Comitment Level of Employees in Oreint Craft Ltd[1].

8/8/2019 Comitment Level of Employees in Oreint Craft Ltd[1].

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Summer Internship Project

Commitment level of employeesA study with refrence to

Orient Craft Ltd

Submitted in partial fulfillment of PGDM program2009-11

Submitted byANKSUH PURI

IB/02/29

Company Guide Faculty GuideMr. RAMENDRA RAMAN Miss Anindita BanerjeeSenior Merchant Professor Orient Craft Ltd.

Apeejay School of ManagementNew Delhi

July 2010


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ACKNOWLEDGEMENTS

At the outset I would like to express my gratitude to the administration of ORIENT

CRAFT for providing me with the wonderful opportunity of carrying out my summer

internship project.

I would also thank the management of ORIENT CRAFT for giving me the opportunity

of being associated with them and learning the intricacies of organizational culture on a

real time basis.

I would also like to thank my company guide, MR Ramendra Raman Senior

Mercchant And MR Vijay Govind Manager Personnel Department., Oreint Craft

Limited, ORIENT CRAFT for accepting me as a trainee and for sparing his valuable

time to discuss about the project. He has been responsible for all the knowledge that I

have assimilated during the last three months and he has supported and helped me in

completing my project successfully.

My special thanks to my faculty guide , Miss Anindita Banerjee ( APEEJAY SCHOOL

OF MANAGEMENT) who has been a source of constant inspiration for me. Her

confidence boosting talks and suggestions backed by her experience helped me go a long

a way during the course of my project. I shall be indebted to her for her guidance, co-

operation and confidence.


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PREFACE

Securing the commitment of employees can generate a number of organisational benefits,

such as reducing recruitment costs and improving interactions between customers and

employees. For retailers, a loyal workforce can therefore represent a source of

differentiation and competitive advantage. Despite this, few retail studies have explored

employee loyalty and have instead focused upon the loyalty of customers. This

quantitative and qualitative exploratory study of orient craft employees to aims to explore

how employee loyalty manifests itself in a company context. It proposes that employee

loyalty in this industry is multi-faceted and can be understood in relation to commitment

to the retailing industry, the retailer and the store.


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EXECUTIVE SUMMARY

A famous joke tells about a pig and a chicken walking together and discussing the

possibility to open a restaurant. "How shall we name the restaurant?" asks the pig.

"Simple", answers the chicken "We'll call it 'Bacon and Eggs'". "I am not sure about this

idea", says the pig. "It's true that we are both partners, but while you are involved in the

business, I am committed".

What is commitment and how should we create organizational commitment? These are

the questions I would like to dwell on in this post.

Thinking of organizational commitment brings to mind issues of job satisfaction, feeling

part of the organization and similar concepts. All these are related to commitment, but are

not identical. Organizational commitment is a psychological engagement of the employee

to the organization.

Why should an organization work towards such commitment? There are several reasons.

First, commitment improves employee retention. We invest a lot in Knowledge Workers;

we spend many hours nourishing and deepening their knowledge. An employee that is

leaving forces us to re-invest. Furthermore, we depend on many of our employees. In

some organizations, employees have strong relations with customers, making the personnel change unpleasant to the customers; in many organizations employees hold

invaluable information, which will be lost if they leave. If employee commitment to the

organization reduces turnaround, no doubt that we should encourage such commitment.

We could settle for this reason, but apparently, there are other benefits to an employee

that is committed to the organization.

A committed worker is more productive during his working hours; a committed worker,

according to studies, works more hours and has better performance. A committed worker is less absent; and a committed worker identifies with the organization and better assists

in meeting its goals.

In order to understand how to get employee commitment, it's important to understand the

different types of commitment. Commitment can be characterized by several dimensions:


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One dimension deals with the nature of the commitment: an emotional commitment that

the employee develops, verses a beneficial commitment (the benefits of staying within

the organization), verses a moral commitment.

This can be viewed also as intellectual motives affecting commitment, like a high chanceof not finding an alternative job or the comforts of the current job; verses emotional

motives affecting this commitment, whether positive (liking the people we work with) or

negative (fearing from the need to get use to a new job).

Yet another aspect is the subject of commitment: An employee might be committed to the

profession and thus (partly) to the organization; or an employee might be committed to

people in the organization, either to top management, direct management, to colleagues

or to customers; and some employees are committed to the organization itself, seeing

themselves as part of it and wish for its success. We can also refer to the scope of

commitment: inter-personal or organizational. In the personal level, researches have

found that older people are more committed than youngsters, women more so than men,

educated professionals less committed than laymen. We also see personal character as an

influential parameter of commitment. The organization and its organizational culture play

a major role: a culture of sharing, teamwork and participation in decision making

enhances employee commitment. The professional aspect has great influence on the level

of commitment: Job description clarity, volume of activity and personal ability to

develop, all affect commitment level.


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TABLE OF CONTENTS

1. Introduction to the Industry ..............................................................................1

2. Introduction to the Company ..........................................................................15

3. Research Methodology....................................................................................36

a. Title .................................................................................................................37

i. Title Justification .................................................................................37

b. Objective..........................................................................................................37

c. Scope of the Study............................................................................................37

d. Significance of the study .................................................................................38

e. Research Design...............................................................................................38

f. Sampling Methodology ...................................................................................39

g. Limitation ........................................................................................................39

4. Facts and Findings............................................................................................40

5. Data Analysis and Interpretation .....................................................................51

6. Conclusion .......................................................................................................63

7. Recommendation..............................................................................................66

8. Bibliography ....................................................................................................69

a. Books................................................................................................................70

b. Journals.............................................................................................................70

c. Magazines.........................................................................................................70

d. Internet .............................................................................................................70

i. Sites................................................................................................70

ii. Search Engines ..............................................................................70

9. Annexure..........................................................................................................71

a. Questionnaire......................................................................................................72


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INTRODUCTION TO THE INDUSTRY

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INTRODUCTION TO THE INDUSTRY

Indian Export Handicraft and Cloth

The Indian Handicraft industry truly symbolizes Indias strength in the knowledge basedeconomy. Highly skilled human resources coupled with low wage structure and world

class quality have transformed India into a global powerhouse in the Handicraft services

and solutions sectors.

The Indian industry has grown from US$ 0.8 billion in 1994-95 to US$ 10.1 billion in

2001-02. The figure below illustrates the growth of the Indian IT sector. Handicraft and

services exports are expected to account for more than 50 per cent of the sector turnover

in 2006-07 Despite a slowing global economy, Indian Handicraft exports grew by 23 percent in

2007-08, while overall exports fell down by 2 per cent.

India currently exports Handicraft to around 95 countries around the globe and more

than 250 Fortune 500 companies have outsourced some part of their Handicraft

requirements from India. North America and Europe accounted for 86% of Indian exports

in 2007-2008.

The growth of India as a Handicraft hub has also been facilitated by the initiatives taken

by the Union and State Governments. Many State Governments have set up Hi-Tech

Parks and implemented e-governance projects.

Many global Handicraft majors have set-up operations in India. They include Microsoft,

Oracle, Adobe among others.

The government has also announced incentives for adhering to Quality Standards such

as ISO 9000, SEI CMM by providing import duty concessions. Similarly, Exim bank

subsidises the cost of acquiring the quality standard by around 50%.

The growth of the sector has also been enhanced by a flourishing venture capital (VC)

industry. The VC industry was estimated to be worth around US$ 408 million in 2000

and is expected to grow to US$ 10 billion by 2008. This shows a CAGR of around 50 per

cent.

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Policy Initiatives

Besides Special Economic Zones (SEZs) and Export Promotion Zones (EPZs), the

government is encouraging the setting up of Handicraft Technology Parks (STPs). STPs

offer zero import duty on the import of all capital goods, special 10 years income taxrebates, availability of infrastructure facilities such as high-speed data communication

links, etc.

Foreign companies can set-up operations in these zones either through incorporation of

the company as per Indian Companies Act (with 100% equity holding), through a joint

venture with an Indian company or through a wholly owned subsidiary.

Opportunities

Strong cost value proposition, driven by the low cost of quality manpower and high

quality work delivery.

India has a large base of English speaking, skilled manpower resource with experience

on state-of-the-art hardware and Handicraft platforms. This is supported by a flourishing

IT education market, producing high quality Handicraft professionals across different

areas in the field.

The government has announced Handicraft export sector tax incentives-setting up of

STPs and a VC funds.

India has a well developed infrastructure support to aid connectivity and data transfers.

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Despite the global slowdown in Handicraft spend, Indian Handicraft and service exports

for the period April-December 2002 touched an impressive figure of Rs 34,000 crore

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($6.9 billion), thus registering a growth of Rs 7,600 crore as compared to the

corresponding period of the previous year.

Says Arun Kumar, chairman, National Association of Handicraft and Service Companies

(Nasscom): ''The increased interest by customers and the aggressive foray by Indianvendors led to larger offshoring contracts for India.''

As per the Nasscom survey, a bulk of the growth is from IT services and business process

outsourcing (BPO) activities. ''Handicraft and services exports are also increasing their

contribution to overall exports from the country. Handicraft exports accounted for 4.9 per

cent of India's export revenue in 1997, and is expected to increase to 20.4 per cent in

2002-03,'' he adds.

The other good news is that the markets and the kind of services offered by domestic ITservices and IT-enabled services (ITES) and business process outsourcing (BPO) players

are expanding.

In the IT services arena, Indian vendors are getting into new service lines such as IT and

network consulting, packaged Handicraft installation and support and systems

integration. In the ITES-BPO segment, apart from consolidating their presence in

traditional areas such as customer care, finance and HR, Indian vendors are moving up

the value chain by addressing segments such as engineering design, animation andresearch and development (R&D) services.

Nevertheless, the banking, financial services and insurance (BFSI) vertical continues to

be the biggest revenue earner, contributing 36 per cent of the total exports during April-

December 2002. The manufacturing vertical is expected to increase its share to 14 per

cent in 2002-03. Apart from growth in traditional services, new verticals such as

healthcare, retail and utilities in the IT services sectors will lead future growth in exports.

The retail sector currently has a share of 4 per cent in 2001-02 and is expected to increaseto 5 per cent in 2002-03. The utilities sector, which has a share of 2 per cent in 2001-02,

is expected to grow to 3 per cent in 2002-03. And healthcare, which has a share of 3 per

cent in 2001-02, is estimated to grow to 5 per cent in 2002-03.

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Industry performance by verticals in Handicraft exports

Verticals 2001-02 in % 2007-08E-in %

BFSI 35 36

Manufacturing 12 14

Telecom equipment 12 10

Government 1 1

Retail 4 5

Utilities 2 3

Transportation 1 2

Telecom service providers 3 5

Healthcare 3 5

Others 27 19

Says Nasscom president Kiran Karnik: ''The industry did face pressure on pricing in thefirst half of the financial year but this is stabilising now. There has been good growth in

volumes but profitability has been affected due to increased investment by Indian vendors

in sales and marketing. While this may affect the bottomlines in the short term, it would

help in strengthening the long-term prospects of the company.

''Further, if the appreciation in the rupee continues in the next quarter, it might lead to the

growth rate in rupee terms coming under pressure. But we are confident of achieving

strong stable growth in volumes in the coming quarters also.'' The survey also finds that

domestic Handicraft and service companies have beefed up their capabilities - external

and internal - to overcome the global economic slowdown. The industry is also expected

to witness a rise in mergers and acquisitions (M&A) activity as players try to broaden

product offerings and build scale.

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In the area of marketing, Indian companies have looked towards building expertise

through thought leadership, gaining better customer access and key account management.

Indian companies have also invested in building global delivery models to overcome

geopolitical risks. Companies have also tried to contain costs by recruiting in line with

utilisation rates, hiking the proportion of variable pay, and better management of fixed-

price contracts.

Indian Handicraft exports: Delivery models India's Handicraft exports have continued

to grow towards the high-value offshore development model. Onsite services, which

contributed Rs 16,500 crore to India's export revenue during 2001-02, is expected to

reach Rs 18,500 crore in 2002-03. Offshore activity, meanwhile, notched up a higher

growth rate during the same period, with contributions growing from Rs 18,500 crore in

2001-02 and expected to reach Rs 27,500 crore in 2002-03.

Rs crore 1999-00 2000-01 2006-07 Apr-Dec 2008

Onsite 9,850 15,900 16,500 13,300

Offshore 5,950 10,950 18,500 19,700

Products and unclassified 1,350 1,500 1,500 1,000

Total 17,150 28,350 36,500 34,000

Indian Handicraft exports by geography According to Nasscom, North America

continues to be the prime destination for Handicraft services and segment followed by

Europe, Japan, APAC and rest of the world.

Geography 2001-02 (in %) 2007-08 (in %)

North America 66.7 67.7

Europe 23.7 21.2

Japan 2.5 2.0

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Rest of the world 4.1 5.9

Asia Pacific (excluding Japan) 2.8 3.2

India Health Care Handicraft is a national Handicraft solution provider to the healthcare

industry and an IBM business partner located in South Burlington, Vermont, in the heart

of the Lake Champlain Valley region. We are a national company serving facilities in all

U.S. states as well as the territory of Guam. Our customers encompass nursing homes,

long tem care, home care, elder care, retirement homes, assisted living, apartments,

outpatient clinics, and others.

Utilization of India 's Harmony Health Care Management System in continuum of caresettings allow users to quickly, easily and accurately manage every aspect of your

organization's clinical and business needs.

The Harmony Health Care Management System offers Handicraft Suites, containing fully

integrated applications. Each suite focuses on a specific aspect of your business and can

be used as a stand-alone tool or used in combination with any other Harmony Suite.

India 's leadership position in the development of Handicraft programs for nursing

homes, home health and other health care providers is supported by more than twentyyears of experience in health care management and Handicraft development.

Our Handicraft suites are based on a building block process, which allows you to

implement as much or little as you want, when you want. These important data

processing features spring from dedication born of a strong work ethic and a natural sense

of resourceful innovation.

Our people put pride in our products for those who put their trust in us. At India Health

Care, the sun never sets on a customer's request. And when it comes to product and

system development, the lights never go out on a good idea.

There is no doubt that information about a patient and his/her past history are deciding

factors for treatment. The importance of effective data collection and record maintenance

further intensifies, if the treatment concerned is about substance abuse or psychological

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care. Therefore, in case of behavioral healthcare, doctors and healthcare organizations are

realizing the need of effective social services Handicraft solutions.

Though healthcare industry is a late adapter of technology, (with about 5% of healthcare

firms having sophisticated electronic storage systems), it is presently one of the fastestgrowing Handicraft sectors. According to a study conducted by Datamonitor, an

independent market analyst, 66% healthcare providers are expected to grow their IT

budgets by more than over 10% during the period of 2004-2006.

As we have already mentioned, the social service healthcare industry faced the

difficulties in its worst form. Their performance used to be hampered as there was no

efficient way of collection of data, analyzing them and then sharing them within the

organization. Therefore, with the implementation of the human services Handicraft

solutions, the social service facilities got the maximum advantage. Whether it is a

substance abuse Handicraft, or an bio-psychosocial assessment solution, they enable the

behavioral healthcare facilities to perform better. Effective social services Handicraft

ensures better data collection, analysis and sharing within the organization that optimizes

the treatment. Moreover, these Handicraft solutions are also helping healthcare

organizations to maintain the HIPAA guidelines. Therefore, after the Health Insurance

Portability and Accountability Act of 1996 (HIPAA), healthcare institutes are all the

more keen to implement Handicraft solutions.

Along with being an efficient tool for managing records, the healthcare Handicraft

solutions are also taking care of the administrative and financial aspect of the

organizations. This feature of the healthcare application Handicraft optimizes the internal

functioning of the organization. So, even when buying substance abuse Handicraft or

social services Handicraft, the healthcare organizations should also look for these

facilities. Only then they will be able to manage the organization more efficiently, while

providing top class treatment to their patients.

While the human services healthcare industry is quickly adapting to the Handicraft

solutions, the technology further advances with the aim of ensuring better efficiency. The

latest trend in the substance abuse Handicraft or human services Handicraft industry is

the application of portable PC or PDA devices. Though the conceptualization of portable

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handheld devices dates back to 1980's when Jerry Kaplan (a veteran entrepreneur who

was the founder of Go Corp., a start-up working to build a PDA) first conceived the idea,

introduction of the technology came to the healthcare industry much recently. The

portable handheld devices, or PDAs or tablet PCs are excellent tools for accessing the in-

house database and sharing vital information within the organization. This ensures that

the healthcare professionals and staffs of the healthcare institute are never far from the

huge database of key information. With these new improvements, it seems that the

wireless handheld communication devices will rule the healthcare industry in future.the

backdrop of the country crossing the US$ 50-billion-mark in merchandise exports in

fiscal 2002-03, Indian federal government has announced a comprehensive new Export &

Import (EXIM) Policy 2003 within the broad parameters of Five Year export-import

policy (2002-07). The new policy aims at consolidating and accelerating Indias exportgrowth by capitalising on the areas of its core competence and giving a massive thrust to

services and agro exports identified as the important engines of growth. A major boost is

being given to non-traditional service areas such as health care, entertainment and

professional services as well as traditional areas like tourism; major initiatives on agro-

exports with the basic aim of reaching the benefits of globalisation to farmers and rural

sectors including facilitating association of corporates in the implementation of Agri

Export Zones (AEZs); a more flexible and attractive Export Promotion Capital Goods

(EPCG) Scheme in order to expand the manufacturing base for Indias exports including

the small scale sector; incentives to status holders with premium on high growth; removal

of restrictions on exports; measures to facilitate investments in Special Economic Zones

(SEZs); reoriented export cluster development scheme and procedural simplification

aimed at drastic reduction of transaction costs in order to make India globally

competitive. The DEPB (Duty Entitlement Pass Book) Scheme is being continued and a

facility for provisional DEPB rate has been introduced to encourage diversification and

promote exports of new products.

"We shall strive to sustain the present rate of growth and to accelerate it through the

initiatives and strategy in the Exim Policy 2003-04", so says the federal Commerce

minister Arun Jaitley. Provisional figures for the period April-February 2002-03 indicate

that Indias exports have grown by as much as 16.76% in US$ terms (and 18.8 percent in

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rupee terms) over the same period of last year. Apart from Handicraft, a host of other

services now provided unprecedented opportunities in global trade and with abundant

skilled manpower, India today is uniquely placed to take full advantage of the growing

opportunities of services exports which was clearly an important engine of growth for the

economy. To facilitate and promote export of services from other sectors, import of

consumables, office and professional equipments, spares etc., would be allowed up to 10

percent of the average foreign exchange export earnings in the previous three years. Since

many of the sectors had not even made a beginning in the direction of exports, the facility

would be extended to new comers also against bank guarantee to the extent of to the

revenue sacrificed, subject to actual condition.

India has to strive a lot to fully exploit the tourism sector. To ensure that, under the new

EXIM policy the benefits of the advance licence scheme has been extended by allowing

recognised hotels of three-star category and above and other registered service providers

in this sector duty-free import of consumables and spares up to 5 percent of their average

foreign exchange earnings of the previous three years, subject to actual user condition.

(However, imports of agricultural and dairy products would not be allowed for imports

against this entitlement). Indian tourism sector already enjoys the benefit of the EPCG

Scheme.

Indias entertainment industry was singularly handicapped by lack of investment but had

tremendous opportunities for exports. Indian government has decided to promote

investment in Venture Capital Fund for the entertainment industry through suitable tax

incentives in consultation with the federal Finance ministry. Sector-specific Working

Groups would be set up with representatives of the federal ministry of Finance, the

administrative ministries concerned, state governments, financial institutions and the

industry to work towards a common goal by framing Action Plans to be implemented

within specified time frame.

In view of the paramount importance of agriculture and allied products as an area of

Indias core competence the corporate sector with proven credentials would be

encouraged to sponsor Agri Export Zones (AEZs) for boosting agro exports. Appropriate

incentives are being planned in consultation with the federal Finance ministry to enable

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investments by these corporates in infrastructure, processing, packaging, storage, R&D,

agricultural extension and other facilities relating to exports in the approved AEZs. As

many as 45 AEZs have been notified so far in different parts of the country. Besides,

fixation of DEPB rates for selected agro products would factor in the cost of inputs such

as fertilisers, pesticides and seeds. This would help the farmers to use the required inputs

in a scientific manner to boost productivity and quality.

The new EXIM policy has also removed quantitative restrictions on export of five items,

namely, paddy (except basmati), cotton linters, rare earth, silk cocoons, etc. Special focus

would be given to certain sectors having potential for accelerated export growth, such as

textiles (especially garments), auto components, gems & jewellery, chemicals, drugs &

pharmaceuticals and electronic hardware. Stating that in order to be a significant player in

world trade, the countrys manufacturing base would have to be built up quickly in order

to sustain a high rate of export growth and that the EPCG scheme had contributed

significant to exports by facilitating expansion of the countrys manufacturing base at a

comparatively lower capital investment. A series of steps are taken to make the EPCG

scheme more flexible and attractive so that even the small scale sector could set up and

expand its manufacturing base for exports. These include allowing import of capital

goods for pre-production and post-production facilities also; rationalisation of export

obligation by linking it to the duty saved. (Export obligation would now be 8 times theduty saved); allowing import of spares to facilitate upgradation of existing plant and

machinery; dispensing with the existing condition of imposing an additional export

obligation of 50% for products in the higher value chain; greater flexibility for fulfillment

of export obligation under the scheme by allowing export of any other product

manufactured by the exporter, thereby taking care of the dynamics of the international

market; allowing capital goods up to 10 years old also under this scheme; and counting

royalty payments received from abroad etc., for discharge of export obligation under the

EPCG scheme.

The status holders would continue to play a significant role in boosting exports especially

from the small scale sector, as most of the small units were not in a position to directly

access the international market. A duty-free entitlement would be given to them for

import of capital goods, spares, office equipments and consumables. This would be

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available to the status holders achieving a growth rate of 25 percent or more in the current

year with a minimum export performance of Rs.25 crore. They would also be given duty-

free entitlement of 10 percent of the incremental growth in exports during the current

year subject to the actual user condition.

In recognition of the importance of the SEZ Scheme in the country, strategy for

accelerated export growth and the contribution of 100% Export Oriented Units (EOUs), a

major step has been taken for the simplification and codification of rules, regulations and

procedures applicable to SEZ and EOU units and all these rules and regulations were

being put in one place which would greatly facilitate both potential investors as well as

the existing units. Sales from Domestic Tariff Area (DTA) to SEZs would be treated as

exports and this would now entitle domestic suppliers to drawback/DEPB benefits etc.

Further, agriculture/horticulture processing SEZ units would be allowed to provide inputs

and equipments to contract farmers in DTA to promote production of goods as per the

requirement of importing countries, which would help in promoting SEZs specialising in

agro exports.

Additionally, special steps were being taken to promote exports of gems & jewellery and

electronic hardware from the SEZs and a comprehensive legislation on SEZs was on the

anvil. Simultaneously, to enable exporters access to funds at international rates, a suitable

fiscal package for offshore banking units set up in SEZs was being worked out. The

Minister said that though notified greenfield SEZ projects were yet to get off the ground

due to delay in land acquisition, the first new SEZ at Indore was ready for operation. 18

SEZs have been approved and Greater NOIDA and Navi Mumbai SEZ were under active

consideration.

The federal Commerce ministry is gearing itself to provide online approvals to exporters

where exports had been effected from 23 EDI ports in the country. DGFT had already

achieved a high degree of computerization. As part of the effort to reduce transaction

cost, annual advance licence facility has been introduced for status holders so that they

could plan for imports of raw materials and components on an annual basis and take

advantage of bulk purchases.

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In addition to the 7 countries already included in "Focus: Africa", the programme would

now be extended to the remaining 11 countries of the sub-Saharan region where India had

diplomatic missions namely, Angola, Botswana, Ivory-Coast, Zambia, Zimbabwe and six

countries of North Africa namely, Egypt, Sudan, Algeria, Libya, Morocco and Tunisia.

Sales from Domestic Tariff Area (DTA) to SEZs to be treated as export. This would now

entitle domestic suppliers to Drawback/DEPB benefits, CST exemption and Service Tax

exemption.

Agriculture/Horticulture processing SEZ units will now be allowed to provide inputs and

equipments to contract farmers in DTA to promote production of goods as per the

requirement of importing countries. This is expected to integrate the production and

processing and help in promoting SEZs specialising in agro exports. Foreign bound

passengers will now be allowed to take goods from SEZs to promote trade, tourism and

exports. Domestic sales by SEZ units will now be exempt from SAD.

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INTRODUCTION TO THE COMPANY

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INTRODUCTION TO THE COMPANY

ORIENT CRAFT

Set up in 1978, Orient Craft Limited has consistently been one of India's top garment

manufacture and export organizations. Today it stands strong with 21 facilities and a

committed workforce of over 25 thousand producing more than 100 thousand pieces of

global fashion in a day. Catering to over forty fashion brands and designers like Marc

Jacobs, Diane Von Furstenberg, Polo Ralph Lauren Blue Label, Banana Republic,

Michael Kors, DKNY, Express, Tommy Hilfiger, Macy's, Monsoon, Marks & Spencer,

Ann Taylor, Abercrombie and Fitch; Orient Craft stands true to the image of being 'the

name behind names'. The group exports revenues have grown at a CAGR of 15.39%

from FY02 to FY09. Orient Craft in its perennial expansion stage is always looking for

investing in human resource asset and charting a symbiotic growth for the employees and

the organization. We create a highly proficient learning, development and growth

process, for all those who have the ability to dream big and achieve bigger.

In the wake of growing competition, in the year 2003 we formed our wholly owned

subsidiary "Orient Craft USA Inc." in the State of Delaware, USA Since the "MFA"

Multi Fiber Arrangement, which has governed the trade for the past 30 years, has expired

on Dec. 31, 2004. Our subsidiary "Orient Craft U.S.A. Inc" has turn out to be a great tool

for the parent company Orient Craft India.

Establishment of Orient Craft U.S.A Inc. another landmark for Orient Craft Limited is in

line with the Company's business strategy towards the market expansion.

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We felt the need to establish a true presence in the dynamic American market we have

been catering for more then twenty-five years. In the year 2004 we setup a design studio

in New York, USA. The top professionals in the industry, having enormous experience of

American market and latest trends, are heading the design studio that works with our

equally efficient team of designers in India. We keep track of fashion trends and today we

have dedicated team on board, whose job is product development and product support.

We spend huge amounts of money in sending our people overseas every week to Milan,

New York, Paris, London.

Orient Craft a garment exporter, is planning to invest Rs 200 crore to expand capacity at

its facilities. "We would be requiring an investment of around Rs 200 crore in the next

couple of years to further strengthen our infrastructure," Mr Sudhir Dhingra, Chairman

and Managing Director of Orient Craft Ltd, said. The company, he said, was evaluating

various options to fund its expansion plans. "We are mulling an initial public offer and

have appointed Kotak Mahindra and ICICI Securities to analyse the various options

available to us," Mr Dhingra said. The exporter is also planning to set up a textile Special

Economic Zone (SEZ) in Gurgaon. The proposed SEZ would be spread over 600 acres of

land of which the company has already acquired 400 acres. "The remaining 200 acres

would be acquired in the next couple of months," Mr Dhingra said.

He said the company would initially invest around Rs 300 - 400 crore in the SEZ and

invite further investments from co-promoters. The SEZ, Mr Dhingra said would require

an overall investment to the tune of Rs 2,000 crore and would be completed in the next

two-and-a-half years. Orient Craft boasts of a long list of international clientele including

Gap, Banana Republic, Tommy Hilfiger, Marks & Spencer, and Ralph Lauren, among

others. The company had earlier acquired a Levi's plant in Spain for Rs 60 crore.

Orient Craft has around 20 modern manufacturing facilities in and around Delhi, and

employs over 23,000 people. The Rs 745-crore turnover company is bullish on its future

prospects and hopes to clock around Rs 950 crore turnover this fiscal.

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Life at OC

Unique Employee Benefit schemes:

We encourage the team members of each department go together for a day out in

a month and the company reimburses the amount. This also enables theemployees to strengthen the bond between them.

The Reward is given to the production Department as per the number of

machines, which are being utilized on the floor.

The employees are given the incentives on the excellent performance.

We give the scholarship to the children on the workers based upon their

meritorious performance in their studies from 1st to XII standard.

There is a staff welfare fund for the benefit of economically weak employees

drawing salary less that Rs. 5000/- per month.

An open house session is held on the production floors t sort out the problems of

the workers.

There is a facility of crche for the children of working females, within the

premises of the organization.

Major HR Practices:

We, at Orient craft have the KRA based appraisal system, which integrate

individual objectives with organizational objectives.

We have the compensation structure for various levels comparable with the best

in our industry

We design the systematic career path/plan for employees of different level based

on their performance We have the yearly training calendar which enable individuals in learning/

acquiring the competencies for success performance in their role

We have a well defined Uniform Personnel Policies at all locations/ levels

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We have a system to ensure the full proof statutory compliance under various

applicable statutory/ labour laws to have least legal issues

Riding on its rich heritage of 360 degrees expertise in fashion forecasting, trend pick up,

product development & production Orient Craft Ltd., has ventured into LifestyleRetailing through Orient Craft Brands Ltd.

It has been a conscious decision of the group, to move up the value chain and get into the

B2C business after four decades of association with best known brands all across the

globe and to harness the beckoning Retail Opportunity of India Shining Story.

The vision of Orient Craft Brands is to create a well segmented portfolio of differentiated

brands, relevant to the prevailing & futuristic Indian Lifestyle Market, convert them into

scalable & self-sustainable independent business verticals.

After identifying the 'heterogeneous portfolio' of international brand' model strategy OCB

and s.Oliver, one of Europe's largest clothing brand, today announced their plan to launch

in India, a retail chain of fashion and lifestyle products, under the name of s.Oliver.

Orient Craft Brands has been granted an exclusive licensing and distribution rights for

various product lines; s.Oliver (Casuals), SELECTION (Classic & Evening wear), QS

(Young & Trendy fashion) and Anastacia (Celebrity Inspired Fashion - designed and

endorsed by international pop star Anastacia).

The Orient Craft Brands aim to harness s.Oliver's retail expertise and Orient Craft's

product & design strength. This association would catapult Orient Craft Brands into the

rapidly expanding retail industry. Orient Craft Brands would establish a retail stores

network across all the metros and other major cities over a period of next five years.

These stores would emulate European standard of store design and ambience and would

offer premium European fashion and lifestyle products such as fashion clothing,

perfumes, shoes, accessories etc, for both men and women.The first phase would include setting up management & sourcing office, flagship stores

in the NCR and employing about 35- 40 specialized staff. The following years would see

expansion in a phased out manner from one region to the other and would include stores

in malls and high streets. At a later stage they may venture through small size shop-in-

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shops in multi brand large format retail stores. By the end of five years Orient Craft

Brands aims at to have set up around 60 - 80 points of sale across various formats & sizes

and expects a conservative turnover figure of Euro 40 million per annum by the end of

5th year of operation. s.Oliver marks the starting of retail at Orient Craft Ltd. In years to

come we want to establish as the best retailing company on all parameters of

Organizational Management.

The success story of s.Oliver Bernd Freier GmbH & Co. KG began in 1969 with the

opening of the first retail outlet in Wrzburg (Germany) by its founder and owner Bernd

Freier.

Within a few decades, the company had developed into one of the leading fashion

manufacturers in Germany and Europe, offering fashion and lifestyle products for the

whole family. Overall brand sales, including licenses, of the group operating in more than

30 countries have in the meantime climbed to euro 904 million (in 2006), which means

they have more than tripled since 1995. Altogether, the company currently has 65 mega

stores under own management, some 324 stores run together with partners and is

represented in 1,577 shops and on 1,521 sales stands.

.Oliver means first and foremost fashion and lifestyle. In addition to its ten brands and

segments ranging from s.Oliver Junior to the premium brands s.Oliver Selection women

and s.Oliver Selection men and their accessories, the s.Oliver Group also sells seven

lifestyle lines that are created in collaboration with license partners. In August 2006 a

very special project was added to the mix: The "Anastacia by s.Oliver" line is

collaboration between Europes' top selling artist Anastacia and s.Oliver.

EMPLOYEE COMMITMENT AT ORIENT CRAFT

As the Gallup Organizations says, people join organizations but leave their boss. In other

words, a manager's key responsibility is to create mutual respect and trust with the peoplewho report to them. When managers lead and manage their people effectively, their

people are much more likely to be engaged and to achieve results for the organization.

In practice this involves walking the talk, being transparent, communicating effectively,

treating people equally, teaching, leading subordinates to increasingly excellent

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performance and responding to subordinates as mature individuals who are owed

fairness, the truth and recognition of their achievements .

Since managers interact directly and frequently with subordinates they are usually more

"tuned in" to how employees are feeling than are executives. Managers are in a better position to know, for example, when employees are feeling alienated and disengaged

from their work, which is very common today -- and expensive.

Gaining employee commitment results in greater profits because enthusiastic employees

stay, contribute discretionary effort, and engage customers . Performance soars when

customers are enthused and stay and when executives, managers, and employees are a

collaborative team, united in achieving common goals.

But managers are often called "middle managers" for good reason: their job is to motivateand guide subordinates while they, at the same time, are being judged by their bosses.

Because of their tween position in the hierarchy, managers, to effective support direct

reports, must also create relationships with potential allies, especially those with greater

power who have access to top decision makers.

Specifically, when trying to create the organizational changes needed to gain

commitment, managers need to:

Prepare their elevator speech, which includes the two or three key points they wish to

make with their co-workers.

Communicate this message initially to people who are known to agree with this

position. Managers have to strategize to increase their influence through sheer numbers

and by creating allies of people with greater influence and power.

Finally, you need to collaborate with allies. Effective collaboration doesn't always

happen organically between like-minded people. You'd be wise to follows some specific

steps:

1) Prepare a case documenting the major financial gains that will be achieved when

employees are enthusiastic and involved.

2) Get a sufficient number of executives on board to begin taking action. You don't need

full-scale buy-in to get started, just enough allies to create real movement.

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3) Identify some initial easily achieved targets where success will energize the change

process and help you gain more allies.

The workplace is changing dramatically and demands for the highest quality of product

and service is increasing. To remain competitive in the face of these pressures, employeecommitment is crucial. This reality is applicable to all organizations but is of particular

importance to small and medium sized businesses.

Employee behavior on the job is influenced directly - positively or negatively by his or

her immediate supervisor. Positive influences are essential to strengthening employee

commitment. Therefore the first step in building commitment is to improve the quality of

management. Much has been written recently about the need for improving the education

and training of our workforce. As important as this is, at least equal emphasis must be

given to improving the quality of management if business is to succeed in achieving

greater employee commitment and thereby its profitability.

The benefits of having the best trained workers using the most advanced technology, can

be nullified by poor people management practices by managers. Management skills

which sufficed in the past are not adequate to meet the challenges facing business today.

The two keys to success in today's environment of increasing competition and rapid

change are an absolute passion for, and dedication to, excellence in customer service andthe effective and enlightened management of our workforce. The latter breeds

commitment which in turn leads to achieving the desired standards in customer service.

Without employee commitment, there can be no improvement in any area of business

activity. In the absence of good management, employees will simply treat their work as a

job - a 9 to 5 routine without any desire to accomplish any more than is necessary to

remain employed. It does not take many uncommitted employees to prevent a business

from prospering and thereby ceding a big advantage to its competitors.

In many organizations there is a growing commitment gap - a widening split between the

expectations of employers and what workers are prepared to do. There are a number of

reasons for this erosion of employee commitment; the most common one being a failure

of management in some way or another. To succeed in the face of increasing competition,

a business needs improved productivity at all levels. This requires the enthusiastic

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commitment of all employees which can only be achieved through better management

practices. To be effective, the skills of good people management must be installed in an

organization so they become part of its culture. In this way there will be consistency and

equity with respect to how people are managed from the top down to the most junior

employee.

Businesses need good people to succeed. Failure on the part of owners or senior leaders

to ensure their managers and supervisors are trained and function effectively can lead to

the loss of valued employees because the best employees are attracted to employers who

place a premium on good people management.

The second key to success, namely customer service, cannot be achieved without

dedicated and committed employees. It is the order clerks, customer service

representatives, receptionists, and drivers who interact most with the customers. They

relate to them in a manner consistent with how they themselves are managed. Hence the

direct link between effective management of employees, their level of commitment to the

organization and the standard of customer service.

Properly managed employees can be motivated to achieve excellence in any area of a

business. They will contribute willingly, and will do more than expected if they are

managed well. Extraordinary results can be achieved by ordinary people if management

does its job properly. Managing a business today is difficult enough without forfeiting a

competitive advantage by lack of attention to its most valuable asset - its people.

It therefore follows that all organizations should give a high priority to its people

management practices if they hope to success and prosper in the face of global

competition and consumer demand for the highest quality of product and/or service.

To be committed to the work, one must have ownership of the work. To have ownership

of the work, one must be able to influence what goes on in the workplace associated withthat work. And to influence the workplace, one must be heard and reasonably answered

by bosses.

So when management does the WHAT IFs above, subordinates are in reasonable control

and will develop a sense of ownership of their workplace.

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Highly committed workers continually strive for excellence. The more committed they

are, the more they act to find resolutions to problems. The less committed, the less energy

and thought they devote to correction and the more time they spend causing problems.

Some details about the process of listening Listening requires plenty of practice andconcentration. You are listening to your people and since they are the ones who do your

work, they are very important people. So listen with 100 per cent of your attention. Don't

be distracted or be thinking about how you will respond or whether the moon was blue

last night. Listen very intently and carefully, and to keep yourself focused on listening

take notes to record what was said.

Pay particular attention to tone of voice and body language since these may send signals

more important than the words spoken. Ensure that your own body language and tone of

voice clearly send the message that you really care about what this person is saying.

When the person stops talking, start asking questions to flesh out what you have heard. It

is very normal for people to give you less than half of what they know about the problem,

so your respectful and caring questions are essential to getting a full picture. Once you

understand all that they know about the problem, ask them if they might have a suggested

solution or know someone who might.

Don't try to give a quick answer! Unless you have an answer that you know meets veryhigh standards, show great respect by being willing to go away to consider the issue.

Then return in a timely fashion with what you think may resolve the issue and allow the

person to comment on your solution before taking any actions.

Gaining employee commitment is far more important than solving individual workplace

problems, and besides, committed employees will on their own solve many, many more

problems than you can.

Excellence is an excellent word and excellent companies strive for achieving it. Manyfactors contribute to the excellence of companies chief among them is employees

commitment. Without commitment no company can think of achieving excellence.

Commitment is rather a key ingredient for improving quality and productivity,

reducing defects, increasing profitability and decreasing costs.

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However these days one of the major problems by all companies is the lack of total

commitment from their employees. In Malaysia it is a common complaint that employees

are no more loyal as they used to be in the past. As a result of lower commitment

employees leave their companies for slightly higher pay. Some managers joke that

todays employees will leave their company even for a 50 cents increased salary offered

by other companies.

Lack of loyalty is not only faced by Malaysian companies but in other countries,

companies also complain of this problem. And to cope with this problem they have

adopted many programmes and strategies, which tries to restore employees commitment.

For example, Xerox is now spending US $400 million a year on management programs

and consultants to retrain its employees what they call focus on commitment to the

organization

DEFINITION OF COMMITMENT:-

Commitment may be simply defined as, an attitude of people for deploying their total

resources towards the achievement of certain goals.

From this definition we can pick up certain elements which lead to peoples commitment.

These elements are:-

1. Commitment is an attitude:-

Commitment is an attitude a psychological frame of mind which motivate people to work

towards certain goals. So for a commitment to exist in a person they must have a positive

attitude. Negative attitude is one of the major reasons for non-committal approach. It will

be necessary to mention here that one of the toughest jobs is to change peoples attitude.

Managers can train employees with new skills and impart them with new knowledge but

quite often than not they find it extremely difficult to effect changes in peoples attitude.

2. Use of resources:-

Committed people commit their total resources, which include going extra mile for

achieving goals assigned to them. According to Dennis G. MacCarthy the author of the

best seller book The Loyalty Link most employees give 60 percent of their time and

attention for their jobs. It is enough to do what must be done in most cases. But to

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achieve excellence employees need to give 100% commitment. For example, if an

employee who drives a delivery truck, all that he ought to know the customer address and

the number of the cartons for delivery. An ordinary driver will deliver it at the doorstep.

However committed drivers will not just dump them at the door step, rather they will go

an extra mile of helping the customer to take it inside the store. That extra 40 percent

effort is called discretionary effort, which can be called commitment.

3. Achievement of goals:-

The third dimension of commitment is goal orientation. Committed people not only work

hard but also are also smart enough to know the ultimate results, which are expected of

them. Commitment thus means striving till the achievement of ultimate goals.

OTHER QUALITIES OF COMMITTED EMPLOYEES:

In addition to the three major elements that account for employees commitment the

following other qualities are commonly found in committed employees.

Understanding and total support to the companys vision and goals:-

Committed employees understand, share and support the companys vision and goals and

consistently try towards achieving them. It will be a mistake to call a person committed

just because the person is staying in the company. If the same person does not share the

companys aspirations and goals, he can not be called a committed person. In fact it will

be good for the company that he leaves the company, so that the company will be a able

to replace him and hire a better person.

1. Consider their company as a good place to work in:-

Another criteria for employees commitment are their perception of the company they

work for. If they find their company as one of the best places to work in they will be

urged to work longer and stay in the company.2. Positive and can do attitude:-

Positive attitude is one of the greatest qualities of people as it inspires them to work

harder and smarter. Positive attitude towards ones companys goals, bosses, fellow

employees can also enhance a persons commitment.

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3. Customers focus:-

Customers are the most important people who should be the priority of everyone in the

organization. Employees must do everything to serve customers, which in turn will lead

to satisfied customers. At the end of the day customers satisfaction counts more than anyother thing and by focusing their efforts towards customers satisfaction employees can

accomplish this goal. In essence real commitment means having a customer focus, which

include producing goods and services which meet or exceed customers satisfaction.

4. Seeking continuos improvement:-

Lastly, another factor which entitle employees to be called committed is their desire to

seek new knowledge, skills and attitudes which help them and their companies in getting

excellent results. An organization consists of its people and if people do not renew their capabilities it can lead to their demise.

BENEFITS OF COMMITMENTS:-

1. The key to excellence:-

Commitment is the key for achieving excellence. In fact with commitment excellence is

predictable in business, personal and other areas and without it failure and mediocrity is

predictable. No business, organization or person can dream of excellence without total

commitment. So to inspire people to achieve excellence we have to fist gain their total

commitment. I would say that ten committed persons are better than having hundred non-

committed persons.

2. Make things happen:-

The hardest step in achieving excellence is commitment, without which nothing can

happen. So to make things happen a company needs employees who are committed and

loyal.3. Leads to loyalty:-

Committed employees will stay loyal with the companies than those who are not

committed. The main reason is their desire to complete the things they start and grow

along with the company. Non-committed people on the other hand are just killing time

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and the moment they spot a better opportunity elsewhere they would quit the existing

company.

4. Job satisfaction:-

One of the major dissatisfiers for people is not achieving result they work for. And noone can achieve any good result without total commitment. So when a person is

committed he/she achieves better results which in then positively reinforces their ego and

thus leads to job satisfaction. And job satisfaction is one of the key drivers for people to

work harder and stay longer in their companies.

5. Commitment leads to better customer satisfaction:-

Committed employees go the extra mile to satisfy customers. This leads to loyal

customers and loyal customers means good business. In fact according to a

research loyal customers are more profitable than new customers.

WHY PEOPLE LACK COMMITMENT:-

Before we suggest how to gain commitment from employees we should identify the

roadblocks which hamper employees commitment. The following are some of the factors

which retard employees commitment. These are:

1. Poor reward and recognition:-

People will not feel like doing their best and will settle for mediocrity when they feel that

their employers commitment in terms of reward and recognition is lacking. Commitment

is a mutual phenomenon when employers what to get the best from their employees and

do not reciprocate it with proper reward and recognition people will not give their

commitment.

2. Dead-end jobs:-

Work, which does not offer opportunities for growth and promotion, is one of the greatest

reasons for employees de-motivation and non-commitment. A recent study carried out

by The Loyalty Institute of AON consulting in USA found out that jobs which deprive

employees from self development and growth opportunities leads to high dissatisfaction

and employees disloyalty.

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3. Managing by intimidation:-

Mistreating people, and managing them by threats, screams and embarrassment also leads

to employees dissatisfaction, which in turn weaken their commitment. In a best seller

book The Loyalty Link Dennis G. McCarthty has identified managing by intimidationas one of the seven ways which undermine employees loyalty.

4. Negative working environment:-

Non-acceptance by colleagues, poor cooperation too much politics, and other negative

behaviors by colleagues, supervisors and other people in the company can also hamper

commitment. At the end of the day people want piece of mind, which if not available in

the work environment will discourage them to show total support to its company.

5. No job security:-

One of the major needs of employees is job security. If the employee feels that he/she can

lose his/her job anytime then they would not be committed towards the achievement of

the company.

6. Negative attitude:-

Some people by nature are not committed to anything and anyone and as such they would

not be committed to their employer. Commitment is an attitude and those who lack it willfind it difficult to totally commit themselves to their jobs.

STRATEGIES FOR IMPROVING COMMITMENT:

One of the main reasons why many companies have miserably failed in their

improvement programmes and wasted millions of dollars is their fallacy to discount the

importance of human resources. Programmes like Reengineering, TQM, Cost reduction

etc have miserable failed because they overlooked the importance which people can play

in the success or failure of any improvement programme. No amount of computerization,automation, standardization or re-organisation effort can get any result if people are not

committed to make it succeed. If employees commitment play such pivotal role in the

success or failure of an organisation then managers must make all out effort to gain it. I

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have developed a 10 points strategy which could result in the improvement of employees

commitment. These points are:

1. REWARD AND RECOGNITION:

Top on the list of strategies for gaining total commitment from employees will be a proper reward and recognition system. The system should include both material as well

as psychological rewards. Reward begets commitment and the bottom-line for any

employee to work is to earn proper reward and recognition. This is the main why

everyone works and once this is properly given to an employee he will be motivated to

invest more in his/her job. Employees perception of the reward and recognition can also

affect their commitment. Genghis Khan one of the greatest emperors in the history is well

known for effectively using this strategy even for gaining loyalty from defeated enemies.

Genghis Khans army in addition to Mongols also included Chinese, Indians and other

ethnic races. After defeating them he would assimilate them into his army. However

never ever these people revolted against him, one of the main reasons being his policy to

positively reward and publicly recognize those who showed better results. As a result the

empire created by Genghis Khan was the largest Land Empire ever created by anyone in

the history of mankind. This proves that a barbarian and brutal person like Chenghis

Khan also knew the importance of reward and recognition as one of the key factors for

winning commitment and loyalty from others.

2. PROVIDE GROWTH OPPORTUNITIES:

Another powerful weapon, which can cause deeper commitment among employees, is the

growth opportunities provided by the company. Growth and development is an

inborn need of human beings and reaching there is everyones desire. How can

companies provide growth opportunities for their employee? There are many ways,

which a company can adopt to help its employees grow. Providing opportunities for

assuming greater responsibility, promotion, value-added job, meaningful and

worthwhile job, and learning culture enable employees to grow and develop. Once

they recognize that the growth of the company will result in their own growth they

will be more than willing to put in committed efforts.

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3. RESPECT AND BOOSTING SELF ESTEEM:

Whether a person is a sweeper or a chairman they equally need respect. A good manager

respects people at all levels and this respect communicates to them that the manager has a

high opinion of them and their potential. In turn they will always try to prove him right by doing whatever is necessary. In 1989 on a consultancy assignment I was attached to

Medtronics International Holland, a pacemaker manufacturing company. That time the

company had initiated a major organisational improvement programme involving quality

teams. In one of the meetings while talking to the factory workers who were involved as

teams, the general manager Mr. Frank Sprenger addressed them and said We are very

lucky to have you in this factory paying only for your two hands, and using your brains

for free. You are very capable people because each one of you has this excellent asset.

We would highly appreciate if from today onwards in addition to your hands you also use

this greatest asset for bringing new ideas and suggestions on how we could improve our

performance I could see the light of joy and pride in their eyes. They really felt great and

respected. As a result they committed with their hearts and souls and did make the project

a total success. The company achieved enormous results. This experience exemplifies the

fact that people when respected will do their best to attain success for any project or

company plan.

4. PROVIDE VISION AND GET IT SUPPORTED:

Commitment can not be achieved from people if they do not know the answer to the basic

question Commitment towards what?. In view organisations and its leaders must

provide a compelling vision of the future for its employees. People will act if they know

and can visualize what they are supposed to achieve. An effective leader will motivate

people by giving them a vision of what they can become, and how they can transform

their organisations. During some of the training programmes I conduct an exercise called

Vision 2000 for my company. The exercise requires the participants to write in their

own words what they would like their organisation and department to become in year

2000. They are also required to describe how they would commit themselves towards the

achievement of these visions. It is amazing to note that most of the times, not only senior

managers but also employees at supervisory levels come up with excellent visions and

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ideas. They also sincerely want to achieve the attainment of the visions. It could be due to

the fact that people are vision directed. As such every organisation must provide a clear

vision to its people. Additionally employees must be also helped to align their actions

towards the achievement of the vision. A good vision should be challenging, meaning

something worth the extra effort and sacrifice. Challenging your employees to create new

standards of excellence produces powerful and positive results. A vision should also be

articulated in simple and easy to understand language. Writing a vision,

incomprehensible by a common person is good as a showpiece on the wall, but if the

achievement of results is aimed the vision should be articulated in simple terms and

layman terminology.

It is necessary to note that a vision is a group effort and it must be communicated, shared

and supported by everyone in the company. Towards this end a good manager will also

try to make the company vision compatible with the employees individual visions and

dreams in life. It could be done through showing employees how the achievement of the

organisation will contribute to their lives in the form of increased salaries, better working

conditions, career advancement or shareholdings. People will give their best shots once

they are clear about rewards-as they say people work for their reasons not ours.

5. MUTUAL COMMITMENT:

The only way to restore employees commitment is to restore employers commitment.

This means that employers in order to expect support from employees should first

initiate it in terms of leadership by example or self-commitment, being responsible to

employees needs and sharing the benefits. This also means providing proper tools

and equipment, adequate training and other inputs needed by the people for

successfully performing their jobs.

6. PROVIDE GOOD WORKING ENVIRONMENT:

Today most of the working people spend their major portion of time at work. From

morning to late evening people late evening people work in their workplaces and when

return to their houses they feel dead tired. One major factor which employees would

highly appreciate is the existence of a congenial working environment, where they are

happy to work with others. Teamwork, cooperation, friendship with colleagues and

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bosses, and mutual respect are some of the signs of a good working environment which

attract employees and retain them to stay longer with a company. In contrast, too much

politicking, back biting, turf wars, and other negative practices discourage people to work

with a company unless they have no other place to work in. As such good working

environment will serves as the mortar, which binds employees together and with the

organization.

7. EMPOWERMENNT:

Empowerment means giving people the power, authority, freedom and responsibility to

carry out their jobs. This gives them a sense of control over their work and makes them

feel worthy of doing things on their own. Empowerment leads to greater job satisfaction

and sense of control, which can result in better commitment and loyalty.

8. HIRING THE RIGHT PEOPLE:

One of the worst mistakes companies make is hiring wrong people. Wrong people

include people possess negative attitudes, lack job competence, and do not meet the

requirements of the jobs they are hired for. To sustain a good pool of committed

employees companies need to give due diligence to recruiting new people.

9. WORK/LIFE BALANCE:

Helping employees to achieve a better balance between their work and personal lives is

another key factor most likely to encourage people to stay with an organisaiton. Many

studies have revealed that work life balance is one of the main concerns of employees.

Organizations, which enable employees for balancing, work and family responsibilities

have a positive impact on employees decision to stay with them. Hoechst Celanes USA

an affiliate of the Hoechst Group one of the largest producers of pharmaceuticals have

started a programme, which aims at achieving this objective. In order to gauge the

effectiveness of such programme Hoechst carried out a survey of more than 3000employees. The study clearly revealed that the Hoechst programme was highly

appreciated and well received by the employees and served as one of the major factors

for employees to continue working with the company. Many other identical studies have

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also confirmed the importance of work life balance as a factor to enhance employees

loyalty.

10. OUT OF THE WAY HELP:

One of the highly appreciated things especially in eastern culture is the out of the wayhelp people receive from their employers and managers. Like they say A friend in need

is a friend indeed. Depending on situations things like visiting employees when they are

sick, attending their relatives weddings and funerals, or support through depression etc.

are some of the out of the way things which managers could do for their employees.

These gestures will normally be reciprocated by employees in the form of enhanced

commitment to their employers.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

a. Title:

Commitment level of employees in orient craft ltd.

i. Title Justification

Keeping in mind the above considerations, the purpose of this project report is to enable

the employer to understand employees needs and maximise there commitment towards

work taking Orient craft as a special case. Employee commitment is a human resource

tool surrounded with many misconceptions and hence a employer has to create

awareness. The thesis would highlight the problems within the industry.

b. Objective

Objective I: To assess the nature of current employee engagement and commitment

towards work in orient craft.

Objective II: To analyze the various way which orient craft increase there employee

commitment level.

c. Scope of the Study

Export industry is growing at a very fast pace. In this cut throat competitive era it is

important for the employer to design and deliver their service very effective manner and

employee is contributing most of it. employer has to understand the needs of the

untapped employees and there commitment level towards work. This thesis will help to

understand the commitment level of employee with respect to the needs, demands,

preferences of the employees and the procedure that the company offers to cater to thoseneeds.

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d. Significance of the Study

This research intends to investigate the relationship between high-commitment HRM

practices and affective commitment through the mediating mechanism of employees perceptions of high-commitment HRM practices. With respect to data collection.

For example, if an organization conducted a training program in the workplace, it would

be reasonable to assume that such implementation could enhance workers knowledge,

skills and abilities, and thus foster superior employee affective commitment due to

satisfied experience with the organization; nevertheless, such analogy may sometimes be

deceiving or unreliable. Although some employees may consider this training as helpful

and acknowledge the implementation of organizational HRM practices, but conversely,other workers may perceive the program as non-effective and regard it as a burden that

impede their routine work schedule, hence brought down their satisfaction with the

organization and degraded their commitment. For that reason, employees individual

perception plays as a critical mediator in the relationship between organizational HRM

practices and the actual revelation of employees attitudes and behaviors. Consequently,

from this perspective, we reason that HRM practices in its influential process to

employee affective commitment, will first impinge on its members perception of

organizational HRM practices and subsequently further modify or change their affective

commitment towards the organization. Hence, via the implementation of high-

commitment HRM practices, e.g. intensive training and development, socialization,

promotion from within, high level of compensation, it will make the employees be

convinced that the organizations intention conforms with their perceptions, and then,

they will reciprocate with higher commitment and stronger submission to devote and

contribute for the organization

e. Research Design

Data has been collected through one to one interaction and discussion with various

people who are involved in the company of orient craft, employees, HR Manager,

operation manager and others. Newspapers, Internet, Magazines and Journals would

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provide ample material about latest trends and practices in employee commitment. Orient

organizes various activities to boost its employee moral and commitment. Interaction

with employee and HR manager during such activities would enable to understand the

success ratio of such kind of activities.

Primary Data has been collected through discussions and observation of various people

involved in the business whereas Secondary Data through annual reports of the

company, newspaper, magazines, journals and internet.

f. Sampling Methodology

i. Sampling chosen with the Random method

ii. Sample Size: 100

g. Limitation

Also for human resource Practice Company are not sharing more internal information

either on internet or ready to give.

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FACTS AND FINDINGS

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FINDING AND ANALYSIS

1. What is your position within the company?

(a) Middle Management (Manager, Senior Manager, General Manager.)

(b) Senior Management(Above than General Manager)

(c) No answer

(d) Other

(e) Executive

Grade Survey Result

Middle Management 20%

Senior Management 25%

No Answer 0%

Other 15%

Executive 40%

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2. For how long do you work for your company?

(a) Less than 3 months (b) Between 3-6 months

(c) Between 6-12 months (d) Between 1-2 years

(e) Between 3-5 years (f) More than 5 years

(g) No answer (h) Other

Grade Duration of Tenure

Less than 3 months 17%

Between 3-6 months 16%

Between 6-12 months 12%

Between 1-2 years 14%

Between 3-5 years 28%

More than 5 years 8%

No answer 2%

Other 3%

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3. How was the initial training in your company?

(a) Well below expectations (b) Meets expectations

(c) Above expectations (d) No training

(e) Other

Grade Training in the company

Below Expectations 19%

Meets Expectations 28%

Above Expectations 20%

No Training 14%

Other 19%

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4. What is your Salary monthly?

(a) Between 15,000-20,000 (b) Between 20,001-25,000

(c) Between 25,001-30,000 (d) Between 30,003001-35,000

(e) Above 40,000 (f) I prefer not to answer

(g) Other

Grade Salary

15000-20000 10%

20001-25000 9%

25001-30000 26%

30001-35000 14%

Above 40000 28%

Not Answer 8%

Other 3%

No answer 2%

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5. This organization has a clear focus and sense of direction for the employee

commitment.

(a) Strongly Agree (b) Agree

(c) Disagree (d) Strongly Disagree

Grade Direction of future

Strongly Agree 28%

Agree 38%

Disagree 14%

Strongly Disagree 20%

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6. According to you working with orient craft do you have work commitment level ?

(a) High (b) Low

(c) Moderate (d) Very Low

Grade Direction of future

High 68%

Low 8%

Moderate 14%

Very Low 10%

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7. What type of performance appraisal system exit in your organization?

(a) Confidential Report (b) EPRF

(c) DOPA

Grade Survey Result

Confidential Report 0

EPRF (Employee Performance Appraisal Review Form) 73%

DOPA (Development Oriented Performance Appraisal) 27%

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8. How do you find the work commitment of the employees in your organization?

(a) Fair & Justified (b) Motivating

(c) Comforting (d) Biased

(e) Stressful

Grade Work Commitment

Fair & justified 37%

Motivating 16%

Comforting & Supportive 26%

Biased 5%

Stressful 16%

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8/8/2019 Comitment Level of Employees in Ore

Comitment Level of Employees in Oreint Craft Ltd[1].

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