Crown Cement Main Body

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Background:Bangladesh Cement Industry:

Cement Industry is a relatively fast growing industry in Bangladesh which is developing in pace with increasing building and construction activities. Cement has long been used as a bonding agent to unite particles or to cause one surface to stick on to another. The most common form of cement is Portland cement. It is a powder obtained from burning together a mixture of lime and clay, which when mixed with water and sand or gravel, turns into mortar or concrete.

The amount of cement now annually consumed in Bangladesh is about 5 million metric tons. The production however, falls short by about 3 million tons per year. This shortage is met through imports. Per capita consumption of cement in the country (38 kg) is fairly low compared to India (89 kg), Indonesia (127kg), Malaysia (582 kg) and Thailand (642 kg).

The Rise of the Cement Industry:

In Bangladesh modern high-rise ones had pushed up the use of cement. But as the economy continued to remain agrobased, construction sectors had not been able to gain momentum and as the infrastructure development is selective, cement remains a product of low demand. A faster growth in demand for cement had been observed only since mid-1980s, especially with implementation of large infrastructure projects, increased pace of urbanization, construction of apartment buildings and multistoried shopping complexes in urban areas, and a shift in the taste of moneyed rural people for modern houses.

Private enterprises dominated production and import of cement to cater to the local market. The manufacturing of cement is based on both locally available raw materials and imported clinker. The two cement plants of the first type, one at Chhatak and the other at Ayeenpur, have a total installed capacity of 260,000 tons a year. They produced cement from local limestone and use natural gas as fuel.

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The mills that produce cement from imported clinker are located mostly around Dhaka, Chittagong and Mongla. There were 62 registered cement factories in the country in 1999, but only 13 of them were in production. The total installed production capacity of these factories is about 3.8 million tons a year. Their actual production, however, is much lower. A 50-kg bag of cement produced locally sells at Tk 250-260, while a bag of imported cement is priced at Tk 230-250.

Local raw material based cement production depends on limestone deposits that lie in St Martin’s Island, joypurhat and Sylhet areas. The deposits in Sylhet support the production of Chhatak and Ayeenpur cement factories. These plants have the added advantage of being able to meet their needs for gas and clay from deposits close by.

So we can say that the cement industry of Bangladesh is a rapidly increasing sector of the economy. And it is the result of the amount of construction projects have followed an rising trend as the urban growth rate has boosted all across the country in places like Chittagong, Bogra, Mongla and others in addition to the expanding capital city, Dhaka over the years .

Currently, domestic production is unable to meet the complete demand for cement. Approximately 60% of the demand is met by the local cement industry while the rest is imported. According to the Banglapedia, per capita consumption of cement in the country (38 kg) is fairly low compared to India (89 kg), Indonesia (127kg), Malaysia (582 kg) and Thailand (642 kg).

Cement has not traditionally been a major product for the country due to low availability of required natural resources to produce it. In addition to that, in less developed regions cement was not a required raw material for construction of buildings.

Over the years, however, cement emerged as a substitute to traditional construction materials and by the mid-1980s, with an increase in hefty infrastructure projects, accelerated rate of urbanization and increased construction of multistoried buildings, there was a sharp increase in its demand. One intriguing aspect of this industry is the reliance on the import of clinker. Except Lafarge Surma Cement Ltd., a multinational cement manufacturing

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company, all cement manufacturers go through the expensive of importing clinker which involves high freight cost, import duties and other handling charges. Hence, this is a scope for other companies to minimize costs by producing the raw material locally and increasing their competitive performance.

M.I. Cement Factory Ltd. - Crown Cement:

In the modern days, there is no alternative to cement for construction works. The state owned Chhatak Cement Factory and Chittagong Cement Clinker Factory were the only two cement factories, which had been producing cement in the post liberation period. As their production capacity was much less than the market demands, cement were being imported to meet the necessity. But in the name of imported items market had been flooded with adulterated cement. As a result, consumers could not rely on any one of those brand.

In this scenario, local manufacturers came in the line in decade ’90 and thus consumers started changing their mind over the quality of the cement. In this continuity, M.I. Cement Factory Ltd. was set up on the bank of river Dhaleswari in the industrial belt of Mukterpur in Munshiganj district, nearest to the capital city of Dhaka.

Cement is the latest addition in the list of export commodities in Bangladesh. Our country started exporting cement from January 2003. Crown Cement of M.I. Cement Factory Ltd. takes the pride of part of it. Earlier, apart from some production of state-owned Chhatak Cement Factory, the country was dependant on its import. In this context, local investors took the initiative for setting up cement factories and starts producing cement in 1992. The production in eight private factories stood 34 lakh tons in 1997, So far, about 100 Factories got government's approval of which 56 factories are on production with a production capacity of 1.30 crore metric tons against a domestic demand of 60 lakh tons in a year.

The beginning of journey:

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M.I. Cement Factory Ltd. (MICFL) was founded by 2 leading business groups of the country, namely Molla Group and Jahangir & Others Group. The group sponsors started their business in 1965 through trading of construction materials such as Cement, MS Rod, Steel Structure and gradually expanded its business into manufacturing and trading of construction materials such as Cement, Mild Steel. MS Rod, MS Bar, MS Angel, Billet' CI Sheet. They have also diversified their business in Iodized Salt and Power Generation. Annual turnover of the Groups in 2008-09 was approximately BDT 18 billion.

The foundation stone of the M.I. Cement Factory Ltd. was laid on December 11, 1998. Primarily the daily production capacity of the factory was 600 metric tons as it follows the world famous O-Sepa separator of Japan. It went into operation in 2000. It marketed the product with the brand name of Crown Cement. Following such investment and from the very beginning, it has maintained a non-compromising position on its high quality. As a result, it has gained huge popularity in the market. Due to increase of demand, company set up its second unit with the capacity of 800 metric tons per day and three units with the capacity of 1400 MT per day within two years. And these 2nd and 3rd units finally led to rise of production capacity to 2800 metric tons per day.

Currently, MICFL decided to undertake 4th unit of the plant in order to enhance the capacity to 5800 metric tons per day. After this expansion the company will be able to place itself within top five companies of the country in terms of production capacity. M.I Cement Ltd. was incorporated as a public Ltd. company in 31 December 1994 under Companies Act 1994.

Altogether the factory has been producing 2800 metric tons of cement per day from May, 2008. Crown Cement is accredited by BUET, BSTI and LGED. Each and every consumer now knows that Crown Cement attaches highest priority for maintaining its quality, weight and services.

Directors Ownership in Other Companies:

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Name of the Directors

Name of the Companies Relationship

Md. Jahangir Alam

Crown Power Generation Ltd.GPH Ispat Ltd.Premier Cement Mills LtdJahangir and others Ltd.GPH Power Generation LtdPremier Power Generation Ltd.

ChairmanManaging DirectorDirectorManaging DirectorManaging DirectorDirector

Al-Haj Khabiruddin Molla

Crown Power Generation LtdMolla Salt (triple refined) Industries LtdAhmed Hossain & Co.

Managing DirectorManaging Director

Proprietor

Md. Alamgir Kabir

Crown Power Generation Ltd.GPH Ispat LtdPremier Cement Mills LtdJahangir and Others Ltd.GPH Power GenerationPremier Power Generation Ltd.

DirectorDirectorDirectorDirectorDirectorDirector

Md. Molla Mohammed Maznu

Crown Power Generation Ltd.M.M. Salt Industries Ltd.Molla Salt (triple refined) Industries Ltd

DirectorDirectorDirector

Md. Mizanur Rahman Molla

Crown Power Generation Ltd.Molla Salt (triple refined) Industries LtdM.M. Salt Industries Ltd.

DirectorDirector

Proprietor

Md. Almas Shimul

Crown Power Generation Ltd.GPH Ispat Ltd.GHP Power Generation Ltd.Jahangir & Others Ltd.

DirectorDirectorDirectorDirector

Management Development:

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M.I. Cement Factory Ltd. has a group of skilled engineers, foreign trained chemist and experienced technicians who supervise its overall production. Behind the screen, there is a promising, honest and experienced management to oversee the whole thing. The crown cement management has been doing business for about 40 years in this line. So, they believe that there is no alternative to:

Quality

Accurate weight

Excellent services.

To provide excellent services they built their channel in the main city throughout Bangladesh:

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Skilled Worker:

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M.I. Cement Factory Ltd. so far appointed 325 persons as skilled manpower. In addition to this 500 people are also associated with its marketing and transport departments. They think that about 3000 people out of 824 families depend on this factory for their livelihood. They believe that they proper take care of their employees.

Customer Satisfaction:

Their management is apt to satisfy their customers by quality product and services. Satisfying the home users ‘Crown Cement’ has now won the heart of the customers abroad. They are the country’s first proud exporter of cement, where the product has been received with dignity for its high quality. This is the pride of our country, pride of our nation and also pride of their M.I family.

Experienced Personnel:

Management development is associated with managerial personnel. Management Development refers to the process of educating and development selected personnel so that they have the knowledge, skills, attitudes and understanding need to manage future positions. The process starts with the selection of a qualified individual and continues throughout that individual’s career.

Crown Cement company use management development to ensure the long-run success of the organization

To furnish competent replacements, To create an efficient term that works well together, To enable manager to achieve the ultimate goal of the organization.

Management development is more future oriented, and more concerned with education, than is employee training, or assisting a person to become a better performance.

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Slogan:

Trusted by people Tested by time.

Mission:

Their mission is to provide Bangladesh with high quality cement for solid foundation of its physical infra-structure.

Vision:

Cross the border and their product to enter into world market.

Brief Overview of the Company:

Date of Incorporation: 31 December 1994Converted to Public Ltd. Co.: 31 December 1994Year of Commencement: 2000Authorized Capital: Tk. 5,000 millionPaid up Capital (Pre IPO) : Tk. 700 million.Financial year: July-June

Organogram of M.I.Cement Factory Ltd. - Crown Cement:

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Their Focus:

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Their aim is to serve their customers to their best satisfaction they have given more foremost importance on:

Sustainable Price

Guarantee of quality products

Door to door service

In order to maintain above they introduce following production process through highly qualified technical personnel:

They give highest importance for procurement of quality raw materials.

They always get the sample from the intending suppliers/manufacturers for carrying their various tests to find out quality and acceptability.

They maintain their production process state of art machineries.

Proper maintenance to the mechanical technical equipment is made regularly.

They never compromise with the quality. They are maintaining a very sophisticated and well equipped laboratory to carry out quality test. It is their standing instruction to conduct various quality tests within the production process.

The product is only air marked to put to market after same being fully passed by the quality control department upon their full satisfaction.

Their product is analyzed and tested by BUET, LGED, etc. apart from their own laboratory test to ensure quality before the cement is being put into market.

Friendly Working Environment:

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A team of excellent efficient work force is in its employment who feels a homely atmosphere in the company. They try to give them liberty to contribute their best in production of quality products and imparting high quality services to the utmost satisfaction to its customers. They work here with perfect zeal and responsibilities in co-operative unison.

Employee involvement is creating an environment in which people have an impact on decisions and actions that affect their jobs. Team building occurs when the manager knows when to tell, sell, consult, join, or delegate to staff. For employee involvement and empowerment, both team building and delegation rule. If Crown cement can empower their employees they will feel that it’s their company and they will work from their heart. Also it will enhance their performance.

Goals:

Provide highest standard products and secure customers satisfaction.

Secure strongest competitive production through creative product and operational excellence.

Have highest entrepreneurs’ skills.

Create a team of employees of highest professional skills. For conversation of natural resources to engage in research and innovation to use alternative raw materials where possible.

Extension of facilities to customers MICFL has taken steps to supply to customers cement in bulk through its bulk carries and also in form of ready mixed concrete direct to construction site corporate nature in management.

They take care of procuring raw materials, production procedure; packing materials and keeping vigilance through their well equipped laboratory that secure high quality cement.

Fulfil Customers Demand:

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Crown Cement started their journey with the aspiration of fulfil the demand of cement in this country. M.I. cement factory Ltd. reached that target successfully by producing 2800 MT of cement per day. But they would like to give all the credit of success to their customers. They are really thankful to their customers for their confidence on the Crown Cement. Now more than 50 brands of cement are sold in the market. Customers’ confidence led us to bring Crown Cement to the Customers abroad. It is important to determine how this technology is to be used, how standardized should be processes that are used in producing the products and how effectively and efficiently is the technology used in production.

Hard Work:

They are the first to include the cement in the list of export commodities. For this success they are thankful to the skilled workforce of M.I. Cement Factory Ltd. They have been making tireless efforts to reach the quality cement to the customers.

Quality Makes Difference:

They also seek the cooperation from the customers. M.I. Cement Factory Ltd. believes in quality production and good services to the nation. They never compromise with the quality. They are maintaining a very sophisticated and well equipped laboratory to carry out quality test. It is their standing instruction to conduct various quality tests within the production process. They have been making tireless efforts to reach the quality cement to the customers. They also seek the cooperation from customers to keep faith on them.

Communication:

The Company has its well-versed engineers and other marketing team who constantly get in touch with the seller and consumers impart technical assistant and advice in construction work. Extension of facilities to customers MICFL has taken steps to supply to customers cement in bulk through its bulk carries and also in form of ready mixed concrete direct to construction site corporate nature in management.

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The Path of Establishing a Cement Factory:

Before starting up M.I. Cement Factory Ltd. they were in the arena of construction material business for more than four decades. Their business was run on importance of construction materials including Portland cement. They used to meet the requirement of their valued customers through import of cement they had realized that it’s impossible to meet the demand of customers by importing cement from other countries. It was very time consuming as well as costly. Moreover there was always a high change of deterioration to properties of cement in view of long transit time to reach. It was ultimate loss of the company and customers.

This has backed up us to give a serious thought to establish a cement factory and to cater the need of quality cement countrywide. With the establishment of M.I. Cement Factory Ltd. they have been able to save and directly contribute about 500 million in local currency to the national exchequer. Moreover they have been also able to bring reduction in the price structure with supply of fresh product and creation of employment opportunity.

By now they have almost passed almost three years since they completed establishment of cement plant and went for commercial production. Within these short spans of time they were able to produce millions of bags of cement and market those to the satisfaction of their valued customers. They have great reliance on their valued customers countrywide. It is their only aim to supply quality cement at a reasonable rate to their numerous users for years to come with their endless effort for the satisfaction of their valued customers.

Competitors:

Cement sector is the largest increasing sector in Bangladesh. There are 70+ cement factories in Bangladesh and daily production capacity is 16.687 Million MT. Its growth daily.

Unique Cement Industries Ltd.:

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Unique cement industries ltd was established in the year 2002. The factory is built with modern machinery imported from Germany and China with production capacity of 1800 M/T per day. Unique cement industries ltd. has ISO 9001:2000 Certificate. They have two brands of cement in the local market namely "FRESH" and "MEGHNACEM".

Holcim (Bangladesh) Ltd.:

Holcim (Bangladesh) Ltd started its operation in this country with the acquisition of the-then Hyundai cement. Afterward it acquired United Cement and Saiham Cement.

Holcim (Bangladesh) Ltd is affiliated with the Holcim Group worldwide and is one the largest multinational cement producers in the world with manufacturing in over 70 countries. The group has a production capacity of more than 120 million tones of cement per year.

MTC Cement Industries Ltd.:

MTC Cement Industries Ltd was established with the technical co-operation of CITIC engineering of PRC in year of 1998 which was situated on the embankment of the river Meghna. There is a two unit cement plant with capacity of 1200 MT per day. TIGER BRAND Cement started its commercial voyage on July 2001. Currently MTC is on an expansion program in Pagla with a small 150 MT per day capacity cement grinding plant.

Lafarge Surma Cement Ltd.:

Lafarge/cement mills is setting up the only modern, integrated cement manufacturing plan known as Lafarge Surma Cement Ltd. in Bangladesh at Chattak under Shunamganj district. The majority of Lafarge Surma Cement Ltd. Shareholding (60%) is held by a 50/50 joint venture company between Lafarge and Cementos Molins. Founded in 1833, Lafarge operates in 75 countries, employing 77,000 people. In 2002, the group generated annual sales of Euro 14.6 billion and globally holds top ranking positions in Cement, Aggregates & Concrete, Roofing and Gypsum. Cementos Molins is a renowned Spanish

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cement company with annual revenue of Euro 485 million and net profit of Euro 70 million. Operating in Spain, Argentina, Uruguay and Mexico, it produces Portland and Calcium-Aluminate cement, Concrete and Precast concrete, Aggregates and Special purpose mortars.

Lafarge Surma Cement Ltd. will extract and process the basic raw materials like limestone and shale from its from its own quarry in Meghalaya, India. A 17 km cross-border belt conveyor will be installed to link the quarry with the cement plant for transportation of raw materials.

A massive land filling and site development has been completed on the 90 acre plant site. The construction and erection is also. The plant will initially produce 1.2 millions tons of cement per year.

Premier Cement Mills Ltd:

Started its production in March, 2004, Premier is the second largest cement manufacturer in Bangladesh. With a total installed cement capacity of almost a million tons per year at Muktarpul, Munshiganj, the Company is recognized as a leading cement producer with abundant supply of raw materials, low production cost and an energy efficient operation. The Company currently employs 216 persons and has an extensive distribution system throughout the country.

Its transportation subsidiary, with three prominent transport companies in Bangladesh, operates a large fleet of trucks to distribute cement products in bags almost anywhere in the country.

The Company was founded in 2001 as the private cement producer in Bangladesh, with a factory in Muktarpul, Munshiganj. The Company started production in March, 2004 with Unit 1, which had an installed capacity of 730,000 tons of cement per year, and would be followed by Unit 2, also at 730,000 tons of cement per year, by the mid of 2005.

The factory is equipped with world-class European technology built in Denmark and Germany. Within the span of first 5 months, the company has achieved the ISO 9000-2001 certification from TUV, with highly skilled employees.

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The Marketing Policies of Crown Cement:

Crown cement has been pursued by considering its customers demands and satisfaction. The demand of quality cement is being increased gradually in different construction works in home and abroad. That is why the combination of high quality of raw materials, use of most modern technology and weather-friendly packing system is being made in every bag of Crown cement.

Their department is pledged-bound to give the facilities of speedy shipment of cement to different corners of home and abroad by road and by river. In addition to this they are also promise-bound to give other cement-related services. They hope that they will get continued cooperation from their valued dealers, retailers and buyers and this will help them.

So the management has to think and act properly for the sake of the company and for the betterment of the company by serving the customer with the unique and best service and become the more profitable business. They have to balance for recruit the right people in right time in a right place. It is really very important for the manager to act according to these facts.

Excellent Employee and Employer Affiliation:

Employee and employer relation should be more hassle free, flow of communication should be clearer and everybody should get fair treat from the management. Fortunately in Crown Cement this kind of organizational culture is completely visible. There is no communication gap between management and the workers.

One important building block of the organizational culture is that there has to have to friendly relationship among all the employer and co-worker. One can criticizes others mistakes but everything has its own limit. If the criticizing increases, it will have a negative impact on overall compensation arrangements. The free flow of information and ideas among the individuals and the management and the workers is necessary for an organization to work effectively and efficiently as well to progress and succeed in this competitive age of the business arena. Reward and recognition for successful ideas and for facilitating

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smooth communication can be good means to encourage the employees to share their views and ideas with the management.

In addition, the top managements need to have good personal and working relationships with the person who is expected to become and working relationships with the person who is expected to become the firm’s leader and a fellow board. When one wants to change an aspect of the culture of an organization one has to keep in consideration that this is a long term project. Corporate culture is something that is very hard to change and employees need time to get used to the new way of organizing. For companies with a very strong and specific culture it will be even harder to change.

In Crown Cement, the relation between worker and employer is very nice. Workers do not have any complain against the management. Management is also very careful for its employees. They always look after their workers and they have also arranged many incentives for their employees.

Accomplishment:

For their excellent quality of product and service they got so many certificates. Some of them are given below:

ADVANCED DEVELOPMENT TECHNOLOGIE

BEXIMCO TECHNOLOGIES LTD.

RANGS PROPERTIES LTD.

SHELTECH (PVT.) LTD.

BANGLADESH CEMENT MANUFACTURERS ASSOCIATION

Some of Their Best Constructions:

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A LARGE SHOPPING COMPLEX CONSTRUCTED BY CROWN CEMENT

A FOOD GRADE SILO, COMPLETED BY CROWN CEMENT

A RIVER JETTY, UNDER CONSTRUCTION BY CROWN CEMENT

International Organization of Standardization:

ISO is the world's largest developer and publisher of International Standards. By dint of quality management M. I. Cement Factory ltd. succeeded to earn the certification on ISO 9001:2000 quality Management System (QMS).This achievement accomplished within a period of 2 years of operation with the performance of its devoted and diligent work-force.

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Technical assistance & guidance to the end-users:

The company provides technical assistance and guidance with its well-versed engineers and other marketing team who constantly get in touch with the seller and consumers impart technical assistant and advise in construction work which help MICFL to maintain a healthy relationship with all its customer and retailer as well as distributor.

Product:

M. I. Cement is basically a grinding mill that imports raw materials and manufacturers the final products. It started in 2000 with a production capacity of 180,000 MT annually. The product having high standard quality found its great acceptability to customers, ranging from individual builders to contractors or corporate organization. By seeing the success and acceptance the management of MICFL took the expansion program and set up its 2nd unit with another 240,000 MT per year’s production capacity in 2002.

Presently the MICFL is producing two types of cement depending on customers such as customers’ choice viz. Ordinary Portland Cement and Composite Portland Cement.

Ordinary Portland cement Type-I: For general construction work, in concrete where no special protection such as sulphate or acidic attack from soil and water not anticipating, this type of cement is used. It is marketing in brand name:“Crown Cement”, Standard mark:BDS-EN-197-1:1993 CEM-I42.5 N

Composite Portland cement:MICFL introduced from 2005 this standard of cement matching with the specific demand of construction such as foundation, floor, brick-laying, plastering and concrete work also. Trade mark,“Crown Cement” standard:BDS EN: 197-1:1993 CEM-II/A or B42.5 N

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Collection of Quality Raw Materials:

Most of the cement mills of Bangladesh are grinding mills and import raw materials from other country. MICFL is also a grinding mill and almost all the raw materials are imported. It imports mainly from Thailand, Indonesia, Korea, Japan and India. At first the management representatives visited such countries and manufacturers of raw materials to ensure desired quality conforming to produce quality cement. For producing composite cement MICFL imports slag from Japan for an additive with clinker. After arrival it tests the raw materials through some known trading houses who have been tested to be bonafide and dependable.

The Packaging Process:

MICFL is always concern about environment. So under “Crown Cement” brand name, it marketed its product in 50 kg packing of either in Kraft paper bag or P.P. woven bags. Presently MICFL has taken steps to satisfy needs of some customers for supply of cement in bulk. It is also supplying ready-mix concrete for meet its customers need.

Human Resource management of MICFL:

Human Resource Management is now the main key for any business organization. Because worker is the main material for any type of organization and HR helps the company to recruit the right person in the right time and place. It helps to maintain the relation between the employer and employee. It refers to the strategies, practices and systems that can affect employee’s behaviour, attitude and performance. There is a HR department IN MICFL to meet the needs of a modern HR related problems. They are very much concerned with staff selection, training and development, conditions of employment and other HR issues within organisations.

MICFL involves the productive use of people in achieving the organisation’s strategic business objectives and the satisfaction of individual employee needs. In Bangladesh HR practice is a new issue, so the HR department is not that much old like the company. But it is working now and taking care of the HR related issues of the company.

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HR practice is an important practice for any organization and MICFL is not different than any company because any company’s future lies in the actions of the individual’s action which are recruited by the HR department of the company.

Recruitment and Selection Process:

MICFL would always follow a standard system to recruit its new employees for the vacant post. In this case it follows both internal and external hiring process. MICFL prefers internal recruitment to external recruitment. External recruitment notices are given on the media, for example newspapers. Even in case of external recruitment candidates with reference are given priority. On the other hand internal recruitment based on the experience of the candidate. In this case MICFL strictly evaluate the performance of the candidate.

These are the primary factors that MICFL analyzes in its recruiting and selection-

Requisition: The HRM department took the decision of whether there is a vacant position exists or not.

Advertisement: Then they circulate advertisement for the employees through newspaper.

Candidate Source: From where MICFL collect their candidate depends strictly on the level of the vacant position. If it’s a higher level position they look for experienced person from other company and invite them or look internally to promote one of its own employees. But for lower or entry level job they go for external sources.

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Internal candidates: They are the employees who are working for the company and experienced as well as reliable. Internal candidates are preferable for higher level positions.

External candidates: When a company goes for external employee they have to think about some issue like what is the time frame, characteristics of employees, available resource for the selection process. If all this issues can be positively resolved only then the company can go for the external recruitment.

Training in MICFL:

Training is the most important tool for any company to make their workforce more valuable, productive and motivate towards their work. The company arranges training to its employees and workers in their respective field both internally and also engaging experts on contractual basis. Also let some of the key personnel to attend workshop and symposium on cement matter both at home and abroad.

Internal training includes on the job learning process they believe that I is the most affective tool for the workers and the employees to learn their work more perfectly.

Motivational Factor of MICFL:

To motivate the employees of the MICFL they follow some way to make tem happy and satisfied. So there are some ways to keep them loyal to the company which are followed by MICFL.

Candidate(Depends on Position)

External(Paper, Online) Internal

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Monetary rewards:

Monetary rewards are those which can standardize by any negotiable thing. For monetary rewards we can name cash, cheque, money order, bonus, performance salary. MICFL practices sale incentives, commissions. And they are motivational because they give it to both sale and non sale department like accounting, marketing or operation whoever helps to boost the sale of the product.

Non-monetary rewards:

For non-monetary reward we can name picnic, game show, appreciation, medal, gifts etc. MICFL practices annual picnic, game show and performance evaluation appreciation.

Health & Safety

M. I. Cement Factory cares for keeping the environment free from pollution. So it takes appropriate measures for preservation and protection of environment. For this end in view it keeps its desired mechanical devices and gives due emphasis for well congenial health condition within the factory for its employees. For financial security against any mishappening it brings its employees under of Group Insurance facility.

The relationship between the workers and management of M. I. Cement Factory Ltd. is not pleasant. If the gap between management and workers is not reduced, the gap will increase constantly and it is not acceptable.

Risk factors & management’s perception about the risks:

There are some particular risks associated with this company. These risks may result in loss of income or capital investment of the company’s shareholders.

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Sourcing of raw materials:

Main raw material of cement is the clinker which is imported from different sources. The company’s business is dependent upon its ability to source sufficient clinker at competitive price for its operations.

Distribution network:

Many strong producers of cement including multinationals are competing in the domestic market but the Company depends on its own distribution network for the sale of its products.

Rise in Input Costs may affect profitability:

The input costs of the products of the company may increase due to various reasons, such as increased cost of raw materials and other variable costs that adversely affect the input costs. In such case, the company may not able to pass on such increase to the consumers because of competition or otherwise, it may affect the profitability of the Company.

Future results of the Company may be adversely affected if the Company fails to implement the proposed expansion:

The company has undertaken very optimistic expansion plan and expected to complete within one year. In case of failure to implement as per schedule the company will suffer significantly in terms of profitability, cost overrun as well as market share.

Cement market is highly competitive:

Some of the competitors of the Company are larger than the Company and have vast financial resources that may enable them to deliver products on more attractive terms or to invest large amounts of capital into their business, including greater expenditure for better and more efficient production capabilities. These

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competitors may limit the opportunity of the Company to expand its’ market share and may compete with it on pricing of products. The business, financial condition and prospects of the Company could be adversely affected if it is unable to compete with its competitors and sell cement at competitive prices.

Non-availability of power could disrupt the operations for the proposed project:

Power is essential for operating the plant which comes either from PDB or from captive source operated by Gas. Interruption of supply of power/gas will reduce the production which will ultimately increase the cost of production and make the company uncompetitive.

Delay/failure of the public issue may adversely affect the implementation

Proposed expansion would be funded from this Public Issue and any delay/failure of the public issue may adversely affect the implementation.

Foreign Exchange rate risk:

The project may face some degree of foreign exchange rate fluctuation risk as the Company imports raw materials against payment of foreign currency.

Market and technology-related risks:

In the global market of 21st century, developed technology, products and services render obsolete the old service and product strategy. So, the existing organization may not be able to cope up with the future needs and demands.

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Background (Union View):Crown Cement is one of the most renowned cement brands in Bangladesh. It is one of the brands of M.I. Cement Factory Ltd. which is one of the best selling cement in Bangladesh. Their mission is to provide Bangladesh with high quality

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cement for solid foundation of its physical infra-structure. They have achieved huge success nationally and internationally as well. Where there is success, failure is the other side of the coin. Though M.I. Cement Factory Ltd. is very successful, it is facing some problems.

M.I. Cement Factory Ltd. has huge workforce. They provide employment for huge sum of people. Although still there are many vacant posts in many departments. They do not hire as many people as they should. The workforce, they currently have, is huge but not enough to maintain the whole organization.

They have many workers but they do not have provided health and security measures for the blue-collar workers. The management does not seem much concern about the blue collar worker.

All of their concern is about the white collar worker and the management. There is not any motivational inspiration for the workers. They get their pay as daily basis. And the management thinks that it is enough for the company which is not. They need to be more concern about their workforce or there is a chance of huge loss in future.

Management keeps switching the employees very often. They take employees from any department whenever they need which is not good for the employees because frequent job rotation makes employees confused about their working areas and responsibility; they do not get to learn properly.

The main problem which concerned us more is that M. I. Cement Factory Ltd. has no workers and employees union. A company, as big as this, should have a union for the workers. But since the establishment date, it has not formed any union for all their staff. And from which source we collect our data we got confirmation that there were problems in the past days between workers and the management, which is obvious because without any uniformed workers association there is no chance of presenting the demand, arranging collective bargaining and most importantly no bridge of connection between the management and the workforce. So, unfortunate situation lead by misunderstanding was quite expected.

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Theme:M.I. Cement Factory Ltd. started its journey with the aim of fulfilling the demand of cement in the country. So far, they have been very successful in fulfilling the national and international demand. Crown Cement is highly preferred in the

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consumer market. Like other huge organizations, M.I. Cement Factory Ltd. is also facing problems. While there is no uniformed worker association the management is not efficient enough to fulfil workers demand and they are not careful about it. There is a HRM department but it is not experienced that much. Wile they are importing to India they are unable to import cement in other countries due to non-feasible plans and other external circumstances.

Main Issue:

What policy or strategy should M.I.Cement Factory Ltd. follow to develop a strong union-management relationship along with improving market share while optimizing more profit and expanding their business?

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SWOT Analysis:

The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. The SWOT

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Environment

Internal Analysis

Strength Weakness

External Analysis

Opportunity Threats

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analysis headings provide a good framework for reviewing strategy, position and direction of a company or business proposition.

The following diagram shows how a SWOT analysis fits into an environmental scan:

The following are the SWOT analysis Crown Cement of M.I. Cement Factory Ltd:

Strength:

Strong Management:

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Management plays a vital role for the development of any kind of company. It becomes more important when the company has both the national and international market. Crown Cement has both the national and international market, so a strong management is vital for the growth of this company.

M.I. Cement Factory Ltd. has a group of skilled engineers, foreign trained chemist and experienced technicians who supervise its overall production. Behind the screen, there is a promising, honest and experienced management to oversee the whole thing. The crown cement management has been doing business for about 40 years in this line. So, that there is no alternative to quality, accurate weight and excellent services. M.I. Cement Factory Ltd. so far appointed 325 persons as skilled manpower. In addition to this 500 people are also associated with its marketing and transport departments. A team of excellent efficient work force is in its employment who feels a homely atmosphere in the company. We try to give them liberty to contribute their best in production of quality products and imparting high quality services to the utmost satisfaction to its customers. They work here with perfect zeal and responsibilities in co-operative unison.

Technical assistance and guidance to the end users:

For any kind of business customer satisfaction plays a positive role. The management has taken a step to gain the satisfactory response from the customer. For this the company provides technical assistance and guidance to the end users.

The Company has its well-versed engineers and other marketing team who constantly get in touch with the seller and consumers impart technical assistant and advice in construction work. Extension of facilities to customers MICFL has taken steps to supply to customers cement in bulk through its bulk carries and also in form of ready mixed concrete direct to construction site corporate nature in management.

Training Department:

Training works as an important key to make the employee more efficient and effective works. Without proper training an employee could be a burden for the

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company. Regarding this matter MICFL has designed the training programmes for every employee.

The Company arranges training to its employees and workers in their respective field both internally and also engaging experts on contractual basis. Also let some of the key personnel to attend workshop and symposium on cement matter both at home and abroad. Through proper training M.I. Cement Factory Ltd. wants to create a team of employees of highest professional skills.

Strongest competitive production through creative product and operational excellence:

To keep with the pace of the market a company must increase its product to meet the newly born customer needs. Otherwise a company will fall behind in the market. That is why the combination of high quality of raw materials, use of most modern technology and weather-friendly packing system is being used in every bag of Crown cement.

M.I. Cement Factory Ltd. started in 2000 with a production capacity of 180,000 MT annually. The product having high standard quality found its great acceptability to customers, ranging from individual builders to contractors or corporate organization. Soon the management of MICFL took the expansion program and set up its 2nd unit with another 240,000 MT per year’s production capacity in 2002.Presently the MICFL is producing two types of cement depending on customers such as customers’ choice viz. Ordinary Portland Cement and Composite Portland Cement.

Different Type of Portland cement:

MICFL is offering two type of cement to its consumer which is helping it to satisfy its customer.

Ordinary Portland cement Type-I is useful for general construction work, in concrete where no special protection such as sulphate or acidic attack from soil

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and water not anticipating. Composite Portland cement is introduced by MICFL introduced from 2005 this standard of cement matching with the specific demand of construction such as foundation, floor, brick-laying, plastering and concrete work also.

HR Department:

Human resource is the most important part of a company, because, other resources could be bought from the market, but human resource is developed through motivation and training. For developing the business and interpersonal skills of the employee HR department always train and motivate the employee.

M.I. Cement Factory Ltd. has a strong HR department. The employee feels a homely atmosphere in the company. HR department give them liberty to contribute their best in production of quality products and imparting high quality services. HR department gives due emphasis for well congenial health condition within the factory for its employees. For financial security against any mishappening it brings its employees under of Group Insurance facility. The management of M.I. Cement Factory Ltd. was in the arena of construction material business for more than four decades. So the management itself could not deny the importance of a strong and effective HR Department.

Weakness:

Bangladeshi Company:

Bangladesh has many natural resources to increase its capital growth, but due to the lack of proper use and control of these resources it always lagging from its ability. A proper and complete industrial friendly environment is a primary condition for the capital growth of a country.

MICFL is a Bangladeshi company, which is economically a third world country of the world. As a result industrialization faces many problems in the way to its development. All the technologies come from abroad. So modern technologies are not being used in the production. But for rapid development in the field of industry new technologies and their implementation is necessary.

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Dependency on Raw Material:

When a company is depending on external raw material, it cannot decide the market price for its own product, while high pricing is a threat for any company.

MICFL is grinding mill and almost all the raw materials are imported. It imports mainly from Thailand, Indonesia, Korea, Japan and India. At first the management representatives visited such countries and manufacturers of raw materials to ensure desired quality conforming to produce quality cement. For producing composite cement MICFL imports slag from Japan for an additive with clinker.

Supply Chain:

Supply chain delivers the product to the end users from the factory. If anyway this supply chain is broken there is no meaning of business. End users are main customer of the product.

The mission of MICFL is to provide Bangladesh with high quality cement for solid foundation of its physical infra-structure. Catering to the home market the company wants to cross the border and let their product to enter into world market. All these could by possible if the supply chain is strong. But due to the lack of proper routes and shipping facility supply of cement is hampered.

External Quality Assurance Institute:

Periodic quality check improves the quality of the product. So a company should have its own quality control department in its factory premises. Quality should not be tested at the end of the production moreover it should be started form the stage of procuring raw material.

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For assuring better quality highest importance is given for procurement of quality raw materials. The samples from the intending suppliers/manufacturers are tested to find out quality and acceptability. After arrival the raw materials are tested through some known trading houses who have been tested to be bonafide and dependable. This is done to see that low graded materials are not procured. The product is analyzed and tested by BUET, LGED, etc. apart from the company’s own laboratory test to ensure quality before the cement is being put into market. So from the beginning of the production company is being dependent on external quality assuring institute e.g. BUET, LGED etc. while it is recommended that a company should have its own quality testing facility.

Health & Safety:

A healthy and safe environment helps the employee to work efficiently. For avoiding any kind of accident an uneven occurrence to happen the company should provide healthy and safe environment at the factory.

M. I. Cement Factory cares for keeping the environment free from pollution. So it takes appropriate measures for preservation and protection of environment. For this end in view it keeps its desired mechanical devices and gives due emphasis for well congenial health condition within the factory for its employees. For financial security against any mishappening it brings its employees under of Group Insurance facility. But due to the dusty environment in the factory, proper health condition could not be ensured.

Opportunity:

Vital for construction works:

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Construction is vital for any kind of development of a country or a locality. There is always a demand of new homes, new factories, new buildings and these all means new construction.

Cement is vital for any kind of construction work. And there is no alternative of cement. Research shows that there is a 12 percent increase in domestic demand of cement every year. As a result there will always be an existing market in home and abroad. By ensuring better quality and service company can gradually capture the market. Development of new product and service will help the company to gain more profit.

Customers abroad:

To increase the profit and to increase the volume of the market a company considers the world as its product market. After fulfilling the needs of the local customer the company looks abroad to fulfil their needs.

The investors cannot rely on only the domestic demand of the cement. They have to look for markets abroad. It is understood that there is no way to get the market abroad without producing international standard quality cement. Bangladesh has started exporting cement from January 2003. Crown Cement of M.I. Cement Factory Ltd. takes the pride of part of it. MICFL is the country’s first proud exporter of cement, where the product has been received with dignity for its high quality.

Increasing Demand in International Market:

The increasing demand of cement in international market will open the opportunity for gaining more foreign currency. As a result Bangladesh will earn more remittance by exporting cement. This increase in foreign remittance will develop the socio-economic condition of our country.

On the other hand more industrial development will occur. With the establishment of M.I. Cement Factory Ltd. it has been possible to save and directly contribute about 500 million in local currency to the national exchequer. Moreover MICFL has been also able to bring reduction in the price structure with supply of fresh product and creation of employment opportunity.

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Threat:

Competitive market:

Business is always being a competitive way of earning profit. The availability of modern transportation and globalization it has been more competitive nowadays.

The market of construction materials has been very competitive nowadays. So far, about 100 Factories got government's approval of which 56 factories are on production with a production capacity of 1.30 crore metric tons against a domestic demand of 60 lakh tons in a year, while The production in eight private factories stood 34 lakh tons in 1997.

Environmental Threat:

Environment plays an influential role on business. Without the proper environmental condition it is very difficult to run any production properly. One important consideration is that human cannot control the environment, so there is always a threat of improper environment.

M.I. Cement Factory Ltd. was set up on the bank of river Dhaleswari in the industrial belt of Mukterpur in Munshiganj district, nearest to the capital city of Dhaka. As Bangladesh is a monsoon country it is often strike by flood and heavy rain fall during rainy season. At that time demand of cement is decreased at home and transportation also become troublesome.

Political Situation:

Without stable political situation business is always in a threat of political instability. A stable political situation helps to grow the business while instable condition fails it.

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Political situation of Bangladesh changes very rapidly which is a threat for any kind of business. Stable political situation is helpful for expanding business. Hartal, Abarodh, Strikes called by the opposition party often makes the situation more severe.

Price Hike/ Maintaining Substantial Price:

Price of the construction material controls the market. In any kind of construction work huge amount of construction material is used, so an increase in price of construction material stops the construction works.

Though the company aims to maintain the substantial price inside the country but due to the price hike and increase in oil price it has become impossible to maintain the rate at constant level. On the other hand increase in price hampers the construction work. There are many construction farms which have stopped their work for the increase of the price of construction material. As a result usual market of cement is being interrupted.

Union Perspective:

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The company arranges training to its employees and workers in their respective field both internally and also engaging experts on contractual basis.

Keeping the employee up-to-date, through proper training, garnished salary-benefits and annual showdown, developing and maintaining a innovative environment through TQM, E-commerce team, Automation team, Marketing Strategic team, Distribution team, MIS team and so on, arranging training program in other developed countries to improve the creative and innovative ideas of the employees.

Developed to provide employees with the tools and competencies necessary to face new challenges and further the organization's mission, the organizational training program offers individual workshops covering a broad range of subjects. Training workshops can be taken on a case-by-case basis, or employees may pursue a more focused set of skills by participating in one of the Certification Pathways. As we all know that in-house training can help the employees and employers in many ways.

The company is more conscious internal selection process rather than about the qualification of employee. As a result, they are becoming failure to gain more efficient worker for their company.

M.I. Cement factory would always follow a standard system to recruit its new employees for the vacant post. But they are more interested to internal recruitment than external recruitment. As a result they are losing many efficient workers for their company. Crown cement would always follow a standard system to recruit its new employees for the vacant post. In this case it will conduct both internal and external hiring process.

Employees are the heart of any organization. Without them, a company cannot run or sometimes impossible. But they are more interested to internal recruitment than external recruitment. As a result they are losing many efficient workers for their company. If the company wants to recruit employee externally they have to think about some issue like what is the time we have, what kind of employees we need, how much money (resource) we can spend for the selection process.

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A team of excellent efficient work force is in its employment who feels a homely atmosphere in the company. They try to give them liberty to contribute their best in production of quality products and imparting high quality services to the utmost satisfaction to its customers.

Employee involvement is creating an environment in which people have an impact on decisions and actions that affect their jobs. Team building occurs when the manager knows when to tell, sell, consult, join, or delegate to staff. For employee involvement and empowerment, both team building and delegation rule. If Crown cement can empower their employees they will feel that it’s their company and they will work from their heart. Also it will enhance their performance.

Employee empowerment helps employees serve customers at the level of the organization where the customer interface exists. Empowerment is a solution for many organization ills, when empowerment is implemented with care. Managers and employees say they want empowerment. Organizations see empowerment as a strategy to develop employees and serve customers. Empowerment is great for customer service and employee motivation.

In M.I. Cement factory employee and employer relation are more hassle free, flow of communication are clearer and everybody get fair treat from the management. There is no communication gap between management and the workers.

The free flow of information and ideas among the individuals and between the management and the labour is necessary for an organization to work effectively and efficiently as well to progress and succeed in this competitive age of the business area. Reward and recognition for successful ideas and for facilitating smooth communication can be good means to encourage the employees to share their views and ideas with the management.

In addition, the top managements need to have good personal and working relationships with the person who is expected to become and working relationships with the person who is expected to become the firm’s leader and a fellow board. When one wants to change an aspect of the culture of an organization one has to keep in consideration that this is a long term project. Corporate culture is something that is very hard to change and employees need

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time to get used to the new way of organizing. For companies with a very strong and specific culture it will be even harder to change.

M.I. Cement factory should focus the way of how they are going to serve the market and what competitive advantage should the employees possess.

Employee empowerment is a strategy and philosophy that enables employees to make decisions about their jobs. Employee empowerment helps employees own their work and take responsibility for their results. Employee empowerment helps employees serve customers at the level of the organization where the customer interface exists.

Employee involvement is creating an environment in which people have an impact on decisions and actions that affect their jobs. Team building occurs when the manager knows when to tell, sell, consult, join, or delegate to staff. For employee involvement and empowerment, both team building and delegation rule. If Crown Cement can empower their employees they will feel that it’s their company and they will work from their heart. Also it will enhance their performance.

M.I. Cement factory focuses on professional development to develop its employees in using the latest technology to achieve productivity and overcome the threat posed by competitors who also focus on productivity.

The Professional development is the area where Crown Cement’s employees develop themselves in order to be updated in relevance to the technology. Based on the findings from knowledge assessment and determining what they can do, the people who will be using the technology can undergo training in order to be able to operate the latest technology. Once they are updated with the desired knowledge, their productivity will automatically increase, as they would be able to use the technology more efficiently.

After the need of technology has been determined and the users of technology have been upgraded with the skills, the use of technology is the next concern. Having the latest technology is not just enough. It is important to determine how this technology is to be used, how standardized should be processes that are

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used in producing the products and how effectively and efficiently is the technology used in production.

M.I. Cement factory should train their employees perfectly so that these employees can act as an asset of the company and should establish a proper Reward & Recognition (R&R) system to boost up its employee morale. If employees are happy, they will never ask for union.

HR department need to follow a detail procedure to implement the solutions which is recommended previously. Firstly, they need to designate an individual to oversee designing the new and workable compensation program. After that they need to restructure the compensation philosophy by comparing the market research and their job evaluation of employees.

The employees need to maintain some rules for working in Crown Cement so proper training and proper management can make it happened. HRM should be accorded priority, how training in them could be delivered, and what concrete role is expected from an employers' organization. Crown Cement can secure commitment through building strong cultures. This involves promoting organizational goals by uniting employees through a shared set of values (quality, service, innovation, etc.) based on a convergence of employee and enterprise interests.

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Recommendation:

Crown Cement of M.I. Cement Factory Ltd. is one of the best selling cement in Bangladesh. They have been continuing their operations for many years. Since our country has started to export cement in other countries, M.I. Cement Factory Ltd. has been part of it. Their mission is to provide Bangladesh with high quality cement for solid foundation of its physical infra-structure. They have achieved huge success nationally and internationally as well. Where there is success, crisis can also be seen. Though M.I. Cement Factory Ltd. is very successful, it is facing some problems. We have mentioned a few problems that M.I. Cement Factory Ltd. is facing and have recommended solution for those problems.

Problem 1:

M. I. Cement Factory Ltd. has no workers and employees union. A company, as big as this, should have a union for the workers. But since the establishment date, it has not formed any union for all their staff. There have been disputes between management and workers and absence of a union has made the situation worse. The workers need to be guided. The situation that has occurred in the past, management will not wish for it in the future.

Recommendation 1:

M. I. Cement Factory Ltd. is a cement factory with huge workforce. But it has not formed any workers’ union. As most of the factories in Bangladesh have workers union, the workers of M. I. Cement Factory Ltd. should also have one. Moreover, union is workers’ right, and management should be considerate in this matter. In addition, workers needs someone who will guide them, they need a leader. The leader will guide them; communicate with the management on behalf of the workers. There have been a few disputes between management and workers. As

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there is no union, workers usually go on direct force to the management. So, for the betterment of both workers and management, workers should be allowed to form union.

Justification 1:

Union is very necessary for both workers and management. The workers need a leader to guide them, to differentiate between right and wrong. Union can prove to be helpful for the management as a way of communication with the workers. Union will be able to decrease misunderstanding between workers and management and also will be helpful to make management-worker relationship stronger. As dispute has risen among them, union can be a way of making the situation a little bit improved. If the management had allowed them to establish a union in the past, this kind of situation would not have appeared. So for the better future, the management should allow the workers to establish a union.

Problem 2:

In M.I. Cement Factory Ltd. employee’s job rotation is very frequent. Management keeps switching the employees’ place very often. It is either management decides or employees demand, but frequent job rotation is not good. Job rotation creates problems for employees as they do not get to learn appropriately. Frequent job rotation makes employees confused about their working areas and responsibility. Job rotation is not unexpected but it should not be frequent.

Recommendation 2:

Job rotation is a common matter in any organization. Job rotation enables employees to learn different works of different departments and enhance their skills and abilities. But if job rotation is frequent, it creates many problems. Employees do not get to learn much on frequent job rotation and their skills do not get developed much. Employees feel confused when they switch departments repeatedly. If employees switch departments repeatedly, the respective departments will face crisis. The departments the employees join may face overflow and the departments they leave may face scarce. The management should not stop job rotation but can make it less frequent. In this

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way employees will be able to learn and get adapted to new things. Less frequent job rotation will be helpful for the employees to adapt stability which is very important as job rotation enhance the idea of employees’ turnover.

Justification 2:

Frequent job rotation may create confusion among employees. They may feel disoriented. It may also hamper their productivity. Employees may be willing to contribute less to their jobs. Frequent job rotation may also increase employee turnover. Job rotation practice is good but management should not practice it frequently. If they make it less repeated it will be helpful for them as well. The departments will not face threats due to less frequent job rotation. And employees will not feel confused about their job responsibilities and areas to handle. Less frequent job rotation will help the employees to enhance their productivity and will also help them to be stable and confident.

Problem 3:

M.I. Cement Factory Ltd. is one of the cement factories who export cement in other countries. It has distributors mainly in Dhaka division. In other divisions they have just two distributors, one in Chittagong and one in Jhalkathi. They do not have enough distributors in local borders as much as they should. The fewer distributors have made them unable to penetrate in other markets. In the near future they may fail to fulfil the local demand and their sale may drop. That is not expected for any company.

Recommendation 3:

M.I. Cement Factory Ltd. produces Crown Cement which is one of the most demanded cement in Bangladesh. The consumer of Crown Cement is huge. Though M.I. Cement Factory Ltd. has quite a few distributors, but they are not enough to satisfy this large amount of consumers. As we know that M.I. Cement Factory Ltd. has distributors mostly around Dhaka city, we suggest that they should locate distributors in other divisions as well. They do not have any distributors in Rajshahi, Rangpur Khulna and Sylhet and in Chittagong they just have one distributor. So we recommend that they should expand their distribution

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channel. The expansion of distribution channel will be very helpful to attract more consumers.

Justification 3:

Expansion of distribution channel will help M.I. Cement Factory Ltd. in many ways. They will be able to reach to more consumers. Their sales will increase as well. If they get more distributors they will be able to get more market information. M.I. Cement Factory Ltd. is also exporting their cement in other countries. If the distribution channel is vast, the importers of other countries will be able to pull out more information about them and about Crown Cement from the local market. The expansion of distribution channel will not only help to gather information from the market, it will also be helpful to gather information about consumer demands. They will be able to keep connection with their consumers through distribution channel. Distributors will be able to bring more consumers.

Problem 4:

M.I. Cement Factory Ltd. has many workers but they do not have provided health and security measures for the blue-collar workers. As a cement factory, workers have to face many dangerous situations. If any worker is hurt or has serious accident, management does not take any responsibility. Workers are imperative part of an organization; the management of M.I. Cement Factory Ltd. should not be ignorant towards them. The workers should not be neglected.

Recommendation 4:

The environment and working condition in any cement factory is dangerous. Workers get hurt frequently but the management does not take effective steps to control it. The management has taken steps to lessen environmental pollution. They have provided health and security measures for white-collar employees. The management gives the white-collar employees Group Insurance but not for the blue-collar workers. The management should provide health and security measures for blue-collar workers as well because the chance of getting hurt in workplace is higher for them. The management should take responsibility of the workers when they get hurt. They can provide Group Accident Insurance for the worker. They can also provide safety equipments so that the occurrence of

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accident can be decreased. The management should start taking responsibility of the workers and take corrective steps as the company will face dilemma if the rate of accident is increased.

Justification 4:

The management is not providing any health and security measures for the workers. They provide health and security measures for the white-collar employees. They do not understand the fact that blue-collar workers are lower income level people of the society and if they face accident, it will be hard for them to pay for the medical treatment. And there are many cases of accidental death at workplace and mostly those cases were of blue-collar workers. Blue-collar workers face danger more than office-workers i.e. employees. Thus management should start taking care of the workers. They should take effective steps so that workplace accidents can be reduced. Lessening environmental pollution is not enough, they should also ensure security for the workers. Blue-collar workers are poor people but that does not mean that they should not be included in health and safety measures.

Problem 5:

M.I. Cement Factory Ltd. has huge workforce. They provide employment for huge sum of people. Although still there are many vacant posts in many departments. They do not hire as many people as they should and because of job rotation and job switching, many posts remain unoccupied. They are facing employment shortage. They are in need of workforce. The workforce, they currently have, is huge but not enough to maintain the whole organization.

Recommendation 5:

Workforce is a vital part in an organization. They play an important role in organization’s success. Sufficient workforce is very necessary for any company. M.I. Cement Factory Ltd. has quite a few vacant posts in the departments. The management is not hiring enough people to fill-up the vacant posts. The vacant post needs to be occupied. Employee turnover rate is not high but as they are not hiring enough people the situation might get worse. The management needs to hire more people for those vacant posts. If they get to hire enough employees,

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the employee turnover will not be very crucial for them. Hiring is not an easy task, but for the betterment of the company the management of M.I. Cement Factory Ltd. needs to start hiring.

Justification 5:

As we have said earlier that sufficient amount of employee is necessary for every company, M. I. Cement Factory Ltd. should start hiring more people. Moreover they need to hire right people for right job. If they do not begin to hire people for the vacant posts, they may face serious problem in near future. The vacant post creates shortage of talent within the organization. Recruiting many people is not good and neither hiring less people is beneficial. Hiring more employees may appear costly in the beginning but it will be help the company to grow more and it will bring more success to their doorstep in the future.

Problem 6:

The relationship between the workers and management of M. I. Cement Factory Ltd. is not pleasant. The workers take forceful attempt whenever they have to place a demand in front of the management. The unpleasant relationship has cost M. I. Cement Factory Ltd. very highly. If this communication gap is not reduced, the gap will increase constantly and it is not acceptable.

Recommendation 6:

The management of M. I. Cement Factory Ltd. should be more understandable and sympathetic towards the workers. The workers’ income is very low and they are very poor. The management does not give any benefits to them either. They should focus on workers’ improvement. The management should try to solve problems with their workers. If management becomes more concerned about them, the workers may also pay more attention to them. To build a successful organization, both workers and the management need to be cooperative. If the management is not concerned about the workers, they will not cooperate with the management.

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Justification 6:

Good management-worker relationship is very necessary for the betterment of organization. A healthy relationship between the workers and the management is the company’s achievement. If the management shows care and sympathy towards the workers, the workers will be more willing to build long-term relationship with the organization. Long-term relationship with workers is essential for company’s reputation. If the management does not try to improve the situation, the workers will create more problems in future. In the past, the workers have taken steps for which the company had to suffer. If the management does not want this happen again, they should start bridging the gap with the workers. Otherwise if the workers take forceful actions again, it will be vulnerable for the company.

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Implementation:

M.I. Cement Factory Ltd. started its journey with the aim of fulfilling the demand of cement in the country. So far, they have been very successful in fulfilling the national and international demand. Crown Cement is highly preferred in the consumer market. Like other huge organizations, M.I. Cement Factory Ltd. is also facing problems. In the previous section we have mentioned some problems and recommended solution for them. In this section we will discuss the implementation process of the recommended solution.

Problem 1:

M. I. Cement Factory Ltd. has no workers and employees union. A company, as big as this, should have a union for the workers. But since the establishment date, it has not formed any union for all their staff.

Recommendation 1:

M. I. Cement Factory Ltd. should have a union. Union is workers’ right, and management should be considerate in this matter. There have been a few disputes between management and workers and without the union, the situation was pretty worse. So, for the betterment of both workers and management, workers should be allowed to form union.

Implementation 1:

Union is one of the most important parts in an organization. Workers form union to get united and to achieve certain goals. Union is also a way of bridging gap

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between management and union. To form a union, the workers need to go through certain steps. In the following we have discussed how to implement it, who to implement it, where to implement it and when to implement it.

How to implement it:

To form union, the workers first need to get approval from the management. Union is workers association but the management has to be agreeable with the workers in forming a union. Employees cannot form unions without the consent of the management. It is illegal to form union without employers’ approval.

After getting permitted by M. I. Cement Factory Ltd. management, the workers will select their leader, the one who will guide them. The workers will also choose other representatives along with the leader. To maintain huge workforce, the leader cannot work alone; he will need the help of other representatives.

Election can be proved as an effective way in choosing workers’ leader and representatives. In this way workers will choose few other workers who have potentials of becoming union leader and then election will be arranged. The one, who will get highest votes, will be the union leader.

As we have said, choosing a leader is a tough job because the leader is the guide of all the workers. The leader is workers representative who will communicate with the management.

Who to implement it:

Union is a part of an organization. Workers’ union is institution for workers and workers are a part of the organization and so is the management. Thus forming a workers’ union is not a single decision of the workers. The management has to give approval. So it is a worker-management decision.

Where to implement it:

The union will be established in M. I. Cement Factory Ltd. The conflict between the workers and the management is getting worse day by day. And thus, the establishment of union is very necessary in M. I. Cement Factory Ltd.

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When to implement it:

The union for the workers needs to be formed as soon as possible. The problems that M. I. Cement Factory is facing now will loosen up most of it if they let the workers form a union immediately.

Problem 2:

In M.I. Cement Factory Ltd. employee’s job rotation is very frequent. Management keeps switching the employees very often. Frequent job rotation makes employees confused about their working areas and responsibility; they do not get to learn properly.

Recommendation 2:

Job rotation enables employees to learn different works of different departments and enhance their skills and abilities. The management should not stop job rotation but can make it less frequent. In this way employees will be able to learn and get adapted to new things. Less frequent job rotation will be helpful for the employees to adapt stability.

Implementation 2:

Job rotation is very common in job field. Job rotation enables employees to learn different aspects of job fields. But frequent job rotation can be very problematic for an organization. Frequent job rotation arises many problems and confusions. We have recommended solution for this problem in the previous section. And now in the following we have discussed how to implement it, who to implement it, where to implement it and when to implement it.


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Frequent job rotation is hectic as we know. We suggested that the management should make job rotation less frequent. In this regard the management can establish a rule that the employees have to continue their job in a particular department for six months or a year.If the management decides to make the job rotation less frequent, it will be very helpful for the employees. If an employee is bound to continue their job in a department for six months or one year, they will get to learn many things and they will also learn to adjust. They will not feel puzzled in adjusting in new environment.

The management can also offer benefits in department basis such as if a department keeps 20 or 30 particular employees they will get bonus or certain benefits. In this way management can make job rotation less frequent.


The management of M. I. Cement Factory Ltd. will implement the steps stated above. Only the management has the authority in taking the course of action and thus its management’s responsibility to implement.


This has to be done in the M. I. Cement Factory Ltd. It will be implemented in every department of the company.


The procedures that the management of M. I. Cement Factory Ltd. will be taking to handle this situation should be taken immediately before the situation gets worse and beyond recovery.

Problem 3:

M.I. Cement Factory Ltd. has distributors mainly in Dhaka division. In other divisions they have just two distributors. They do not have enough distributors in local borders as much as they should.

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Recommendation 3:

M.I. Cement Factory Ltd. has quite a few distributors, but they are not enough to satisfy this large amount of consumers. So we recommend that they should expand their distribution channel. The expansion of distribution channel will be very helpful to attract more consumers.

Implementation 3:

Expanded distribution channel is very necessary for company’s success. M.I. Cement Factory Ltd. has few distributors but they are not enough to sustain in the long run. We have recommended solution previously. In this section we will be discussing how to implement it, who to implement it, where to implement it and when to implement it.


Distribution channel is very important for an organization. M.I. Cement Factory Ltd. has Ltd. distributors for their products. If they start to expand their distribution channel it will be beneficial for them. They can establish dealer shops in other divisions. In this way they will be able to expand their market reach. They own dealer shop will be very useful in spreading their name in the consumer market and if they get to build a good reputation the consumers will prefer Crown Cement more than other cements. In this way Crown Cement will be sold even more than before.

They can also contact with the local distributors in other cities. They can start trading with them. They can place their own distributors in other cities. The distributors they have now can also help them in this matter. The distributors can contact with the distributors on other districts. In this way they will be able to expand their business and reach for more consumers.

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The management of M. I. Cement Factory Ltd. will implement the steps stated above. The distributors they have can also be of help in this matter. The management can also get help from reliable sources in this matter.


The mentioned steps will be taken in the other cities where M. I. Cement Factory Ltd. does not have distributors. In this way they will be able to penetrate in new consumer market.


The procedures must be taken immediately. If M. I. Cement Factory Ltd. gets more distributors in other districts soon enough, they will be able to increase their sale.

Problem 4:

M.I. Cement Factory Ltd. has many workers but they do not have provided health and security measures for the blue-collar workers. The management does not take any responsibility of the workers. The management of M.I. Cement Factory Ltd. should not be ignorant towards them.

Recommendation 4:

The management should provide health and security measures for blue-collar workers as well because the chance of getting hurt in workplace is higher for them. The management should take responsibility of the workers when they get hurt. They can provide Group Accident Insurance for the worker. They can also provide safety equipments so that the occurrence of accident can be decreased.

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Implementation 4:

Workers work in the dangerous places and thus they need health and safety measures so that the accidents can be avoided and the injuries will be less. We have recommended solution for this problem in the previous section. And now in the following we have discussed how to implement it, who to implement it, where to implement it and when to implement it.


We have mentioned that the management of M. I. Cement Factory Ltd. can provide Group Accident Insurance for the workers. The group insurance will not be very costly and it will give the workers certain assurance that if they get hurt their family will not be in big trouble paying the medical bills and they will get enough treatment for recovery.

The safety equipments will come handy in the sectors. Safety equipment will be helpful to avoid some accidents to occur and in some cases the injuries will be less. So, providing safety equipments will be a very good idea, as it will be very helpful in keeping the workers protected.


The management of M. I. Cement Factory Ltd. will implement the steps stated above. The management should start taking responsibility of the workers otherwise the situation will get worse.


This has to be done in the M. I. Cement Factory Ltd. It will be implemented where they have workers like in the factory, in packaging and in warehouse. The management should implement the recommended solution in the sectors where the accident occurs regularly.

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The situation of the workers in M. I. Cement Factory Ltd. is not very pleasant. The management should start taking necessary steps to improve the situation as soon as possible.

Problem 5:

M.I. Cement Factory Ltd. has huge workforce. They provide employment for huge sum of people. Although still there are many vacant posts in many departments. They do not hire as many people as they should. The workforce, they currently have, is huge but not enough to maintain the whole organization.

Recommendation 5:

M.I. Cement Factory Ltd. has quite a few vacant posts in the departments. The management needs to hire more people for those vacant posts. If they get to hire enough employees, the employee turnover will not be very crucial for them. For the betterment of the company the management of M.I. Cement Factory Ltd. needs to start hiring.

Implementation 5:

M.I. Cement Factory Ltd. needs to hire employees for the vacant posts. The company is in need of workforce for the vacant sections. They have to go through the whole recruitment process. In this section we will be discussing how to implement it, who to implement it, where to implement it and when to implement it.


Previously we have mentioned that M. I. Cement Factory Ltd. needs to hire employees. M. I. Cement Factory Ltd. has HR Department and the HR Department will execute the whole hiring procedures for the company. The HR Department will first establish a “Recruitment Committee”. This committee will be

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formed by Head of HR Department and two other Head of the Department. The HR Executives will form the whole recruiting process and will execute it. They may first begin with taking resumes and setting up a written test.

The ones who will qualify in the written test will give interview. HR Manager and other Head of Departments will take their interview. Then the “Recruitment Committee” will decide who to hire. They will also take corrective steps in the recruitment process.


The HR Department of M. I. Cement Factory Ltd. will execute the whole recruiting process for the company. The “Recruitment Committee” will take the responsibility of executing this task successfully.


This will be implemented in the departments of M. I. Cement Factory Ltd. where recruitment is necessary.


The recruitment procedures in the departments must be taken immediately in M. I. Cement Factory Ltd.

Problem 6:

The relationship between the workers and management of M. I. Cement Factory Ltd. is not pleasant. If the gap between management and workers is not reduced, the gap will increase constantly and it is not acceptable.

Recommendation 6:

The management should try to solve problems with their workers. To build a successful organization, both workers and the management need to be

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cooperative. If the management is not concerned about the workers, they will not cooperate with the management.

Implementation 6:

Building a good relationship with the workers is crucial for the management. M. I. Cement Factory Ltd. has suffered in the past they if they do not take corrective steps they will suffer in the future. In the following we have discussed the implementation process; how to implement it, who to implement it, where to implement it and when to implement it.


To form a good relationship with the workers, the management first needs to understand their situation and problems they are facing. If the management cannot understand the workers, they will not be able to build a good relationship with them.

Then the management of M. I. Cement Factory Ltd. has to understand their demand and try to fulfil them as much as possible. The management not only has to understand the situation of the workers, the management has to make the workers to understand. The living standard of the workers is below poverty level.

Money cannot solve every problem but they can reduce a few. If management increases the wages of the workers a little bit or provide certain benefits, it will be very helpful for the workers. Their lives will not improve in a day but it will decline some problems.


The management of M. I. Cement Factory Ltd. has to take the first attempt to reduce the communication gap. It is their responsibility to build good worker-management relationship. If they take the initial step, workers will attempt as well.

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The mentioned steps will be executed in M. I. Cement Factory Ltd. The workers are underprivileged and deprived in which case the management has to work very hard in bridging the gap.


The conflict between management and workers has put the company in danger in the past and it will create more damages in future. So, the management should start trying to build good worker-management relationship very soon otherwise the situation will be dreadful.

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Appendix:

Documents

Crown Cement Main Body