Report On Compensation

Internship Report
On
Compensation Management Practices Of
Classic Shirts Limited
Supervised By
Gouranga Chandra Debnath
Assistant Professor
Department Of Business Administration
Daffodil International University
Prepared By
MD. Arif Raihan
Id: 163-14-703
MBA Program
Submission Date: 17.072018
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LETTER OF TRANSMITTAL
Assistant Professor,
School Of Business,
Daffodil International University,
Dhaka.
Subject: Submission of Internship Report.
Sir,
I have the pleasure to inform you that, I have accomplished my internship report on
Classic Shirts Ltd. I tried to know about the Implication of Compensation Management
Practices in Classic Shirts Ltd. I have tried to give my best to prepare the report and
concentration during preparing the report.
I would like to thank you for your support and guidance during my Internship and help to
preparing the report. I hope that you would be kind enough to see inconveniences or
mistakes that may have appeared beyond my knowledge.
Sincerely Yours,
--------------------------------
MD. Arif Raihan
ID: 163-14-703
Program: MBA
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Student Declaration
I am declaring this report titled “Compensation Management Practices of Classic Shirts Ltd”
submitted by me to Daffodil International University for the degree of Masters of Business
Administration is a unique work.
I also pronounce that the report has not been submitted previously either partly or whole to any
other Institution or university for any Degree, Diploma, Associate-ship, Fellowship, Internship
and other similar title.
………………………………
MD. Arif Raihan
ID: 163-14-703
Program: MBA
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Supervisor Certification
This is to endorse that this report titled with “Compensation Management Practices of Classic
Shirts Ltd” submitted to Daffodil International University in association with the institution’s
internship program is a authentic record of work done by “MD. Arif Raihan” under my
supervision at the “Classic Shirts Ltd, HR Division, KA-76, Joar Shahara Bazar, Badda,
Dhaka.”……...
Supervisor
Assistant Professor
Department Of Business Administration
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Acknowledgement
The completion of this report might never been possible in time without the help some person
whose inspiration and advise made it happen. First of all I would like to thank my supervisor
Gouranga Chandra Debnath for guiding me in my Internship program. Without his help this
report would not have been accomplished.
I would like to express my gratitude to all the faculty and staff members of Daffodil International
University and specifically, Daffodil International University School of Business. This report is a
culmination of the four years I have spent here and all that I have learnt.
I am especially grateful to Mr. Jashim Ahasan, Senior Executive of Classic Shirts Ltd and a
number of officers of Classic Shirts Ltd for considering it worthwhile to permit me.
I also thank my All teacher, Classmate and Colleagues who helped me by providing informative
instructions and information to prepare this report. I was closely attached with them is this
internship period. Without them this internship would have been very difficult to complete. I
thank my parents, and some of my friends who kept on this long process with me, always
offering support.
And finally I also thanks them who are helping me and my sincere gratitude to all those who are
participated to prepare the report.
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Executive Summary
This study is the result of my internship program ran for the past three months placed at the
Classic Shirts limited. Since my internship program was directed to understand compensation
management practices. I had to gain some practical area of responsibilities and accountabilities
of the employee. So that I could ask them and interact with them to assess their views and
relations with the organization. I tried to ask employees by the questionnaire to gather my
information.
In the era of globalization, it is too much difficult for an organization to sustain in the
competitive market competing with others. So, to compete with other organizations, an
organization needs to use its human resources in an efficient & effective way. There is no way to
sustain in the completion without the proper utilization of human resources.
To get the high productivity or high performance from each employee an organization must do
better compensation management practices. On the other hand, Sound Compensation/Reward
System brings peace in the relationship of employer and employees. So in this report, I have tried
to explore compensation practice in Compensation Management Practices of Classic Shirts Ltd.
To fulfill that I have done internship program. To do internship analysis I have gathered
information about compensation of different job position. A market survey has been conducted
for designing compensation system in Classic Shirts Limited.
The studies on this issue empirically and practically learn that better compensation practices
largely depends on the number of interrelated components and things. Such as workplace
Knowledge, skill, training, neutral promotion policies, lack of gender discrimination. Despite
differences in opinions made by the employees and staff of the organization on what the study
was conducted, what the study finds is that the average level satisfied in compensation
management practices.
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Table of Contents
Particular Page
Cover Page 1
Letter of Transmittal 2
Student’s Declaration 3
Supervisor’ Certification 4
Acknowledgement 5
Executive Summary 6
Chapter-01: Introduction 9
1.1 Background of the study 9
1.2 Objective of the study 10
1.2.1 Broad Objective 10
1.2.2 Specific Objective 10
1.3 Company Profile 10
1.3.1 Brief profile of the Company 10
1.3.2 Company Structure 12
1.3.3 Mission of Classic Shirts Ltd 13
1.3.4 Vision of Classic Shirts Ltd 13
Chapter-02: Description Of The Topic 14

2.1 Compensation 14
2.1.1 Definition of Compensation 14
2.1.2 Key components of compensation 14
2.2 Compensation Theory 16
2.2.1 Reinforcement and Expectancy Theory 16
2.2.2 Equity Theory 16
2.2.3 Agency Theory 17
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2.3 Reward System 17
2.3.1 Compensation System 18
2.3.2 Non-compensation System 19
2.4 Compensation Study Framework 19
Chapter-03: Data Collection and Methods 21

3.1 Data Description 21
3.2 Ways of Data Collection 21
3.2.1 Primary Data 21
3.2.2 Secondary Data 21
3.3 Information Processing Methods 22
Chapter-04: Data Analysis and Results 23
4.1 Data Collection 23
4.2.1 Salary and Wage 23
4.2.2 Incentives 24
4.2.3 Facilities 24
4.2.4 Leaves & Holidays: 24
4.2.5 Annual Increment 24
4.2 Employee Compensation Practices 25
Chapter-05: Conclusion 35
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5.1 Explanation Of Findings 35
5.2 Recommendations 35
5.3 Conclusion 36
Reference 37
Appendix 38
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Chapter-01
1.1 Background of the study
Compensation is a relation between their co-workers and industry standards. It is not always
possible to provide employees completely a satisfactory compensation. But important thing is to
consider it when hiring new employees or increasing wages or salary for existing employees.
Employees need to be adequately compensated for their time and effort, skills and knowledge.
Compensation is a key factor that attracting and keeping the best employees in the organization
and ensuring that the organization has a competitive edge in an increasingly competitive market.
Employee dissatisfaction regarding compensation can lead to absenteeism, turnover, job
dissatisfaction, low performance, strikes and grievances. Majority of labor-management disputes
are related to compensation.
Compensation is ranges from wages or salary to anything that has a positive effect on the health,
mind and general well-being of employees satisfaction. Non-monetary compensation means
without money compensation can come in different forms that could be tailored to the
preferences of the employee. Here is Some examples include: bonus, award, recognition,
involvement in decision making, discounts, training in other business areas, work/life balance
and benefits packages.
Many companies marge compensation directly to employee job performance through incentive
packages with the salary. Such as bonuses and profit-sharing plans. The helps employees align
their professional goals with those of the company while rewarding top performers and providing
incentives for them.
Determining of main wages by the rule of Govt. wages, salary or basic salary should be fixed.
The company should be paid the worker for their work on time. No more delay will allowed for
paying the salary. If employee work overtime organization pay the incentives on time. If
company rules that pay for wok then pay actual work what employee do. If paying system is time
related then count the time.
Compensation benefits and packages for themselves with the amount of money saves on
selection,recruitment and training of costs of acquiring new employees and staff. Compensation
also ensure companies are compliant with the labor laws such as labor act or Equal pay act.
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1.2 Objective of the study
Compensation is something a lot of people take for granted. It is a major tool of an organization.
Compensation plays a critical role in aligning Employee behavior with business objectives. Since
the industrial age four M of business management i.e. Man, Material, Machine and Money.
Among these man has been considered to be most important factor contributing to organizational
effectiveness and efficiency.
1.2.1 Broad objective

Compensation management of Classic Shirts Ltd. To gain a practical experience. There are four
basic objective of compensation: forecasting employee’s effort, attracting quality employee’s,
retaining top performance and motivating employee. To know about the benefits, Compensation
practices of Classic Shirts Ltd.
1.2.1 Specific Objective

 To understand the Compensation Practices of Classic Shirts Ltd
 To identify the employee compensation practices of Classic Shirts Ltd.
 Identify the problem of compensation management of Classic Shirts Ltd.
 Recommendation for the problem of compensation management of Classic Shirts Ltd.
1.3 COMPANY PROFILE

Classic Shirts Limited is a world class casual shirts manufacturing company. The company
known for its state of the art production facility, extensive and unique research, training and
development center and high skilled trained human resources. Which has formed a small
garment factory established in 2015 in to a supreme institution of premium shirts design and
manufacturing industry.
1.3.1 Brief profile of the Company

Classic Shirts is a renowned group in the world’s fashion market. KDS has made the company
mark in the ready-made garments manufacturing in Bangladesh. Being the pioneer and one of
the largest in the Bangladesh.
Classic Shirts Ltd. is a private limited company. It has a positive contribution To the economy of
Bangladesh. They are the largest export oriented garments Manufacturing company in
Bangladesh. They believe in quality and time and highly emphasized in maintaining a concerted
harmony in its working process and its environment.
Classic Shirts Ltd., with two garments factory in comparison with BGMEA rules and regulations
in Bangladesh. The report also focuses on the issue of compensation management practice in
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Human Resource Management, and their guidelines in prevention to solve the problem. On the
other hand the findings of the study will direct to think about appropriate actions and steps for
the betterment of the existing practice. Garments Industries are growing gradually in Bangladesh.
At present Classic Shirts Limited is one of the leading premium shirts manufacturers, employing
600 people. Classic Shirts Ltd always focus on quality improvement of product and value
addition, adoption of top of the line technology, commitment towards maintaining safe and
healthy workplace for the workers and strict adherence to customer’s compliance requirements.
This group has become one of the most popular suppliers of the leading global fashion houses.
There are many garments factories are operating their factories at many districts of Bangladesh. I
have been assigned in Classic Shirts Ltd. and it has given me the scope to be familiar with the
Garments Industries’ environment for the first time indeed. I worked with Classic Shirts Ltd.
Factories and main administration office. And I took interview of 50 workers, employees and
staff. Thus I had gathered experiences by working at different department and units of Classic
Shirts Ltd.
The area of concentration of this report is confined that in investigating different aspects of the
Compensation Management Practices of Classic Shirts Ltd. according to the BGMEA rules and
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regulation. In fact, this report is on Compensation Management, especially on Job analysis, HR
planning, Recruitment and Selection of the employees, Training and Development,
Compensation, and Promotion. Theory and application did become a reality.
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1.3.2 Company Structure
1.3.3 Missions:
 Continue the business with profitability.
 Create employment opportunities for workers.
 Contribute to the development of the country.
 Delighting our customers
 Sustain performance
 Achieving excellence in process and technology
 Building culture of cost consciousness
 Leveraging through competent people
 Leadership through innovation
 Trust in new product design
1.3.4 Vision:
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 To be the leading garment industry of Bangladesh.
 To ensure the safety, efficacy and usefulness of our products.
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Chapter-02: Topic Description
2.1 Compensation
Compensation is the remuneration which is given to the employees for the work they do into the
organization. In other words, an employee is entitled to both the financial and the non-financial
benefits in return for his contribution to the organization.
Compensation includes that, “The total remuneration which includes a host of benefits that
protect and expand the lifestyle and health of workers and their families”.
2.1.1 Definition of Compensation

According to Henderson “A step by step approach for designing a remuneration system that
recognizes job requirements, employee related knowledge and skills and performance related
incentives that link individual, work unit and organizational performance”.
Compensation is the total cash and non-cash payments that organization give to an employee in
exchange for the work they do. Salary, Bonus and other benefits are included in compensation.
Compensation is more than an employee’s regular paid wages or salary. It also includes many
other types of wages and benefits.
2.1.2 Key components of compensation include:
1. Basic pay or Salary (hourly or salary wages)

2. Bonus pay
3. Recognition and Reward
4. Benefits (insurances, standard vacation policy, retirement)
5. Other non-cash benefits
I. Salary and wages: A wage is monetary compensation or remuneration, personnel
expenses, labor paid by an employer to an employee in exchange for work done. Payment
may be calculated as a fixed amount for each task completed (a task wage or piece rate)
or at an hourly or daily rate (wage labor) or based on an easily measured quantity of work
done.
A salary is a form of payment from an employer to an employee, which may be specified

in an employment contract. It is contrasted with piece wages, where each job, hour or
other unit is paid separately, rather than on a periodic basis. This is usually the single
largest component of a compensation package, and not surprisingly, the most common
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point of comparison used by employees and potential employees. Salary should be tied to
a person’s skills and experience.
Subsequent increases need to be based on an employee’s performance, value, and

contribution to an organization. For salespeople, it might be important to find a balance
between salary and commission.
II. Bonuses: Bonuses, which are usually paid in a single lump at the end of the year or paid
in half year, are way of providing performance incentives. Profit-sharing plans are a more
formal way of sharing or given bonuses, but they’re not as effective for rewarding
individual performance and compensating employees for meeting their goals.
A bonus is an extra amount of money that is added to someone's pay, usually because
they have worked very hard. Payment over and above salary given to an employee as an
incentive or reward.
III. Recognition or Reward: In this term of reward and recognition employee wants to get
rewarded. It’s one kind of motivation also. When people gets reward or recognized they
try their best to achieve it again and again. Company should have a good reward system,
So that everybody has a chance to get recognized and rewarded also.
According to Henderson, An organization is formed to accomplish a specific mission. To

do this organization attract and hire people who certain knowledge, skills, aptitudes and
attitudes for this reason organization provides rewards
IV. Benefits (insurances): Employer-sponsored health insurance is fairly standard among

medium-size companies. Plus, it’s a benefit that has great value to employees.
An employer-sponsored plan saves employees money, and gives them peace of mind in
knowing that they won’t be denied coverage, even if they have existing health problems.
V. Non-cash Benefits/Compensation: Other forms of compensation to consider include

employee assistance programs, which can provide everything from psychological
counseling to legal assistance; discounts on company products; the use of a company
cars; and any other incentives that motivate employees and give your company a
competitive advantage.
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2.2 Compensation Theory
2.2.1 Reinforcement and Expectancy Theory: This theory is based on the assumption that, the
reward-earning behavior is likely to be repeated, i.e. an employee would do the same thing again
for which he was acknowledged once.
Similarly, in the case of Expectancy Theory, given by Vroom, the employee is motivated to do a
particular thing for which he is sure or is expected that performance will be followed by a
definite reward or an outcome.
2.2.2 Equity Theory: According to this theory, there should be equity or the uniformity in the
pay structure of an employee’s remuneration. If the employee feels he is not being paid fairly for
the amount of work he does in a day will result in lower productivity, increased turnover and
high absenteeism. The remuneration system should comply with three types of equity:
A. Internal Equity: The employee perceives the fairness in different pay for different jobs
based on the nature of work involved, i.e. he must feel that pay differentials among the
jobs are fair.
B. External Equity: The employee should feel the fairness in what they are being paid is in
line with what other players in the same industry are paying to their employees for the
same kind of job.
C. Individual Equity: The employee perceives the pay differentials among the individuals
who are performing the same kind of a job and within the same organization. Usually, an
individual with more experience gets high remuneration as compared to the fresher
irrespective of the nature of a job.
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2.2.3 Agency Theory: This theory states that both the employer and the employee are the
stakeholders of the company, and the remuneration paid to the employee is the agency cost. The
employee will try to get an increased agency cost whereas the employer will try to minimize it.
Hence, the remuneration should be decided in such a way that the interest of both the parties can
be aligned.
Thus, these theories posit that the compensation in the form of salary or wages can be decided on
the basis of the outcome or the behavior of an employee.
2.3 Reward System
An organization or company formed to accomplish a specific mission. For doing this it must
attract and hire people who have certain knowledge, skills, and aptitudes to achieve the goal. To
attract and retain or hire such people the organization provides rewards. An organization designs
and implements a reward system to focus worker attention on the specific behaviors the
organization considers necessary to achieve its desired objectives.
The reward system of an organization includes anything that an employee may value and desire
and that employer is able or willing to offer in exchange for employee contribution. A rather
broad classification scheme that facilitates the identification of the various kinds and qualities of
rewards provided by employers is to separate the compensation components and non-
compensation components.
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2.3.1 Compensation System
According to Henderson Compensation system depends on organization rules and payment

system. It take some point. Like, Economies scale available through group purchasing, the
benefits through tax and regulation and government laws requiring certain.
Compensation
System
Pay for work and Pay For Time not Health,Accident,

Disability Income Deferred Income
Performance worked Liability
Income
Spous Income Equivalent
Payments
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2.3.2 Non-Compensation System
According to Henderson Non-compensation system contains many of the components that

behavioral scientists have been describing for 50 years as critical improving workplace
performance.
Non-compensation
System
Dignity and
Social Relationships
Satisfaction work
performance with co-workers
Offers Supportive
Allocate Suffciant Physiological,Health
Leadership and
Resources ,Intellectual growth
Management
2.4 Compensation Study Framework

This report on the basis of Classic Shirts Ltd compensation management. I worked on three basic
components one is basic pay and other two is incentives and benefits. Basic pay is the employee
salary which are given from the organization. It excludes extra lump sum compensation such as
bonuses or overtime pay, as well as benefits and raises.
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Compensation mainly awarded for results and output of work done rather than for time worked.
Incentive pay which is also known as pay-for-performance. Because the prospect of financial
compensation is supposed to be an incentive for an employee to remain motivated, work hard
and going for the best possible results or outcome. Commission, where sales employee get paid a
proportion of each sales they make, is a common form of incentive pay.
Although incentive pay refers to money. Some companies do offer different incentives. But
particularly when part of a larger, more complex incentive scheme in many ways. Non-monetary
incentives or those where the employer has already borne the cost (such as dinners or gifts), are
often known as ‘casual incentives.’
Sources
1. Employees and executives

2. Annul Report
3. Websites
4. Compensation Books
5. Survey
Basic Pay/Salary/Wages
Incentives and Benefits perception

with compensation practices
Evaluating performance apprisal
Findings and Suggestions
Recommendation
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Chapter-03: Data Collection and Methods
3.1 Data Description
Data was collected through previous magazine, annual report, documents, archival records and
dependent on observation. Main source of data is open ended interview and observation.
To find out the system problem and inefficiency I had to stay long hours with the factory and its
employees. Generally, research method means, to collect data used in research work. The study
was conducted at Classic Shirts Ltd.
Defining the scope of the study is a broad aspect to be described. Still the Human Resource
department helped me a lot to prepare the report. On the other hand due to some confidential
resolutions it was quite difficult to find out some information.
3.2 Ways of Data Collection
3.2.1 Primary Data:
Primary data collected directly to provide the Classic Shirt Ltd. Companies employees &
benefits package through face to face interaction. It is the systematic collection of information
directly from respondents using survey.
 Conversation with the Manager, Sr. Executives and executives.

 Interviewing employee and worker.
 Daily note maintenance.
3.2.2 Secondary source of Data:
Some secondary data some collected from many places. This information help to make this
report.
 Policy book of Classic Shirts Ltd.

 Different papers and manuals of Classic Shirts Ltd.
 Different circulars of Classic Shirts Ltd.
 Text book.
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3.3 Information Processing Methods:
To make this report meaningful and presentable, I used primary and secondary research base. I
collected most of the data came from my observation and work experience. Primary data came
from my experience, observation, unstructured interview. On the other hand secondary data has
been collected through internet, different journals, and regular reporting.
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Chapter-04: Data Collection And Analysis
4.1 Data Collection
Now a days for data collection everyone use Questionnaire survey method. So here I also used
this method. In this data collection Compensation was measured by a scale α = .97 composed of
five items on five-point type scale where 1 = strongly disagree to 5 = strongly agree.
It is a “subjective but systematic evaluation of how well the content of a scale represents the
measurement task at hand”. For this purpose, the contents of the questionnaire were prepared
with the help of literature, database, annual report, text, employee and staff, also from books and
magazine.
4.2.1 Salary and Wage

 Wages & salary breakdown is60% Basic and40% allowances.
 Any work after 8 hour will be treated as overtime. Mentionable here that maximum total
working hours a day are 10 hour and per week 60 hours.
 A worker will get double payment the basic for working overtime more than 8 hours.
 Overtime calculation: Basic ÷ 208 × 2 ×actual O.T. hours. 208 means total working hours
in a month = (26 × 8 =208).
 No employee is allowed to work more than 10 hours a day & 60 hours a week.
 In every seven days of week one day is off as weekly holiday.
4.2.2 Incentives:
 Company pay attendance bonus 300 tk. for full attendance in the month & deduct 200
taka for 01 day absent in the month.
 Transportation facility.
4.2.3 Facilities:
 Two festival bonuses paid to every employee in a year. Equivalent to two basic of
wages/salary during two Eid festive.
 Provided free Medical facilities. To face any emergency company provides free
ambulance services.
 Leave encashment: after completion of year if any employee who does not enjoy portion
of earned leave or leave not granted as per rules, the amount of that leave paid in cash.
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4.2.4 Leaves & Holidays:
There are 5 types of leaves are provided to the employee in a year.
 Festival holiday- 12 days with full pay.

 Casual leave- 10 days with full pay.
 Earned leave- 14 days with full pay.
 Sick leave- 14 days with full pay.
4.2.5 Annual Increment
Annual increment is given in accordance with BEPZA regulations. Special increment also given
those who demonstrate extraordinary experiences or skills.
4.2 Employee Compensation Practices

1. I think that company provide basic salary is appropriate for me.
Explanation:
From the table, It can be observe that 40% employees are strongly agree with the current
salary and 20% are agree where 15% employees are neutral, 15% are disagree and 10%
are disagree.
Employee Opinion Frequency Percent

Strongly Agree 8 40%
Agree 4 20%
Neutral 3 15%
Disagree 3 15%
Strongly disagree 2 10%
Total Frequency 20 100%
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Strongly disagree
10%
Disagree
15% Strongly Agree
40%
Neutral
15%
Agree
20%
Figure: 4.2.1 employee respondent’s basic salary
Observation:
Most of the employees are strongly satisfied with current salaries. 40% of employee
think that they are satisfied with the basic salary. 15% and 10% employee are disagree
and strongly with salary. Because they desire more from the job of their position. But
Company should take this seriously. Without the turnover rate will rise.
2. I think that employees get promotion regularly.
Explanation:
From the table, observe that 20% employees are happy, 15% are agree, 25% are neutral,
10% employee disagree and the rest of 30% are disagree.

Agree 3 15%
Neutral 5 25%
Disagree 2 10%
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Strongly Agree
Strongly disagree 25%
30%
Agree
15%
Disagree
20%
Neutral
10%
Figure: 4.2.2 employee respondent’s on promotion
Observation:
Most of the employees are think that they did not get promotion regularly. 30% of
employee are not satisfied with promotion. They think that Company should give
promotion regularly or Company should give something that can satisfy employee not to
leave the job. But 25% of employees are neutral means that some employees have to stay
in the job because they didn’t have any alternative job.
3. I think that company have a good working environment for me.
Explanation:
From the table, it observe that 40% employees are strongly agree, 20% are agree, 5% are
neutral, 15% employee disagree and the rest of 20% are disagree.

Agree 4 20%
Neutral 1 5%
Disagree 3 15%
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Strongly disagree
20%
Strongly Agree
40%
Disagree
15%
Neutral
5%
Agree
20%
Figure: 4.2.3 employee respondent’s on working environment

Observation:
Employees are happy and also satisfied with the working environment. 40% of employee
think company give them a good working environment. In side company everyone is co-
operative. Everyone is like a family. Almost 60% of employee are happy with company
working environment.
4. I think that Organization provide the bonus on time.
Explanation:
From the table, it clearly observe that 35% employees are strongly agree, 10% are agree,
20% are neutral, 25% employee disagree and the rest of 10% are disagree.

Agree 2 10%
Neutral 4 20%
Disagree 5 25%
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Strongly disagree
10%
Strongly Agree
35%
Disagree
25%
Agree
Neutral 10%
20%
Figure: 4.2.4 employee respondent’s on bonus time

Observation:
Employees are happy or satisfied with the bonus. 30% strongly agree and 10% are agree.
Like 45% of employee happy with the bonus which is provided from the company.
Company has a good bonus structure for the employees.
5. I think that company provide reward on time.
Explanation:
From the table, it observe that 15% employees are strongly agree, 20% are agree, 30%
are neutral, 35% employee disagree and the rest of 10% are disagree.

Agree 4 20%
Neutral 6 30%
Disagree 7 35%
Strongly Disagree 0 10%
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Strongly Agree
15%
Disagree
35%
Agree
20%
Neutral
30%
Figure: 4.2.5 employee respondent’s on reward

Observation:
35% of employees are disagree. That means company doesn’t provide the reward
regularly. Or company doesn’t reward the rightful employee. So company needs
improvement in reward system.
6. I think that company provide overtime regularly.
Explanation:

Agree 2 10%
Neutral 8 40%
Disagree 3 15%
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Strongly disagree
10% Strongly Agree
25%
Disagree
15%
Agree
10%
Neutral
40%
Figure: 4.2.6 employee respondent’s on overtime

Observation:
40% employees are neutral that means Company give them a good overtime bonus or
employees are satisfied with the overtime payment. But company always have to take it
as consideration the some how they manage but in the long run it will not give them
better benefit.
7. I think that company has a good compensation structure.
Explanation:
are neutral, 10% employee disagree and the rest of 25% are strongly disagree.

Agree 2 10%
Neutral 8 40%
Disagree 2 10%
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Strongly Agree
25%
Agree
10%
Disagree
10%
Neutral
40%
Figure: 4.2.7 employee respondent’s on compensation structure

Observation:
I think that compensation structure is not strong enough. Almost 35% employee is not
satisfied with the compensation. 40% are neutral because if they leave or quit the job
doesn’t have any other job or alternative.
8. I think that company provide much medical and insurance facilities.
Explanation:

Agree 3 15%
Neutral 2 10%
Disagree 4 20%
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Strongly Agree
30%
Agree
15%
Disagree
20%
Neutral
10%
Figure: 4.2.8 employee respondent’s on medical & insurance facilities

Observation:
In medical and insurance facilities company must be developed the situation. Most of the
company giving safety and medical for employee. So in here the observation says that
company needs a better medical and insurance facilities.
9. I think that company provide a good incentives.
Explanation:

Agree 6 30%
Neutral 3 15%
Disagree 5 25%
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Strongly Agree
10%
Strongly disagree
20%
Agree
30%
Disagree
25%
Neutral
15%
Figure: 4.2.9 employee respondent’s on incentives

Observation:
Incentives system of the company are not so good at this time. But day by day they are
developing it. Right now company didn’t give much incentives. But they are working on
it. Right now 20%+25%= 45% employees think company needs to give much incentives
to the employee.
10. I think that employee performance appraisal is correct.
Explanation:

Agree 7 35%
Neutral 5 25%
Disagree 3 15%
Page | 35
Strongly disagree Strongly Agree
10% 15%
Disagree
15%
Agree
35%
Neutral
25%
Figure: 4.2.10 employee respondent’s on performance appraisal

Observation:
In the graph it clearly see that company are not interested in performance appraisal.
Company gets benefit from the employee but they ignore or avoid his performance to
appraise.
Page | 36
Chapter – 5: Conclusion
5.1 Findings
25% employees of Classic Shirts Ltd think that they are paid less. According to them,
they deserve more salary. Some of them blamed that someone who serves for any other
same position.
Almost 40% of the employee think that company should give promotion regularly. They
think that organization doesn’t give proper promotion what they deserve.
Working condition of the company is very good. 40% of employee think that working
environment of the company is better than other company.
In addition 20% staffs of Classic Shirts Ltd think that festival bonus is good. Rest10% of
staffs thinks that it is poor. That means most of the employees of Classic Shirts like their
festival bonus.
According to the result of gender based employee satisfaction it can be said that men’s
are satisfied than women. It is also found in research that the staff who gets more salary
are highly satisfied and dissatisfaction mainly comes from the lower paid staffs.
In addition, the outcome of this analysis shows that 10% staffs of Classic Shirts Ltd think
that overall compensation benefit of Classic Shirts Ltd is good. 15% of them think that it
is excellent. 40% of staffs were not interested to give their feedback about overall
compensation benefits of Classic Shirts Ltd and rest 25% of staffs think that overall
compensation benefit of Classic Shirts Ltd is bad.
Classic Shirts Ltd does not provide any life insurance policy which I have come to know
while working there. They have a fund for the employees. But they need to give
insurance to their employee.
5.2 Recommendations
 Increase salary of staffs as 25% staffs are dissatisfied with their salary. Competitors
may take this opportunity and hire talent staffs of Classic Shirts Ltd by offering them
attractive salary.
 Providing more facilities to increase job satisfaction. There are lots of area they have
to develop.
 Employee safety should be more developed. Right now they have only a narrow fire
exit.
 Overtime and Bonus must be provide on time. Payment should be not due any of
employee. Because it will cause a bad effect on employee performance.
 Performance appraisal should be on 360 degree format. It will help the company to
find out the actual performance of employee.
 Incentives system should be more developed. Some allowance should be paid. Like
mobile, transport.
Page | 37
5.3 Conclusion
If a organization wants is development it has to every all any sector of an organization. There is
always a scope for development in the organization. Every organization must take the benefit of
this scope. Classic Shirts Ltd company has established itself as a garments manufacturer with a
high reputation and a customer profile that includes some of the best names in the business.
Classic Shirts Ltd. knows that in this competitive world of quota free access, winners would be
decided based on their international competitiveness and product quality. In the generally
prevailing uncertainties and impending liberalization of quota regimes the design team again
played a pivotal role in changing the perception of Classic Shirts Ltd as a typically Asian
supplier with increased customer contacts, collaborative working method.
This is an optimistic hint of future expansion of Human Resource Management and production
department of Classic Shirts garments. From the study it is also clear to us that which products,
what commodities are used by these customers. So, finally I will say that this internship at
Classic Shirts Ltd. Compensation Management Practices under the Human Resource Department
has enlarged my theoretical knowledge of Master of Business Administration in to some
practical knowledge and made my education more complete and practical.
Page | 38
References
1. Dessler, G. (2012). Human Resource Management (13th ed.). Pearson.
2. Guirgis, H. E. (2007, February 8). Doc Slide. Retrieved August 15, 2015, from Doc
Slide Website: http://docslide.us/business/compensation-and-benefit-chapter-1.html
3. Compensation Management in a Knowledge Based World (10th edition), Richard I.
Henderson.
4. http://www.bkmea.com/social_compliance.php
5. http://www.clsssicshirtsltd.com
6. Annual Report of Classic Shirts Ltd
Page | 39
Appendix
1. I think that company provide basic salary is appropriate for me.

2. I think that employees get promotion regularly.
3. I think that company have a good working environment for me.
4. I think that Organization provide the bonus on time.
5. I think that company provide reward on time.
6. I think that company provide overtime regularly.
7. I think that company has a good compensation structure.
8. I think that company provide much medical and insurance facilities.
9. I think that company provide a good incentives.
10. I think that employee performance appraisal is correct.
Page | 40

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Internship Report

Compensation Management Practices Of

Classic Shirts Limited

Gouranga Chandra Debnath

Department Of Business Administration

Daffodil International University

MD. Arif Raihan

Submission Date: 17.072018

Gouranga Chandra Debnath

Daffodil International University,

Subject: Submission of Internship Report.

MD. Arif Raihan

Daffodil International University

MD. Arif Raihan

Daffodil International University

Gouranga Chandra Debnath

Department Of Business Administration

Daffodil International University

Chapter-02: Description Of The Topic 14

Chapter-03: Data Collection and Methods 21

Chapter-04: Data Analysis and Results 23

4.1 Data Collection 23

4.2.1 Salary and Wage 23

4.2.4 Leaves & Holidays: 24

4.2.5 Annual Increment 24

4.2 Employee Compensation Practices 25

1.2.1 Broad objective

1.2.1 Specific Objective

1.3 COMPANY PROFILE

1.3.1 Brief profile of the Company

 To ensure the safety, efficacy and usefulness of our products.

2.1.1 Definition of Compensation

2.1.2 Key components of compensation include:

1. Basic pay or Salary (hourly or salary wages)

A salary is a form of payment from an employer to an employee, which may be specified

Subsequent increases need to be based on an employee’s performance, value, and

According to Henderson, An organization is formed to accomplish a specific mission. To

IV. Benefits (insurances): Employer-sponsored health insurance is fairly standard among

V. Non-cash Benefits/Compensation: Other forms of compensation to consider include

2.3 Reward System

According to Henderson Compensation system depends on organization rules and payment

Pay for work and Pay For Time not Health,Accident,

According to Henderson Non-compensation system contains many of the components that

2.4 Compensation Study Framework

1. Employees and executives

Incentives and Benefits perception

Evaluating performance apprisal

Findings and Suggestions

3.2 Ways of Data Collection

3.2.1 Primary Data:

 Conversation with the Manager, Sr. Executives and executives.

3.2.2 Secondary source of Data:

 Policy book of Classic Shirts Ltd.

4.2.1 Salary and Wage

 Festival holiday- 12 days with full pay.

4.2 Employee Compensation Practices

Employee Opinion Frequency Percent

Figure: 4.2.1 employee respondent’s basic salary

2. I think that employees get promotion regularly.