mital, Robinson & Pearce II 2012.)
Working environment mostly depends on owner thoughts because the owner has an important role in the decision of the working environment. The owner takes the full amount of profit or loss in a sole proprietorship business. The owner takes the decision in every step; the owner leads the business as his/her own decision. Here liabilities are unlimited. In a partnership business, profit or loss distribute among the part according to the contract. Owners or partners participate in decision making as the contract mentioned.
In partnership business liabilities is unlimited except a limited partner. In a company, profit distributes among the shareholders based on their number of shares. The owner’s liabilities are limited by its investment on share. (iEduNote 2017.)
4.2 Board of Directors
Board of directors takes the decision about the working environment of a firm. Board of directors are the governing body who are the top-level management and they are responsible for companies overseeing and working decisions. As the board of directors are the top-level management function of an organization this is why they take fixed the organizational mission, vision and objectives. They explain the way to operational level to achieve the mission and objectives of the firm. The company’s success mostly depends on them and they are responsible for taking a decision and lead the operation and another department to achieve the goal.
(Khan 2017.)
Firms nominate the board of the directors after a long test (practical test, IQ test, Problem-solving etc.) as the position is strategical that is why they must require good working skills. For this position the firm at first focus on the candidate’s experience than the candidate’s academic qualification. Experience is always better than academic qualification. Especially in RMG sectors experienced person are highly preferred. In a word, the board of directors is the key level for an organization including the General Manager (GM), Assistant General Manager (AGM). There are also Marketing Manager, Accounting Manager, Operation Manager Etc. Board of directors is responsible for their decisions or task to the owners or chair of the firm.
(iEduNote 2017.)
4.3 Employees
Employees are a major part of the working environment of the firm. They are the workforce and a major element of operation level (Bhuyan 2013). By proper management, employees can be more productive.
They are directly involved with the production. A firm’s production is depending on their employees’
performance or skills. Firm’s production will increase when the employees are highly skilled and confident.
It is difficult to ensure the employees’ loyalty and retain them to the firm. A good relationship between employees and management can help to retain the employees in the firm. (iEduNote 2017.)
Employees are not from the same region or culture. As they are from different region and they are also different in their religions, cultures, languages, ages and gender so their beliefs, thought, values and behaviour also different. For a firm, it is difficult to take a different policy for every employee. Employees are very sensitive about their religion and culture. So, the working manager should take the working policy by considering the employees’ factors. The management takes the working policy to adjust with employees and employees follow the policy. The employee is the blood of operation or production activities. This is why an employee is the major internal factor of the firm. (Siddiqi 2004.)
5 EXTERNAL ENVIRONMENT AND ITS FACTORS
There are some factors which affect the working environment from outside of the firm is known as the external environment. In more precise, the factors outside of the organization is the external environment.
The external environment is the factors beyond the control of the firm that influence its choice of direction and action, organizational structure and internal process. The firm has no control over the external environment. The external environment has some factors with the five dimensions. This thesis will discuss on How is the external environment affect the organization. The external environment also involves the working environment indirectly. The factors of the external environment have an impact to make the working environment better. (Mital, Robinson & Pearce II 2012.)
The external environment has some dimension and factors which involve with the working environment.
Technological dimension refers to the machinery and technology that is used in the firm. Socio-cultural dimension refers to the regional culture where the firm is situated. This thesis also discusses the political effect on the firm and the rules and regulation imposed by the government. The last one is the international dimension, here include some rules to do business in other countries. An external factor can be an external user of the firm. (Mital, Robinson & Pearce 2012, 97.)
FIGURE 3. External Environment (Mital, Robinson & Pearce II 2012.)
External Environment
General
Environemnt Task Environment
5.1 General Environment
General environment refers to the factors or forces outside of the organization that may influence the performance and operation in an organization. The general environment has five factors. The factors are political dimension, economic dimension, social dimension, technological dimension, legal dimension.
Factors of the environment are broad and non-specific. As the factors are the part of the external environment this is why the organization has no or little control over the factors or forces of the general environment. Companies have to adjust to the general environment’s forces. These factors also have a major impact on task environment which may include the product supplies, working process. These factor influences the success of an organization. As the factors have a great impact on success so the firm applied strategic method over the factors (Mital, Robinson & Pearce 2012). This adjustment gives the firm a long- term benefit and creates a market goodwill it impacts on the workers as well the working environment.
FIGURE 4. General environment (Mital, Robinson & Pearce II 2012)
5.1.1 Political-Legal Dimension
Political dimension refers to the government or political party’s influence on the business, the relationship between government and business or overall political situation of a country (Mital, Robinson & Pearce II 2012). It is necessary to maintain a good relationship between business and government to get a supportive
Political-legal Dimension
Economic Dimension
Social- cultural Dimnesion
Technological Dimension
Legal Dimension
environment and to avoid political violence. A country has some policy to regulate the business competition such as import policy, export policy, taxation policy, investment policy etc. Lower-income and middle- income countries pursue state-driven mercantilism which helps to reduce imports and increase exports.
Sometimes the government produce subsidizes when the cost is high to the customer's purchase capability.
The developed countries are likely to give more emphasize on privatization rather than on state ownership.
Government impose the rules and regulation to balance the trade market. A business organization is in the peak when the political environment is supportive of the business. Political environment sometimes affects the working environment directly in many ways such as: in a working hour, wages, vacation are affected by the political dimension. (Feng1997.)
5.1.2 Economic Dimension
Economic dimension explains the overall condition and the economic system in the organization. Economic factor focusses cost management. Basically, the economic dimension includes some factors such as inflation, interest rate and unemployment. Economic dimension affects the demand for the product. During inflation, a company raise its product price due to increasing its production cost. A country’s economic condition highly depend on their business organization. On the other hand, business market attractiveness highly depends on the country’s economic condition. A country’s economic condition can be boom or recession or depression, it can be fluctuation. The business is also like that; the manager must have the capability to forecast the state economy. Manager forecasts the economic situation and takes the decision to balance with fluctuation. The manager considers the consumer’s income and their consumption pattern.
When the business of a country is in boom position then the economic condition will be a boom. So, the economic dimension has a great impact on the country’s economy. (Feng 1997.)
5.1.3 Socio-Cultural Dimension
Socio-cultural dimension such an environment which refers the human behavior, customs, norms, values and demographic characteristics (Mital, Robinson & Pearce II 2012). In different society’s cultures are also different. Manager studies enough to gather this information to conduct that society is likely to value and appreciate. It includes lifestyle changes, social mobility, attitudes toward technology and people’s values,
beliefs, behavior etc. Business needs to conduct culture to culture and have to provide such a product or services which meet the customers' demand. Product has to change along with changing the society’s culture. From all of the socio-cultural factors, the most sensitive factor is the religious factor. A human being is highly sensitive about their culture, if the product or services go opposite their culture then they don’t accept that product or services. The company must pay attention to the socio-culture factor. As the different societies have a different culture so the working manager should focus on their culture. (Bhuyan 2012.)
5.1.4 Technological Dimension
Technological dimension makes the working environment easier and saves time. Technological dimension is the most important factor, managers must be more careful to take the investment decision (Mital.
Robinson & Pearce II 2012). Technological factor includes the internet, computer, machinery and other modern technology. Technology makes the task easier and helps to produce more. Nowadays most of the firms are automated, and this technology indicates the firm’s resources and its stability. Working managers must predict future technology and customers demand. Managers are also considering the changes in technology and the outcome of the technology. In this modern era, technology is developing rapidly, and the firms are also dependable on technology. Technology ensures the task is more accurate and completes the task in time. Humane labor is more expensive and it’s difficult to manage them. Managers need to motivate them, control them, and supervise them yet after that human labor void their responsibility. (Mital, Robinson & Pearce II 2012.)
5.1.5 Legal Dimension
Legal dimension refers to the laws and regulation in a country. There are many laws and regulations in business operation such as factories act, contact act, trade act, export and import act and company act (Bhuiyan 2013). Business laws are imposed by the government to protect unfair market competition. These laws also protect the consumer and the society at large (laws for merger, acquisition, industry regulation, compensation policy, global business laws etc.). As the business has become a global business and the market is too much competition. To monitor this global business and ensure the fair competition an
organization has been established. The name of that organization is the World Trade Organization (WTO) they monitor the business policy and consider the consumer right and social responsibility. Government impose the tariff on the foreign product and imported business. On the other hand, domestic product doesn’t need to pay the tariff and they are able to sell their product at a lower price. This is one method to protect the domestic firms. Legal dimension affects the working environment by applying the rules and regulation such as wages, working hour, group insurance etc. (Rahman, Khanam & Absar 1999.)
5.2 Task Environment
Task environment refers to the external environment of a firm which affects the firm’s operational activities, advertising activates and marketing activities. In a word, task environment refers to the working environment for an organization. Task environment directly involves the organization’s goal. Task environment informs us or provides the necessary data or information about the operating and marketing activities of the firm. Any factors in business which directly involved with a business must be a task environment’s factor. The most common factors of task environment are competitors, customers, suppliers, regulators and working partners. These factors affect the working environment directly or indirectly. Task environment needs experienced and skill managers to manage the task environment (Mital, Robinson &
Pearce II 2012).
The task environment managers follow the working management method to maintain the factors. If the managers are failed to maintain the factors it will affect the production and product market of the organization. Task environment may form part of project management and process management to serve efficiently in the organization. It also helps to identify the responsible person, team or department for the success of the company. (Mital, Robinson & Pearce II 2012.)
FIGURE 5. Task environment (Kangal 2017.)
5.2.1 Competitors
Business competition refers to the competition where in the market multiple companies have the same product or substitution in the market (Haider 2007). Competitors refer to the company who exists in the market with the same product or substitute. The firm has to survive in the competitive market by competing with others in the market. Now the global business market is very competitive, and the competition is increasing tremendously. To survive the competitive market the managers, analyze the market demand and customer demand or expectation. The managers predict the future market demand or customers demand to compete with others. Competitors can be individual or group of competitors, they can be a new entrance or exist from before and they can be the same product or substitution product producers.
A manager analyzes the competitor's company’s profile to get the competitors internal strength and structure. Competitors profile may include market share, sales distribution, price competitiveness, advertising and promotion, production capacity, raw material and financial position. Managers also analyze the competitive market and customer’s demand. Market goodwill is most important to compete with competitors. (Mital, Robinson & Pearce II 2012.)
Task
Environment
• Competitors
• Customers
• Suppliers
• Regulators
5.2.2 Customers
Customer refers to the person who bought the product or services, or customer is who pays the money for the organization’s product or services. Customer is the most important factor for an organization. A company’s success or failure mostly depend on customer attraction to their product or services. The working manager analyzes the customer profile where include the customer’s location, beliefs, psychographic issues, religion and their behavior. All customer buying perceptions are not the same. To purchase a product consumer gives more value on religion and their beliefs. This is why manager analyzes the consumer buying perception, if the product or services don’t meet with their demographic characteristics, then the manager has to consider other options. (Mital, Robinson & Pearce II 2012.)
5.2.3 Suppliers
Suppliers deliver the raw materials of product or services. Making a good relation to effective communication with suppliers is an important task for a manager. The manager takes the working decision to deal with the suppliers. Suppliers influence the workers indirectly. The manager keeps the option or substitute suppliers; they should not depend on an individual person or firm. The supplier provides the raw materials, equipment, financial support, office supplies and other services. That is why a good relationship between the organizations and the suppliers is important. (Siddiqi 2004.)
5.2.4 Regulators
Regulators are the authority to control or influence the organization’s policies and practices. Here include the government, agencies or other organization who impose the rules and regulation for the firm. Regulators regulate the trade market to keep the market competition stable and fair. Government and the trade union are the major factors who influence the firm in their policies and practices. Among all the factors of task environment regulators is the most effective and important factors for the working environment for an organization. Regulators observe the firms both of internal environment external environment. They suggest
the organization to keep the environment comfortable and helpful for the firm and the society. (Kamal, Hossin & Bilhah 2010.)
6 CONDUCTING RESEARCH AND METHODS
There are two fundamental methods of conducting research one is quantitative research another one is qualitative research. I follow the quantitative methodology as I have conducted the research based on a questionnaire. So, this is a quantitative research thesis, which is based on primary data. At the present time questionnaire survey is the most common way of conducting the research. Quantitative research is generally about collecting numerical data to clarify a specific phenomenon, specific questions seem instantly sited to answer by using a quantitative method. Qualitative research method gives a structured open idea and wide outline among a group of people. This comes with the questions of conversations, faithful reporting and first-hand experiences. (Kumar 2010.)
Qualitative research is based on how individual or groups of individuals view social or emotional realities in general. This method generally has no variables and only focus on the natural behaviour of human. The report of this method may not be enough to describe in numbers. Moreover, it is a flexible, emerging but recruiting systematic research process. (Hancock, Ockleford & Windridge 2009.)
On the other hand, quantitative research understands the reality and helps to discover the common ground.
This method precisely takes into consideration the complexity focus and definition of interest. Mainly this method focusses on causes and effect. (Hancock, Ockleford & Windridge 2009.)
Reliability and validity are identified with one another. Research is loyal when there are both reliability and validity dependability are available. Research reliability and validity have been articulated to light up the readers about the level of this reliability and validity quality of the analysis that has been led. Validity infers that the right things are being researched considering the study topic’s point of view. Reliability is to learn certifiable elements with the best descriptions. Reliability is a way to get the results obtained from valid research. Validity in research literally indicates that the research is professionally designed, and the methods are effectively used. Data has been collected from the respondents as randomly. (Dudovskiy 2018).
With all the above in mind, the quantitative method is selected. I will collect the data by using the questionnaire method. The reason behind use questionnaires to get relevant information from surveys in a valid and reliable system. The study has prepared 12 questions and it has been included in contents. This
questionnaire is based on the working environment and the industrial relationship between the employees and the employers of Eversmart Apparels Limited. The questions are set to get a clear idea about the employees’ concept about the firm work environment whether they are getting the facilities which they deserve. The survey will target the lower level of workers and middle-level management group as the respondents. I will send them the questionnaire’s link through the Google forms and email the link to the respondents. As I am living abroad so it will not possible to collect data by physically present there. I will select 30 to 50 respondents randomly and analyze the data.
6.1 Research Outcome
The research was done in quantitative methods and 12 questions were asked from the workers of the Eversmart Appeals Limited. The survey was done in the month of May 2020 and the questions were sent to them through Facebook messenger and email. 50 workers responded in this survey where the first two questions were regarding their demographic characteristics and rest of the questions about their firm working environment and about their feelings for the firm.
FIGURE 6. Gender grouping.
The figure shows that the highest number of respondents was ‘male’ and their percentage was 54% which is equal to 27 respondents among the all 50 respondents. On the other hand, there was 46% ‘female’ which is equal to 23 respondents. From the pie chart, it can be said that both are very close to each other.
FIGURE 7. Age grouping.
In this survey, there were two age groups and the figure shows that the highest respondents’ age is between 18 to 36 years. Highest respondents are 82% which is equal to 41 participants among the total 50 respondents. On the other hand, the lowest age range is above 36 which is 18% or equal to 9 respondents.
From the above graph, it can be said that the study has selected the maximum respondents from the age range between 18 to 36 years.
FIGURE 8. Work-life safety.
This question was asked to know about the workers’ work-life safety. The graph illustrates that, the highest response was good, which is 42% or equal to 21 respondents. The second highest response was ‘very good’
which is 22% or equal to 11 respondents. The lowest number of respondents choose ‘poor’ which is 8% or equal to 4 respondents. The highest number of respondents’ response was ‘good’ and the second-highest number response was ‘very good’. From the graph, it is clear that work-life safety is good which explains that the employees are satisfied with the Eversmart Apparels Limited.
FIGURE 9. Work time.
The pie chart shows that most of the respondents’ response was ‘no’, which is equal to 68% or 34 respondents. On the other hand, 32% responded ‘yes’, which was equal to 16 respondents. As the maximum respondents’ response was ‘no’, it indicates that employees don’t work more than 8 hours. On the other hand, 32 percent responded ‘yes’, which indicates that they work more than 8 hours. So, from the result, it is clear that some of the workers of at Eversmart Apparels Limited work more than 8 hours but not everyone.
FIGURE 10. Working environment.
The respondents were given five options to choose. The highest response was ‘comfortable’ which is 48%
or equal to 24 respondents. The second-highest number response was ‘neutral’ which is 22% or equal to 11 respondents. The lowest number of respondents’ response was ‘uncomfortable’ which is 6% or equal to 3 respondents. As the highest number of respondents’ responded to ‘comfortable’ and the second-highest number responded to ‘neutral’ so it can be assumed that the working environment is comfortable.
FIGURE 11. Fair wages.
This graph exposes that most of the respondents’ response was ‘yes’, which is equal to 74% or 37 respondents. On the other hand, 26% responded ‘no’, which is equal to 13 respondents. As the maximum respondents’ responded to ‘yes’ which indicate that employee gets fair wage.
FIGURE 12. Relation between worker and leaders.
This question was asked to know about the relation between workers and leaders. The result shows that, the highest response was ‘good’ which is 44% or equal to 22 respondents. The second-highest number response was ‘very good’ which is 22% or equal to 11 respondents. The lowest number of respondents was ‘very poor’ which was 10% or equal to 4 respondents. Here, the highest number of respondents chose ‘good’ and the second-highest number chose 'very good’.
FIGURE 13. Political influence.
This pie chart shows that most of the respondents’ response was ‘no’ which is equal to 76% or 38 respondents. On the other hand, 24% responded ‘yes’, which is equal to 12 respondents. The maximum respondents suggested that the firm has no political influence. So, the result shows that the firm has very low political influence.
FIGURE 14. Bonus, increment and promotion.
Respondents were asked about their bonus, promotion and increment. The aim of this question was to know if the workers were getting the payment which they deserve. According to the pie chart, 78% respondents or 39 respondents responded with ‘yes’ and 22% or 11 respondents responded with ‘no’. This indicates the firm provide the payment well to its worker who deserves it.
FIGURE 15. Modern technological condition.
The aim of this question was to know about the situation of modern technology in the firm. The highest response was ‘strong’ which is 52% or equal to 26 respondents. The second-highest number of responses was ‘neutral’, which is 26% or equal to 13 respondents. The lowest number of responses came for ‘very strong’, which is 6% or equal to 3 respondents. The highest number of respondents responded ‘strong’ and the second-highest number of respondents chose ‘neutral’; hence, it can be interpreted that the firm uses modern technology.
FIGURE 16. Recommendation.
The question asked the respondents whether they would recommend the firm they were working for to their friends and families and people they know. The pie chart explains that, most of the respondents’ responded to ‘yes’ which is equal to 74% or 37 respondents and 26% responded to 'no’ which is equal to 13 respondents. The maximum respondents’ response was ‘yes’, which indicates that employees recommend the firm to their friends and relatives.
FIGURE 17. Feelings of the worker for the firm.
The question was about the feelings of the workers for the firm. From this query can be found the employees’
loyalty and expectation to the firm. The highest response was ‘comfortable’, which was 42% or equal to 21 respondents. The second-highest number of responses was for ‘very comfortable’, which was 30% or equal to 15 respondents. The lowest number of respondents’ response was ‘uncomfortable’, which was 4% or equal to 8 respondents. The highest number of respondents’ response was ‘comfortable’ and the second- highest number of responses was ‘very comfortable’. From the chart it can be seen that the workers feel good while working with the firm which explains that the employees are satisfied with the treat of Eversmart Apparels Limited.
6.2 Findings and Recommendations
50 respondents participated in the survey where 12 questions were asked. All the participants are currently working in the firm. First two were about demographic characteristics. From the 50 respondents, the number of male and female respondent is very close which indicate that the firm doesn’t have gender discrimination.
Most of the respondents’ age range is 18 to 36 years. There are very few workers above 36 years. So, the research shows that the firm has mostly young workers, which will become an asset for the firm in the near future. They will become more experienced in their sector.
They were asked about firm work life, work time and wages also, which is discussed in chapter three. Most of the respondents responded that the firm’s work-life safety is good, and employee satisfaction with their work-life and firm’s safety services. The firm has less overtime, then the employee doesn’t work more than
8 hours but some of them work more than 8 hours according to the survey result. The working environment is comfortable and adjustable for the employees. They get a comfortable working space in Eversmart Apparels Limited. Eversmart Apparels Limited pay a fair wage to their employees, employees are satisfied with their wages system in the firm.
Based on the findings in chapter five, the survey of Eversmart Apparels Limited revealed low political influence and violence in the firm. Most of the employees feel free from political influence. On the other hand, research result also shows that the firm uses modern technology, however, at least 16 percent of respondents suggested the opposite and another 26 percent chose to remain neutral on the matter, which suggests that there is enough room for improvements in this sector. Almost all employees are satisfied with the bonus, increment and promotion system of Eversmart Apparels Limited. Almost all employees are satisfied with the work environment of the firm, as a result, they are willing to recommend the firm to their friends and relatives. Employees feel better while working in Eversmart Apparels Limited. But still, there is something that some workers did not find comfortable in their perspective according to the research. So, the firm needs to do something different to make the work environment more comfortable for all the workers.
Respondents of the primary research survey suggested that they are mostly satisfied with the working conditions and environment they receive from the company, according to survey result. However, that does not mean that there is no room for betterment. Currently, there is no need to focus on the salaries and payments for the workers because they are already satisfied with it, as explored by respondents. Else, the company is experiencing at least 24 percent political influence. Although the influence is not much, it is still nearly one-fourth, which can grow in the future. Hence, the company should pay attention to this matter.
As explored in chapter four, managers are supporting their subordinates, which has kept the relationship between employees and leaders satisfactory, as presented in figure 12. However, at least 22 percent of employees are not a part of this good relationship, and another 12 percent are neutral, who could be a part of this group as well. A potential of 34 percent of the employees being dissatisfied with the employee-leader relationship means that the company should prioritize its outlook of the matter and try to ensure that all the employees can enjoy a good working condition and relation with their leaders. Furthermore, there is a growing need to meet the demands of the changing time and trends, which can be assured by providing
training facilities to the employees. In addition, company can also arrange some physical activity to motivate their workers and refresh their mind.
7 CONCLUSION
The aim of the thesis was to analyze the working environment of Eversmart Apparels Limited and try to give a clear idea about the importance of worker in a firm in the perspective of Eversmart Apparels Limited.
It was a little bit difficult for me to collect the information that should be used in the thesis. Because I live abroad and the firm is in Bangladesh. But in the modern era of science, it gets easier to do it online.
Eversmart Apparels Limited is a well-known company for its goodwill. While writing the thesis I went through a lot of books, literature and articles on the working environment. I found almost every firm’s working environment quality is a little bit different from one another. Some firm proves good salary and bonuses where some give more safety and comfort. Quality work life fundamentally is all almost representative of a company, which comprises of strategies to motivate employees to take an interest in choice making. This helps in building great relationship and great ability, the company ought to have more push level and less stress of work life.
Eversmart Apparels Limited is a readymade garments industry. So, it is very important to know about the working environment of readymade garments. I have highlighted the environment of a garments factory and focused on the factors that affect the functional environment of garments and also explained the factors related to the functional environment. First, this thesis describes the content, the background, and why a firm's production depends entirely on its employees. If the workers are not getting enough facility and comfort the production can get hampered. Besides the firm could face difficulty to use their workers’ full ability. Finally, this information will support the research to prove its existence.
In the end, it could be said that workers are an essential part of an organization. Organizations have no ability to produce anything without workers. Eversmart Apparels Limited already maintained good routine to maintain their workers as the research shows. They are giving all the opportunity and all kind of facilities to their workers for a better future for their firm. However, they are missing some elements which are also essential for their workers. They need to work more to satisfy their workers and accomplish a good working environment.
REFERENCES
Ahmed, J. U. & Hossain, T. 2009. Industrial safety in the readymade garment sector: A developing country perspective. Sri Lankan Journal of Management 14(1), 4-6. Available:
https://sljm.pim.sjp.ac.lk/admin/uploads/61.pdf . Accessed 05 June 2020.
Ahamed & Ferdous, A. 2011. Working conditions in the Bangladesh Readymade Garments Industry: Is Social compliance making a difference?. La Trobe University, Australia. Ph.D. Thesis.
Bhattacharya, D, M. Rahman & A. Raihan. 2002. Contribution of the RMG Sector to the Bangladesh Economy. Bangladesh: CPD Occasional Paper Series, Paper 50. Available:
http://www.cpd.org.bd/pub_attach/op50.pdf . Accessed 04 June 2020.
Bhuiyan, M. I. 2013. Reasonable Wages for workers to eliminate unrest of Bangladesh’s RMG sectors.
Bangladesh: Bangladesh Development Research Working Paper Series. Available:
http://www.bangladeshstudies.org/files/WPS_no17.pdf . Accessed: 04 June 2020.
Bhuiyan, M.Z.A. 2012. Present Status of Garment Workers in Bangladesh: An analysis. IOSR, Journals of Business and Management, Vol. 3, No. 5, 21-43.
Boeufblogginon. 2013. How many have to die before it is unacceptable? Sweatshops. Bangladesh.
Available: https://boeufblogginon.com/tag/tazreen-fashions-factory-fire/ . Accessed 05 June 2020.
Dudovskiy, J. 2018. The Ultimate Guide to Writing a Dissertation in Business Studies: A Step-by-Step Assistance. Available: https://research-methodology.net/research-methodology/reliability-validity-and- repeatability/ . Accessed 17 June 2020.
Faruq, O. M. 2013.Tajreen Fire Accident Investigation Report. Bangladesh Occupational Safety Health &
Environment Foundation (OSHE),Dhaka. Available:
https://www.coursehero.com/file/27645006/Investigation-Report-on-Tazreen-Fire-Accidentpdf/ . Accessed 04 June 2020.
Feng, Y. 1997. Democracy, Political Stability and Economic Growth. British Journal of Political Science, Vol. 27, No. 3.
Hancock, B., Windridge, K. & Ockleford, E. 2007. An Introduction to Qualitative Research. The NIHR RDS EM / YH, 6. Available: https://www.rds-yh.nihr.ac.uk/wp-content/uploads/2013/05/5_Introduction- to-qualitative-research-2009.pdf. Accessed 4 June 2020.
Haider,M, Z. 2007. Competitiveness of the Bangladesh Ready-made Garment Industry in Major International Markets. Asia-Pacific Trade and Investment Review, 18, 3-27.
iEduNote. 2017. Internal and External Environment Factors that Influences Organizational Decision Making. Available: https://www.iedunote.com/organizational-environment-elements . Accessed 05 June 2020.
Joost Kessler, J. 2012. Strategic environmental analysis (SEAN): a framework to support analysis and planning of sustainable development. Impact Assessment and Project Appraisal, 295. Available:
https://www.tandfonline.com/doi/abs/10.3152/147154600781767303 . Accessed 05 June 2020.
Kangal, S. 2017. Internal and External Environment Factors that Influences Organizational Decision Making. Available: https://www.iedunote.com/organizational-environment-elements . Accessed 05 June 2020.
Kamal, M., Hossin, S. & Billah, M. 2010. Labor unrest and Bangladesh Labor Act-2006, A study on Ready Made Garments Factories in Gazipur. Journal of Business and Technology, Dhaka. 5(2), 3-5.
Khan, R. M. 2017. The Scenario of Basic HR Practices in RMG Industry: FGD Findings. LAP LAMBERT Academic Publishing. Available: https://www.lap-
publishing.com/catalog/details/store/gb/book/978-620-2-05258-0/the-scenario-of-basic-hr-practices-in- rmg-industry:-fgd-findings . Accessed 05 June 2020.
Kumar, A. 2006. Bangladesh: Industrial Chaos Worsens Political Instability. South Asia Analysis Group, Paper No.1852.
Kumar, R. 2010. Research Methodology: A Step-by-Step Guide for Beginners Third Edition. New Delhi:
SAGE Publications Ltd.
Available:https://www.academia.edu/33999877/Ranjit_Kumar_Research_Methodology_A_Step_by_Step _G. Accessed 04 June 2020.
Mahmudul, A. 2019. Interview of Merchandising manager. 24 October 2019. Eversmart Apparels Limited.
Masud, R. 2019. Interview of General Manager. 27 October 2019. Eversmart Apparels Limited.
Majumder, P.P. 1998. Health status of the garment workers in Bangladesh; Findings from a survey of employer and employees. Bangladesh Institute of Development Studies (BIDS), Dhaka, Bangladesh.
Mital, A., Robinson, B. R. & Pearce II, A. J. 2016-2017. Strategic Management: Formulation, Implementation and Control: 12th edition. New Delhi: Tata Mcgraw hill education private limited.
Organizational–environment–elements. 2017. Internal and External Environment Factors that Influences Organizational Decision Making. Available: https://www.iedunote.com/organizational-environment- elements . Accessed 04 June 2020.
Paul, R. & Quadir, S. 2013. Bangladesh urges no harsh EU measures over factory deaths. Available:
https://www.thewhig.com/2013/05/04/bangladesh-urges-no-harsh-eu-measures-over-factory- deaths/wcm/db2c49f7-2a12-4ba3-a26c-35322bb8ea33 . Accessed 04 June 2020.
Rahman, M.M., Khanam, R. & Absar, U.N. 1999. Child Labor in Bangladesh: A Critical Appraisal of Harkin’s Bill and the MOU-Type Schooling Program. Journal of economic issue, 985-1003. Available:
https://www.tandfonline.com/doi/abs/10.1080/00213624.1999.11506225 . Accessed 04 June 2020.
Rahman, A. 2019. Interview of Chair. 26 October 2019. Eversmart Apparels Limited.
Siddiqi, G.A.H. 2004. The Ready-made Garment Industry of Bangladesh, Dhaka. The University Press Limited.
APPENDIX 1/3 APPENDICES
Work environment survey
EVERSMART APPARELS LIMITED-2020 (Questionnaire)
Firstly, I want to thank you to give me the opportunity to be on touch with you. This information will only be collected and used for my bachelor’s thesis in Centria University of Applied Science. The purpose of the thesis is to make a good working environment for the workers of Eversmart Apparels Limited. So, your response and the whole survey will be treated privately and namelessly. This questionnaire is based on the working environment of Eversmart Apparels Limited and the information will help their authority to improve the work environment of their firm. Therefore, I am requesting you kindly fill the
questionnaire from your point of view. I sincerely appreciate your time and your answers.
1. What is your gender?
• Male
• Female 2. How old are you?
• 18 to 36
• 36 to above
3. How is the work life safety in Eversmart Apparels Limited?
• Very poor
• Poor
• Neutral
• Good
• Very good
APPENDIX 2/3
4. Do you work more than 8 hours in a day?
• Yes
• No
5. How is the working environment of the firm?
• Very uncomfortable
• Uncomfortable
• Neutral
• Comfortable
• Very comfortable
6. Does the firm pay fair wage to the employees?
• Yes
• No
7. How is the relationship between workers and leaders?
• Very poor
• Poor
• Neutral
• Good
• Very good
8. Is there any political influence in the firm?
• Yes
• No
9. Does the firm provide bonus, increment, promotion fairly?
• Yes
• No
10. What is the condition regarding modern technology in Eversmart Apparels Limited?
• Very Weak
• Weak
APPENDIX 3/3
• Neutral
• Strong
• Very Strong
11. Do you recommend your firm to your friend as a good workplace?
• Yes
• No
12. How do you feel about working in Eversmart Apparels Limited?
• Very uncomfortable
• Uncomfortable
• Neutral
• Comfortable
• Very comfortable
