April 2008 - Volume 2, Issue 2

HUMAN RESOURCE DEVELOPMENT FOR PRODUCTIVITY INCREASE OF MILK VITA AT BAGHABARIGHAT DAIRY PLANT IN BANGLADES


Mahmudul Hasan, Md. Taj Uddin, and Md. Atikur Rahman Khan

Institution:
Department of Population Science and Human Resource DevelopmentUniversity of Rajshahi, Rajshahi-6205, Bangladesh

Correspondence:
Mahmudul Hasan
Assistant Professor
Department of Population Science and Human Resource Development
University of Rajshahi
Rajshahi, 6205, Bangladesh
E-mail: mahmud_ru@hotmail.com

ABSTRACT

The aim of this paper is to investigate the scenario of human resource development along with its different factors that affect the capacity utilization of the plant as well as the expected production level. We have collected data from 122 employees out of 155 employees of Baghabarighat Dairy Plant in Bangladesh. By using some statistical techniques we have shown that setting up a training program can increase the skills of employees. Some remarkable causes like old machinery, unskilled manpower, mismanagement, political pressure, lack of proper training, and insufficient supply of milk restrain the proper utilization of the plant.



INTRODUCTION

Several authors have focused their study on the productivity of Milk Vita[1]. Azad et al explained the time trend behavior of production by this plant along with the plants situated in Takerhat, Sree-Nagor, Manikgonj, Rangpur and Tangail. Razzak et al (1995) found a unique relationship of milk production to the availability of feed and fodder[3].

Cady et al. also observed the effect of seasons or different months of the year on quality milk production and found that significant effects exist regarding the season of milk production. Milk fat production trends both in qualitative and quantitative aspects, including seasonal effect, at Sree-Nagor Milk Shed Area (MSA) on Milk Vita production in Munshigonj of Bangladesh were investigated by[5] Hasanuzzaman et al) and found that season has a large effect on fat value. Thus, we observe that most of the researchers have drawn their attention to the productivity analysis of the dairy plant only.

On the other hand[4] Chandra and Gupta showed that HRD (Human Resource Development) training played a predominant role in productivity increase of Tasar Culture. However, there is an increasing demand of human resource development through additional training, proper management of the plant, and many other related factors to increase the productive performance of the plant substantially.

In recent years, HRD and management programmes have been playing a key role in enhancing productivity and quality improvement in various sectors by improving the skills of the workers. To our knowledge no research has been conducted regarding human resource development that may have a significant impact of productivity increase of Milk Vita products. Our aim is to investigate the present scenario of HRD related factors; those that influence productivity and quality improvement for Milk Vita dairy plant at Baghabarighat in Bangladesh.

 

 

Conceptual Framework of the Study

Human Resource Development in the organizational context is the process by which the employees of the organization are helped in a continuous planned way to:

(a) acquire or sharpen capabilities required to perform various functions associated with their present or expected future roles;

(b) develop their general capabilities as individuals and discover and exploit their own inner potentials for their own and/or organizational development purposes and

(c) develop an organizational culture in which supervisor, subordinate relationships, teamwork and collaboration among subunits are strong and contribute to the professional well-being, motivation and pride of employees[2].

So, Human Resource Development is the process of increasing the knowledge, the skills and the capacities of all people in society. In economic terms it could be described as the accumulation of human capital and its effective investment in the development of an economy. In this sense, we consider all of the manpower of the industry (Baghabarighat Dairy Plant) as human resource and their development is human resource development. But it is clear to us that Human Capital Formation is the first term of Human Resource Development, which is the process of acquiring and increasing the knowledge, skills and experience that are critical for economic development. So, human capital formation is thus associated with investment in man and his development as creative and productive resources[6]. The industrial staff have education, knowledge, skills, and experience so that we can consider them (manpower) as human capital. HRD is needed by any organization that wants to be dynamic and growth oriented or to succeed in a fast changing environment. The objectives of HRD are

(i) to maximize the utilization of human resources

(II) to provide an opportunity for the development of human resources in an organization for full expression of their talent and manifestation of talents.

(iii) development of constructive mind and overall personality of the employees

(iv) to develop the organizational health, culture and effectiveness

(v) to develop the sense of team sprit, team work and inter team collaboration

(vi) to generate systematic information to obtain human resources[2].

The functioning of HRD is the identification of potential of each person in the industry, identification of organizational goals, and to know the organizational future goals. The direction of HRD would be careful to identify those programs that can develop the industry.

Human Resource Management (HRM) is basically the management of people for the effectiveness of organization. It may be defined as a planned process of acquiring, developing, motivating and maintaining the employees as core resources of the organization for the most effective realization of common goals. HRM itself has several components:

  1. acquisition of HR which consists of human resource planning, recruitment, selection and placement, and socialization;
  2. development of HR which consists of training and development, performance appraisal, and organizational development;
  3. motivation of HR includes financial and non financial rewards, employee participation, job-enlargement and job enrichment, and quality of work life;
  4. maintenance of HR comprises both maintenance factors and maintenance elements. Some maintenance factors are fair company policy and administration, quality of supervision, relations with supervisors, peers and subordinates, salary and wages, job security, and working conditions and status. On the other hand, employee benefits and services, safety and health care programs, and labor relations are maintenance elements[2].

 



METHODS AND MATERIALS

We have collected the data from Baghabarighat Dairy Plant in Bangladesh. Among 155 employees, 122 were interviewed. The rest of employees declined to be interviewed. The interview was conducted using a prescheduled questionnaire.

Some popular statistical tools have been used to analyze our collected data. We have constructed frequency tables to cite the percentage distribution of several variables. Contingency analysis was performed to investigate the association among qualitative variables. For contingency analysis we have tested the following null hypothesis:

H0: There is no association between the variables against the alternative hypothesis

H1: H0 is not true.

All contingency tables have been prepared on the basis of classification of variables. From each contingency table, examination of associations between the components and the various segments of the components have been made by computing chi-square test statistics of the form

         

Where Oij and Eij  are the observed and expected frequency of (i,j) th cell, respectively.

To study the statistical relationship among the quantitative variables such as length of service, capacity utilization of plant, amount of needed money for cattle purchase (interest free credit), and number of clients for distribution of donation money we have performed correlation analysis. Correlation analysis has been done constructing correlation matrix of the form

 

X1

X2

X3

X1

1

r12

r13

X2

r12

1

r23

X3

r13

r23

1

Where r12 , r13, and r23 are the correlation coefficient between X1 and X2, X1 and X3, and X2 and X3, respectively.Some of our variables are quantitative but discrete in nature. So, it is very difficult to fit a linear regression model to explain the variation of discrete dependent variables (capacity utilization of plant) with the help of discrete explanatory variables. Thus, we have converted some quantitative variables to dummy variables coding as

         

Using these dummy variables we have fitted the logistic regression model of the form

         

 

RESULTS AND DISCUSSION

We have constructed a frequency distribution of manpower by their departmental works
(Table 1). Though 50% of manpower is engaged in the production department, the rest of the manpower workforce is in factory related departments. Among the factory related departments (factory, maintenance, quality, store, accounts, and sales center) the maintenance sector is the largest. There are equal numbers of supervisors and assistants (27%). 12.3% are caretakers, and only 5.7% are skilled workers (Table 1).


Table 1: Percentage distribution of manpower according to their designation and department
Designation Department
Officer/Junior officer/ Manager/Day-manager 3.3 (4) Factory 0.8 (1)
Assistant manager 4.9 (6) Production 50.0 (61)
Supervisor 27.0 (33) Maintenance 26.2 (32)
Assistant supervisor 27.0 (33) Quality 4.9 (6)
Storekeeper 0.8 (1) Store 6.6 (8)
Packer 8.2 (10) Accounts 9.8 (12)
Caretaker\ 12.3 (15) Sales Center 1.6 (2)\
Skilled worker 5.7 (7)    
Processor 1.6 (2)    
Lab attendant 1.6 (2)    
Spray operators/Man 2.5 (3)    
Simple personnel 4.9 (6)    
Total 100.0 (122) Total 100.0 (122)

Here, values in parentheses indicate the frequency

From Table 2 we have observed that only 34.4% of the manpower is working (service length) more than 10 years and the length of service for the remaining (65.6%) manpower is less than 10 years. Only 27.9% of the manpower of Baghabarighat Dairy Plant has their educational qualification at, at least graduate level. However, 23.8% of employees are below S.S.C. level (Table 2). Although Baghabarighat Dairy Plant needs well trained personnel, the number of trained employees are only 23.83% of which 3.33% are foreign and 20.5% are locally trained (Table 2).

Table 2: Length of service, educational qualification and training of manpower
Length of service Educational qualification Training
Years Percent Level Percent Type Percent
1-10 65.6 (80) MS/B.Sc.Eng/Dipl. Eng 16.4 (20) Foreign 3.33 (4)
10-20 16.4 (20) B.A./B.Sc./B.Com. 11.5 (14) Local 20.5 (25)
20-30 16.4 (20) H.S.C 23.0 (28) None 76.2 (93)
30+ 1.6 (2) S.S.C. 25.4 (31)    
  Below S.S.C. 23.8 (29)    
Total 100.0 (122) Total 100.0 (122) Total 100.0 (122)

Here, values in parentheses indicate the frequency 

We have collected some information based on the personal opinion of the employees. Among 122 employees 11.5% expressed that their job performance is excellent and 87.7% expressed it as good (Table 3). Again, 91.0% of employees said that there is no need to recruit extra employees for the plant. On the other hand, only 2.5% and 6.6 % of employees demanded more or less manpower regarding sustained manpower. 82% of manpower demanded the additions be skilled but 18.0% did not reply describing the reason for these skills (Table 3).

Table 3: Job performance, needed employee and skills
Job performance Needed employee Skills
Performance Percent Employee Percent Reason Percent
Excellent 11.5 (14) Not needed 91.0 (111) 1. By no comment 18.0 (22)
Good 87.7 (107) More needed 2.5 (3) 2. Foreign/local training 4.9 (6)
Not good 0.80 (1) Below needed 6.6 (8) 3. By engaged with job training 1.6 (2)
        4. Experienced in relevant sector 62.3 (76)
        5. 1 and 2 0.8 (1)
        6. 1 and 3 8.2 (10)
        7. 2 and 3 2.5 (3)
        8. 1, 2 and 3 1.6 (2)
Total 100.00 Total 100.00 Total 100.0 (122)

Here, values in parentheses indicate the frequency

Capacity utilization of the plant is not exact (100%) in the eyes of 22.1% of manpower. To clarify the reasons for no full utilization of the plant among 27 (22.1% of the total respondent) respondent 59.27%, 22.22%, and 11.11% indicated old machinery, mismanagement, and insufficient sources of milk, respectively. For the development of the plant more than 93% of employees suggested recruiting more skilled manpower, adding more instrumental facilities, and providing government subsidies (Table 4).

Table 4: Capacity utilization of plant and plant development suggestions
Capacity utilization of plant Reason of not fullyutilization of plant Plant developmentsuggestions
Utilization Percent Reason Percent Suggestions Percent
Unknown 1.7(2) Insufficient source of milk 11.11(3) 1. Adding more skilled  manpower 0.8 (1)
Below 50% 0.8 (1) Insufficient officers/employee 7.40(2) 2. Reducing excess manpower 0 (0)
70% to 90% 21.3(26) Mismanagement 22.22(6) 3. Adding more instrumental facility 4.9 (6)
100% 76.2(93) Old machinery 59.27(16) 4. Government subsidy 0.8 (1)
        5. 1,  3, and 4 93.5 (114)
Total 100.0 (122) Total 100.0 (27) Total 100.0 (122)

Here, values in parentheses indicate the frequency

Study on dissatisfaction of manpower indicated that more than 50% of employees are dissatisfied with the mismanagement of the plant. Again, 30.91% of employees are dissatisfied with the lower educational qualification of staff involved in  management of the plant (Table 5).  From Table 5 we see that about 36.36% of manpower are not satisfied in their work because of insufficient salary, pressure of work, and insufficient working facilities. On the other hand, 18.18% are suffering from political pressure.  

Table 5: Dissatisfaction with management and for ongoing job situation
Dissatisfaction with management Dissatisfaction with ongoing job situation
Reason Percent Reason Percent
1. Unskilled 1.81(1) 1. Insufficient salary 18.18 (2)
2. Lower educational qualification 30.91 (17) 2. Pressure of work 0 (0)
3. Political undertaking 3.64 (2) 3. Insufficient working facility 0 (0)
4. Officers unwillingness 1.81(1) 4. Political pressure 18.18 (2)
5. Mismanagement 50.91 (24) 5. 1 and 2 18.18 (2)
6. 2 and 3 1.81(1) 6. 1, 2, and 3 36.36 (4)
7. Others 9.10 (5) 7. Others 9.1 (1)
Total 100.00 (55) Total 100.00 (55)

Here, values in parentheses indicate the frequency

Encouragement is a factor to achieve maximum production in any industry. We have studied the encouragement system and have found that 72.1% of manpower demand self-motivation, patriotism, and officer’s inspiration to encourage him/her to perform one’s duty in a timely manner (Table 6). More than 98% of employees expressed that development of manpower by training, and 100% of them demanded a training program for every one after a certain interval.

Table 6: Encouragement, manpower development and training program
Encouragement to obey the duty Development of manpower Training program
Who to encourage? Percent pinion Percent Do one need? Percent
1. Self motivated 6.6 (8) By training 98.4(120) Yes 100.0 (122)
2. Officers inspiration 0 (0) Adding new 0.8 (1) No 0 (0)
3. Patriotism 0.8 (1) No need 0.8 (1)    
4. 1 and 3 18.0 (2)        
5. 1, 2, and 3 72.1 (88)        
6. Others 2.5 (3)        
Total 100.0 (122) Total 100.0 (122) Total 100.0 (122)

Here, values in parentheses indicate the frequency

From the correlation matrix (Table 7) we see that the number of clients is negatively significantly related at a 5% level of significance with the length of service. In other words, we may say that employees with more service years propose a subsidy for the least number of clients who were supplying milk to the plant. Again, the number of clients (those who supply milk to the plant) and subsidy (amount of money) in favor of clients to purchase cattle are positively related at a 1% level of significance, that is, amount of total subsidy under this plant should be based on the number of clients but not on a fixed basis.

Table 7: Correlation Matrix
  Length of service Capacity utilization of plant Amount of money for cattle purchase No. of clients for distribution of donation money
Length of service 1.00 -0.103 -0.088 -0.180*
Capacity utilization of plant   1.00 0.127 0.088
Amount of money for cattle purchase     1.00 0.543**
No. of clients for distribution of donation money.       1.00

* (**) Correlation is significant at 0.05 (0.01) levels (2 tailed)

We have studied the association among job performance, educational qualification, and training (Table 8). The table shows that there is a significant association among job performance, educational qualification, and training when the level of job performance is good.

Table 8: Association among educational qualification, training and job performance

 

 

 

 

 

 

 

 

 

Job performance Educational qualification Training Total >d.f. Pearson chi-square Asymp. sig. (2-sided)
Foreign Local None  
  Masters/B.Sc. Engineer 3 2 1 6      
  BA/B.Sc./B.Com. 1 1 2      
Excellent H.S.C.   2 2 8 9.8 0.279
  S.S.C.   2 1 3      
      below S.S.C. 1 1      
  Masters/B.Sc. Engineer 7 6 13      
  BA/B.Sc./B.Com. 2 10 12      
Good H.S.C. 4 22 26 4 15.141 0.004
  S.S.C. 1 27 28      
    below S.S.C. 6 22 28      
  Masters/B.Sc. Engineer     1 1     No statistics are computed because educational qualification and training are constants.
BA/B.Sc./B.Com.            
Not good H.S.C.            
  S.S.C.            
below S.S.C.            

Further, a logistic regression model has been fitted to investigate the impact of independent variables (Educational qualification (X1) and Training (X2) on the dichotomous variable (skills, Y) defined as

The fitted logistic regression model can be written as and the parameters are incorporated in Table 9. From Table 9 we find that the independent variables (educational qualifications and training) have a significant impact on dependent variable (skills) at a 5% level of significance.

Table 9: Logistic regression
Independent Variables Coefficient S.E. Wald df Sig. Exp(B) 95.0% C.I.for EXP(B)
Lower Upper
X1 0.390 0.183 4.559 1 0.033 1.477 1.033 2.113
X2 -1.008 0.258 15.240 1 0.000 0.365 .220 .605

Here, dependent variable is skills (Y) of the employee.


 

CONCLUSION

Baghabarighat dairy plant is well organized with its different factory related departments. However, skilled manpower is not sufficient and most of the workers in this plant are not well trained.  Furthermore old machinery, mismanagement, political pressure and insufficiency of milk supply impede the expected production level of the plant. Recruiting more skilled manpower, scheduling round training to the employees making them dynamic and growth oriented, adding more instrumental facilities, providing government subsidies, and creating a suitable working environment; were problems that can be solved accordingly.

 

 

REFERENCES

  1. Azad MAK, Hasanuzzaman M, Miah G, and Roy BK (2002): Milk Production Trend of Milk Vita Throughout the Year, Pakistan Journal of Nutrition, 1(5): 236-240.
  2. Bhatia BS, Verma HL, and Garg MC (1997): Studies in Human Resource Development, Vol.1, Deep & Deep Publications, New Delhi, India.
  3. Cady RA, Saha SK, Schermerhorn SC and Mc Dowell RE (1983): Factors affecting performance of Nili-Ravi buffaloes in Pakistan. J. Dairy Sci., 66:578-586.
  4. Chandra H and Gupta SK (2005): Tasar Culture- Role of Human Resource Development, ICDE International Conference, November 19-23, 2005, New Delhi.
  5. Hasanuzzaman M,  Azad MAK , Barik MA and Rahman MZ(2002): Milk Fat Production Trend and Effect of Season on it at Sree-Nagor Milk Shed Area under Milk Vita Throughout the Year, Pakistan Journal of Nutrition, 1 (5): 231-233.
  6. Jhingan ML (1997): The Economics of Development & Planning, 28th Revised Edition, Konark Publishers Pvt. Ltd., Delhi, India.

 


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