LABOR ECONOMICS AND COMPENSATION THEORY (AUTUNM 2022)

REPORT ON GOLDEN
TEA GROUP

NAME ID
Mohidul Islam Rahat 1710914

fazly Rabbi 1330445

Farjana Ahmed Tisha 1930177

Submitted to,
Dr. Ikramul Hasan
Lecturer, Department of Human Resource Management Independent
University, Bangladesh
Date of Submission: 7th December 2022

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WE PRESENT TO YOU-

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 Letter of Transmittal
7th December 2022
Dr. Ikramul Hasan

Lecturer, Independent University, Bangladesh

Subject: HRM370 report on Golden Tea Group.

Dear Sir,

We are pleased to submit this report on Golden Tea Group. It was a great opportunity to work on a
project which helped us to discuss all the relevant points regarding our course Labor Economics and
compensation theory.
We tried our best to observe this report to the emergent information. We all entirely enjoyed and
effectively attached all effort to proudly complete this report.
Therefore, we request sincerely thank you for giving us this opportunity and support you to accept our
report and inspire us with your valuable suggestions. We would be glad to answer any queries that you
may have in this regard.

Regards,

Mohidul Islam Rahat 1710914

Fazly Rabbi 1330445

Farjana Ahmed Tisha 1930177

School Of Business

Independent University, Bangladesh

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 Acknowledgement
First and foremost, we want to express our gratitude to the Almighty for always blessing us. We offer a
debt of gratitude who helped us finish this report. We own a special thanks to Dr. Ikramul Hasan sir,
Lecturer, Independent University, Bangladesh, for providing us with solid guidance for Labor Economics
and compensation theory. We would also like to thank all our group members for contributing valuable
information, ideas, and support in completing this report. This project could not be completed without
their efforts. We appreciate everyone’s support, both directly & indirectly. Thank You for all your
suggestions.

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 Table of Contents
Executive Summary.......................................................................................................................6
Introduction....................................................................................................................................7
Job Analysis of Golden Tea..........................................................................................................8
Value Chain In HR......................................................................................................................11
Compensation Based on The Organization...............................................................................13
Pay Structure of Golden Tea......................................................................................................15
Payment Issues.............................................................................................................................15
Profit calculation and justification of the salary.......................................................................17
Conclusion....................................................................................................................................18

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 Executive Summary

Golden Tea Group is the firm we've chosen for this project. It is one of the TEA manufacturers
companies in Bangladesh. There are currently around 28,000 employees and workers selling products
and services in our countries. Golden Tea Group thinks about the company's long-term interests and is
willing to invest heavily in everything from human resource development and market cultivation to
fixing the raw material supply problem. Golden Tea Group then goes on to show the rest of the country
his business prowess. Golden Tea Group relies on three different models. These are high-performance,
high commitment, and high-achievement involvement. According to a Golden Tea Group research,
human resource management has suggested that Golden Tea Group employees are a crucial source of
success. Employee involvement is thought to be extremely beneficial to a company's long-term
competitiveness. The Golden Tea Group objective is to recruit a highly skilled staff to expand its skill set.
Golden Tea Group encourages employees to participate in a variety of learning initiatives. Human
resource managers and line managers work together to build the organization's human resources to
ensure Golden Tea Group long-term competency. The purpose of this report is to illustrate how
different functions of Labor Economics and compensation theory & human resources management are
contributing to strategy attainment by identifying the strategic role of HRM of Golden Tea Group, how
different aspects are influencing Labor Economics and compensation theory of Golden Tea Group.

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 Introduction

GOLDEN TEA
Golden Tea Group is a TEA manufacturer company in Bangladesh. We have created this organization for
our project. It basically produces tea by itself and process the product and distribute the good to the
customers through different distribution channel.
Golden Tea Group considers itself to be a human-centric organization that responds to individual
human needs around the country, with a particular focus on the well-being of both its customers and
staff. Its attitude and sense of duty toward people and the community reflects this. Golden Tea Group
goal is to expand sales and profits while also focusing on boosting the standard of living and improving
the quality of life for everyone. Golden Tea Group is a firm believer in people as the company's most
asset, as they offer strength, and nothing can be accomplished without their commitment and
enthusiasm. Golden Tea Group is the firm we've chosen for this project. Golden Tea Group thinks about
the company's long-term interests and is willing to invest heavily in everything from human resource
development and market cultivation to fixing the raw material supply problem. Golden Tea Group then
goes on to show the rest of the country his business prowess. Golden Tea Group relies on three
different models. These are high-performance, high commitment, and high-achievement involvement.
According to a Golden Tea Group research, human resource management has suggested that Golden
Tea Group employees are a crucial source of success. Employee involvement is thought to be extremely
beneficial to a company's long-term competitiveness. The Golden Tea Group objective is to recruit a
highly skilled staff to expand its skill set. Golden Tea Group encourages employees to participate in a
variety of learning initiatives. Human resource managers and line managers work together to build the
organization's human resources to ensure Golden Tea Group long-term competency. The purpose of
this report is to illustrate how different functions of Labor Economics and compensation theory.

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 Job Analysis of Golden Tea
Job Analysis is a process of describing and recording of job aspect and specifying the skills and other
requirements which are necessary to perform the job. The main purpose of conducting the Job analysis
is to prepare specification which in turn helps to hire the right quality of the workforce into the
organization at right place and with the right skills. Job description and Job specification leads to job
evaluation. Job analysis is a tool which is used for selection, training, classification and compensation
and salary. There are different ways to conduct job analysis which includes interviews, group interviews,
questionnaires, observation, diary method and gathering background information’s such as duty
statement, classification specifications. Methods used by Golden Tea for Job Analysis:
Golden Tea uses a wide range of methods to figure out the relevant job analysis. The following methods
are used by the organization:

• Employee interviews
• Supervisor interviews
• Expert panels
• Structure questionnaires
• Task inventories
• Open-ended questionnaires
• Observation
Mostly, employee interviews along with supervisor interviews are conducted by the organization to find
out the tasks that need to be performed under a job. Such interviews can also be panel or group or
even individual at times. Structured questionnaires are filled out by all the employees and supervisors,
within a particular department, after every six months. Observation is not the most popular method
used at the organization but nevertheless, it is used by supervisors to get all the information relating to
the job analysis of a particular job. Following are the questions we asked Golden Tea regarding the Job
Analysis:
The various methods of job analysis are as follows:
1. Observation Method: Three methods of Job Analysis are based on observation. These are-
Direct Observation; Work Method Analysis, including time and motion studies and micro-
motion analysis; and critical incident method.

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2. Interview Method: It involves discussions between job analysis and job occupants or
experts. Job analysis data from individual and group interviews with employees are often
supplemented by information from supervisors of employees whose jobs are to be analyzed.
3. Daily Method: It requires the job holders to record in detail their activities daily.
4. Technical Conference Method: In this method, services of the supervisors who possess
extensive knowledge about a job are used with the help of a conference of the supervisors.
The analyst initiates discussion which provides details about the job.
5. Questionnaire Method: These can be filled out by the employees on an individual basis or
by job analysts for a group of employees.
Specific duties of various jobs in the company:
A duty is a large work segment composed of several tasks that are performed by an individual.

Duties describe activities. Responsibilities are obligations to perform certain tasks and duties. The duties
for any specific job are determined by the employer. Before an employee applies for an organization,
he/she is informed about the job duties and required performance standers.

➢ Job Title: Process Engineer

Responsibilities and duties: In the Golden Tea he/she is expected to be responsible for starting up
medium to driving alone big projects in the field of food processing. Handle responsibilities directly
related to factory activities such as optimization studies, energy, quality, performance related
improvements and management tools implementation.

➢ Job Title: Strategic buyer

Responsibilities and duties:

I. Strategic buying of all assigned direct/indirect material or services.

II. Understanding business requirements/market dynamics.
III. Select new suppliers and ensure their approval.
Responsible for negotiating the conditions for Golden Tea by ensuring reduction of total cost of
ownership through:

• Specification and supplier reduction

• Challenging usage patterns
• Improving supply processes
• Reduction of supply risk
• Increasing supply flexibility
• Leveraging supplier know how to improve Golden Tea products and processes

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• Leveraging spend category knowledge of operational buyers and internal users, through cross-
functional sourcing teams.

• Achieve short/ long term sustainable cost saving

• Ensure clear communication with all stakeholders

➢ Job Title: Regional Sales Manager

Responsibilities and duties: The person will be responsible for the overall management of the sales
region including consistent development and delivery of sales targets provide and implement regional
sales plans effectively manage TTS drive distribution network & infrastructure and built strong and
sustainable relationship with customers. The person is also responsible to lead and develop the regional
sales team develop and ensure monthly sales targets.

➢ Job Title: Area Sales manager:

Responsibilities and duties: The person will be responsible for ensuring sales and achieving growth
target in concerned area. Managing relationship with distributors and handle team effectively.
Guarantee optimum stock level and timely order generation at distribution operations Assuring delivery
of good products availability and visibility.
Job Title: Category Sales Manager/ Specialist

Responsibilities and duties: The person will be responsible to develop detailed Category selling
strategies, point of purchase strategies and tactics by channel. Generate shopper insights and translate
them into meaningful plans across channels implement, monitor, and follow up and evaluate shopper
based and tender based programs. Develop and execute new product launch planning. Review and
track performance and identify non- conformities for corrective action.

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 CEO

DIRECTOR

GENERAL
MANAGER

MANAGER

ACCOUNT
MANAGER

ACCOUNT
EXECUITIVE

PROJECT
MANAGER

OPERATION
MANAGER

SALES
PROJECT
MANAGER

SALES
EXCUITIVE

Diagram of Employee and staff in Golden Tea

Value Chain In HR
Value chain analysis is a technique for assessing each activity in a company's value chain to identify
areas for improvement. You are prompted to think about how each phase adds or subtracts value from
your ultimate product or service when you do a value chain analysis.

A method for evaluating each operation in a company's value chain and pinpointing opportunities for
improvement is value chain analysis. When you perform a value chain analysis, you are urged to
consider how each stage adds or subtracts value from your final product or service.

 Participation in Strategic Planning: Since proactive HR strategies have overtaken reactive

responses to shifting work conditions, HR specialists now play a larger role in planning.
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 Strategic planning and management teams usually include human resources directors. This
includes analyses of the firm's advantages and disadvantages, as well as projections of
opportunities and dangers. Members of HR address the demands on people and resources,
salary and training changes, research on potential opportunities and hazards, and current
viewpoints on these topics.
 Focus on Performance and People: An effective human resources department is a key
component of a business's success, as well as its top employees and performers. Employee
skills, drive, and achievements are frequently closely related to a company's long-term
success and financial performance. People collaborate on decisions, work with customers,
and produce and sell goods. Fostering this connection and influencing corporate executives
to train and develop employees as well as reward good performance with higher salaries and
frequent promotions is one of the most significant ways HR adds value to a company.

 P
‍ riority to Talent Acquisition and Retention: A portion of this is creating effective job
designs and hiring the right people who suit them. It also requires setting up efficient
screening and interviewing procedures, planning orientation and training sessions,
developing useful tools for employee assessment, and developing enticing compensation

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 plans that maximize the potential of your business. For instance, a start-up may provide
company shares, but an established small firm may have a generous vacation policy.
 ‍Defense Against Legal Action: One of the less well-known ways HR adds value to a firm is
by providing legal defense against discrimination and wrongful termination lawsuits. HR
professionals need to regularly educate managers and business owners on employment rules.
Additionally, they need to develop hiring and promotion procedures that support equity and
justice. For instance, specialized interview questions can lessen the possibility of a
discrimination complaint. This aspect of HR becomes more important as organizations
become more diverse.

Compensation Based on The Organization

Direct and indirect monetary and nonmonetary rewards given to employees based on the value of
the job, their personal contributions, and their performance. While making these payments one
should be alive to the governing legal regulations. Salaries, bonuses, and other forms of
compensation are included. The compensation offered aids in encouraging personnel, advancing
their careers, and ensuring that they are dedicated to accomplishing the company objectives.
Compensation is determined by the Golden Tea following an annual execution examination and
evaluation. These compensation and benefits are determined for various levels of representatives,
such as supervisors, agent administrators, partner chiefs, mid and lower-level workers, and so on.
Representatives receive compensation increases following the exhibition evaluation by the Likert
scale. For example, a worker rated
“average” will receive three raises, but those rated “Palatable” and “exceptional” will receive four and
five raises, respectively. Employees may also have ability to:
➢ Medical & Hospitalization benefits for self and immediate dependents.
➢ Annual leave of 40 days
➢ Retired benefits
➢ Sick leave
➢ Vacation & holidays
➢ Insurance facilities

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 Basic Salary
The money an employee gets paid in return for working for a firm for a predetermined period, such as a
day, a week, a month, etc. is known as a salary. Compensation is the sum of money an employee
receives from their employer in return for their services.

House Rent Allowance

Companies either provide homes for their foreign-born employees or provide housing rent subsidies for
them. This is done to provide them with social security and to motivate them to work.

Special Allowances
Employees are given special benefits, such as overtime pay, mobile pay, lunches, commissions, travel
costs, lower interest loans, insurance, club memberships, etc., to inspire them and provide them with
social security, which increases organizational productivity.

Leave Travel Allowance

These perks are offered with the intention of retaining the top workers for the business. The workforce
is given money so they may take their family on vacation anywhere they wish. The employee's position
within the organization determines the size of the allowances.

Provident Fund
The employee's basic pay is retained in the employee provident fund, which also functions as an
emergency or retirement fund.

Gratuity
The employer provides a lump sum payment to the employee upon retirement or resignation.

Medical Allowance
Another issue for firms is the wellbeing of their workers. The employees are allowed to file medical
claims for both them and their families. These medical claims encompass topics like paying for medical
expenditures and health insurance.

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 Bonus
The employer pays the employee a lump sum in the form of a bonus once a year. It is taxed and based
on both the employee's and the business's achievements during that fiscal year. Based on the yearly
base wage, it is about 4%.

Pay Structure of Golden Tea

Payment Issues
Payment is a very important factor for any organization. As it the only thing that can attract employee
towards the organization. For payment employees chose their workplace. So, it has to be done right.
But doing accurate payment is to be never possible. There always be some issue. There are some issues

according to us that Golden Tea Group might face. And the issues are:

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 PAYMENT ISSUES
Experience
Employees
and
may In-demand Demand
education Location
over/under skill sets and supply
backgroun
pay
d

1. Experience and educational background:

It almost goes without saying that a candidate can expect to earn more money if they have
more education and experience. Therefore, if Golden Tea Group want to draw candidates with
master's degrees or more than five years of experience, Golden Tea Group must be prepared to
pay appropriately.
2. Employees may over/under pay: As Golden Tea Group bases its pay structure on market-based
structures. That means it is examining what other employers or rivals are paying their employees,
following other competitors Golden Tea Group’s employees may get payment than they deserve
compering to other competitors based on skills, knowledge, experience.
3. Demand and supply: Knowing whether qualified candidates are available in the area where Golden
Tea Group’s hiring is essential. Golden Tea Group should prepare to spend more to attract talent if
it is recruiting in a field where there is a shortage of specific skill sets and experience.
4. In-demand skill sets: Key talents or In-demand skill may be an important factor when it comes to
calculating salary than job title. After all, the same job title may mean very different things to
different firms. In addition, a range of professions that require a variety of skill sets can all compete
for the same talent. Because of this, it's critical for employers to take vital abilities into account
when setting compensation. In Golden Tea Group distribution related or delivery related skills
maybe more demandable. And they might get more salary than other position. So, it an issue for
Golden Tea Group.
5. Location: The cost of living, which is an important consideration for determining remuneration or
payment, is significantly influenced by location and, specifically, by the price of housing. Golden Tea
Group employees may also demand their payment base on their workplace location or based on
the location where they live. Therefore, many businesses to switch from location-based
remuneration to role-based compensation.

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 Profit calculation and justification of the salary

A justifiable pay is an income level that is based on factors such as market dynamics, employment
history, education, and skill. The pay level that is justifiable is one that is both high enough to draw
workers and low enough to allow firms to offer employment.
A justifiable salary combines economic supply and demand in the labor market with more socially and
culturally significant inputs including work experience, education, and skill-building opportunities, as
well as the nature of the job. When a pay is seen to be both economically viable for both employees
and employers and socially acceptable, it is justified. Golden tea Group pays the employee with two
years of experience 30,000+ per month. With the same two years of experience, a manager may get a
salary of more than BDT.50,000. SO Golden Tea Group pay their employees CEO, Director, General
Manager, Manager, Account Manager, Customer Service Representative, Operation Manager, Project
Manager, Sales Repressive, Sales Executive, Senior Project Manager, Management Trainee, Business
Develop Management, Assistant Manager, Account Executive based on their experienced, skills,
knowledge, and demand of their work.

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 Conclusion
Golden Tea Group’s general goal is to improve the quality of life in the areas where it operates, to
develop better goods for better living, and to reduce environmental impact through a focus on
sustainability. They are attempting to match their human resource management & Labor Economics and
compensation theory with high flexibility to implement these initiatives. Golden Tea Group has an
integrated human resource management system that is well linked with the company's strategy,
structure, and culture, according to the current study. Golden Tea Group is focused on acquiring highly
skilled people as well as providing effective training and learning opportunities for them. Employee will
be responsible for starting up medium to driving alone big projects in the field of food processing.
Responsibilities include negotiating the conditions for Golden Tea Group by ensuring reduction of total
cost of ownership through Specification and supplier reduction, as well as improving supply processes.

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