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A Study into Human Resource Management problems at International Textile

Human Resource Management in todays competitive world can be described as strategic and effective management of company’s sustainable competitive edge and its most valuable asset, its employees, whose individual and joint efforts lead to achievement of organization’s objectives and strategic goals. This organizational function focuses on all activities and decisions that in any way affect the human resource of the organization Beer et al (1984).

In today’s world, HRM is about maintenance of complete set of KSA in form of employees that are required by a company to maintain its edge in the market. Pettigrew and Whip (1991). Beyond simple payroll management, it involves concern for development and retention of talent on a much broader horizon which can only be achieved through a coherent HRM philosophy .

There is mounting support to the that human resources are crucial to success of an organization and a source of sustainable competitive advantage thus offering the best return on investment (Luthans and Yousef, 2004). Paying consideration to the mounting importance of human resource and its effective management in today’s world, this study is focused on identification of problems in human resource management at International Textile Limited.. The study will also shed some light on how the Human Resource department at ITL ,in particular, can benefit from emergent approaches of HRM to attract, retain, develop, and motivate the talent and solve the identified problems. However, other organization’s of similar characteristics may also benefit from the findings of the study.

There has been considerable research in with focus on attraction, motivation, and retaintion of human resource or the new era knowledge workers (see: Horwitz et al., 2003; Horwitz et al., 2006; Baron et al., 2001; Evans et al., 2002). Studies on attraction and retention of skilled as well as young professionals have concluded the so called best-practices in the context to be high pay-offs, increased autonomy, attractive job designs and flexible work hours. (Olson, 2003; Stovel and Bontis, 2002). Every firm wants to employee the best in the market and maximize their output. In this urge to hire the best handsome monetary packages are offered to pull staff from competition to have high performers working for them. Such practices have resulted in unprecedented job switches. Sidewise, the trend of layoff and downsizing has exacerbated the situation by increasing the uncertainty regarding job security in minds of employees and reducing the organizational loyalty to new lows. Thus, as described by many scholars, there is a “war-for-talent” (Hargie, 2004; Michaels et al., 2001).

A study of McKinsey & Company consultants revealed that the “war for talent” is a imperative driver of corporate performance in today’s scenario and a very influential strategic business challenge (see Michaels et al., 2001). They found that a pervasive talent mindset was secret of high-performing organizations. They believed in better-quality talent and its best handling as their competitive advantage. It is this challenge that is hurting the low or average performing companies the most because in this war as they are either unable at attracting the right talent or fail to relish and leverage it when they incidentally get it. War-for-talent has not only emerged as one of the major challenges of contemporary business world, but fighting and winning over talent to utilize it as an edge in competition is up-and-coming as core strategy of many high performing and rapidly growing organizations.

Industry introduction

The textile industry is one of the most important sectors of Pakistan. It contributes to the country’s GDP, exports as well as employment. It is, infact, the backbone of the Pakistani economy. Textile industry has the highest potential for giving a boom to Pakistani exports. Apart from its basic role of clothing the nation and alongside being the source of largest foreign exchange earning through exportable items, the key to company’s future growth and industrial expansion lies within this industry.

Important facts

Textile products are a basic human requirement next only to food

. 4th largest Producer of Cotton

. 3rd largest Exporter of raw cotton

. A leading Exporter of yarn in the World

. Availability of cheap labor and basic raw cotton

Company Introduction INTERNATIONAL TEXTILE LTD

International Textile Limited is a family owned business which was started by Mr. Azad Khan in 1970. ITL started off as a commercial exporter of towel and has now expanded into other areas of textiles with its own manufacturing base. ITL’s annual turnover is more than US $ 60 million. Armed with 36 years of experience, it has learned the hard way to stay in business by working effortlessly and looking out for our customers’ needs.

International Textile Ltd. product portfolio includes the following list of items:

Yarn –Towels- Fabrics- Kitchen range Blankets-Institutional/hospitality products

Manufacturing facilities:  ITL has two facilities situated at Korangi – Unit 1 and Unit 2 and a Head office at Park towers.

Customer profile: International Textile Ltd caters to a wide market from USA, UK, Europe – Australia and some parts of Asia as well.

Revenue

 The below graph highlights the monthly revenue for International Textile Ltd in the year 2009 

VISION AND VALUES

Vision

Corporate Statement

To achieve the status of a premier textile company that promotes excellence and creativity is the fundamental objective of ITL.

As an organization, ITL strives to attain leadership in the world of textile industry by ensuring the production of goods to satisfy its consumers at all levels.

ITL is committed to follow a strict code of ethics and morality in business in order to become a model of good corporate citizenship.

To create a work environment that is free from prejudices of caste and color provides its employees ample opportunities for development.

Achieve excellence in being the best supplier and manufacturer in the market and achieve growth by making use of the opportunities and by utilizing our strengths and proficiencies.

Acquire a team that comprises of hard working and sincere individuals whose top priority is to abide by their pledges.

Corporate statement

To achieve the status of a premier textile company that promotes excellence and creativity is the fundamental objective of ITL.

As an organization, ITL strives to attain leadership in the world of textile industry by ensuring the production of goods to satisfy its consumers at all levels.

ITL is committed to follow a strict code of ethics and morality in business in order to become a model of good corporate citizenship.

To create a work environment that is free from prejudices of caste and color provides its employees ample opportunities for development.

Achieve excellence in being the best supplier and manufacturer in the market and achieve growth by making use of the opportunities and by utilizing our strengths and proficiencies.

Acquire a team that comprises of hard working and sincere individuals whose top priority is to abide by their pledges.

Working Environment

It is because of excellent teamwork, trusted employees and hardworking individuals who work as a team that International Textile Limited manages to weave out world-class fabrics on traditional and non-traditional patterns. We maintain a working environment in which innovation and action ensure the highest level of quality. The skills of our artists help us present the very best to the demanding-yet-content public, both locally and internationally!

The secret behind every success is the binding force of professionalism. The Human Resource Department of International Textile maintains that very blend by engaging the highly skilled individuals available.

The Players, as we call them, come to our organization with the frame of mind that maximum utilization of their professional skills to make company grow. This not only triggers a competition within the players but also lets it help the company in particular!

Nothing works better than having a positive attitude, at International Textile Limited, you will find positive attitude in abundance since we believe that the happy the Players, the better the product. We show loyalty to our workers and always give credit to the team. We provide them equal opportunity to serve and carve a niche for themselves and it all makes them as ITL family and that makes ITL a caring organization.

STRUCTURE

Hierarchy:

The organization has a flat hierarchy. The organogram is attached in the appendix.

Statement of the problem

“Human Resource Management problems at International Textile Limited”

Significance of the study

This study helped the researcher expand her horizon and give her an insight into ITL and thus the textile industry. It will also increase her knowledge regarding the problems faced by employees in practical scenarios and how theory can be applied as solution.

This research paper will guide the manufacturing company i.e. International Textile Limited (ITL) in understanding its human resource problems better and suggestions to overcome those problems. In general, companies of similar characteristics can also get some insight into the problem areas that might surface later within their organizations and be proactive at handling them.

Also, it would provide an opportunity for students to match the theory with practice.

Scope of the study

The data used for the study covers a snapshot of the present HR Scenario and conditions and was collected at one point in time from a sample which represents the population. Respondents may not be honest or reluctant at providing the correct information or the average rating syndrome my effect. The researcher may not be able to create a perfect questionnaire covering all the important aspects of the study.

Delimitations of the study

Certain assumptions have been taken in this study which may change in the future. These include factors like political stability, government’s lack of interference, and the quality criteria that have been used.

Rationale

The main purpose of undertaking this research is to try to find out the problems in the human resource management, which the researcher believes, is vital for success of any company and overcoming those problems should be prioritized. These days, it is becoming very important for organizations to improve the aspects related to employee satisfaction and retention of good talent.

Objectives of the study

This study has the following objectives:

What are the problems in HRM in the organization?

What is the impact of these problems on the employees?

Why do the problems occur?

How can the problems be solved?

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