Analysis of HR Activities SWAN Group

An Analysis of HR Activities SWAN Group

Swan is one of the famous companies in Bangladesh. The corporate body of Swan, namely “Swan Group”, is doing business of foam, mattress, chemicals and properties. Swan was established on 1984 in the foam market with their world class product.

The main business of Swan Industries is to provide the best quality product to its valuable customers. Since last 33 years, Swan producing & marketing “SWAN” brand polyurethane Foam with reputation. Swan imports the raw materials for their foam from Germany and USA. Swan also producing peeled (roll) foam with computerized foreign machine which is being used in keds/sportswear/hats/bags etc for export purpose. After gaining success swan also open a new section of product called Swan Mattress. Swan has three different types of mattress, Such as:

Swan spring mattress, Swan re-bonded mattress, Swan coir mattress.

The market is expanding rapidly but due to the different cause Swan has lost its reputation and carrying less portion of the market. Swan has experienced man power that it is really a good strength. Here I have discussed the HR activities of Swan group in detail and try to bring out the strength and weaknesses that Swan Group has.

To help Swan to move out from its old-fashioned way of management, to accommodate the future opportunities and to avert the current crisis and threats, it is extremely essential for Swan to undertake some immediate initiatives such as policy revise modernization, proper planning, experienced and professional manpower.

The Report is based on the HR practices of Swan Group. HRM department is a crucial factor now-a-days for any organization in terms of profit gaining. This department is an emerging sector in the modern corporate world. This department was ignored in the past, but people have understood the importance of this department. HRD is responsible for enhancing the working capability of employees which directly linked with the profitability of the company. If the right person is selected for the right position, doing the right things then the organization can enjoy profit and it is the job of HR department to recruit and select right person, train, motivate and finally enhance employee’s potentials. It is one of the major though job to bring out performance from employees. Swan is trying to enhance its employee’s potentials as well. So, I have tried to identify the main HR practices of Swan group.

Corporate Profile:

Swan Group mainly known for the production of:

• Polyurethane Foam.
• Synthetic Rubber Adhesive, PU Adhesive, UPR (Unsaturated Polyester Resin) & LA (Lamination Adhesive)
• Spring, Coir & Re-Bonded Mattress.
• Home Textiles.
• Swan Properties.

Brand name of its products is “SWAN” and are widely known as Swan Foam, Swan Mattress, Swan Chemicals & Swan Properties.

Swan Foam: Swan Brand is very popular and Swan is particular about using best raw materials of Germany / USA. Doing continuous R & D; adopting latest formulation followed by European and American manufacturers; Swan can ensure the best quality products.

Swan Mattress: Swan is pioneer for production of Mattresses (spring, Re-bonded & Coir). In this field Swan is also selective for BEST raw materials and machineries thus can keep QUALITY and became market leader.

Swan Chemicals: we are producing Synthetic Rubber Adhesive & PU Adhesive for leather, synthetic leather, wood, formic etc.

• UPR (UNSATURATED POLYESTER RESIN) for production of Fiberglass items.
• LA (LAMINATION ADHESIVE) for packing of food, drink, cosmetic items.

Sales & Display Centers: Swan has 13 Show Rooms of its own; more than 100 Agents and 1400 Retail Customers (shop owners) throughout Bangladesh.

SWAN Properties: Engaged in Construction & Sales of quality Residential Apartments & Commercial Spaces.

Objective of the Report:

The main objective of this report is to have an overall idea of the HR activities of an organization. In the time period during my in tern ship I tried to understand the main functions of HR department and to make a combination of the theoretical and practical aspects of Human Resource Management. Though there are some other objectives:

• Understand the major HR activities of Swan group
• To find out the strength and weaknesses of Swan group HR department
• Understand how the HR functions of an organization works.
• To make some recommendation how the organization’s HR dept. work better.

Introduction:

Swan group is the leading company in producing foam, mattresses in Bangladesh. They have a broad product line up in terms of Foam, Mattresses and Home- Tex product. They have been working in Bangladesh for a long period of time. They are the initiator to manufacture and marketing of Foam products in Bangladesh. Swan Foam is a sister concern of Swan Group and was established in 1984. Over the past three decades Swan Foam has been the most popular Foam in the Bangladeshi households. The company produces Swan branded polyurethane foam, and peeled (roll) manufactured with computerized foreign machine. Their products are used in the field of seating and bedding, transportation seats, furniture, toys and also in sports shoes garments.

There are mainly three divisions of Swan group: Swan Industries, Swan Chemicals and Swan Properties. Swan Industries produce Swan Foam, Mattresses and Home-Tex Products. Swan Chemical produce Swan branded Synthetic Rubber based Adhesive and polyurethane Adhesive.

Swan Properties is one of the leading real estate companies in Bangladesh. It is specialized in developing exclusive apartment in prime location of Dhaka city.

To sustain in the leading position in present economic condition of Bangladesh Swan Group should concentrate in different function of its operation. Customer satisfaction by differentiating its product over its competitors, building an efficient human resource through training, recruiting and selecting the right person in the right position, by providing awards for the excellent performances should be the areas where Swan Group should concentrate.

Swan Mattress:

Swan Spring Mattress: It is produced out of mostly nature origin raw materials such as:

Steel Springs; Coir Sheets; Cotton Felts; Steel Edge Guards etc; it again ensures air circulation and your entire body weight (heavy or light) is being distributed thoroughly on the Mattress.

Swan Re-Bonded Mattress: It is produced and reprocessed by special technology. It is stick & hard. Those who feel pain in Back/Backbone or Doctor advise to sleep on hard bedding or those who are interested to use Hard Mattress Swan Re-Bonded Mattress is the only solution for them.

Swan Coir Mattress: It is produced with thick Coir Sheets & Quilted Cloths. All over the world, Cotton Mattress have become obsolete due to the unscientific body posture it creates when you sleep on it for 8 hours, this results into irreparable orthopedic problems; alternatively people needs uninterrupted sound sleep to be 100% relaxed to start next day activities with full energy = Swan Mattress is the best option. Moreover, international statistical data shows that during last 33 years demand & use of costly mattresses have increased tremendously in comparison with cheap mattresses.

Swan Chemicals:

Among its large product line up Swan group produces Synthetic Rubber Based Adhesive and Polyurethane Adhesive. “Swan Adhesives” are widely used in the field of shoe, furniture, foam & transport sectors.

Before few years, adhesives were being imported from Korea, Taiwan & other countries. But now a day, Swan Chemicals are producing better adhesives than imported counterparts by using best raw materials from Europe USA & China. At the same time, they are selling at a lower price because of lower overhead and labor cost in our country.

In the field of adhesive production also they have research and development department so that quality can be ensured to our valued customers.

Swan is also producing the following imports substitute Industrial Raw Materials:

1. a) Unsaturated Polyester Resin for production of Fiberglass items.
2. b) Lamination Adhesive for Packing of Food, Drink, Cosmetic items.

Swan Properties Limited:

Swan Properties Limited, a sister concern of Swan Group, has emerged with positive vision to ensure quality products and commitment together with speed. To ensure the finest residential lifestyle the professionals always keep in touch with every aspect of building sweet homes & Commercial Spaces. Committed to handover exclusive apartments & Commercial Spaces in time with customer satisfaction, the developments are futuristically planned at prime locations with the maximum utilization of land considering natural ventilation. Believing that construction is not only building a structure but creating an object of art, its mission is changing the lifestyle of city dwellers by providing functional and aesthetic urban design.

Swan Properties Limited is one of the leading real estate companies in Bangladesh. It specializes in developing exclusive apartment complexes in prime locations of the Dhaka city.

Swan Properties Limited is also an active member of Real Estate & Housing Association of Bangladesh (REHAB). Swan Properties Limited has achieved a trusted name in the real estate sector in Bangladesh. From its very inception, the company has won the confidence and goodwill of its clients. Within a short span of time, Swan Properties Limited has grown into a renowned and dependable organization, building elegant, aesthetically pleasing structures that grace Dhaka as finest neighborhoods.

Swan Properties Limited has developed in house design team for Architectural, Structural, Planning & Electrical design. It has Engineers in construction and development department in addition to its Quality Control, Monitoring & Evaluation.

Additionally when there is any need for extra ordinary design; they are particular about selection of “Architect Firm” and they never think to compromise about Architectural Designs thus they are enjoying the opportunity of doing works with exceptionally renowned & one of the best firms VIZ, Volume Zero even by paying very high package compared to many other Architect Firms.

Swan Properties Limited strongly believes that it came to this beautiful world for doing well for mankind and for co-operation. And most of the people are ready to co-operate / help each other.

Corporate Social Responsibilities:

Swan’s social responsibility is embedded in its mission and vision. There are some activities like carnival road show, car rally etc on the special occasions Such as: Pohela Boishak, Independents day, Victory Day which creates awareness of social activities of Swan Industries Ltd. Swan also sponsors games, events, TV shows, radio programs etc.

HR Department of Swan Group:

HR team of Swan Group believes in building a productive and motivated workforce which is the prerequisite to market leadership and profitability. Swan group deals with its employees with dignity and respect that eventually lead them to work with openness and increase their trust towards the organization. A sense of loyalty towards the organization can help to build a good working environment. HR team of Swan group always tries to increase the employee’s loyalty by providing job satisfaction, growth opportunity, and recognition of superior performance. The HR team has put utmost importance to continuous improvement of its human resource. The major wings of HR department are;

• HR Planning
• Recruitment and Selection
• Training and Development
• Performance Evaluation
• Compensation and Benefits
• Employee Relation

Major Responsibilities of HR department:

HR department of Swan group has specific responsibilities that include the following:

• HR Policy formulation:

Swan group formulates policy for own department and at the same time for other department as well.

• Recruitment and Selection:

Recruitment and Selection is an important part of HR team. The HR team concentrates on its recruitment and selection process and believes in continuous improvement. After getting the requisition for workforce from different department the team members initiate recruitment and selection process.

• Employee Management and Training and Development:

HR team of Swan group gives emphasis on employee management and training and development very much. They believe in continuous improvement of the employees.

• Job Analysis:

Job analysis is an important part of HRM. In other word it is the heart of HRM. The HR team gives full emphasis on Job Analysis.

• Career Management:

Swan group believes in providing good career path for the employees that not only confirms loyalty but also efficient workforce.

• Compensation Management:

Among other responsibilities it is also an important responsibility of the HR team to compensate the employees and take care of their attendance and leave issues.

• Compliance:

This is another responsibility of the HR team to save the company from legal obligation and comply with the rules and regulations.

HRM Objectives of Swan Group:

One of the objectives of human resource methods is to select right man in the right place. In recent years, devices to select right man for right position through professional guidance and counseling programs and by various examination and tests have also been innovated as a result of which the scope of proper and maximum utilization of human resources has become easy and wide.

Following objectives are important which can be discussed in short. With the fulfillments of these objectives HRM can become successful.

• First objective of firm is to develop efficiency and skills of employees working in the organization.
• To ensure effective performance of employees that helps the organization to obtain productive target.
• To change the behavior of Employees that ensures the lowest possible chance of resistance to any change.
• To Train up subordinates for effective performance.
• To increase job satisfaction.
• The organization use to practice of giving proper assignment and timely accomplishment.
• To develop working conditions in the organization.

HR Activities of Swan Group:

Now I have elaborately discussed the activities of Swan Group HR practices below:

HR Planning:

HR planning is basically manpower planning. Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. There are some reasons for which Swan group is doing its HR planning:

• Talent will be always available when needed and according to the requirement of the job type.
• Sometimes there shortage of labor during seasons of cutting crops and labor cost goes high, so this situation can be handled through HR planning.
• Again if organization is going to expand then the senior employees from different wing can be transferred and promoted to other new businesses as departmental heads.
• Cutting the labor cost is another important reason of HR planning.

Recruitment and Selection:

It is the process of finding and attracting capable applicants for employment. The recruitment process begins when new recruits are sought and ends when their applications are submitted. The result is pool of applicants from which new employees are selected. From here selection process starts. The HR team of Swan group uses a detailed process to initiates its recruitment and selection, it is discussed below:

Employee Requisition: Whenever new employee is needed a requisition is received signed by the respective departmental head by HR. After receiving the requisition all the factors is being checked, like available fund, necessity of new employee and the requisition is sent to the MD for approval. If MD approves the requisition the HR initiates a recruitment and selection process. Requisition is generally sent when an employee resigns or transfers to another department. But in case of new post creation a lengthy documentation process is needed.

Job Analysis: Job Analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job description and job specification. Swan group use to do job analysis for every position and keep a record of this. At the same time it is updated time to time.

Job Posting: Here begins the recruitment process and Swan group uses to collect CVs from external sources like BD jobs, Prothom alo Jobs and internal sources like former employees or current employees.

CV Screening: After collecting the CVs the HR team uses to short list those candidates whose skills and educational background best match the requirements.

Selection Tests: Here Selection process starts and Swan group uses written and interview as selection tests. At first the candidates has to face a written test where the intelligence of the candidates is being tested and those who passes the test called for an interview board where the candidate has to a interview board consist of two or three members. After the interview the candidates who are selected are provided with appointment letter.

Orientation: After joining the new employees undergo orientation session and come to know the rules and regulation of the company. Here the new employees come to know about the culture of the organization and know their responsibilities.

Training and Development:

This is another important function of HR department. Training is a method to increase the skill of an employee to do a particular job. It is an awareness that give people a guideline to accomplish a particular job. It increases the capability of an individual to perform a job.

Development is also the same process. The difference is training is present day oriented and development is future oriented. Swan group uses to conduct training program regular basis. They use different method for training program. But they mainly focus on “On the Job Training” methods.

On the Job Training methods: On-the-job training method refers that in which employee gets the training under the same environment where he has to work.

Coaching: This type method normally practices by supervisor about the knowledge and skill of the job to a subordinate. This type of method Swan group doesn’t arrange but some of the senior employee done this.

Rotation: Job rotation is to rotate the employee in the department or send to another department to know the job and become an all rounder. One of the main advantage of job rotation is whenever an employee is absent the other knows the job and can outperform the job without any problem. Swan Group follows this method by transfer one unit to other unit of employee.

Conference and Seminars: Conference or seminars done in the head office, it’s only for top level officer. In the day of seminar or conference employees come in the head office to attain the program. In the method also include performing the case study.

Performance Appraisal:

Performance appraisal is the process of assessing an employee’s past performance with the standard of performance and providing the employee with promotion, reward or demotions. Performance appraisal is the process through which we can identify that how well the company’s employee is working and helps to develop performance to employee performance and organization goal.

In Swan group the supervisor generally use to initiate performance appraisal of the employees under him/her. Here the standard of performance or the individual goal is set through detail conversation with the employee and the management or supervisor.

Fig: Performance Appraisal Process in Swan Group

Motivation and Reward:

Motivation is the set of forces that cause people to behave in certain ways. Motivation is not just what employee exhibits, but a collection of environmental issue surrounding the job. It has been proposed that one’s performance in an organization is a function of the factors: One is ability and another is willingness to do the job. Motivation is the willingness to do something and is conditioned by this action’s to satisfy same need for the individual. According to L.A. Allen “Motivation is the work of manager who performs to inspire, encourage and impel people to take required action.” Swan group uses to motivate its employees in a continuous basis through different types of rewards.

Organization provides rewards that can serve as positive reinforcement to desired behavior. Organizational rewards can affect attitudes, behaviors and motivation. Thus, it is important for managers to understand and appreciate clearly their importance. Swan group also considers reward for positively change attitudes, behavior motivation and also respects rules, regulation. Swan Group uses following reward system for their employees:

Intrinsic Reward:

Intrinsic Rewards are the personal satisfactions one gets from the job itself. These satisfactions are self-imitated rewards. Intrinsic reward includes having accomplished an objective; participate in decision making, diversity of activity, greater job freedom and discretion, opportunities for personnel growth or about being able to make job-related decisions without consulting a supervisor.

Financial Reward:

Financial reward has direct effects to the performance of the employees. It has direct and immediate effects. It not only affects employee’s performance but also increase the job satisfaction. Swan group give financial rewards by the following ways:

• Wages
• Bonuses
• Profit sharing
• Paid vacation
• Paid leaves

Non-financial Rewards:

Non-financial reward covers desirable extras that are potentially at the disposal of the organization. Their common link is that they do not directly increase the employee’s financial position. Non-financial reward includes:

• Own security
• Preferred office furnishing

Employee Relations:

Swan group has a good employee relation with its employees in a long term perspective. They practice equal employment opportunity and stand against indiscipline like sexual harassment.

They believe in ethical practices. They treat all the employees fairly. In case of any occurrence inside the organization they try to bring justice.

There are some other factors that can be also taken into account;

Workplace Safety:

Regarding work place safety, they take maximum precautions against fire, mechanical and chemical hazards. There are clearly remarkable evacuation zones and routes to be used in emergencies along with fire safety equipments like fire hydrants, smoke and fire detectors, Adequate all types fire extinguishers, gas mask, lock cutter, etc.

Health Issues:

At Swan Group, they recognize the importance of physical and mental well being of their workforce, as it’s vital for efficiency and productivity. There’s adequate arrangement of medical facilities for employees in each of the manufacturing units. Workers get treatment and medicine free of charge.

Attendance System of Swan Group:

All organization has a system for attendance. The entry time of Swan Group at 9:20 a.m. every employee must have card punching within 9.20 a.m.

Leave System of Swan group is 10 days for Casual Leave (CL), 14 days of Seek Leave (SL), and 12 days of Earn Leave (EL). An employee can gets earn leave after 1 year of joining. Maternity leave with pay 3 months and additional 6 months leave without pay.

Disciplinary action of Swan Group:

Discipline generally follows a typical sequence of four steps: oral warning, written warning, suspension and dismissal.

Compliance:

The company is very much aware of the compliance requirements. They always give preference to protect the buyer’s brand by preventing child labor, abuse, force, employment etc.

• Adequate working area.
• Provision of hygienic toilet facilities.
• Adequate supply of filtered drinking water.
• Adequate fire equipment is provided in all working areas.
• Adequate safety exits are provided

SWOT Analysis of Swan Group:

As a part of the study I have found both positive and negative sides of the organization. I have pointed out the points and on that basis I have made a SWOT analysis of Swan Group. I have discussed it below:

Strengths of Swan Group:

• Well organized Team
• Training and development opportunity is provided to every employee
• Effective communication between internal departments
• Loyal employees who are working for a long time
• Low employee turnover rate
• Strong and well differentiated HRMs with leading market shares
• Well diversified product portfolio. Efficient supply chain
• Distribution structure that allows wide reach and coverage in the target markets
• Capable and committed human resources.

Weaknesses of Swan Group:

• Salary Structure
• Manipulation of other Department
• There are only few sales center of Swan outside the Dhaka

Opportunities of Swan Group:

• Effective market Strategy
• Expansion to rural areas
• Potential for growth through increased penetration
• Skilled workforce
• New HR strategy

Threats of Swan Group:

• Competitive environment with diverse players
• Rising prices of raw materials and fuels
• Lacking in the marketing policy, Customers can go for alternatives

Recommendation:

After completing the study I have found that Swan group is a potential organization. Though it has some negative sides but still it can resolve it weaknesses and by using its opportunity overcome its threats. Here I have provided with some recommendation that would be helpful for the organization;

• HR division should introduce On line requisition system
• They should improve the performance management system
• They use only two ways to collect CV. They should use other methods to collect CV
• Their recruitment and selection process should be improved
• It is been proved through research that light is an important factor for willingness to work for the worker. In better light the worker use to work more comfortably than in dim or gloomy light.
• The control of HR department can be improved through chain of command
• Modern technology should be used for Communication
• Salary structure should be improved

Conclusion:

Internship increases the efficiency and quality of the trainee because internship is the Practical implementation of theoretical knowledge. After achieving practical knowledge, it acts as a guideline during the service period. Basically, Global competition has increased the importance of organizations improving the productivity of their workforce and looking globally for the best qualified workers.

Human Resource Management system is gradually developing all over the world. In Bangladesh the HRM concept is also developing and the organizations re-shuffling the existing HRM system. In this perspective the Swan group is also trying to follow human resource management and regulate the human resource planning in its operation. At present every organization is trying to setup a separate HRM department in organizations, as buyers and global consumers are concern.

Moving forward, I have found that Swan has a very good Brand Personality. Swan is committed to continue to improve products to attract its loyal customers. Swan is paying attention to making the brand more attractive to the foam and mattress market by fixing the priority on two objectives. One is to provide more comfort to the clients and the other is to upgrade quality regularly. Keeping pace with trends and technology of the time along with a perspective plan for the future which embraces all aspects of the industry and overall improvement in situation the carrier is now confidently looking forward to the future.