Institute of Administrative Sciences

Final Assignment
U.S. APPAREL & TEXTILES (PVT) LIMITED

Submitted By: Maryam Binte Naveed

Roll No: 16-BS-R-45
Submitted To: Mr. Aurangzeb Tanvir
Introduction

Apparel is a Lahore, Pakistan-based Company supplying fashion industry companies that

need absolutely reliable quality and delivery. US Apparel constantly improves to remain
state-of-the-art in all its processes and as a product innovator, so that customers can be
confident in partnering with them to achieve fashion leadership.US Apparel is a vertically
integrated provider with capacity to produce 26 million units of apparel. By 2025, we’ll be
able to produce almost 40 million units.

US Apparel is based in Lahore, at the heart of Punjab – home of the best bottom-wear
cotton in the world. They know how to best source their Better Cotton Initiative fiber, and
they’re growing even more access to certified organic cotton.

The history of this region is based on textiles, which helps provide them with a pool of
knowledgeable employees.

Their facilities include seven separate garment units, ensuring that each one of them is a
manageable size and can focus on a similar set of customers. Their overall scope, centralized
planning and integration create efficiencies, and we’re also able to co-ordinate their
operations to deliver the best response to customer needs.

US Apparel is implementing the Six Sigma technique to improve efficiency. And we use the
Seven-Zero quality improvement in-line audit to prevent defects and address issues at the
source, ensuing that any errors are caught quickly and any causes are immediately corrected.
The vision is to become a top performing, professionally managed company in textiles and
apparel sector, with regional footprint, operating responsibly and serving the interests of all
stakeholders.

History

Their history and experience in the fashion business goes back to 1975 when two friends
started in apparel trading to finance their educations. Javed Bhatti is now US Group
Chairman and Mian Ahsan is now US Group CEO. (The company name comes from these
partners’ oldest sons, Umer Ahsan and Siddique Bhatti.) They soon began manufacturing and
launched a brand named “Leeds” which the US Group still uses today for local shalwar suits
and sweaters. The company built its first manufacturing facility in 1985, and quickly became
Pakistan’s leading exporter of bottom-wear twills and denim.
Then, just over 10 years ago, they made the strategic choice to focus on denim, and built the
most modern denim manufacturing facility possible.

They designed their plant and operations to give the best brands everything they could
demand in fashion denim, and to deliver that value reliably. Ever since, we’ve kept our
technology and machinery up to state of the art, investing in the best tools and bringing in
industry experts to transfer the latest knowledge.

Pakistan provides numerous benefits that US Apparel passes along to clothing brands.
Besides being one of the largest cotton-producing countries in the world, we have a well-
developed infrastructure to support the textile industry. As well, our geographic location
provides easy access to both suppliers and customers and Pakistan’s economy enables them
to keep your costs controlled.

US Apparel is driven to create new and better options – both for denim fashion and for
sustainable denim production. Their state-of-the-art research and development invents or
adapts new technologies to deliver the innovations that great brands thrive on.

CUSTOMERS OF U.S. APPAREL & TEXTILES (PVT) LIMITED

They are proud of the garments they create for some of the world’s leading brands. They are
even prouder of the partnerships they’ve formed with them over the years. It starts with
efficient planning with proper risk analysis and analysis of constraints. Then they speed the
needed materials through their auto-order system. Fabric is brought straight to our cutting
tables, so quality is assured at the source. Chemicals and threads come directly from their
suppliers’ local warehouses. They have in-house leather patch and label printing, and, of
course, their in-house testing lab.

Among Major Brands They Supply To:

 Levi's
 H&M
 ZARA
 KIABI
 George
 TAGET
 PRIMARK
US Apparel is making denim garments more sustainable. They continue to invest in processes
and business practices that are even better for the planet and for its people. That includes
equipment and technologies that lower the amount of water and energy they put into a pair of
jeans.

US Apparel also constantly finds new and better ways to reduce lead times – both for
development and for production – to give our customers greater flexibility. Fabric is brought
straight to their cutting tables, so quality is assured at the source.

HUMAN RESOURCE DEVELOPMENT PRACTICES in Apparel

TEXTILE INDUSTRY
Human Resource Development (HRD) is the structure for helping workers build up their own
and authoritative aptitudes, learning, and capacities. Human resource development practices
comprise of numerous strategies and practices that are utilized by managers to recruit, select,
develop, utilize, reward, and maximize the potential of human resources in organizations.
These are considered by organizations to be vital human resource development practices.

HRD is concerned with the advancement of knowledge, skills and competencies, and the
improved behavior of people in an organization or society. It is concerned with both the
individual growth and career development of people, and organizational development
(OD).

Human Resource Development Practices in textile Industry

Textile industry gives employment to millions of people. In order to recruit skilled workforce
in textile sector, proper training programs would thus facilitate in supply of well qualified
workforce.

Thus: The role of HRD has gained momentum in terms of employing manpower that
satisfies the professional requirements of this sector and that is well skilled. Thus many
collaboration among many multinational companies and educational institutions is been
observed.

Due to the modern HR practices are affected by terms such as multi skilled, production
measures, advantages of competition, casual labor, social security, subcontracting, etc. Now-
a-days a lot depends on the bargaining power of the labor, legal policies and the scenario of
the labor market. This has started since the foundation of WTO (World trade organization).
Human Resource Development Department
The HRD department of any company is responsible of:

 Recruiting skilled labors and executives,

 Allocation and planning of work,
 Monitoring of workforce and
 Performance appraisal.
 It is also responsible to timely up gradation of skills of the workforce by organizing
educative professional workshops or seminars.

Textile industry gives employment to millions of people. In order to recruit skilled

workforce in textile sector, proper training programs would thus facilitate in supply of well
qualified workforce. Thus, the role of HRD has gained momentum in terms of employing
manpower that satisfies the professional requirements of this sector and that is well skilled.
Much collaboration among many multinational companies and educational institutions has
been observed. Total number of employees is 5001-10,000.

If HRD activities are carried out in proper professional manner it could result into
minimization of cost and wastage, right recruitment of workforce, increased stability of
the company, flexible enough to cope up with futuristic developments and most important
maximizes production.
Human Resources Strategies for the Textile Industry:

 Recruitment:
 Textile industries promote the work of fashion designing, product pattern and styles
so your human resource strategy should focus on recruiting suitable skilled manpower
for the production function as well as sales and marketing departments. Personnel in
these areas are crucial to the productivity, performance and bottom line of your
company. If you operate globally, recruit talented local candidates likely be several
times lower than deployed personnel with similar skill levels from the hone office.
 Orientation:
 Intensive orientation to the employee ore of the major functions of human resource
management. The program should help the employee to know assigned duties and his
exact job description, job role, and the relationship of position to other positions in
organization. It gives clarification to the employee to take an active role in the
organization.
 Maintaining good working conditions:
 It is the responsibility of the human resource management to provide good working
conditions to the employee so that they may like the workplace and the work
environment. It is the fundamental duty of the HR department to motivate the
employees.
 Training:
 Human resources personnel have to develop programs to trail employees to adapt to
new technology that improves production operations in a changing garment market.
Typically, such trailing courses help employees enhance their- career growth and to
update new products for competitiveness. You also will need soft skins training
courses on sales and marketing as a strategic management endeavor for increased
sales volumes. Human resources should have a qualification system for existing and
new employees to determine their respective training reeds. For best results, align the
training programs in home and overseas subsidiaries with our firm's goals and
objectives.
 Compensation Policy:
 Your human resources strategy should establish a salary and compensation policy to
encourage your existing workforce to stay and attract qualified candidates to your
 firm. Perform periodic reviews of salary levels to ensure workers are remunerated
competitively.
 Incorporate an incentive system based on employees' performance, such as instant
bonuses for the sales team once they get contracts or year-end bonuses for reaching
resources should ensure a favorable working environment. Implement safety and
security measures, such as having fre alarms, first ail and monitoring systems in place.
Establish a professional working environment. Spell out job descriptions to avoid
confliction. Hold regular team-building events to connect workers across departments
management, as well as reduce working stress.
 Managing Employee relations
 Employees are the pillars of any organization Employee relationship is a very broad
concept it is more of the crucial function of human resource management. It also to
foster good employee relations. Management should organize activities which will
help to know an employee at the personal and professional level. Well-planned
employee relation will promote a healthy balanced relation between the employee and
the employer. It the key for the organization to be successful.

Manpower managing
 It is the process of determining manpower requirements and the means for meeting
those requirements order to carry out the integrated plan of the organization.
 It is a double —edged weapon. If used properly, it leads to the maximum utilization
of human resources, reduce excessive labor turn over and high absenteeism, improve
productivity and aid in achieving the objectives of an organization.

Recruitment &Selection
 Recruitment is a process of identifying and hiring best-qualified candidate (from
within or outside of an organization) for a job vacancy, in a most timely and cost-
effective manner.
 The process begins when applications are brought in and ends when the same is
finished. "the result a pool of applicants, from where the appropriate candidate can be
selected.

Important Problems of Textile Industry Faced:

• Lack of personnel expert improvements
• Lack of productivity
• Lack of knowledge
• Inadequate application of technologies in informatics
• Obsolete equipment
• Lack of training

ZARA- HUMAN RESOURCE DEVELOPMENT

The human resource at zara are one of the components behind the unique efficient and quick
response system. People are highly motivated which reflects zara hr policy. This part of the
project focuses on how the operations on human resources department of zara are carried out:
right from talent acquisition, learning and development, workforce planning, rewards and
recognition programs, organizational culture versus local culture, ensuring that zara has a has
a better working environment and highly skilled employees to provide better services to the
customer.

Talent Acquisition

Zara hires young people, provides training and fair incentive schemes which result in high
and effective communication. There has been a survey proving 100% satisfaction rate from
the employees on the talent acquisition process. Unlike other retail companies zara provides a
transparent recruitment process which creates a trust in the employees. People at zara also
sell and market the name and represent the fashion. The store manager we met at zara was
dressed in a fashionable way. “we sell fashion”, he says. People plays a vital role identifying
company needs job description person specification job advert application form shortlisting
candidates interview decision making contract of employment.

Learning and Development

Zara has a very effective way of training staff. Sales assistants are trained quickly whereas
cashiers learn more over a longer period of time. This is because they have more to learn, as
they are responsible for handling all of the cash for the store. Managers are still constantly
training and developing their skills too and receiving higher salaries rewards them. , training
and development is a key aspect of human resource management. There are many ways in
which employees are trained including, education, training, learning and development.
These methods include training for the present time and for the future. Feedback is important
to let the manger know if their training is being successful or not and allows them to improve
it if needed. Behavioral theory looks at what gets employees motivated.

These include things like setting goals, promotion, job security and incentives.

Workforce Planning

Zara supports employee development and growth. Money is a great motivation for
employees at zara. They are appreciated and well rewarded for each task they accomplish.
This encourages employees not to look for opportunities outside and ensures the company’s
workforce is maintained.

Zara is very strict about their training. If any manager achieves higher position that mean she
might have been working for 5 to 6 years. They give trainings to their employees and also
allot a mentor to each individual.

You can gain knowledge from your mentor and can learn many new things from him.

They also test you to know your level of understanding.

Three Levels of Organizational Culture

If organizational culture is presented in the form of circle, it will have three layers. The
outermost will be artefacts, middle will be the values and beliefs and inner most will be the
underlying assumptions.

These are:

 Artifacts
 Espoused values
 Assumptions and beliefs
Artefacts of ZARA’s organizational culture

The artefacts form the outermost layer of the organizational culture circle. The artefacts are
the tangible and visible aspects of the ZARA’s organizational culture. Some examples of the
artefacts are- open door policy, office layout and official dress code for the employees. The
cultural artefacts of the ZARA are easily observable by the outside world, however they are
hard to interpret.

Values within the ZARA’s organizational culture

The core values are not easily observable. The ZARA’s core values are the shared goals,
principles and standards. These core values are accountability, diversity, quality,
collaboration, passion, integrity and leadership. The ZARA management understands the
importance of communicating the core values so that each employee could accept and modify
the behavior accordingly.
ASSUMPTIONS WITHIN THE ZARA’S ORGANIZATIONAL
CULTURE

Assumptions are deeply embedded ideologies and philosophies and provide the foundation to
the ZARA’s organizational culture. Employees generally remain unaware of these underlying
assumptions, yet they play an important role in formulation of core values and visible
behaviors.

The ZARA’s organizational culture is more internally than externally driven. Despite
ensuring a quick response to the changing customer needs, the top management openly
communicates the importance of adopting an ethical attitude while responding to the market
needs. The company shares strong commitment to embedding ethics and integrity into its
business operations. The internally driven organizational culture has enabled the organization
to use its ethical brand image as a tool to get a strong competitive edge over rival firms.

New HRM Specialty Areas :

 Work and Family Programs

 Administers work family programs including flextime, alterative work scheduling,
dependent-care assistance, telecommuting, and other programs designed to
accommodate employee needs; identifies and screen or elder-care providers;
administers employees private dependent-care facility, promotes work and family
programs to employees.
 Cross -Cultural Training
 Translate the manners, mores, and business practices of other nations and cultures for
American business people. Other cross-cultural trailers work with relocated
employees' families, helping them adjust to their new environment.
 Manage d-Care
 As a company's health-care costs continue to escalate, employers are embracing
managed-care systems, which require employees to assume some of the costs.
Employers hire managed-care managers to negotiate the best options for employees.
 Managing Diversity
 Develop policies and practices to recruit, promote, and appropriately treat workers of
various ages, races, sexes, and physical abilities.
 10 LATEST NEWS ABOUT ZARA

1. ZARA OWNER TO CLOSE UP TO 1,200 FASHION STORES

AROUND THE WORLD

The owner of Zara will close as many as 1,200 stores around the world as the clothing retailer
tries to boost online sales during the chaos wrought by the Covid-19 pandemic. Closures are
expected to be concentrated in Asia and Europe. It is understood that the 107 Inditex stores in
the UK are less likely to be significantly affected.

Inditex said it would “absorb” between 1,000 and 1,200 mainly smaller stores, with losses
concentrated among older shops from brands other than Zara. The Spanish company’s other
brands include Bershka, Pull & Bear and Massimo Dutti.

2. ZARA'S UK PROFITS DROP SHARPLY DESPITE RECORD

SALES

Zara has recorded a sharp fall in UK profits despite sales breaking through the £600m barrier
for the first time.

Although Zara, which arrived in the UK in the late 1990s, is feted by the fashion pack, it
only just makes the UK’s top 20 list of womenswear retailers based on market share. Zara
also refurbished some of its London shops to “keep the stores’ layout and atmosphere in line
with the Zara brand image”.

3. ZARA BECAME THE NEW TARGET OF CHINESE ANGER

Thousands of Chinese social media are calling for a boycott, accusing the retailer of
supporting employees wanting to join the strike. Hong Kong has seen months of protest, with
much of the anger directed at what protesters say is a growing influence of mainland China in
Hong Kong. Many companies have found themselves facing an angry reaction from mainland
China over anything perceived as supporting the protests or challenging Chinese sovereignty.

4. ZARA PROMISES ALL ITS CLOTHES WILL BE SUSTAINABLE

BY 2025

The company that owns these shops says all cotton, linen and polyester they sell will be
organic, sustainable or recycled. Zara has 64 UK stores, and its parent company has 7,490
shops worldwide. Reacting to the news, Friends of the Earth told Radio 1 Newsbeat it would
be "better for everyone if the industry sold clothes made to last."

Some people in the fashion industry have been calling for more clothes recycling in order to
protect the environment - while politicians think brands and shops should fund clothes
recycling.

Zara is one of the stores not to currently use plastic bags and Inditex, the company that owns
the chain, says that by 2020 it will eliminate the use of plastic bags across all of its brands.

5. NO DISCOUNTING, SAYS ZARA OWNER

Inditex, the world's largest clothing retailer, says it has not been discounting prices like its
rivals. The owner of Zara, Massimo Dutti and Bershkowner reported net profit of 2.4 billion
euros (£2.1bn) for the first nine months of its financial year, up 4% on the year, and
maintained guidance for the second half of the year.

Its profit margin grew in the third quarter while like-for-like sales in the second half of 2018
to the end of November were up 3%.

6. ZARA SHOPPERS FIND LABOUR COMPLAINTS INSIDE

CLOTHES

Shoppers at Zara stores across Istanbul found these unusual tags left on garments, hidden in
the crease of a pair of jeans or in the pocket of a jacket.

But who was putting out the secret messages, like a prisoner in a World War Two drama?
The tags were left by workers from local company Bravo Tekstil, which produced clothes for
Zara and other big international brands like Next and Mango. The manufacturer went
bankrupt overnight in July 2016, and its workers said they were not paid in the period up to
its closing. Now, they ask Zara to compensate their losses and pay them three months of back
wages and severance.

7. A CUT ABOVE THE REST, ZARA NOW KEEN TO CUT MALL

RENTALS TO SIZE

Spanish fashion retailer Zara is asking some malls where it has run stores for years to
renegotiate rental terms, including reduction in revenue-share deals and either lower or total
waiver of common area maintenance (CAM) charges that tenants must pay landlords.
Multiple mall executives where the world’s largest fashion brand is present say Zara is still a
strong performer even after mounting competition over the last five-seven years – and the
arrival of more foreign brands and an explosion of web commerce.

8. ZARA EMPLOYEE ACCUSES STORE OF DISCRIMINATION

OVER HER HAIRSTYLE

An employee at a Zara store in Toronto's east end said she will likely quit her job and file a
complaint with the Ontario Human Rights Commission after managers gave her a hard time
about her hair.

9. ZARA: TECHNOLOGY AND USER EXPERIENCE AS DRIVERS

OF BUSINESS

Despite being one of the last fashion companies to take up e-commerce, Zara has achieved a
universal shopping experience that encompasses both its brick-and-mortar locations and its
online stores. Other companies have tried to emulate this experience, but never with the same
results.

10. ZARA COMPRESSES A THIRTY MONTH PROCESS TO

FOURTEEN DAYS

Zara the Spanish clothing manufacturer, has become the largest apparel manufacturer on the
planet. They’ve been incredibly successful by finding a solution to a ubiquitous problem in
fashion: By the time runway fashions make it to the stores thirty months after their initial
viewing, they’re often passé.

Textile Industry Pros and Cons

Advantage

Pakistan has the advantage of cheap labor as compared to its competitors, but unfortunately
the labor productivity is very slow.

Disadvantage

There are hardly any training programs to develop on the skills of these labor and the
craftsmen depends upon their inherited skills with no advancement.
SWOT ANALYSIS OF TEXTILE INDUSTRY:

STRENGHTS:

 Self-reliance
 Manufacturing flexibility
 Abundance of raw material production
 Design expertise
 Availability of cheap labor
 Growing economy and market
 Progressive reforms

WEAKNESSES

Research & Development (R&D)

 Developed countries are using the technology of biotechnology engineering to

increase the quality a quantity of their cotton production. In Pakistan, there is very
sone research done on small scale by private companies. Practically no efforts are
being made by the AVRMA (All Pakistan Textile Mills Association) in the R&D of
the textile industry to enhance the quality of its products.
 Highly fragmented sector.
 High dependence on cotton.
 Lower productivity.
 Declining mill segment
 Technological obsolescence
 Non-participant in trade agreements

POOR QUALITY STANDARDS

Pakistan's textile industry should focus on latest material handling techniques and should
train workers. The inability to timely modernize the equipment, machinery and labor has led
to the decline of Pakistani competitiveness.
THREATS

New Competitors

 Pakistan is facing new competitors in textile sector such as Bangladesh, Vietnam and
Turkey. Though we cannot avoid competition but we can always stay ahead of them
by reforming our strategies and educating our entrepreneurs so as to move one step
forward in every aspect.

Phasing Out of Quota System

As the Quota system is ruled by WTO, there is a threat by the Chinese and Indian
manufacturers to gain most of the market share. We have high costs, low labor productivity
and inefficient production processes.

Fashion Life Cycle

 Fashion changes day by day these days. Media has so much penetrated in our daily
lives that we easily adapt ourselves as it wants us to. This has resulted in shortening
the fashion lifecycle thus increasing the fashion risk. Now the buyer does not want to
wait long for his consignment because he is insecure that by the time it will reach to
him le will lost its demand due to change in fashion. Therefore, they prefer to buy
from neighboring countries even at higher cost to get their products instantly rather
than to wait weeks or months for their consignments to reach them.
• Stiff competition from developing countries; especially
China
• Pricing pressure
• Locational disadvantage
• International labor and environmental laws.
 ENVIROMENTAL ISSUES:

Textile industry is associated with some environmental issues some of them are:

• Large volumes of water

• Usage of complex
• Discharge of untreated effluent
• Water Pollution
 • Ai- Pollution
• Labors concern.

Responsibility of HR Department in Textile Industry:

• It is necessary to have job analysis information as it helped to short list the candidate list
and to conduct interview.
• It is observed that if the description and person specification is not available then
• It is responsibility of the relevant department to prepare the document with the help of
HR department, staffing activities cannot be commenced without any reference to
document.
• Line managers are involved in final selection of the candidate and HR planning at the
department level, HR staff is more interested and involved in matters like policy making,
recruiting candidates and the early screening processes.
• Involvement of HR department in hiring process helps to enhance knowledge of the
workforce and required skills
• It is also helpful for the identification of upgrading skill requirement of the employees.
• By such involvement, good communication to have synergy effect and help to unify the
workforce.

As a result of this communication, negotiations happen in more positive atmosphere which

has an ultimate effect on the quality willing the workforce.

HR OPPORTUNITIES

Many textile sectors provide an opportunity for quality improvement such as: plan, new
technology, education and training. Understanding of these areas may help much in quality
improvement. Increase demand and consistent growth rate indicates that human resource has
great to utilize its' capacity for foreign markets. Increasing health consciousness of human
resource goes to natural textile products from artificial ore. So, tendency might increase the
global market.
Conclusion:

Today, Human Resource Management Department plays a vital role in every organization.
These HR systems improve employee performance at workplace; it updates employee
knowledge and enhances their personal skills. Human Resource programs and functions i.e.
recruitment & selection, training & development, compensation & rewards, performance
appraisal & feedbacks etc.to improve the quality of work-life by creating an employee
supportive workplace.

Textile Industry a very big business industry in Pakistan. Pakistan is considering the world
contributing country the Ready Made Garments (RMG). Knit is also a major raw material of
textile industry. World's most of the brands are making their dress from Pakistan.

Thus, it's very competitive market. In that market if anyone wants to success they need
skilled worker. If the organizations provide necessary trai1ing to their employees they can
increase their productivity.

This study was a learning experience for us and we came to know the HR department in the
textile industry shows positive in response but still more focus on HR functions, strategies
and is needed in the textile industry so that the employees are motivated time by time and
they should know their strength & weakness so that they can work on & improve their
knowledge & skills for the betterment of their organization.

In the last but not the least I conclude that all the HR functions of textile company should
highly effective & beneficial to the employees in giving their best contribution to their
personal growth & development as well to meet the organizational objective.
Recommendations:

These are some recommendations through which Textile industry may be beneficial:

• Training and development format should be friendly and flexible.

• HR department of the textile companies should diversified their- training programs rather
than focusing on professional trainings.
• There must be a clear relation between training effectiveness and strategic goal of the
organization.
• The companies should update regularly their HRIS that is Human Resource Information
software.
• Approaches used to train employees should be selected after careful consideration of the
trainees and organization needs.
• To motivate and encourage the employee's adequate allowance should be provided to
them during the working period.
• The companies should increase their training budget, because without a big budget the
companies would not be able to introduce modern technology in their training system
• Companies must encourage self-management in their HR system. According to their
budget more focus on internal employees and if needed then outsource any function of
HR.
• Rethink and implement job designs and a classification system that support competencies
and roles to accomplish work.
• Implement efficient, flexible hiring and transfer processes based on roles and
competencies to facilitate movement to and from assignments, roles and responsibilities.
• Compensation linked to the competencies of individuals; the compensation system is
flexible enough to support changing work assignments, team-based pay, superior
performance, and market forces.
• Document and disseminate information about best practices to recognize and reward
individual teams.
• Performance planning and monitoring a continuous process for, assessed on, and
rewarded for supervisees' performance planning and monitoring.
• Every team and employee has measurable goals and a plan for performance.
• Implement competency-based assessment, development training processes to
• promote flexibility and growth.
• Implement an annual strategic planning process to support the staffing needs of
departments, centers, and administrative areas as well as the company broader mission
with the help of Vice President for Human Resources and Deans.