- Quality Statement
Quality through continuous commitment to improvement = customer satisfaction
- Quality Policy
- To achieve customer acceptance of more than 97%
- To achieve in-house product more than 94%
- Management Philosophy
Innovation
With the introduction of leading edge technology, the implementation of advanced production processes, the development and marketing of new products, the whole industry will progress to higher levels of efficiency, productivity, and quality.
Growth
Continued intensive investment, an aggressive posture, enhanced quality, product diversification and improved efficiency will contribute to the future of the company, the employees and our customers together.
Continuity
Management continuity can be achieved by cultivating talented individuals and providing them the opportunity to manage in positions of increasing responsibility.
Training has become increasingly vital to the success of modern organizations. Training play a central role in nurturing and strengthening the core sets of knowledge and expertise that give a company an edge over other competitors. In Farassoo, since they are very particular on the quality of the products and the services provided to the customers, Farassoo practices training and development in the company.
In order to improve the skill, knowledge of the employees, the company often provides training to their staffs. The practitioner from the human resource department will be the department which prepares the training to the employees.
Farassoo fully utilize the Human Resource Development Fund (HRDF) and benefit the employees by providing lots of training to them.
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Strategy
The strategy of Farassoo, is using direct selling model in the local market and complemented by its OEM manufacturing for international brands could assist Farassoo in gaining bigger market share in the future.
- Technological advancement
Staying abreast of market trends and reacting quickly to changes are keys to the Farassoo’s success; the firm always aims to optimize its productivity and product quality by using advanced technology. The company also strives to streamline work procedures in purchasing, production, and logistics management systems, while self-invented equipment and facilities are constantly developed and applied in order to ensure that the product quality either meets or exceeds our company standards at all times. Computer-aided design (CAD) and Pro-Style (designing based software) used to design the production. The software supports our manufacturing process from pre-production designing to cutting of fabric. The Pro-Style system also helps the designers to create designs with matching colour, lace and fabric specifications. As a result, the transaction time needed to prepare samples for the foreign clients will be shorter.
- Role of Training
It is important to identify what a human resource department role as a head of training, and also to identify where training fits into the organizational structure. Many new employees come equipped with most of the knowledge, skills and abilities (KSAs) needed to start work. Other may require extensive training before they are ready to make much of the contribution to their organizations. Almost all employees, however, needs some type of training on an ongoing basis to maintain effective performance or to adjust to new ways of work.
All employees have training needs at different stages in their careers. The four basic needs are:
- Company and product induction for new recruits
- Acquisition of basic job skills
- Development of new knowledge, skills and attitudes
- Assistance in adjusting to retirement or redundancy
Training in private or public sector includes formal training on courses designed and delivered by in-company trainers, external consultants, or a combination of both.
The primary reason that organizations train new employees is to bring up their KSA up to the level required for satisfactory performance. As these employees continue on the job, additional training provides opportunities for them to acquire new knowledge and skills. As a result of training, the employees may be even more effective on the job and may be able to perform other jobs in other areas or at a higher level.
According to Training Magazine’s ongoing industry report, US business spend more than $60 billion each year to provide more than 1.7 billion hours of formal training. In addition to formal training, more than $180 billion is spent on informal instruction that goes on everyday in organizations everywhere. Evidence shows that how important the training is towards a company. This is the reason why Farassoo has to provide the training to most of their employees regardless whether it needs or not, which is recommended in this study.
- Problems Issues at Farassoo company
Based on the Maslow’s Theory, there have five levels of needs for an individual to increase the motivation or satisfaction such as physiological needs, safety needs, social needs, esteem needs, and self - actualization. Self – Actualization is the highest level in the hierarchy of motivation (satisfaction). Therefore, we must make sure the employees are achieving these five levels of needs in an organization to encourage the employees to perform well. Regarding some research done at Farassoo, it was found that the human resource planning and talent management of Farassoo is weak. This is because the firm doesn’t have proper recruitment, selection and training system and department to choose and train the new and old employees. Besides, the company also doesn’t have a proper evaluation performance system to evaluation the employees’ performance. Furthermore, the job satisfactions among the employees are low. There were a few factors which cause the high turnover rate or satisfactions of employees are low such as working environment, wages, fringe benefits, and etc.
The human resource planning of Farassoo Company is not proper and systematic. During recruitment process, the firm hires the new employees which is not based on the applicants qualification or experience but they normally is reserve the vacancies for the employees’ relative or sibling before call the applicants who is fulfil the requirement for the job interview. Furthermore, the assistance human resource manager just have simple interview for the applicants and doesn’t have a proper interview section and filtering out the most suitable candidates to join the company.
In addition, the training department in the Farassoo is never conduct the training for their administrative employees meanwhile they just conduct some small training for the foreign workers. Due to the training department is not preparing the training to executive employees so they are always not up to date with the latest information as well as to develop their knowledge, skills, and ability (KSA). For example, some of the employees are still not good in using the Microsoft PowerPoint to present their proposal in meeting and so on. Normally, the employees are depends on-the-job training to learn the new knowledge or skills which necessary.
Furthermore, Farassoo doesn’t have systematic or proper system in evaluation on the employees’ performance. Employees’ evaluation of the Farassoo at the moment is based on senior or supervisor’s view to evaluate the employees’ performance. This is not the proper way to evaluate an employee’s performance because it will cause bias or discrimination during evaluation. Due to this method of evaluation, the employees who have the capabilities are not to offer the job promotion because of the bias or discrimination. On the other hand, the human resource department should have proper method or equipment in evaluation of employees’ performance.
Last but not least, Farassoo also facing another problem which is job satisfaction. During I was manager there, I asked one of my staff to do a research on the turnover rate in the company. The result of the research shows that the percentage is quite high (25 percent) and compare with the same industry; the average of turnover rate is around 5 percent to 8 percent only. The factors of high turnover rate are:
One of the weaknesses of Farassoo was poor wages arrangement. This means that the financial department was not standardize the wages for same level of management employees. For example, the wages of assistant human resource manager and assistant purchasing manager are different. Furthermore, the starting salary for the new employees is lower than market price no matter the new employee has high qualification or not. For instance, start salary for one new employee with degree holder is same with the one new employee with diploma holder or lower which is around 5,000,000 Rials. Besides, there were conditions that if the employees worked overtime result in their lot of tasks remain; there was no benefit for them.
The fringe benefits offers by the company were low or less when compare with others competitors or companies. For example, Farassoo is just allowed their employees to claim 1,000,000 Rials for medical fees per year with the condition of the receipt is not from specialist clinic or hospital. Besides, Farassoo has no offer scholarship funds for their employees who are want to further their study.
As mentioned before, working environment is very important element for a company. This is because it will affect the performance of the employees if the working environment is not comfortable, not clean, narrow, cold, and warm and etc. Farassoo is facing this problem because the company’s size is very big and the departments are located far from each other, such as purchasing department, human resource department, and financial department are located very far from each other and this is a big problem for employee to haunt among the departments. Furthermore, the work place is felt hot during summer and cold during winter. The other problem was shortage of facilities in the departments, this situation will cause the employees were wasting time to use same facilities or cannot concentrate on their job. By having comfort environment, the employees will more motivated and concentrate on their job and this will increase the productivity or performance of the company directly.
Safety also one of the factors to cause the high turnover rate in Farassoo Company. Even Farassoo got the ISO certificate but their safety manner or conscious was low. This was because they seldom focus on workers’ safety especially in production and shipping department which involve foreign workers. The foreign workers are work under unsafe condition such as they are not provided the personal protective equipment (PPE) for example like safety shoes, gloves, mask, and so on.
7.0 Recommendations
Based on the problems or issues which facing by the Farassoo, some of the methods which may can help or manage the problems or issues are recommended as follow:
First of all, the top management of Farassoo should have new policies to current situations or problem which is facing now. The main purpose of new policies is to avoid bias and discrimination such as reserve the vacancies to the current employees’ relative or sibling and bias during recruiting meanwhile should open to everyone applicants. The new policies may include fringe benefits of employees, working environment, salary rate, and etc. By creating new policies in the company, the employees will more motivated to perform well in their job and this directly will increase the company productivity and performance. The purpose of suggesting to modify or creates new policies by the top management of Farassoo is that, they expect the management to become more effective and efficient to achieve the vision and mission of the company by increase the productivities. First of all, all departments manager have to analyze and get the feedback from the employees and try to create or modify the policies before propose it to the top management. The top management of Farassoo should have meeting to discuss the problems or issues facing by company and employees then evaluate the policies which suggested by managers. The new policies which decided by top management after meeting should concern about the employees’ needs and benefits as well as to company.
- New recruitment and selecting system
Due to the recruitment and selecting system in Farassoo Company is not systematic and efficient. The human resource manager can use different types of selection devices to reduce accept and reject errors. The best-known devices include written and performance-stimulation tests and interviews. The written test is including tests of intelligence, aptitude, ability, and interest. Meanwhile the performance-stimulation tests are made up of actual job behaviours, work sampling, and assessment centres. The last one, is the interview. Human resource manager can use the behavioural and situation interview in interview section.
Recruit and selecting the right person to the right position is very important to the company so the human resource department was playing an important role in these processes. Human resource manager should use different ways to get the suitable and potential employees such as outsourcing to recruitment agency then the manager will filter it through interview, written test and so on to make sure the candidate are potential before become the employee of the company.
- New evaluation performance system
There are different types of evaluation measurement tools. Human Resource department should evaluate the employees’ performance by using the standard and recognized tools in evaluation process and not based on the employees’ supervisor. Below are the different types of measurement tools of performance evaluation:
- Balanced Scorecard (BSC).
BSC is a strategic performance management tool - a semi-standard structured report supported by proven design methods and automation tools can be used by managers to keep track of the execution of activities by staff within their control and monitor the consequences arising from these actions.
Graphic Rating Scale is the simplest and most popular technique for appraising performance. A graphic rating scale lists traits and a range of performance values for each trait. The supervisor rates each subordinate by circling or checking the score that best describes his or her performance for each trait. The assigned values for the traits are then totalled.
- Alternation Ranking Method
Alternation Ranking is ranking employees from best to worst on a trait or traits is another option. First, the manager need to list all subordinates to be rated, and then cross out the names of any not well enough to rank. Then manager indicate the employee who is the highest on the characteristic being measured and also the one who is the lowest on the evaluation form. Then choose the next highest and the next lowest, alternating between highest and lowest until all employees have been ranked.
With the critical incident method, the supervisor keeps a log of positive and negative examples (critical incident) of a subordinate’s work-related behaviour. Supervisor and subordinate meet to discuss the latter’s performance for every six months or more. Then the manager will discuss with the supervisor to get more understand the employees before evaluation.
- Behaviourally Anchored Rating Scales (BARS)
Behaviourally Anchored Rating Scales is an appraisal method that aims at combining the benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples of goods and poor performance.
- Computerized and Web-Based Performance Appraisal
Electronic Performance Monitoring (EPM) is one of the computerized and web-based performance appraisal measurements. EPM means having supervisors electronically monitor the amount of computerized data an employee is processing per day, and thereby his or her performance. Performance appraisal or performance evaluation of employees is very important because it can test out the employee is perform well on his or her job. The manager may use different types of measurement tools to evaluate the performance of the employees and at the same time the manager should few feedbacks on an employee performance. Performance appraisal should involve different level of management and not only for the non-executive. On the other hand, performance appraisal also is one of the ways to motivate the employees to perform well by giving rewards if they have good performance or achievement.
Training is one of the important elements in developing the knowledge, skills, and ability (KSA). Training department of Farassoo Company should conduct more training to the employees which not only the non-executive but should be different level of management. Figure 1 shows the training process model.
Figure 1. Training process model
For a training to be successful, the first step on the overall process of training is training needs analysis. If a business needs are identified, training can be planned and carried out to satisfy those needs. In order to identify the needs and prepare the training plan, a Training Needs Analysis (TNA) must be undertaken. According to David Osborne (1996), training needs analysis can be defined as “An examination of the organization’s present and expected operations and the manpower necessary to carry them out, in order to identify the numbers and categories of staff needing to be trained or retrained…to reach the required standard of performance in his or her current job.”
Normally, training need exist when a gap between actual and required performance is most economically met by a training intervention. While some organizations may be prepared to spend more on training than others for a similar activity, the monetary criteria may act as a regulator regardless of the situation. If it is more effective to recruit people with the necessary skills rather than train them, this may be justified on economic grounds. It could be said that Farassoo, although giving a lots of training to their employees, but some of them were failure because they did not go through the first step of training which is Training Needs Analysis.
A successful training of course need a good training needs analysis. Farassoo in order can start the training need assessment by doing the organization analysis. Organization analysis is an examination of the environment, strategies, and resources of the organization to determine where training emphasis should be placed. In order to have a right organization analysis and the needs of training to be identified, Farassoo need to consider the resources, the environment of the company itself.
Secondly, the step to be taken is task analysis whereby task analysis involved reviewing the job description and specification to identify the activities performed in a particular job and the KSA needed to perform them. Task analysis oftentimes becomes more detailed compare to job analysis, but overall purpose is to determine the exact content of the training program. In the task analysis, Farassoo should list out all the task or duties included in the job. It then list the steps performed by the employee to complete each task. Once the job is understood thoroughly, the type of performance required, along with the skills and knowledge necessary for performance, can be defined.
Training programs must consist of five steps which are need analysis, instructional design, validation, implement, and evaluation. This is because these five steps are to identify the problems of the employees at the beginning and check whether the training which conducted is effective and efficient to the employees and company and end of the training. So they should conduct more training for employees. There have different types of training:
On-the-job training means having a person learn a job by actually doing it. The most familiar types of on-the-job training is the coaching or understudy method. The advantages of the on-the-job training are relatively inexpensive, trainees learn while producing, and no need for expensive off-site facilities.
Apprenticeship training is a structured process by which people become skilled workers through a combination of classroom instruction and on-the-job training. This training will provide more information and knowledge to an employee about his or her job. The employee will have high performance when he or she is knowledgeable.
Job instruction training is means listing each job’s basic tasks, along with key points, in order to provide step-by-step training for employees. By using this method of training, the employees will more familiar with their job scope so they can do the work or task with faster and efficient.
Simulated training also can known as vestibule training. It is a method in which trainees learn on the actual or simulated equipment they will use on the job, but are actually trained off the job. Simulated training will increase the productivity of the employees because they are familiar and skilled to use the equipment or facilities which provided by the company.
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Computer based training, and etc.
In computer based training (CBT), the trainee uses computer-based and / or DVD systems to interactively increase his or her knowledge and skills. Intelligent tutoring systems and interactive multimedia training are basically supercharged programmed instruction programs because it provides the trainee with guidance and directing the trainee toward the next instructional step.
The training department of Farassoo should conduct more training to the employees to increase their knowledge, skills, and ability (KSA) as well as update themselves with the latest information. The training department may can outsource the training to consultant to conduct the training while they more professional in conducting training programs. Furthermore, training manager can invite trainer or lecturer from university or consultant to conduct training or speech in the company to increase the KSA and understand about the job. The productivity of the company will increase by having good KSA of employees.
8.0 Conclusion
As a conclusion, human resource management (HRM) is an important element in an organization no matter is multinational corporate (MNC) or small company. The Farassoo Company should improving current human resource management to become better by implement the suggestion on the above. It will increase the performance of employees as well as productivity of company when the employees of the company knowledgeable and motivated to perform well in their job. The vision and mission of Farassoo can achieve easily and faster.
9.0 References:
http://traininganddevelopment.naukrihub.com/training-evaluation.html
P. Nick Blanchard, James W. Thacker (2003): Effective Training, System, Strategies, and Practices; US: Eastern Michigan University.
Barney, J., Wright, P. (1998) On becoming a strategic partner. The role of human resources in gaining competitive advantage. Human Resource Management.
Boxall, P., Purcell, J. (2003) Strategy and Human Resource Management. Palgrave Macmillan.
L. Byar, Leslie W. Rue (2003): Human Resource Management; New York: McGraw-Hill.
David Osborne (1996): Staff Training and Assessment; New York: Cassell.
Sunny Stout (1993): Managing Training; London.
R. Wayne Mondy (2008): Human Resource Management; New Jessy:Pearson Prentice Hall.
