Digital Transformation: New Era of HR in Perspective of Bata
Digital Transformation: New Era of HR in Perspective of Bata
Submitted by:
Zannat Zohora Nabila
Student Id : 13104247
BRAC Business School
BRAC University
Submitted to:
Mahreen Mamoon
Assistant Professor
BRAC Business School
BRAC University
Letter of Transmittal
April 25, 2017
Mahreen Mamoon
Assistant Professor
BRAC Business School
BRAC University
66 Mohakhali, Dhaka.
Respected Madam,
It is a great pleasure for me to present the internship report on ‘Digital Transformation: New Era of HR;
in perspective of Bata’. As my prior assignment for the completion of my Bachelors of Business
Administration Degree, I joined as an Intern in the Human Resource Department of Bata Shoe Company
Bangladesh Limited on 23rd January 2017.
I am happy to inform you that I have successfully completed my 12 week internship at Bata, under the
supervision of Major Md.Tahmidur Rahman (Retd), Senior Manager – HR Sales Department. It was a
great experience for me to work in a global company like Bata and gain in depth knowledge on ongoing
retail and manufacturing business of footwear industry, more specifically how the administration works
in this highly competitive market. Throughout this study I tried to accommodate as much as information
& relevant issues as possible and also to follow the instructions you suggested. I tried my best to make
this report insightful and informative.
I am extremely grateful to you for your constant guidance and kind cooperation on this report. It would
be great if you kindly go through my report and evaluate my performance.
Sincerely,
ID: 13104247
This acknowledgement is to express my courtesy of all who have kindly provided information and given
permission for making this term paper, without whom this report could not be completed. Firstly, I
would like to thank BRAC University and BRAC Business School for enlightening me over the period
of my Bachelors in Business Administration. Every faculty of BRAC Business School receives my
greatest honor because of all their teachings.
I would like to thank Mahreen Mamoon, (Assistant Professor. BRAC Business School, BRAC
University) for providing me the proper guidance to complete the whole internship report. My gratitude
goes to my supervisor at Bata; Major Md.Tahmidur Rahman (Retd); Senior Manager and Umme Hanna
Asst. Manager of HR Sales Department, who have helped me whenever I faced any problem and
supported me by providing relevant data and cooperation during my internship period. Along with that
I am also thankful to Mr. Subrata Dutta, Head of Human Resources, Syed Zahidul Islam (Asst. General
Manager, HR), Md. MamumAlam (Sr. Manager, Training & OD),Tabassum Hasan (Asst. Manager
Corporate HR), Abdul Mumeet (Officer, HR Training) Md. Mihadul Islam (Executive, Payroll), Md.
Majharul Islam (Executive, HR Welfare), Md. Rakibul Islam (Sr. Officer, Payroll) and all the members
of the Human Resource Department who have been very supportive towards me and helped me to work
resourcefully.
Finally, I consider myself fortunate to have had the guidance of all the faculties and mentors throughout
my 4 year Bachelor of Business Administration program at BRAC University, which helped me to
shape my perception and understandings for facing the real world career challenges.
Executive Summary
The main objective behind preparing this report is to critically observe the digitization process and
implementation in Human Resource Management and its overall influence on organizational
development of Bata Shoe Company Bangladesh. Here, I tried to relate the situations with theory based
study as well as focus on the similarities & dissimilarities I found during my internship period. Bata
being a global footwear company has already been practicing exemplary HR culture but it is
continuously working to improvise and modernize the existing policies and structures. Out of all the
footwear company producing and operating in Bangladesh, Bata is currently in the number 1 leading
position based on the production capacity, revenue generation, and brand value and employee turnover
ratio. During my internship I assisted in different types of HR practices there; for example recruitment
and selection process, training and development, performance appraisal. I had the chance to observe
how the digital transformation is contributing to redesign all the HR activities thus bringing more
efficiency and promptness at work. But there are also some drawbacks for being excessively dependent
on technology which I tried to address on this report. Also I found some scope of improvement where
Bata can emphasize. Anyone who wishes to gain an insight of how digitization helps to stimulate the
HR practices might find this report beneficial.
Table of Contents
Part 1: ORGANIZATIONAL OVERVIEW ...................................................................................... 4
Multitude of products.......................................................................................................................... 1
Retailing .......................................................................................................................................... 5
Manufacturing ................................................................................................................................. 5
Wholesaling .................................................................................................................................... 5
Customer service................................................................................................................................. 8
Product .......................................................................................................................................... 12
Price .............................................................................................................................................. 12
Promotion:..................................................................................................................................... 13
1
1.7 Bata Bangladesh at a glance: ...................................................................................................... 14
2.1 Functions of Human Resource Department of Bata Shoe Co. (BD) Ltd. ................................... 16
HR Service: ................................................................................................................................... 16
Payroll: .......................................................................................................................................... 16
Sales HR : ..................................................................................................................................... 17
User Error...................................................................................................................................... 32
Employee Assessment................................................................................................................... 32
4.2 Limitation:................................................................................................................................... 33
Conclusion ........................................................................................................................................ 33
References ............................................................................................................................................ 34
When Bata Shoe Company established its manufacturing plant at Tongi in 1962, it was the first
manufacturing plant to produce shoes on a large scale in East Pakistan. In 1967, Eastern Progressive
Shoe Industries (EPSI) established its production plant. It began exporting footwear to USSR,
Czechoslovakia and England. Both Bata and EPSI held major shares in the local footwear market. The
footwear industry suffered a major setback during the war of liberation but was rehabilitated after
independence. New footwear manufacturing units have recently been established. Among them are
Apex Footwear, Excelsior Shoes, and Paragon Leather and Footwear Industries.
Japan and Germany are now the biggest markets for Bangladeshi footwear but US buyers are
increasingly showing interest in sourcing from Bangladesh. Bangladesh could have a billion dollar
footwear export sector by 2013, claim local shoe manufacturers on the basis of both the current growth
in shipments and the increased production capacity in factories under construction. If their assessment
is correct, in a three-year period the level of exports can increase five-fold from the $205 million worth
of shoes that were exported in the last fiscal year that ended in June 2010.
Multitude of products
Bangladesh has a host of potential products that can earn substantially large amounts of foreign
exchange, if only the necessary patronage from the overseas buyers is given for the sake of expanding
the country’s export base and thereby reach a sustainable status for the country’s export trade.
Recently, a new opportunity has opened up to further diversify the range of Bangladesh’s export base
by including footwear and other leather goods in the list of exports particularly to the European Union
(EU) market.
However, the country has already been exporting finished leather and different kinds of leather products
to the overseas markets. These products also enjoyed considerable demand because of their high quality.
The main reason for this was the natural advantage of leather that Bangladesh produces. Despite the
high quality of local animal hides both in raw and finished form, Bangladesh was still trailing behind
Vietnam and China in the export of footwear and other leather products in the European and other
markets.
1
Manufacturing Hub
Bangladesh is set to emerge as the next manufacturing hub for the global footwear industry. The cheap
labor is prompting top manufacturers to relocate their factories in the country. The good news is that a
number of foreign investors as well as buyers have already shown interest in Bangladesh’s leather and
footwear sector.
Recently, the president of the Bangladesh Finished Leather, Leather Goods and Footwear Exporters
Association (BFLLGFEA) informed all concerned that three large investors in the footwear sector from
Taiwan would set up footwear factories in the Dhaka and Chittagong Exporting zones. The buyers from
EU, as well as other very highly developed industrial nations like Japan have reportedly been showing
importance in Bangladeshi leather products. All these developments look promising for the local
footwear industry.
The Export Processing Zones at present have 18 shoe and leather goods factories but there are at least
seven large factories under construction, mostly owned by big manufacturers in the shoe world. The
factories under construction include Korean company Young one’s footwear complex which is said to
be the largest in Asia. The company started construction of its mega shoe complex in Chittagong six
months back. The first part of the complex will go into production by the middle of next year, and the
company’s executives said they would be able to manufacture about 30 million pairs of shoes by 2013.
In addition, Taiwanese shoe manufacturer Pau Chen, which employs about 4,00,000 workers in its
factories in China and 50,000 in Vietnam, is also building a large manufacturing facility in Chittagong.
Australian manufacturer Bonbon Shoe, a supplier to Hugo Boss, and Xen Chen and Genford of Taiwan.,
are also building footwear factories in Bangladesh.
Growth rate
The local footwear industry is experiencing an annual growth rate of 21 percent, according to a
spokesman from another apex organization, Leather Goods and Footwear Manufacturers and Exporters
Association of Bangladesh (LGFMEAB). However, to continue the trend, the present level of growth
has not only to be attained; it also has to be taken to a still higher level, if Bangladesh is to match the
success of its immediate competitor, Vietnam.
According to a newly released statistics from the Export Promotion Bureau of Bangladesh, footwear
exports from the country grew from US$61 million in the period of July-November 2007 to $85 million
in the same period of 2008, recording a growth of 39 percent. In the first four months of the 2010 fiscal
year there has been $98 million worth of exports, a 65 per cent increase from the same period last year.
Taking this rate of growth into account, shoe industry executives estimate that the current fiscal year’s
footwear export is likely to cross $300 million. Though in the next two years the existing factories are
likely to export more shoes, it is the new capacity that will come on stream from early 2011 that is
expected to cause the huge spurt in growth. Growth in exports is due to the low production cost in
Bangladesh compared to its neighboring countries: China, India and Vietnam, who also have a very
well entrenched leather and footwear export industry. Orders which earlier used to be given to China or
India are now being handed out to footwear manufacturers in Bangladesh because they are able to
produce low-priced but quality shoes, which have now found its way in to key markets in EU and Japan.
This growth in footwear exports has come as a blessing in disguise at a time when leather exports have
fallen by a massive 18 percent in the period under review. Experts attribute the growth in footwear
exports, thanks to machineries imported from Italy that is trusted for its quality output. In recessionary
trends, high-priced products tend to register a negative growth, as consumers tend to shy away from
them in preference for value for money items. In this scenario, it is a golden opportunity for the leather
and footwear sector to increase its global market share.
The local footwear industry is experiencing an annual growth rate of 26 percent, according to a
spokesman from another apex organization, Leather Goods and Footwear Manufacturers and Exporters
Association of Bangladesh (LGFMEAB). However, to continue the trend, the present level of growth
has not only to be attained; it also has to be taken to a still higher level, if Bangladesh is to match the
success of its immediate competitor, Vietnam.
According to a newly released statistics from the Export Promotion Bureau of Bangladesh, footwear
exports from the country grew from US$61 million in the period of July-November 2007 to $85 million
in the same period of 2008, recording a growth of 39 percent. In the first four months of the 2010 fiscal
year there has been $98 million worth of exports, a 65 per cent increase from the same period last year.
Taking this rate of growth into account, shoe industry executives estimate that the current fiscal year’s
footwear export is likely to cross $300 million. Though in the next two years the existing factories are
likely to export more shoes, it is the new capacity that will come on stream from early 2011 that is
expected to cause the huge spurt in growth.
Growth in exports is due to the low production cost in Bangladesh compared to its neighboring
countries: China, India and Vietnam, who also have a very well entrenched leather and footwear export
industry. Orders which earlier used to be given to China or India are now being handed out to footwear
manufacturers in Bangladesh because they are able to produce low-priced but quality shoes, which have
now found its way in to key markets in EU and Japan.
This growth in footwear exports has come as a blessing in disguise at a time when leather exports have
fallen by a massive 18 percent in the period under review. Experts attribute the growth in footwear
exports, thanks to machineries imported from Italy that is trusted for its quality output. In recessionary
trends, high-priced products tend to register a negative growth, as consumers tend to shy away from
them in preference for value for money items. In this scenario, it is a golden opportunity for the leather
and footwear sector to increase its global market share.( RMG Bangladesh, 2017)
Bata’s legacy of success started in Czechoslovakia, beside a small riverside town of Zlin, in the year
1894. Bata siblings officially established the T. & A. Bata Shoe Company investing on the small
inheritance gathered from their mother. Founder Tomas Bata was a visionary dedicated to serving the
needs of the people. In 1904, Bata introduced mechanization and mass production to shoemaking and
created the “Batovka” – a working class shoe remarkable in its simplicity and style, yet lightweight and
affordable. The Bata name quickly became synonymous with quality and value, and in just over two
decades Bata was selling 2 million pairs of shoes a year, and exports skyrocketed.
Even at the time of world war and the Great Depression, Bata continued to prosper. In 1931 it began to
build factories, and entire towns, outside of Czechoslovakia. Soon after that Bata was recognized as
an international brand known for its unmatched selection of styles. Bata started operating in over three
dozen countries by the end of the 1930s.
On the beginning of 20th century Bata’s international reach started to progress. When Communist
governments nationalized all Bata companies in Eastern Europe, Bata persevered by rebuilding itself
from the remaining entities located outside Eastern Europe.
Further expanding the company’s international umbrella, Thomas J. Bata, the founder’s son, moved
from Czechoslovakia to Canada with over 100 families and established the Bata Shoe Company of
Canada. Families around the globe relied on Bata to supply them with sensibly priced shoes that met
their needs and exceeded their wishes. By mid-century, Bata’s superior product earned the trust and
confidence of millions and Bata was positioned as the world’s leading footwear exporter.
As the 20th century came to a close, Bata had been building relationships with generations of families
for over 100 years. Thomas G. Bata, the founder’s grandson, remained committed to that tradition in
the emerging global marketplace. In a bold move, he replaced large, centralized factories with regional
production facilities guided by four “meaningful business units” (MBUs), each having the flexibility
and independence to produce footwear that responds to the unique needs of its region. As a result, Bata
is honored to be a local company in every country it serves. It is with pride that the Bata Company of
today maintains close to 5,000 international retail locations and services over one million customers per
day. From its simple start over 118 years ago, Bata has grown into a trusted global company that offers
fashionable and affordable footwear to every member of the family.
Bata Shoe Company is the market leader in the footwear industry since its operation in Bangladesh.
The name Bata achieved such a position in the customers’ mind that whenever they heard the name of
Bata, a footwear with high quality comes into their mind. Bata has been serving its customers with wide
assortments of products for about five decades and doing it successfully.
Bata Business
Bata Shoe Organization companies are involved in every facet of the business of shoes and accessories.
Bata operations includes :
Retailing
Bata Shoe Organization companies have built successful retail store concepts to satisfy changing
consumer tastes and needs. Each store features merchandise targeted to different lifestyles and people.
The merchandise ranges from footwear to clothing and goods complementing shoe offerings.
Sensitivity to and satisfaction of customer wants and needs has allowed the Bata Shoe Organization
(BSO) to become a world leader in footwear.
Manufacturing
Tomas Bata’s revolutionary business concept was to industrialize the shoemaking process of that day.
That type of thinking has been the driving force behind the Bata Shoe Organization success. The Bata
Shoe Organization has been an innovator in the manufacturing of shoes over the years. Bata personnel
have made important advances in DVP (Direct Vulcanization Process), PVC, athletic footwear
production and slush-molded footwear production.
Wholesaling
The Bata Shoe Organization [BSO] enjoys a unique position in the wholesale marketplace. Global
economies of scale enable BSO plants to offer quality products at local prices, with many are operating
at ISO standards. Bata Shoe Organization production facilities are world renowned for their
commitment to quality and customers, and have attracted production contracts from many international
footwear brands.
According to Bata Bangladesh website (2015) it is mentioned that currently, Bata Bangladesh operates
2 manufacturing plants at Tongi and Dhamrai, have production capacity of around 110000 pairs of
shoes daily. It has a modem tannery with the latest technological facilities to process 5 million square
feet of leather yearly. The Tannery is equipped with a high-tech effluent treatment plant ensuring a
pollution free environment for both workers and the environment. Bangladesh’s regional headquarter
is located in Singapore.
Bata is playing a pivotal role in developing the leather industry of the country. Bata has a firm
commitment to eco-friendly business and a state of the art Effluent Treatment Plant (ETP) has been set
up to provide a pollution free environment for both workers and the locality.
Fashion would never be complete without a well designed pair of shoes. This marketing insight has
prompted Bata to introduce a number of designers’ collections for men, women and children.
Internationally renowned brands such as Bata Comfit, Insolia, Neutralizer, Marie Claire, Hush Puppies,
Scholl, Nike, Bubblegummers, Sandak, Weinbrenner and B’first are a few names that testify to the
momentous change towards branded shoe marketing in Bangladesh. Specialized shoe categories such
as athletic shoes have been targeted through development of the Power brand. Uncompromising quality
with striking designs have put Bata shoes in a key position to appeal to different segments of consumers.
Another major change in the Bata business policy is the segmentation of retail outlets according to
profiles of different market segments and the introduction of novel concepts such as Bata City Stores.
These selective outlets, in conjunction with other types of outlets such as Bata Bazar and Bata Family
Stores, are adding a new level of consumer satisfaction. The City Stores incorporate spacious floor
space allowing a comfortable shopping experience, modem interior decor enriched with novel shelving
systems, fittings, fixtures and lighting that can be found in the large retail shops in the Far East and
Europe. Bata has a network of 242 retail outlets located strategically in different parts of the country.
These retail outlets are an integral part of our brand marketing. This extensive retail network is
supplemented by an equally extensive network of depots and dealers. Bata has 13 Wholesale depots
covering Bangladesh. Under these depots 390 RWD (Registered Wholesale Dealers) and 553 DSP
(Dealer Support Program) stores are operating. Bata Bangladesh has already developed its vision up to
2013 showing significant business growth as well as increased market share.
One of the critical areas associated with external shareholders and the community at large is the
Corporate Social Responsibility Program of the company. From supporting nationwide sports
sponsorships and disabled persons to addressing environmental concerns, scholarship programs, charity
contributions etc Bata has always supported individuals and communities in need. Partnerships with
other voluntary and charitable organizations are another prominent feature of Bata’s corporate social
responsibility. Bata, in partnership with CARE, extends assistance to over two thousand rural women
in order to become independent entrepreneurs in the Rajshahi, Comilla and Chittagong division selling
shoes from door to door under its Rural Sales Programme.
Since its inception, Bata Shoe Company (Bangladesh) Ltd. has strived towards one goal customer
satisfaction. With the vision of building a worldwide family of satisfied customers and dedicated
workers the legacy of Tomas Bata continues strong and unabated to this day the tradition is safe. Bata
Bangladesh has about 1500 regular and efficient employees and workers, who are highly committed to
uplift the company’s performance with high productivity and sales through maintaining the quality. In
recent times Bata Bangladesh has launched more than 180 new designs for different brands in their
men, women, children and infant categories. Eventually they have received excellent responses from
their various target groups on the new designs. (Bata Shoe Company Bangladesh Ltd., 2015)
Customer service
Personalized service: Qualified and enthusiastic sales associates are engaged who take customers’
satisfaction to heart. In many countries customer service goes beyond the stores with home deliveries,
orders made possible via catalogues, the web or even call centers.
Guaranteed customer satisfaction: In any Bata store in the world they repair, exchange or refund any
products with defects. They also exchange or refund on unworn merchandise if one changes one’s mind.
Proof of purchase is required for refunds.
Bata Gift Vouchers: Bata Gift Vouchers are like cash coupons that can be used by customers to make
purchases of Bata products from selected Bata shoe stores. Gift vouchers are available in three
denominations — Tk. 500, Tk. 1,000 and Tk. 2,000.
Predicted Price: In ICC T20 world 2016, Bata give wonderful chance for get 10% discount and 500,
200 Tk Discount Vouchers. If you predict on the day matches scoured, you can win this price.
Customer service center. Bata Shoe Company (Bangladesh) Ltd has a customer service centre and the
contact address is: Phone: +8802 9800501-5 Ext: 209
Mission
“Introduction of a strong shoe line targeted to various market segments to maintain leadership through
increased market share.”
Vision
“To provide good quality shoes at an affordable price by keeping in mind the comfort that needs to be
there and providing new designs with it.”
Figure 3 : Factories of Bata
Name Designation
City Stores
Bata city stores offer the urban customers a wide variety of current fashion footwear and accessories.
There are 25 city stores in Bangladesh, 16 in Dhaka Metropolitan area, others in Chittagong, Sylhet,
and in Mymensingh metropolitan area. These stores are established in prime locations, and provide a
high level of customer service, exclusive shoe lines with complementary accessories and contemporary
shopping environments are to discerning shoppers.
Family Stores
Bata Shoe Company is undoubtedly the world’s leading family footwear chain. The company offers a
wide assortment of everyday’s fashion footwear. The products are primarily of the brand Bata.
Nevertheless very carefully selected articles from both local and international brands are also marketed
by the company. There are 60 family stores till date that has been successfully operated all over the
Bangladesh.
10
Bata Bazar
Bata Bazar is the largest display of Bata’s products among all others store concepts. It provides the
customers with broadest range of products and accessories possible. This concept was introduced in
2003. They are ideally located in power centers commercial parks and outlet centers with easy parking
facilities. Currently there are 73 Bata Bazars being operated.
Clearance Outlets
There are 3 Clearance outlets of Bata Shoe Company where discounted shoes are sold.
Strengths Weaknesses
Loyal customers
Opportunities Threats
Wide assortment of products offered Raising local brands like Apex, Bay Emporium
Product
Bata offers a number of product lines to the prospective consumers in the existing market, Bata has a
truly international team whose diversity of ideas to develop new style foot wear, shocks, sneakers, etc.
Bata has introduced huge product line of men footwear- shoes, sandal, sneakers, shocks, women
footwear, kid’s footwear and many other types of footwear line the company is operating in the market.
About half line of product the company imports and sells under the franchising. Bata also sell ten
international brands footwear at their retail shop.
Bata Brands
Bata has been delivering hand-crafted quality footwear over 100 years to maintain and build on heritage
of creating high quality, comfortable and stylish shoes Bata stores carry following shoe brands:
Price
Bata use Price-Quality Leadership approach. They set the price based on value. In some country they
target high quality niche and in some country price sensitive segment. Everywhere they set the price
based on value they delivered. Bata follows geocentric pricing techniques. According to the
demographic features the local pricing for Bata shoes for men, women and children is given bellow:
Best Price Range (TK) BATA
Men's 990-2490
Women's 390-990
School 490-1990
Children 390-1890
Sport 1290-5990
Placement (Location)
Bata has a network of 242 retail outlets located strategically in different parts of the country. This
extensive retail network is also supplemented by an equally extensive network of depots and dealers.
The retail outlets are segmented according to the profile of customer and different market segments.
The physical distribution starts when the raw materials send to the factory and the manufacturing
process starts there in Tongi and Dhamrai factory. From there the end products send to the CDC (Central
Distribution Center) in Tongi factory. After receiving the end products then and there the packaging
has been done and according to the requirement of different stores, Agencies, dealers and wholesalers
the goods has been transferred directly to the distributors through company owned vehicle. There is
separate process for own agencies and stores against the wholesalers and dealers. The goods for
agencies and stores gone straight to the store headquarter and goods for others gone to the 13 depots
around the country from where they collect the goods. In retail, BB operates through a chain of exclusive
own and franchise stores. BB's stores are located in prime locations countrywide. 70% of Bata's sales
are from its own retail outlets. Besides there is a network of about 500 exclusive wholesalers who
service about 300 retail stores all over the country. Bata has showrooms, wholesale depots and
distribution centers across the country.
Promotion:
Bata has put less effort in promoting their products. They think the 242 retail outlet throughout the
country helps Bata to do integral brand marketing. Other than that they are the official clothing sponsor
of Bangladesh Cricket team. However Bangladesh, Bata has done many promotional activities on:
TVC
Electronic & Print Media.
Fashion show and several contest
Social Media like Instagram, Facebook , Twitter etc
Web based E-flyer, E-mail
Banners, Show cards, X- banners
Annual Sale
30 Million Pairs
2 Daily Production Capacity
Manufacturing 261 Retail
Plant 1,60,000 Pairs Outlets
1700+ Number 1
13 decades Shoe Brand
Employees
Part 2: HUMAN RESOURCE
PRACTICES BATA BANGLADESH
2.1 Functions of Human Resource Department of Bata Shoe Co. (BD) Ltd.
The Human Resource Department in Bata Shoe Co. Bangladesh deals with issues related to people such
as hiring, training, promotion, performance, management, compensation, organization development,
safety, benefits, employee motivation, communication, administration and industrial relations.
To perform the above mentioned activities in a sound way the department is divided into few wings.
Under the supervision of head of Human Resource those wings are working. Each wing is headed by a
specific manager such as-
Organizational Development:
Recruitment & Selection
Orientation/ induction
HR Service:
Assist Head of HR for job evaluation, career planning and assessment
Payroll:
Factory, Management and Sales payroll
Grievance Handling :
Implementation of compliance issues
Sales HR :
Recruitment of sales personnel
Factory HR:
Overall administration of Dhamrai factory
Disciplinary procedure
Compensation
Security Issues:
Ensure security, safety and environmental issues of factory premises
Protect all company asset at Tongi factory and all kinds of burglary and sabotage
Plan, maintain and supervise all fire prevention and fire fighting operations and carry out fire drill
Recruit, train, retain and reward employees who possess the qualities necessary to achieve departmental
objectives and in turn Company’s business targets
Committed to create an atmosphere which promotes values, advancement of learning, diversity, cost
effectiveness, and responsiveness to change
Ensure that we have motivated, competent and performance oriented employees with team spir t at all
levels within the company
Career development program for fast trackers to cope with future challenges
To assist departments in developing and maintaining a high quality workforce through quality training
and continuous appraisal
Recognizes that having a safe and healthy work force is beneficial to both the employees and their
families as well as to the company
Uphold corporate image through effective public relations by regular presence in the media and other
public forums
Finally, interact effectively and responsibly with the society for greater interest of the socio-economic
development
2.3 HR Strategies:
Development of annual training plan
Continuous evaluation to review effectiveness of training
Complete review of organizational structure in line with business plan
Downsize industrial workers through outsourcing
Streamline the HR policy issues
Introduce new HRM system link up with payroll management for better control & efficient
management of employee records
Inter-department communication to be more strengthened through collective effort
Further strengthen employee recognition programs like Employee of the Month, different
contest in sales and production to improve the productivity
Conformation to local environment, health and safety guidelines
To maintain harmonious employee and labor relations
Motivate employees by improving welfare activities in all aspects
To maintain good relation and rapport with labor department, employers’ federation,
department of passport & immigration and other Government entities
Games & Sports: The Company encourages all employees to take part in sports like football, volleyball
& other domestic games throughout the year.
Annual Picnic arranges for all the employees in a year with full pomp & joy.
SBU (Small Business Unit) initiative program it is a team building and future planning program, the
program organized by Human Resources Department.
Long service award: After having been in continuous employment of 25 years, an employee is entitled
to long service award as per company’s policy.
Achievement award: Achievement awards are also given on the basis of performance of the employees
of different departments.
Safety: The Company is concerned about safety and welfare of employees and recognizes that having
a safe, healthy work force is beneficial to both the employees and their families as well as to the
company. To fulfill this requirement the Company is continuing with smooth and effective Health and
safety programme according to the Bangladesh Labor Act -2006 through its environment health and
safety committee. Bata Bangladesh has a central environment, health &safety committee to initiate and
ensure the implementation of government and BSO policy regarding environment, health and safety.
Fire Prevention & Fire Fighting: The Company has a strong fire-fighting team comprises an employee
who is trained and can take any preventive measures during fire and to protect the life and property of
the Company. Evacuation drills are also held time-to-time to create awareness among the employees.
Office Hours:
Management: 7:30 am to 5:00 pm from Sunday to Thursday.
Operators: They are working total 45 hours per week in 5 days in general shift.
Shift Operators. They are working 48 hours per week in 3 shifts: 45 hours normal working hours and
3 hours for weekly common overtime for shift duty workers.
Record Keeping – Attendance: The operators are required to punch their cards at the main gate to
avoid discrepancies in attendance & number of hours worked through proximity system.
Employee Information: Bata Bangladesh maintain HRMS (Human Resources Management System)
software, from joining to company leaving of an employee total information are keeping in this system,
Identity card: Every employee is provided with an Identity card and the employee is personally
responsible for its safe keeping. The card must be surrendered by the employee at the time of leaving
the employment or at any time on being called upon to do that. Loss of the card must be reported to the
Human Resources department at once and a new cared will be issued on payment of the actual cost.
Personal Record File: The Company maintains personal record file for every employee where all the
information relating to the employment of the individual employees is keep till his retirement or
termination from the employment.
Service Agreement: All the management employee shall signed an agreement with the company
containing the term and condition of the employment.
Code of ethics: The employee shall sign the Code of Ethics of the Company containing the conditions
of employment forming a part of the Service Agreement.
Promotion: Promotion from one grade to another is entirely at the discretion of the Company and will
depend on vacancies in the establishment and the employee’s merit, qualifications and efficiency. If a
permanent employee is promoted to a new post, he may, at any time, during the probationary period,
be reverted to his old permanent post.
Overtime: No overtime will be considered for the management staff but for overstaying and holiday
duty it will be provided entertainment from the canteen. Furthermore for such type of overstay or
holiday the employees will be given actual conveyance allowance with alternative leave under the
banner of leave in lieu.
Transfer: The Company can transfer an employee from one department to another department or from
one factory to another factory for better administration or for business requirement its sole discretion.
Leave of absence: The employee will be eligible to the leave facilities according to the Rules of the
Company in force from time to time. Leave policy of Bata Shoe Co. (Bangladesh) Ltd is as:
Grievance procedure: Any employee who has a grievance in respect of any matter connected with this
employment, shall following the existing grievance procedure policy.
Employee communication: Communication is maintained between the employee and the company
through – Interflow meeting, E-mail, Newsletter, Notice board, in –house Magazine, telephone and
director conversation.
Dismissal from service: An employee may be dismissed from the service if he is convicted for an
offence or be dismissed if he found guilty of misconduct under the agreement signed with the company.
Termination of employment by the company: An employee may be terminated from service without
assigning any reason by giving 30 days prior notice or pay in lieu of such notice.
Termination of employment by the employee: A permanent employee may terminate his employment
by giving one-month prior notice or surrender one-month salary in lieu of such notice.
Notice Board & Periodical in-house Magazine: Notice boards are placed in 2 factories to keep updated
information about the Company. It also arranges to publish “Bata Footprint” on various activities &
news of the Company.
Canteen: 2 (two) canteens run in two factories in different timetable as per shift. Meals & drinks are
sold at discounted rate. The canteen environment is open.
Child Education Allowance: Encourage to education of employees’ children, Bata giving Child
education allowance to the employees.
Scholarship Scheme: Every year Bata Bangladesh giving Scholarship to the five scholar children of
employees, scholarship fixed up on basis of merit list of S. S. C. exam.
Group term insurance: All the employees are insured under group insurance scheme.
Accident: The Company will meet the cost of medical treatment necessitated by the accidents, provided
they occur in the course of the employee’s active service and in the actual courses of carrying out his
duties with the company, and are not the result due to intentional self injury.
Apron: The Company provides free uniform for the employees who are working in production.
Entertainment: Employment is provided with two cups of tea per full working day at the company’s
cost by providing canteen coupon.
Leave fare assistance: All permanent employees will be paid leave fare assistance with the salary
according to company’s policy.
Transport: The entire employee will be entitled company’s transport facilities according to the
Company’s transport policy.
Bata Children’s Program : Bata runs a number of programs that support our philosophy, culture and
values. Each sets out to achieve specific goals for our communities, our employees and our customers.
The Bata Children’s Program is its own way of bringing the children of a community together and
through this, making them stronger and even more beneficial to those help.
Bata and Care: Bata and Care are working together to help increase the income generating capacity of
rural women’s as well as to create new job opportunities, through the sale of Bata products offering
door to door service in the rural areas of the Country. In 2014, thanks to the successful results of the
first year partnership, Bata and Care decided to expand the program from the existing 1000 to 5,000
women initially which will be further expanded in future. Bata and Care are working together to help
increase the income generating capacity of rural women’s as well as to create new job opportunities,
through the sale of Bata products offering door to door service in the rural areas of the Country.
Part 3: DIGITAL TRANSFORMATION of
HUMAN RESOURCES PRACTICES at
BATA
3.1 Background of the Report
Forward looking HR leaders, are transforming HR to deliver an employee experience that is human
centered, uses the latest digital technologies, and is personalized, compelling, and memorable.
Now, as we enter 2017, the next journey for HR leaders will be to apply a consumer and a digital lens
to the HR function creating an employee experience that mirrors their best customer experience.
According to Forrester, 47% percent of executives surveyed believe that by 2020, digital will have an
impact on more than half their sales. Digital has already transformed media, retail, transportation and
education. Digital and consumer marketing are permeating new ways of recruiting, working, learning,
and engaging employees. Being employee-centered and digital is about having a new mindset, plus a
set of consumer-focused and technological skills to creating new HR solutions. Above all, it requires a
belief in the power of leveraging the latest consumer technologies inside HR.
This report aims to project the impact of automation in HR practices in perspective of the Bata Shoe
company. Anyone interested to get a detailed picture of the HR practices in country’s top most company
from retail industry and the effect of digitization process in organization will find this report helpful.
Primary Data:
I have collected the primary data from different department of Bata Shoe Company (BD) Ltd.
information revealed from the discussion with managers, executives and staff.
Secondary Data:
For the secondary sources I have collected all these secondary data mostly from— Company’s official
records and printed materials, Internet, Website of other Bata Shoe Organization.
All the above stated sources have been used to equipped different part of the report. Merging all the
comprehensive report has been established. References are given at the end of the report.
Collection & Interpretations of data
Primary data have been collected with face to face discussions with the employees of people &
corporate division. I gathered secondary data from company website and text books. Company history
of the services they delivered, other company associated information are collected from their website.
Yet again, some articles facilitated me to learn about their history and their engrossment in other sectors.
Finally, text books abetted me to relate numerous HR topics with my job responsibilities. All the data
sources have been presented in the reference part of the report.
All the expected data has been presented in descriptive manner. Certain tables and diagrams have been
inserted in order to present and interpret them. In addition, the appendix part displays the supporting
data that comforts to interpret the included data.
Recruitment is the job of finding and attracting capable applicants. Selection is the next step. Bata
Bangladesh maintains a policy for employee recruitment. Bata Shoe Company (Bangladesh) Ltd. is an
equal opportunity employer .The company’s Human Resources policy is ensure that our employee is
the highest caliber who can ensure our bright future. To recruit real genius to face the future challenges
for the belligerent growth of the organization. The recruitment process of Bata Bangladesh, job opening
through print media Daily news paper or job website, application call and received, application
screening, call first interview, board interview, final interview with Managing Director and final
selection, Appointment letter issue, joining letter received, induction & orientation and confirmation
after successful completion of probation period. Bata Bangladesh has recruited lot of young talented in
management level in view to build up the future leader and face the future challenges.
While the permanent employees are recruited through the Corporate HR department, Bata recruits its
sales staffs through ARMAC SERVICES LTD (Afser Resource Management and Consultancy
Services) a recruiting agency specialized for outsourcing all types of skilled, semi skilled and unskilled
manpower.
Previously Bata used to recruit the sales people on its own but as the company is expanding its business
and the demand for strengthening sales force is getting bigger day by day, it had to outsource this task
to become more efficient. The Sales HR Team in collaboration with ARMAC holds recruiting session
for sales staffs as frequent as once in a week to meet the vacancy demand.
Bata HR has re-designed its whole recruitment process in such a digital and automated way so that this
practice gets more resourceful and fair. Online recruiting has become one of the primary methods
employed by HR departments to garner potential candidates for available positions within an
organization. Talent management systems typically encompass:
Analyzing personnel usage within an organization;
Identifying potential applicants;
Recruiting through company-facing listings;
Recruiting through online recruiting sites or publications that market to both recruiters and
applicants.
For publishing the vacancy circulars instead of publishing them on newspaper Bata uses digital
platforms like BDjobs.com and other job websites. Also to reach out to greater talent pool it also takes
the help of social media platform by posting the circular in Facebook. In this way Bata ensures that
opportunities are distributed equally among all eligible candidates.
As soon as an employee is selected all necessary information and documents get uploaded in the Bata
HRMIS website. A profile is created for each employee where data related to that employee gets stored.
Every employee gets a unique control id which later helps HR team to filter out any type of required
data regarding him or her.
The training module provides a system to administer and track employee training and development
efforts. The system is called a "learning management system" (LMS) if a standalone product, allows
HR to track education, qualifications and skills of the employees, as well as outlining what training
courses, books, CDs, web-based learning or materials are available to develop which skills. Courses are
offered in date specific sessions, with delegates and training resources being mapped and managed
within the same system. This system allows managers to approve training, budgets and calendars
alongside performance management and appraisal metrics
Bata international Management development training is a system institutionalized into the company’s
cultural fabric where different courses/ programs are targeted to different management levels, address
different competencies for different management levels, linked together based on a continuum of
competency development.
Now this whole training program and its modules are designed in a digital way. For example the trainers
develop training modules with the help of audio-visual presentations so that the trainees get interested
and motivated to learn. Evaluation test is conducted before and after the training so that the trainers
understand the impact of learning. This test score are also recorded in the Bata server so that later
trainers can measure the effectiveness.
3.2.3 Performance Appraisal:
Performance management is the process by which our organization evaluates job performance to
evaluate the results achieved in line with pre-agreed upon goals and objectives.
Bata Bangladesh employee performance evaluate through IPR (Individual Progress Review). All the
department manager asses and rating their individual departmental employees and then submit to the
Human Resources Department, Head of HR review all the IPR thoroughly and summaries the rating of
IPR department wise. Finally the IPR submit to the Managing director to give his comments and rating.
The IPR form contained employees personal data, education, BSO courses, Non BSO courses, position,
review performance of last year, overall performance (marking : unsatisfactory, Satisfactory, good, very
good, outstanding), assessment of competency (using some critical evaluate the employee by entering
a numeric rating, such as Business sense, communication, result oriented, assertiveness, creativity and
innovation, initiatives, self confidence, resourcefulness, customer service oriented, team work, people
management, analytical thinking, leadership, conceptual thinking, impact & influence, relationship
building)
Performance appraisal is conducted once a year for both the management employee and sales persons.
For sales person the evaluation is based on the KRA score which shows the contrast between estimated
and achieved target.
Previously all these performance evaluation forms were stored manually, so it was not easy to do the
comparison. But now Bata uses its own database to store all these evaluation test score so that is can
use the performance appraisal as the basis of tracking employees career growth
Human Resources Department systematically forecast the organization’s future demand for and supply
of employees. By estimating the number of employees that will be needed, the HR department and all
manager make better plan people’s recruitment, selection, training, career planning and other activities
in connection with SPC(succession planning chart).
Hiring
Administration
Managing
HR planning
Recruiting/Learning management
Performance record
Employee self-service
Scheduling
Absence management
Analytics
Employee Reassign module
Grievance handling by following precedents
Payroll Module automates the pay process by gathering data on employee time and attendance,
calculating various deductions and taxes, and generating periodic pay cheques and employee tax
reports. Data is generally fed from the human resources and time keeping modules to calculate
automatic deposit and manual cheque writing capabilities. This module can encompass all employee-
related transactions as well as integrate with existing financial management systems.
Time and Attendance module gathers standardized time and work related efforts. This module keeps
records the time of entrance, absent days of employee and sales representatives.
Benefits Administration Module provides a system to administer and track employee participation in
benefits programs. This encompasses insurance, compensation, profit sharing and retirement.
Employee Self-service Module allows employees to query HR related data and perform some HR
transactions over the system. Employees may query their attendance record from the system without
asking the information from HR personnel. The module also lets supervisors approve O.T. requests
from their subordinates through the system without overloading the task on HR department.
Bata has gone beyond the traditional functions and developed human resource management information
systems, which support recruitment, selection, hiring, job placement, performance appraisals, employee
benefit analysis, health, safety and security.
Analytics Module enables organizations to extend the value of an HRMS implementation by extracting
HR related data for use with other business intelligence platforms. For example, organizations combine
HR metrics with other business data to identify trends and anomalies in headcount in order to better
predict the impact of employee turnover on future output.
3.4 Bata IT: Bata IT is the internal server used by the employee to keep records of total sales
operation and track the salesman performance on daily basis. From this website the Sales HR team can
check the reports of daily attendance, number of sold items, comparison between estimated and
achieved target sale, UPT(unit Per Transaction), etc. This server also shows the reports of overall store
performance and contribution to turnover which helps the management identify the most profitable
stores and also take necessary steps to boost up the sales of underperforming stores.
Part 4: Findings of the Study
4.1 Observations and Recommendations:
While going digital is bringing numerous benefits to HR People and speed at work it also comes with
some disadvantages as well. Some of the drawbacks that I noticed while working at Bata HR are given
below-
User Error
Inherent in the use of HR management systems is the means for inaccuracy. Because computers and
their associated programs are only as effective as their human users, data entry errors can and do occur.
In Bata HR management systems, such errors take place too. At best, minimal errors, such as a few
misspelled employees’ names, may occur. At worst, errors in data entry could disrupt the workflow of
the entire HR functions. If, for example, if HR management system displays a number of incorrect dates
designating when to carry out significant employee performance reviews with ensuing promotions, the
adverse results may include a contagious drop in employee morale, which could affect levels of
productivity.
Employee Assessment
HR management systems can be effective in selecting employees for certain positions or for
advancement, based on performance scores and other information. However, the human factor is
removed from these types of tasks by the system. For example, when analyzing employee talent, your
system may reveal high scores in sales, new accounts or marketing efforts, but may not be capable of
uncovering an employee’s habit of treating customers in disparaging ways. To realize the total
evaluation of a staff member, Bata HR management system should have some way to prompt human
input.
Down Time
Integrated with all computers and software are the inevitable issues that cause technical difficulties.
Bata HR management systems often face this down time. The problem includes bringing a critical
business activity to a halt if employee data is not accessible. Concerns such as this can be minimized
by policies calling for ongoing focused technical system maintenance.
There are now many types of Human Resources Management System (HRMS) or Human Resources
Information System (HRIS) some of which are typically local-machine-based software packages; the
other main type is an online cloud-based system which can be accessed via a web browser. Bata can
consider using Cloud based HRMS to avoid such drawbacks since they are more efficient, secure and
error free.
4.2 Limitation:
This internship program itself was quite exciting to complete in these three months. Likewise, collecting
proper information for this report purpose was another big challenge. As a whole the limitations of this
report can be detailed as follows:
Confidentiality of most of the information was a big limitation of this report. As HR compacts
with so much personal data, records and information about each and every employee regardless
of their position, usually they are unapproachable for an intern.
Time constraint was a limitation too. A longer period could have facilitated me to gain
information from various recruitments. Overpowering all these challenges and at the end
making this report was a new learning experience for me. The report may comprise some
unintentional mistakes however I tried my best to put the best consequence in it.
Conclusion
"Almost all quality improvement comes via simplification of design, manufacturing, layout, processes,
and procedures." - Tom Peters
In this era of ‘Go digital’ organizations are adapting automation to simplify their works and bring
promptness in their workplace. Digital is fundamentally changing the way businesses and governments
operate—from how they interact with customers, citizens and suppliers, to how they manage their
employees. New digital technologies enable not only greater integration and flexibility than ever before,
but also the ability for employees to have a greater share of voice and ability to participate in defining
and even creating their own work experiences HR departments that ignore this transformation could
face obsolescence.
Bata holds a vision to invest resources in innovative comfort technology, remaining on the cutting edge
of style, and ensuring quality and affordability. Bata believes success is a result of commitment to
customer and to fulfill that commitment it is necessary that this age old organization keeps up with
modern technology not only in terms of manufacturing but also in its overall management and
operational activities. Bata HR department is setting an excellent example of introducing and
implementing the digitized change to make the organizational operations smoother and swifter.
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List of Abbreviation
Abbreviation Meaning