HRM report on Bata Bangladesh. How they are doing business and the problems they are facing.

1. Letter of Transmittal
2nd May, 2023
To,
Subject: Submission of report on Bata.
Dear Honorable Sir,
This is a great pleasure for me to submit you a report that helped me to know the general
guideline for the new subsidiary. As per requirement of the course, I have completed the
report which is done as individual work. It is worth mentioning that, I enjoyed the whole
event doing this interesting assignment.
I have undertaken my sincere effort for successful completion of this report. I hope what
if I have made any accidental error and omission will be considered with sympathy.
Therefore, I pray for your kind consideration in this regard. I will be very grateful if you
accept my report and oblige thereby.
Yours Sincerely,

2. ACKNOWLEDGEMENT
At first particularly I am thankful to the almighty Allah for blessing me and give me the
ability to complete this Project paper.
Human Resource Management (MBA509) is really an interesting course and attending
a project like this leaves me with a store of knowledge. This type of report will help me
in my future job. I am thankful to my course teacher Dr. Nazmul Amin Mazumder sir, my
Academic faculty from Independent University. He is teaching me this interesting course
so easily, that I can understand properly. It is an important course for Business
students. The versatile viewpoint and teaching style of Dr. Nazmul Amin Mazumder sir
is very nice and examples given by him throughout his lecture are very much realistic.
So, it helped me to understand the topics of this course easily. At last, I would like to
thank my classmates. Many of my friends and also many well-wishers contributed ideas
and made suggestions that greatly enhanced this research report. I would like to thank
them.
At the last, but not the least, I am also very thankful to the Internet which is very
supportive and grateful medium for completing this research report.
Where this research report succeeds, I share the credit, where it errors, l accepts the
responsibility.

3. Executive Summary
As a multinational brand Bata has established a good image in Bangladesh. People of
our country do not consider it as an outsider product. they often think its our own
product. In that sense we can say that Bata positioned their image in our mind of people
of our country. They are the biggest footwear company in Bangladesh. Few days before
they established the biggest outlet at Bashundhara city, Dhaka, Bangladesh. The most
important thing is that in Bangladesh most of the outlets are their owned. Bata is a
world-renowned brand for shoes. It has a substantial number of markets are in
Bangladesh. For a long time, Bata has a monopolistic business here in Bangladesh but
recently there are some competitors for Bata in Bangladesh both global and local. So,
establishing brand image has become a very serious issue to acquire a good amount of
brand equity.
This research is aimed to determine the current HRM issues that Bata is facing in
Bangladesh.

4. Table of Contents
Introduction ...............................................................................................................................................5
Objectives ..................................................................................................................................................6
1. What are the HRM problems and challenges facing your selected ...................................6
company and industry? .....................................................................................................................6
2. What sort of HRM approaches or components do you think need to be taken to
ensure ongoing strategic competitive advantage? ....................................................................8
3. Discuss the changing dynamics of the workplace in the twenty-first ..............................9
century facilitating an increased emphasis on knowledge ......................................................9
management..........................................................................................................................................9
Conclusion...............................................................................................................................................11
Recommendations.................................................................................................................................12
Implement of Recommendations.......................................................................................................13
References...............................................................................................................................................14

5. 5
Introduction
Tomas as Bata, founder of Bata was born in 1876 in the city of Zlin, Czech Republic, in
a family of shoemakers. At the age of 15, in 1891, he started making shoes in Vienna-
Dobling, but he failed. On August 24, 1894, Bata shoe Company was established in
Zlin, Czech Republic, with Tomas and his two siblings, Antonin and Anna, with a joint
capital of 600 Guldens.
Now, The Bata Corporation is a multinational footwear, apparel and fashion accessories
manufacturer and retailer, headquartered in Lausanne, Switzerland. The corporation is
one of the world's leading shoe manufacturers. They sold 150 million pairs of shoes
annually. It has a retail presence of over 5,300 shops in more than 70 countries across
five continents and 21 production facilities in 18 countries. Bata is an employer to over
32,000 people globally. The company is organized into three business units they are:
Bata, Bata Industrials (safety shoes) and AW Lab (sports style). Bata is a portfolio
company with more than 20 brands and labels, such as Bata, North Star, Power, Bubble
gummers, Weinbrenner, Sandak, and Toughees.
As Bata is now operating their business worldwide, there are several brands in the
market which are competing for the same set of customers. They are: Nike, Reebok.
New Balance, Converse, Puma, Fila, Adidas, Liberty Shoes, Under Armour, Metro
Shoes, Woodland, Red Tape.
Bata Bangladesh is the largest player in the footwear industry with around 9-10%
volume share and a 60% market-share in the organized segment.

6. 6
Objectives
1. What are the HRM problems and challenges facing your selected
company and industry?
The Bata Corporation is a multinational company and they have around
32,000 employees and they are operating their business near about 70 countries in the
world. They have 5000 retail stores in different countries in the world. From 1962, Bata
Shoe Company (Bangladesh) Limited operates in Bangladesh. Currently, 1062
employees are working in Bata Shoe Company (Bangladesh) Limited. So, managing
1062 people is very challenging. Bata Shoe Company (Bangladesh) Limited also face
some challenges. They are:
• Recruitment challenge: As Bata Shoe Company (Bangladesh) Limited is a
multinational company so everyone is willing to work here. Because of high level
executives or high ranked officer’s recommendation, Bata or even other
companies HR department had to recruit some unskillful people. It is a big
challenge for HR department to manage those unskilled employees and because
of them company get poor performance.
• Fair employee relationship challenge: HR department sometimes find few high
ranked officers discriminate others and indiscriminate with their loved ones. They
usually choose their loved ones when it’s time for promotion other than those
who are actually deserving. For this reason, unskilled employees reach higher
level and the company face different problems. So, this is tuff for HR department
to save higher positions from unskilled employees.
• Employee Retention: Sometimes promoting an unskilled employee because of
good relation with the senior manager cause job dissatisfaction. Sometimes
deserving skilled employees left job because of this. So, this also a challenging
factor for HR department in Bata.
• Employees Safety Challenge: Keeping all of its employees safe and secure is a
struggle for Bata Shoe Company (Bangladesh) Ltd, even though they are
extremely conscious of the importance of doing so. Bata has been working very
hard to aware their employees for being safe as it has risk factors in the factory
work. In order to keep their factory environment risk-free, Bata has been teaching
their workers how to use the equipment, how safe the equipment is, and whether
or not their equipment is working properly. HR department is working to find all
possible solutions so that their employees can work freely and without any risk.

7. 7
• Clean Environment Challenge: It is a big challenge for any organization. So, for
Bata it is also a very big challenge. They always keep all office floor clean. They
have a different place which is smoking zone for their employees so that their
employees don’t have to smoke in a random place which might be harmful for the
environment. But still there are some people who used to violate the rules or who
used not to abide by the rules. Making employees aware of how crucial it is to
maintain a safe and healthy work environment is now one of the difficulties the
HR department must address.
• Motivating and inspiring challenge: Motivating employees all the time is
challenge. Not always employees will bring success or whatever he/she does
that will pay off but as a HR people still you have to inspire them and motivate
them with high hope.
• Skilled worker: In leather industry there are many mechanical works to do. So,
in or country there is shortage of skilled workers. The majority of leather units
employ leather technologists who are graduates from the leather college
at Hazaribagh, with little practical knowledge of commercial production. In
Bangladesh we have no training institution for skilled and semi-skilled man
power for leather processing. As leather industry is related to fashion, a highly
adaptable workforce with the necessary training to handle the upcoming changes
in the near future. But we are in lack of those skilled manpower.

8. 8
2. What sort of HRM approaches or components do you think need to be taken to
ensure ongoing strategic competitive advantage?
To gain a competitive advantage every organization must improve its Human capital
resources. Leather industry is becoming more competitive day by day. Shoe companies
are increasing day by day in Bangladesh. So, to ensure competitive advantages,
companies must ensure:
• Technological Improvement: As leather industry is becoming very competitive
day by day, technological improvement is needed to be successful in this
competitive market. Introducing new technology, ensuring updated machines are
very important to become competitive.
• Skilled Worker: There is lack of skilled worker in country in leather industry.
Without proper training we cannot ensure proper competitive advantages in this
industry. There are not enough leather training institute in Bangladesh. So, Bata
Bangladesh Limited should always focus on training their employees to get better
results.
• Recruitment and Selection: Bata should ensure proper recruitment and
selection process. Hiring a unskilled employee results in low turnover of the
company. So, identifying skilled employees are hire them for the perfect position
is very important be become competitive in the market.
• Administration Cost: As Bata is a big company, it has a huge establishment
cost. HR department in Bata should also take this under consideration. As
competition is increasing day by day in leather industry, everyone has option to
compare nowadays. By making administration cost lower Bata can offer lower
product price to the customers.
• Incentive and Bonus: As market is very competitive and people with the good
knowledge of leather industry is less so Bata need to provide competitive
incentive and bonus to its employees. It will also help them to retain their
employees.

9. 9
3. Discuss the changing dynamics of the workplace in the twenty-first
century facilitating an increased emphasis on knowledge
management.
To gain a competitive advantage, human capital resources are key for any organization.
Knowledge management gives your teams access to the information and resources
they need to do their jobs effectively. It also helps your business retain that knowledge
for future use, which promotes efficiency, a better working experience and less
repetitive work. Developing employees will ensure competitive advantages, improve
work quality, retain key employees, Incorporate technological advances & changes in
work design.
Approaches to Employee Development in twenty-first century are:
1. Formal Education: Offering short- or long-term courses, ask employees to do
Executive MBA program.
2. Assessment: Observing employees’ knowledge, behavior and giving them
feedback. Assessment help employees to understand their lacking, where they
need to improve. Methods can be use:
• Myers-Briggs Type Indicator (MBTI): In this method, questionaries are
used and from the answers judge the employee condition. It identifies the
source of energy, means of information gathering, way of decision
making, & lifestyle, providing information for team building & leadership
development of an employee.
• Assessment Center: An assessment process in which multiple raters or
evaluators (assessors) evaluate employees’ performance on several
exercises, usually as they work in a group at an off-site location. In a
place all employees have to stay and senior management notice their
activities.
• The Benchmark Assessment: A measurement tool that gathers ratings
of a manager’s use of skills associated with success in managing. It
identifies is an employee is comfortable to work with anyone, is he/she a
active learner, does he has leadership skill and many more.
• Performance Appraisal: In this approach identify employee’s knowledge
and skills. How well he/she perform his job.

10. 10
3. Job Experience: Most employee development occurs during job. The
relationships, problems, demands, tasks, or other features that employees face
in their jobs. A major assumption of using job experiences for employee
development is that development is most likely to occur when employees are
given stretch assignments. Promotion, Job rotation or Transfer, Enlargement of
current job experiences, Downward move, Temporary Assignments help
employees improve their skills while performing job.
4. Interpersonal Relationships: Develop skills & increase their knowledge about
the organization & its customers by interacting with more experienced
organization members. Through Mentoring and Coaching an employee’s
interpersonal skill can be developed. In mentoring an experienced, productive
senior employee who helps develop a less-experienced employee. It can be both
formal and informal. In coaching A peer or manager who works with an employee
to motivate the employee, help him or her develop skills, & provide reinforcement
& feedback.

11. 11
Conclusion
From the beginning of its journey in Bangladesh, the company has been able to
continue its activities successfully. In addition to winning the title of Bangladesh’s Super
brands twice in a row, it has been awarded as the country’s top revenue earning
company in the leather and footwear categories for four consecutive years.
In 2019, at the World HRD Congress, Bata was awarded the Best Employer Brand. The
company is the top footwear brand in the country even after nearly 60 years of
operation in Bangladesh. However, in the last few years, global brands like Woodland
and Lotto have also started expanding in the Bangladeshi market. Domestic brands
such as Apex and Walker are also constantly trying to position themselves in this
market. Will Bata be able to maintain its sole dominance in the market in the future by
competing with these domestic and foreign brands? Only time will tell us.

12. 12
Recommendations
After preparing the report, I have found something that Bata need to take care of
improve. Those are:
• Recruitment challenge: Recruitment is one if the most important thing in an
organization. When looking at how big or successful a company is, we often
forget the people behind the company’s growth. So, I recommend Bata to give
more focus on recruitment. Avoid hiring unskilled employees though they come
from reference.
• Fair employee relationship challenge: Employee fair relationship is also a very
big challenge in an organization. So, I recommend Bata not to take this lightly.
Try to make employee engagement to improve relationships.
• Skilled worker: In leather industry skilled worker is very important. In
Bangladesh there is not enough institution on leather engineering. So, leather
industry always faces a problem of skilled workers. So, Bata should train their
employees to get better quality product. It will help them to produce at a cheapest
possible price and at a shortest possible time.
• Employees Safety Challenge: Employee safety challenge is also a very
important factor in any organization. As leather industry is depend on machines
so there is risk factor for employees who worked there. So, Bata should take care
of either stuffs are wearing safety gears or not while working.

13. 13
Implement of Recommendations
According to my recommendation to Bata, I am suggesting how to implement those
recommendations:
• Recruitment challenge: Bata should do succession planning, do more external
hiring for lower positions. They should use third party recruitment to avoid
reference and unskilled employee related problems.
• Fair employee relationship challenge: Bata should arrange more employee
engagement programs. It can be group game, team bonus to keep employees
motivated as well as create good bonding among employees.
• Skilled worker: In leather industry skilled worker is very important. In
Bangladesh there is not enough institution on leather engineering. So, Bata
should arrange training program by their own. Bata should hire skilled people
from leather industry to train their employees.
• Employees Safety Challenge: Employee safety challenge is also a very
important factor in any organization. As leather industry is depend on machines
so there is risk factor for employees. Bata should assign more compliance officer
who will be responsible for employee safety and workstation cleanliness.

14. 14
References
1. https://www.mbaskool.com/brandguide/lifestyle-and-retail/2432-bata.html#threats
2. https://businessinspection.com.bd/history-of-bata-shoe-company-bangladesh-
limited/
3. https://assignmentpoint.com/bata-shoe-companys-marketing-operations-in-
bangladesh/#:~:text=Bata%20Bangladesh%20is%20the%20largest,share%20in
%20the%20organized%20segment.
4. file:///C:/Users/88016/Downloads/373-Article%20Text-814-1-10-20200325.pdf