Productivity Improvement of an Apparel Industry by Applying Motivational Concepts

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CHAPTER ONE INTRODUCTION
1.1 INTRODUCTION Motivation is very important for the managers & officers to know and understand why people behave differently at workplace and how to manipulate their behavior so that they exert their best efforts to achieve organizational goals. It is the goal of managers at every strategy to have employees motivated so that work can progress at desired rate, pace & time. Many managers in this sub-sector do not try to grasp grandiose amount of work, such as compliance of labor laws, conducting the so-called social audits, compliance of code of conduct etc. now being conducted are aimed at employee motivation. Improvement of workplace, enhancement of working conditions is not the goals themselves. The goal of these activities is increasing productivity by way of lending job satisfaction at workplace & improving the life style & living condition of the working people. Once the employees are hired, trained and remunerated they need to be motivated for better performance. A basic principle is that the performance of an individual depends on his or her ability backed by motivation. Stated algebraically the principle is Performance = (ability X motivation). Ability refers to the skill and competence of the person to complete a given task. However as we see ability alone is not enough. Motivation in simple terms may be understood as the set of forces that cause people to behave in certain ways [1]. The Institute of Manpower Studies has claimed that the word ‗motivations‘ is among the six most used words in company documents. It goes on to say that just because it is used, it doesn‘t mean to say that it is understood. 1.2 SIGNIFICANCE OF THE STUDY The ready-made garment industry in Bangladesh is not the outgrowth of traditional economic activities but emerged from economic opportunities perceived by the private sector in the late 1970s. Frustrated by quotas imposed by importing nations, such as the United States, entrepreneurs and managers from other Asian countries set up factories in Bangladesh, benefiting from even lower labor costs than in their home countries, which offset the additional costs of importing all materials to Bangladesh. Bangladesh-origin products met quality standards of customers in North America and Western Europe, and prices were Page | 1

satisfactory. Some 85 percent of Bangladeshi production was sold to North American customers, and virtually overnight Bangladesh became become the sixth largest supplier to the North American market [1]. Since the late 1970s, the RMG industry started developing in Bangladesh primarily as an export-oriented industry although; the domestic market for RMG has been increasing fast due to increase in personal disposable income and change in life style. The hundred percent export-oriented RMG industry experienced phenomenal growth during the last 15 or so years. In 1978, there were only 9 export-oriented garment manufacturing units, which generated export earnings of hardly one million dollar. Some of these units were very small and produced garments for both domestic and export markets. Within a short period, Bangladeshi entrepreneurs got familiar with the world apparel markets and marketing. They acquired the expertise of mobilizing resources to exportoriented RMG industries. Foreign buyers found Bangladesh an increasingly attractive sourcing place. To take advantage of this cheap source, foreign buyers extended, in many cases, suppliers' credit under special arrangements. In some cases, local banks provided part of the equity capital. The problem of working capital was greatly solved with the introduction of back-to-back letter of credit, which also facilitated import of quality fabric, the basic raw material of the industry. The government assigned high priority to the development of RMG industry. Some countries had internal problems, for example, Sri Lanka; and some other countries of Southeast Asia experienced rapid increase in labor cost....
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