Payroll System of Manufacturing Company Essay

Payroll is the basic need for an employee but employees need more to satisfy them. For that reason employers have to take various kinds of remuneration techniques. Manufacturing companies are not beyond that. S. Nahar Garments, a sister concern of mohammadi Group, is one of them. Currently this group doing their business in garments sector only. They provide different types of incentives it their workers with wage. Incentives encourage employees to their duties and eliminate dissatisfaction. By incentives employees can be motivated and get the best output from them. It means producers can increase their production by giving remuneration to their employees. In this assignment we tried to find out about the wage-plan of this company. We have also come to know that Bangladesh Government has amended the labor law. So, every producer has followed that rules. Moreover we have some recommendation to improve incentives techniques for increase production and motivate workers. BRIEF HISTORY Readymade garments sector is one of the most potential sectors of Bangladesh. 75 percent of the export revenue is earned from the readymade garments sector. S. Nahar garments is one of the active company in the garments sector to contribute in the earnings of foreign exchange. The company is a sister concern of Mohammadi group. It is an ISO 9001:2002 certified organization. It was established in 1985. Mohammadi group is one of the renowned companies in Bangladesh. This group contributes a lot in the garments sector of Bangladesh. This group has several garments in different areas in Bangladesh. The head office of Mohammadi group is located at Motijheel in Dhaka. Its factories are scattered in different areas in Bangladesh. It has factory in Badda, Mirpur, Naraynganj, Savar, Kanchpur, Adamjee EPZ and other different areas. All readymade garments produced from these factories are exported to Europe and North American market. 60 percent of its products are exported to European market and rests of the 40 percent are exported to North American market. Business Tycoon Md. Habibur Rahman is the owner of this group. Couple of years ago this group has real estate business also. But now real estate business has been separated from this group. OBJECTIVES OF THIS REPORT Every study has an objective. Our study is not separate from that. The general objective of this report is to identify the wage plan of a manufacturing company. We make this report on S. Nahar Garments (a manufacturing company) for preparing the incentive wage plan. Also such report gives the opportunity to prepare a real business report that will help us to makes report in future for companies. SCOPES OF THE STUDY This study was an opportunity for us to know about the wage plan and incentives in manufacturing company. We also gather knowledge about labor demands, and how to satisfy them. This kind of information helps us to know what incentives would be effective. All this knowledge will be helpful in our future career, when we will be a production manager or entrepreneur in manufacturing company. As we study before which incentives eliminate dissatisfaction and motivate labors. So, labors become more effective, dutiful, and sincere in their work by incentives. LIMITATIONS We found that all manufacturing companies do not take same incentives plan. There are some limitations in S. NAHAR GARMENTS. These are as follows: ? There is no piece work plan facility. ?They does not have 100 percent bonus plan. ? There is no group bonus plan facility. They do not have allowance for launch We directly visit their industry and take incentives from companies Public & Administration Manager and Deputy Technical Manager. Bangladesh govt. amended the wage law few years ago. According to this law there is a minimum wage and every garments and factories must follow these rules. S. Nahar garments is not exceptional from that. It gives its workers wage by following the wage law. There are 7 different levels/grade of workers based on training and experience. Levels Basic wage House rent (30% of Basic) Medical allowance Total gross wage Grade-7 1125 337. 5 200 1662. 50 Grade-6 1270 381 200 1851 Grade-5 1420 426 200 2046 Grade-4 1577 473. 1 200 2250. 10 Grade-3 1730 519 200 2449 Grade-2 2800 840 200 3840 Grade-1 3800 1140 200 5140 Wage table: Fixed by The Govt. of Bangladesh The above table shows that, in Grade-7 the basic wage of a worker is 1125 taka. He or she will get 30 percent of basic as a house rent and 200 taka medical allowance which is fixed. So the total wage of a worker in grade-7 is 1662. 50 taka. And this is the minimum wage rate for every garments and factory. As same as the basic wage of a worker in Grade-6 is 1270 taka and total wage is 1851 taka. The basic wage of a worker in Grade-5 is 1420 taka and total wage is 2046 taka. In Grade-4 basic wage is 1577 taka and total wage is 2250. 10 taka. In Grade-3 basic wage is 1730 taka and total wage is 2449 taka. The basic wage for Grade-2 and 1 are 2800 taka and 3800 taka respectively and total wages are 3840 taka and 5140 taka respectively. So in every grade the worker will get a basic wage, plus he or she will get 30 percent house rent of basic and 200 taka fixed medical allowance. Bangladesh govt. follows the following rule to set up a worker’s total wage in every grade. Total Wage = Basic wage + (Basic wage ? .3) + 200 House rent Medical allowance S. Nahar Garments Company also gives some extra benefit to motivate its workers. It gives its workers 100 taka as attendance allowance. In this garments every worker has to work 6 days in a week and rest of the day is holiday for the worker. If any worker is present all the working days then he or she will be given 100 taka as attendance allowance. If he or she in 2 or less than 2 days then he or she will get 50 taka as attendance allowance. If any worker is absent in more than 2 working days then no attendance allowance is applicable. This allowance is on monthly basis. The company also provides bonus on the festive season. That means on Eid, Puja the worker gets 50 percent bonus on his gross wage. There are overtime facilities for the workers in this garment. Every worker has to work 8 hours in a day and 48 hours in a week. He or she is allowed to work up to 60 hours in a week. For the overtime hours he or she will get 2 times wage of basic. This company does not provide any production bonus. The garments company also provides some others facilities. It provides drugs for its sick workers. The female workers get 16 week leave as maternity benefit. There is also a daycare centre for those female workers who have children RECOMMENDATION From the survey in S. Nahar Garments, we learn that their incentives wage plan is not much encouraging. So we advise that, they should provide launch allowances and follow the piece work plan. By using this plan they can increase their production. It is using motivation of labors. Because piece work plan give value of the labors work, and increase their wage. This plan also increases production, which can generate company’s revenue. That means increase profits. So this plan will be effective and profitable for the company CONCLUSION At the end of the report it is quite evident that the wage plan of the S. Nahar Company is not very high. But, to increase this potential S. Nahar Garments must plan its way very carefully. We have formulated all the strategies needed to gain substantial wage plan. Now S. Nahar Company must follow all those strategies. Any lack of commitment in S. Nahar Garments part would result in a disaster. But after establishing themselves in organization they must not feel like winners. Making a greater wage for employees is not the end of the story — it won’t be living happily ever after. Because it is nothing about the fairy tales, rather the real world that is getting more and more dynamic and uncertain and where it is to believe that problems are there always but along with the solutions. It is just the initiative that should be taken at that moment to find the solution.