Background:: Bangladesh Cement Industry

M.I. Cement Factory Ltd.
-
Crown Cement
Group - E
Union
Background:
Bangladesh Cement Industry:
Cement Industry is a relatively fast growing industry in Bangladesh which is

developing in pace with increasing building and construction activities. Cement
has long been used as a bonding agent to unite particles or to cause one surface
to stick on to another. The most common form of cement is Portland cement. It is
a powder obtained from burning together a mixture of lime and clay, which when
mixed with water and sand or gravel, turns into mortar or concrete.
The amount of cement now annually consumed in Bangladesh is about 5 million

metric tons. The production however, falls short by about 3 million tons per year.
This shortage is met through imports. Per capita consumption of cement in the
country (38 kg) is fairly low compared to India (89 kg), Indonesia (127kg),
Malaysia (582 kg) and Thailand (642 kg).
The Rise of the Cement Industry:
In Bangladesh modern high-rise ones had pushed up the use of cement. But as
the economy continued to remain agrobased, construction sectors had not been
able to gain momentum and as the infrastructure development is selective,
cement remains a product of low demand. A faster growth in demand for cement
had been observed only since mid-1980s, especially with implementation of large
infrastructure projects, increased pace of urbanization, construction of apartment
buildings and multistoried shopping complexes in urban areas, and a shift in the
taste of moneyed rural people for modern houses.
Private enterprises dominated production and import of cement to cater to the

local market. The manufacturing of cement is based on both locally available raw
materials and imported clinker. The two cement plants of the first type, one at
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Chhatak and the other at Ayeenpur, have a total installed capacity of 260,000
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M.I. Cement Factory Ltd.-
Crown Cement
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tons a year. They produced cement from local limestone and use natural gas as
fuel.
The mills that produce cement from imported clinker are located mostly around
Dhaka, Chittagong and Mongla. There were 62 registered cement factories in the
country in 1999, but only 13 of them were in production. The total installed
production capacity of these factories is about 3.8 million tons a year. Their
actual production, however, is much lower. A 50-kg bag of cement produced
locally sells at Tk 250-260, while a bag of imported cement is priced at Tk 230-
250.
Local raw material based cement production depends on limestone deposits that
lie in St Martin’s Island, joypurhat and Sylhet areas. The deposits in Sylhet
support the production of Chhatak and Ayeenpur cement factories. These plants
have the added advantage of being able to meet their needs for gas and clay
from deposits close by.
So we can say that the cement industry of Bangladesh is a rapidly increasing

sector of the economy. And it is the result of the amount of construction projects
have followed an rising trend as the urban growth rate has boosted all across the
country in places like Chittagong, Bogra, Mongla and others in addition to the
expanding capital city, Dhaka over the years .
Currently, domestic production is unable to meet the complete demand for

cement. Approximately 60% of the demand is met by the local cement industry
while the rest is imported. According to the Banglapedia, per capita consumption
of cement in the country (38 kg) is fairly low compared to India (89 kg), Indonesia
(127kg), Malaysia (582 kg) and Thailand (642 kg).
Cement has not traditionally been a major product for the country due to low
availability of required natural resources to produce it. In addition to that, in less
developed regions cement was not a required raw material for construction of
buildings.
Over the years, however, cement emerged as a substitute to traditional

construction materials and by the mid-1980s, with an increase in hefty
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infrastructure projects, accelerated rate of urbanization and increased

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construction of multistoried buildings, there was a sharp increase in its demand.

Crown Cement
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One intriguing aspect of this industry is the reliance on the import of clinker.
Except Lafarge Surma Cement Ltd., a multinational cement manufacturing
company, all cement manufacturers go through the expensive of importing
clinker which involves high freight cost, import duties and other handling charges.
Hence, this is a scope for other companies to minimize costs by producing the
raw material locally and increasing their competitive performance.
M.I. Cement Factory Ltd. - Crown Cement:
In the modern days, there is no alternative to cement for construction works. The
state owned Chhatak Cement Factory and Chittagong Cement Clinker Factory
were the only two cement factories, which had been producing cement in the
post liberation period. As their production capacity was much less than the
market demands, cement were being imported to meet the necessity. But in the
name of imported items market had been flooded with adulterated cement. As a
result, consumers could not rely on any one of those brand.
In this scenario, local manufacturers came in the line in decade ’90 and thus
consumers started changing their mind over the quality of the cement. In this
continuity, M.I. Cement Factory Ltd. was set up on the bank of river Dhaleswari in
the industrial belt of Mukterpur in Munshiganj district, nearest to the capital city of
Dhaka.
Cement is the latest addition in the list of export commodities in Bangladesh. Our
country started exporting cement from January 2003. Crown Cement of M.I.
Cement Factory Ltd. takes the pride of part of it. Earlier, apart from some
production of state-owned Chhatak Cement Factory, the country was dependant
on its import. In this context, local investors took the initiative for setting up
cement factories and starts producing cement in 1992. The production in eight
private factories stood 34 lakh tons in 1997, So far, about 100 Factories got
government's approval of which 56 factories are on production with a production
capacity of 1.30 crore metric tons against a domestic demand of 60 lakh tons in a
year.
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The beginning of journey:
M.I. Cement Factory Ltd. (MICFL) was founded by 2 leading business groups of
the country, namely Molla Group and Jahangir & Others Group. The group
sponsors started their business in 1965 through trading of construction materials
such as Cement, MS Rod, Steel Structure and gradually expanded its business
into manufacturing and trading of construction materials such as Cement, Mild
Steel. MS Rod, MS Bar, MS Angel, Billet' CI Sheet. They have also diversified
their business in Iodized Salt and Power Generation. Annual turnover of the
Groups in 2008-09 was approximately BDT 18 billion.
The foundation stone of the M.I. Cement Factory Ltd. was laid on December 11,
1998. Primarily the daily production capacity of the factory was 600 metric tons
as it follows the world famous O-Sepa separator of Japan. It went into operation
in 2000. It marketed the product with the brand name of Crown Cement.
Following such investment and from the very beginning, it has maintained a non-
compromising position on its high quality. As a result, it has gained huge
popularity in the market. Due to increase of demand, company set up its second
unit with the capacity of 800 metric tons per day and three units with the capacity
of 1400 MT per day within two years. And these 2nd and 3rd units finally led to rise
of production capacity to 2800 metric tons per day.
Currently, MICFL decided to undertake 4th unit of the plant in order to enhance
the capacity to 5800 metric tons per day. After this expansion the company will
be able to place itself within top five companies of the country in terms of
production capacity. M.I Cement Ltd. was incorporated as a public Ltd. company
in 31 December 1994 under Companies Act 1994.
Altogether the factory has been producing 2800 metric tons of cement per day
from May, 2008. Crown Cement is accredited by BUET, BSTI and LGED. Each
and every consumer now knows that Crown Cement attaches highest priority for
maintaining its quality, weight and services.
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Directors Ownership in Other Companies:
Name of the
Name of the Companies Relationship
Directors
Crown Power Generation Ltd. Chairman
GPH Ispat Ltd. Managing Director
Premier Cement Mills Ltd Director
Md. Jahangir Jahangir and others Ltd. Managing Director
Alam GPH Power Generation Ltd Managing Director
Premier Power Generation Director
Ltd.
Crown Power Generation Ltd Managing Director

Al-Haj Molla Salt (triple refined) Managing Director
Khabiruddin Industries Ltd
Molla Ahmed Hossain & Co. Proprietor
Crown Power Generation Ltd. Director

GPH Ispat Ltd Director
Premier Cement Mills Ltd Director
Md. Alamgir Jahangir and Others Ltd. Director
Kabir GPH Power Generation Director
Premier Power Generation Director
Ltd.

Md. Molla M.M. Salt Industries Ltd. Director
Mohammed Molla Salt (triple refined) Director
Maznu Industries Ltd

Molla Salt (triple refined) Director
Md. Mizanur
Industries Ltd
Rahman Molla
M.M. Salt Industries Ltd. Proprietor

GPH Ispat Ltd. Director
Md. Almas
GHP Power Generation Ltd. Director
Shimul
Jahangir & Others Ltd. Director
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Management Development:
M.I. Cement Factory Ltd. has a group of skilled engineers, foreign trained
chemist and experienced technicians who supervise its overall production.
Behind the screen, there is a promising, honest and experienced management to
oversee the whole thing. The crown cement management has been doing
business for about 40 years in this line. So, they believe that there is no
alternative to:
 Quality
 Accurate weight
 Excellent services.
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To provide excellent services they built their channel in the main city throughout
Bangladesh:
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Skilled Worker:
M.I. Cement Factory Ltd. so far appointed 325 persons as skilled manpower. In
addition to this 500 people are also associated with its marketing and transport
departments. They think that about 3000 people out of 824 families depend on
this factory for their livelihood. They believe that they proper take care of their
employees.
Customer Satisfaction:
Their management is apt to satisfy their customers by quality product and

services. Satisfying the home users ‘Crown Cement’ has now won the heart of
the customers abroad. They are the country’s first proud exporter of cement,
where the product has been received with dignity for its high quality. This is the
pride of our country, pride of our nation and also pride of their M.I family.
Experienced Personnel:
Management development is associated with managerial personnel.

Management Development refers to the process of educating and development
selected personnel so that they have the knowledge, skills, attitudes and
understanding need to manage future positions. The process starts with the
selection of a qualified individual and continues throughout that individual’s
career.
Crown Cement company use management development to ensure the long-run

success of the organization
 To furnish competent replacements,

 To create an efficient term that works well together,
 To enable manager to achieve the ultimate goal of the organization.
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Management development is more future oriented, and more concerned with
education, than is employee training, or assisting a person to become a better
performance.
Slogan:
Trusted by people Tested by time.
Mission:
Their mission is to provide Bangladesh with high quality cement for solid
foundation of its physical infra-structure.
Vision:
Cross the border and their product to enter into world market.
Brief Overview of the Company:

Date of Incorporation: 31 December 1994
Converted to Public Ltd. Co.: 31 December 1994
Year of Commencement: 2000
Authorized Capital: Tk. 5,000 million
Paid up Capital (Pre IPO) : Tk. 700 million.
Financial year: July-June
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Organogram of M.I.Cement Factory Ltd. - Crown Cement:
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Their Focus:
Their aim is to serve their customers to their best satisfaction they have given
more foremost importance on:
 Sustainable Price
 Guarantee of quality products
 Door to door service
In order to maintain above they introduce following production process through

highly qualified technical personnel:
 They give highest importance for procurement of quality raw materials.
 They always get the sample from the intending suppliers/manufacturers

for carrying their various tests to find out quality and acceptability.
 They maintain their production process state of art machineries.
 Proper maintenance to the mechanical technical equipment is made

regularly.
 They never compromise with the quality. They are maintaining a very
sophisticated and well equipped laboratory to carry out quality test. It is
their standing instruction to conduct various quality tests within the
production process.
 The product is only air marked to put to market after same being fully
passed by the quality control department upon their full satisfaction.
 Their product is analyzed and tested by BUET, LGED, etc. apart from their
own laboratory test to ensure quality before the cement is being put into
market.
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Friendly Working Environment:
A team of excellent efficient work force is in its employment who feels a homely
atmosphere in the company. They try to give them liberty to contribute their best
in production of quality products and imparting high quality services to the utmost
satisfaction to its customers. They work here with perfect zeal and
responsibilities in co-operative unison.
Employee involvement is creating an environment in which people have an

impact on decisions and actions that affect their jobs. Team building occurs when
the manager knows when to tell, sell, consult, join, or delegate to staff. For
employee involvement and empowerment, both team building and delegation
rule. If Crown cement can empower their employees they will feel that it’s their
company and they will work from their heart. Also it will enhance their
performance.
Goals:
Provide highest standard products and secure customers satisfaction.
Secure strongest competitive production through creative product and

operational excellence.
Have highest entrepreneurs’ skills.
Create a team of employees of highest professional skills.
For conversation of natural resources to engage in research and

innovation to use alternative raw materials where possible.
Extension of facilities to customers MICFL has taken steps to supply to

customers cement in bulk through its bulk carries and also in form of ready
mixed concrete direct to construction site corporate nature in
management.
They take care of procuring raw materials, production procedure; packing

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materials and keeping vigilance through their well equipped laboratory that
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secure high quality cement.

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Fulfil Customers Demand:
Crown Cement started their journey with the aspiration of fulfil the demand of
cement in this country. M.I. cement factory Ltd. reached that target successfully
by producing 2800 MT of cement per day. But they would like to give all the
credit of success to their customers. They are really thankful to their customers
for their confidence on the Crown Cement. Now more than 50 brands of cement
are sold in the market. Customers’ confidence led us to bring Crown Cement to
the Customers abroad. It is important to determine how this technology is to be
used, how standardized should be processes that are used in producing the
products and how effectively and efficiently is the technology used in production.
Hard Work:
They are the first to include the cement in the list of export commodities. For this
success they are thankful to the skilled workforce of M.I. Cement Factory Ltd.
They have been making tireless efforts to reach the quality cement to the
customers.
Quality Makes Difference:
They also seek the cooperation from the customers. M.I. Cement Factory Ltd.
believes in quality production and good services to the nation. They never
compromise with the quality. They are maintaining a very sophisticated and well
equipped laboratory to carry out quality test. It is their standing instruction to
conduct various quality tests within the production process. They have been
making tireless efforts to reach the quality cement to the customers. They also
seek the cooperation from customers to keep faith on them.
Communication:
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The Company has its well-versed engineers and other marketing team who
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constantly get in touch with the seller and consumers impart technical assistant
and advice in construction work. Extension of facilities to customers MICFL has
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taken steps to supply to customers cement in bulk through its bulk carries and
also in form of ready mixed concrete direct to construction site corporate nature
in management.
The Path of Establishing a Cement Factory:
Before starting up M.I. Cement Factory Ltd. they were in the arena of
construction material business for more than four decades. Their business was
run on importance of construction materials including Portland cement. They
used to meet the requirement of their valued customers through import of cement
they had realized that it’s impossible to meet the demand of customers by
importing cement from other countries. It was very time consuming as well as
costly. Moreover there was always a high change of deterioration to properties of
cement in view of long transit time to reach. It was ultimate loss of the company
and customers.
This has backed up us to give a serious thought to establish a cement factory

and to cater the need of quality cement countrywide. With the establishment of
M.I. Cement Factory Ltd. they have been able to save and directly contribute
about 500 million in local currency to the national exchequer. Moreover they have
been also able to bring reduction in the price structure with supply of fresh
product and creation of employment opportunity.
By now they have almost passed almost three years since they completed
establishment of cement plant and went for commercial production. Within these
short spans of time they were able to produce millions of bags of cement and
market those to the satisfaction of their valued customers. They have great
reliance on their valued customers countrywide. It is their only aim to supply
quality cement at a reasonable rate to their numerous users for years to come
with their endless effort for the satisfaction of their valued customers.
Competitors:
Cement sector is the largest increasing sector in Bangladesh. There are 70+
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cement factories in Bangladesh and daily production capacity is 16.687 Million

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MT. Its growth daily.

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Unique Cement Industries Ltd.:
Unique cement industries ltd was established in the year 2002. The factory is
built with modern machinery imported from Germany and China with production
capacity of 1800 M/T per day. Unique cement industries ltd. has ISO 9001:2000
Certificate. They have two brands of cement in the local market namely "FRESH"
and "MEGHNACEM".
Holcim (Bangladesh) Ltd.:
Holcim (Bangladesh) Ltd started its operation in this country with the acquisition
of the-then Hyundai cement. Afterward it acquired United Cement and Saiham
Cement.
Holcim (Bangladesh) Ltd is affiliated with the Holcim Group worldwide and is one
the largest multinational cement producers in the world with manufacturing in
over 70 countries. The group has a production capacity of more than 120 million
tones of cement per year.
MTC Cement Industries Ltd.:
MTC Cement Industries Ltd was established with the technical co-operation of
CITIC engineering of PRC in year of 1998 which was situated on the
embankment of the river Meghna. There is a two unit cement plant with capacity
of 1200 MT per day. TIGER BRAND Cement started its commercial voyage on
July 2001. Currently MTC is on an expansion program in Pagla with a small 150
MT per day capacity cement grinding plant.
Lafarge Surma Cement Ltd.:

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Lafarge/cement mills is setting up the only modern, integrated cement

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manufacturing plan known as Lafarge Surma Cement Ltd. in Bangladesh at

Chattak under Shunamganj district. The majority of Lafarge Surma Cement Ltd.
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Shareholding (60%) is held by a 50/50 joint venture company between Lafarge
and Cementos Molins. Founded in 1833, Lafarge operates in 75 countries,
employing 77,000 people. In 2002, the group generated annual sales of Euro
14.6 billion and globally holds top ranking positions in Cement, Aggregates &
Concrete, Roofing and Gypsum. Cementos Molins is a renowned Spanish
cement company with annual revenue of Euro 485 million and net profit of Euro
70 million. Operating in Spain, Argentina, Uruguay and Mexico, it produces
Portland and Calcium-Aluminate cement, Concrete and Precast concrete,
Aggregates and Special purpose mortars.
Lafarge Surma Cement Ltd. will extract and process the basic raw materials like
limestone and shale from its from its own quarry in Meghalaya, India. A 17 km
cross-border belt conveyor will be installed to link the quarry with the cement
plant for transportation of raw materials.
A massive land filling and site development has been completed on the 90 acre
plant site. The construction and erection is also. The plant will initially produce
1.2 millions tons of cement per year.
Premier Cement Mills Ltd:
Started its production in March, 2004, Premier is the second largest cement
manufacturer in Bangladesh. With a total installed cement capacity of almost a
million tons per year at Muktarpul, Munshiganj, the Company is recognized as a
leading cement producer with abundant supply of raw materials, low production
cost and an energy efficient operation. The Company currently employs 216
persons and has an extensive distribution system throughout the country.
Its transportation subsidiary, with three prominent transport companies in

Bangladesh, operates a large fleet of trucks to distribute cement products in bags
almost anywhere in the country.
The Company was founded in 2001 as the private cement producer in

Bangladesh, with a factory in Muktarpul, Munshiganj. The Company started
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production in March, 2004 with Unit 1, which had an installed capacity of 730,000
tons of cement per year, and would be followed by Unit 2, also at 730,000 tons of
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cement per year, by the mid of 2005.
The factory is equipped with world-class European technology built in Denmark

and Germany. Within the span of first 5 months, the company has achieved the
ISO 9000-2001 certification from TUV, with highly skilled employees.
The Marketing Policies of Crown Cement:
Crown cement has been pursued by considering its customers demands and
satisfaction. The demand of quality cement is being increased gradually in
different construction works in home and abroad. That is why the combination of
high quality of raw materials, use of most modern technology and weather-
friendly packing system is being made in every bag of Crown cement.
Their department is pledged-bound to give the facilities of speedy shipment of

cement to different corners of home and abroad by road and by river. In addition
to this they are also promise-bound to give other cement-related services. They
hope that they will get continued cooperation from their valued dealers, retailers
and buyers and this will help them.
So the management has to think and act properly for the sake of the company
and for the betterment of the company by serving the customer with the unique
and best service and become the more profitable business. They have to
balance for recruit the right people in right time in a right place. It is really very
important for the manager to act according to these facts.
Excellent Employee and Employer Affiliation:
Employee and employer relation should be more hassle free, flow of

communication should be clearer and everybody should get fair treat from the
management. Fortunately in Crown Cement this kind of organizational culture is
completely visible. There is no communication gap between management and
the workers.
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One important building block of the organizational culture is that there has to
have to friendly relationship among all the employer and co-worker. One can
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criticizes others mistakes but everything has its own limit. If the criticizing
increases, it will have a negative impact on overall compensation arrangements.
The free flow of information and ideas among the individuals and the
management and the workers is necessary for an organization to work effectively
and efficiently as well to progress and succeed in this competitive age of the
business arena. Reward and recognition for successful ideas and for facilitating
smooth communication can be good means to encourage the employees to
share their views and ideas with the management.
In addition, the top managements need to have good personal and working
relationships with the person who is expected to become and working
relationships with the person who is expected to become the firm’s leader and a
fellow board. When one wants to change an aspect of the culture of an
organization one has to keep in consideration that this is a long term project.
Corporate culture is something that is very hard to change and employees need
time to get used to the new way of organizing. For companies with a very strong
and specific culture it will be even harder to change.
In Crown Cement, the relation between worker and employer is very nice.
Workers do not have any complain against the management. Management is
also very careful for its employees. They always look after their workers and they
have also arranged many incentives for their employees.
Accomplishment:
For their excellent quality of product and service they got so many certificates.
Some of them are given below:
 ADVANCED DEVELOPMENT TECHNOLOGIE
 BEXIMCO TECHNOLOGIES LTD.
 RANGS PROPERTIES LTD.
 SHELTECH (PVT.) LTD.

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 BANGLADESH CEMENT MANUFACTURERS ASSOCIATION

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Some of Their Best Constructions:
A LARGE SHOPPING COMPLEX

CONSTRUCTED BY CROWN CEMENT
A FOOD GRADE SILO, COMPLETED BY

CROWN CEMENT
A RIVER JETTY, UNDER CONSTRUCTION

BY CROWN CEMENT
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International Organization of Standardization:
ISO is the world's largest developer and publisher of International Standards. By

dint of quality management M. I. Cement Factory ltd. succeeded to earn the
certification on ISO 9001:2000 quality Management System (QMS).This
achievement accomplished within a period of 2 years of operation with the
performance of its devoted and diligent work-force.
Technical assistance & guidance to the end-users:
The company provides technical assistance and guidance with its well-versed
engineers and other marketing team who constantly get in touch with the seller
and consumers impart technical assistant and advise in construction work which
help MICFL to maintain a healthy relationship with all its customer and retailer as
well as distributor.
Product:
M. I. Cement is basically a grinding mill that imports raw materials and

manufacturers the final products. It started in 2000 with a production capacity of
180,000 MT annually. The product having high standard quality found its great
acceptability to customers, ranging from individual builders to contractors or
corporate organization. By seeing the success and acceptance the management
of MICFL took the expansion program and set up its 2nd unit with another
240,000 MT per year’s production capacity in 2002.
Presently the MICFL is producing two types of cement depending on customers

such as customers’ choice viz. Ordinary Portland Cement and Composite
Portland Cement.
 Ordinary Portland cement Type-I:

For general construction work, in concrete where no special protection
such as sulphate or acidic attack from soil and water not anticipating, this
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type of cement is used. It is marketing in brand name:

“Crown Cement”, Standard mark:
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BDS-EN-197-1:1993 CEM-I
42.5 N
 Composite Portland cement:

MICFL introduced from 2005 this standard of cement matching with the
specific demand of construction such as foundation, floor, brick-laying,
plastering and concrete work also. Trade mark,
“Crown Cement” standard:
BDS EN: 197-1:1993 CEM-II/A or B42.5 N
Collection of Quality Raw Materials:
Most of the cement mills of Bangladesh are grinding mills and import raw
materials from other country. MICFL is also a grinding mill and almost all the raw
materials are imported. It imports mainly from Thailand, Indonesia, Korea, Japan
and India. At first the management representatives visited such countries and
manufacturers of raw materials to ensure desired quality conforming to produce
quality cement. For producing composite cement MICFL imports slag from Japan
for an additive with clinker. After arrival it tests the raw materials through some
known trading houses who have been tested to be bonafide and dependable.
The Packaging Process:
MICFL is always concern about environment. So under “Crown Cement” brand

name, it marketed its product in 50 kg packing of either in Kraft paper bag or P.P.
woven bags. Presently MICFL has taken steps to satisfy needs of some
customers for supply of cement in bulk. It is also supplying ready-mix concrete
for meet its customers need.
Human Resource management of MICFL:
Human Resource Management is now the main key for any business
organization. Because worker is the main material for any type of organization
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and HR helps the company to recruit the right person in the right time and place.
It helps to maintain the relation between the employer and employee. It refers to
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the strategies, practices and systems that can affect employee’s behaviour,
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attitude and performance. There is a HR department IN MICFL to meet the
needs of a modern HR related problems. They are very much concerned with
staff selection, training and development, conditions of employment and other
HR issues within organisations.
MICFL involves the productive use of people in achieving the organisation’s

strategic business objectives and the satisfaction of individual employee needs.
In Bangladesh HR practice is a new issue, so the HR department is not that
much old like the company. But it is working now and taking care of the HR
related issues of the company.
HR practice is an important practice for any organization and MICFL is not

different than any company because any company’s future lies in the actions of
the individual’s action which are recruited by the HR department of the company.
Recruitment and Selection Process:
MICFL would always follow a standard system to recruit its new employees for
the vacant post. In this case it follows both internal and external hiring process.
MICFL prefers internal recruitment to external recruitment. External recruitment
notices are given on the media, for example newspapers. Even in case of
external recruitment candidates with reference are given priority. On the other
hand internal recruitment based on the experience of the candidate. In this case
MICFL strictly evaluate the performance of the candidate.
These are the primary factors that MICFL analyzes in its recruiting and selection-
Requisition: The HRM department took the decision of whether there is a

vacant position exists or not.
Advertisement: Then they circulate advertisement for the employees through

newspaper.
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Candidate Source: From where MICFL collect their candidate depends strictly
on the level of the vacant position. If it’s a higher level position they look for
experienced person from other company and invite them or look internally to
promote one of its own employees. But for lower or entry level job they go for
external sources.
Candidate
(Depends on
Position)
External
Internal
(Paper, Online)
Internal candidates: They are the employees who are working for the company
and experienced as well as reliable. Internal candidates are preferable for higher
level positions.
External candidates: When a company goes for external employee they have to
think about some issue like what is the time frame, characteristics of employees,
available resource for the selection process. If all this issues can be positively
resolved only then the company can go for the external recruitment.
Training in MICFL:
Training is the most important tool for any company to make their workforce more
valuable, productive and motivate towards their work. The company arranges
training to its employees and workers in their respective field both internally and
also engaging experts on contractual basis. Also let some of the key personnel to
attend workshop and symposium on cement matter both at home and abroad.
Internal training includes on the job learning process they believe that I is the
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most affective tool for the workers and the employees to learn their work more
perfectly.
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Motivational Factor of MICFL:
To motivate the employees of the MICFL they follow some way to make tem
happy and satisfied. So there are some ways to keep them loyal to the company
which are followed by MICFL.
Monetary rewards:
Monetary rewards are those which can standardize by any negotiable thing. For
monetary rewards we can name cash, cheque, money order, bonus,
performance salary. MICFL practices sale incentives, commissions. And they are
motivational because they give it to both sale and non sale department like
accounting, marketing or operation whoever helps to boost the sale of the
product.
Non-monetary rewards:
For non-monetary reward we can name picnic, game show, appreciation, medal,
gifts etc. MICFL practices annual picnic, game show and performance evaluation
appreciation.
Health & Safety
M. I. Cement Factory cares for keeping the environment free from pollution. So it
takes appropriate measures for preservation and protection of environment. For
this end in view it keeps its desired mechanical devices and gives due emphasis
for well congenial health condition within the factory for its employees. For
financial security against any mishappening it brings its employees under of
Group Insurance facility.
The relationship between the workers and management of M. I. Cement Factory

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Ltd. is not pleasant. If the gap between management and workers is not reduced,
the gap will increase constantly and it is not acceptable.
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Risk factors & management’s perception about the risks:
There are some particular risks associated with this company. These risks may
result in loss of income or capital investment of the company’s shareholders.
Sourcing of raw materials:
Main raw material of cement is the clinker which is imported from different
sources. The company’s business is dependent upon its ability to source
sufficient clinker at competitive price for its operations.
Distribution network:
Many strong producers of cement including multinationals are competing in the

domestic market but the Company depends on its own distribution network for
the sale of its products.
Rise in Input Costs may affect profitability:
The input costs of the products of the company may increase due to various
reasons, such as increased cost of raw materials and other variable costs that
adversely affect the input costs. In such case, the company may not able to pass
on such increase to the consumers because of competition or otherwise, it may
affect the profitability of the Company.
Future results of the Company may be adversely affected if the

Company fails to implement the proposed expansion:
The company has undertaken very optimistic expansion plan and expected to
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complete within one year. In case of failure to implement as per schedule the
company will suffer significantly in terms of profitability, cost overrun as well as
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market share.
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Cement market is highly competitive:
Some of the competitors of the Company are larger than the Company and have
vast financial resources that may enable them to deliver products on more
attractive terms or to invest large amounts of capital into their business, including
greater expenditure for better and more efficient production capabilities. These
competitors may limit the opportunity of the Company to expand its’ market share
and may compete with it on pricing of products. The business, financial condition
and prospects of the Company could be adversely affected if it is unable to
compete with its competitors and sell cement at competitive prices.
Non-availability of power could disrupt the operations for the proposed

project:
Power is essential for operating the plant which comes either from PDB or from
captive source operated by Gas. Interruption of supply of power/gas will reduce
the production which will ultimately increase the cost of production and make the
company uncompetitive.
Delay/failure of the public issue may adversely affect the

implementation
Proposed expansion would be funded from this Public Issue and any
delay/failure of the public issue may adversely affect the implementation.
Foreign Exchange rate risk:
The project may face some degree of foreign exchange rate fluctuation risk as
the Company imports raw materials against payment of foreign currency.
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Market and technology-related risks:
In the global market of 21st century, developed technology, products and

services render obsolete the old service and product strategy. So, the existing
organization may not be able to cope up with the future needs and demands.
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Background (Union View):

Crown Cement is one of the most renowned cement brands in Bangladesh. It is
one of the brands of M.I. Cement Factory Ltd. which is one of the best selling
cement in Bangladesh. Their mission is to provide Bangladesh with high quality
cement for solid foundation of its physical infra-structure. They have achieved
huge success nationally and internationally as well. Where there is success,
failure is the other side of the coin. Though M.I. Cement Factory Ltd. is very
successful, it is facing some problems.
M.I. Cement Factory Ltd. has huge workforce. They provide employment for
huge sum of people. Although still there are many vacant posts in many
departments. They do not hire as many people as they should. The workforce,
they currently have, is huge but not enough to maintain the whole organization.
They have many workers but they do not have provided health and security
measures for the blue-collar workers. The management does not seem much
concern about the blue collar worker.
All of their concern is about the white collar worker and the management. There
is not any motivational inspiration for the workers. They get their pay as daily
basis. And the management thinks that it is enough for the company which is not.
They need to be more concern about their workforce or there is a chance of huge
loss in future.
Management keeps switching the employees very often. They take employees
from any department whenever they need which is not good for the employees
because frequent job rotation makes employees confused about their working
areas and responsibility; they do not get to learn properly.
The main problem which concerned us more is that M. I. Cement Factory Ltd.
has no workers and employees union. A company, as big as this, should have a
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union for the workers. But since the establishment date, it has not formed any
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union for all their staff. And from which source we collect our data we got
confirmation that there were problems in the past days between workers and the
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management, which is obvious because without any uniformed workers
association there is no chance of presenting the demand, arranging collective
bargaining and most importantly no bridge of connection between the
management and the workforce. So, unfortunate situation lead by
misunderstanding was quite expected.
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Theme:
M.I. Cement Factory Ltd. started its journey with the aim of fulfilling the demand
of cement in the country. So far, they have been very successful in fulfilling the
national and international demand. Crown Cement is highly preferred in the
consumer market. Like other huge organizations, M.I. Cement Factory Ltd. is
also facing problems. While there is no uniformed worker association the
management is not efficient enough to fulfil workers demand and they are not
careful about it. There is a HRM department but it is not experienced that much.
Wile they are importing to India they are unable to import cement in other
countries due to non-feasible plans and other external circumstances.
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Main Issue:
What policy or strategy should M.I.Cement Factory Ltd. follow to develop a
strong union-management relationship along with improving market share while
optimizing more profit and expanding their business?
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SWOT Analysis:
The SWOT analysis is an extremely useful tool for understanding and decision-
making for all sorts of situations in business and organizations. SWOT is an
acronym for Strengths, Weaknesses, Opportunities, and Threats. The SWOT
analysis headings provide a good framework for reviewing strategy, position and
direction of a company or business proposition.
The following diagram shows how a SWOT analysis fits into an environmental
scan:
Environment
Internal Analysis External Analysis
Strength Weakness Opportunity Threats

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The following are the SWOT analysis Crown Cement of M.I. Cement Factory Ltd:
Strength:
Strong Management:
Management plays a vital role for the development of any kind of company. It
becomes more important when the company has both the national and
international market. Crown Cement has both the national and international
market, so a strong management is vital for the growth of this company.
M.I. Cement Factory Ltd. has a group of skilled engineers, foreign trained
chemist and experienced technicians who supervise its overall production.
Behind the screen, there is a promising, honest and experienced management to
oversee the whole thing. The crown cement management has been doing
business for about 40 years in this line. So, that there is no alternative to quality,
accurate weight and excellent services. M.I. Cement Factory Ltd. so far
appointed 325 persons as skilled manpower. In addition to this 500 people are
also associated with its marketing and transport departments. A team of excellent
efficient work force is in its employment who feels a homely atmosphere in the
company. We try to give them liberty to contribute their best in production of
quality products and imparting high quality services to the utmost satisfaction to
its customers. They work here with perfect zeal and responsibilities in co-
operative unison.
Technical assistance and guidance to the end users:
For any kind of business customer satisfaction plays a positive role. The
management has taken a step to gain the satisfactory response from the
customer. For this the company provides technical assistance and guidance to
the end users.
The Company has its well-versed engineers and other marketing team who
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constantly get in touch with the seller and consumers impart technical assistant
and advice in construction work. Extension of facilities to customers MICFL has
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taken steps to supply to customers cement in bulk through its bulk carries and
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also in form of ready mixed concrete direct to construction site corporate nature
in management.
Training Department:
Training works as an important key to make the employee more efficient and
effective works. Without proper training an employee could be a burden for the
company. Regarding this matter MICFL has designed the training programmes
for every employee.
The Company arranges training to its employees and workers in their respective
field both internally and also engaging experts on contractual basis. Also let
some of the key personnel to attend workshop and symposium on cement matter
both at home and abroad. Through proper training M.I. Cement Factory Ltd.
wants to create a team of employees of highest professional skills.
Strongest competitive production through creative product and operational

excellence:
To keep with the pace of the market a company must increase its product to
meet the newly born customer needs. Otherwise a company will fall behind in the
market. That is why the combination of high quality of raw materials, use of most
modern technology and weather-friendly packing system is being used in every
bag of Crown cement.
M.I. Cement Factory Ltd. started in 2000 with a production capacity of 180,000
MT annually. The product having high standard quality found its great
acceptability to customers, ranging from individual builders to contractors or
corporate organization. Soon the management of MICFL took the expansion
program and set up its 2nd unit with another 240,000 MT per year’s production
capacity in 2002.Presently the MICFL is producing two types of cement
depending on customers such as customers’ choice viz. Ordinary Portland
Cement and Composite Portland Cement.
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Different Type of Portland cement:
MICFL is offering two type of cement to its consumer which is helping it to satisfy
its customer.
Ordinary Portland cement Type-I is useful for general construction work, in

concrete where no special protection such as sulphate or acidic attack from soil
and water not anticipating. Composite Portland cement is introduced by
MICFL introduced from 2005 this standard of cement matching with the specific
demand of construction such as foundation, floor, brick-laying, plastering and
concrete work also.
HR Department:
Human resource is the most important part of a company, because, other

resources could be bought from the market, but human resource is developed
through motivation and training. For developing the business and interpersonal
skills of the employee HR department always train and motivate the employee.
M.I. Cement Factory Ltd. has a strong HR department. The employee feels a
homely atmosphere in the company. HR department give them liberty to
contribute their best in production of quality products and imparting high quality
services. HR department gives due emphasis for well congenial health condition
within the factory for its employees. For financial security against any
mishappening it brings its employees under of Group Insurance facility. The
management of M.I. Cement Factory Ltd. was in the arena of construction
material business for more than four decades. So the management itself could
not deny the importance of a strong and effective HR Department.
Weakness:
Bangladeshi Company:
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Bangladesh has many natural resources to increase its capital growth, but due to
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the lack of proper use and control of these resources it always lagging from its
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ability. A proper and complete industrial friendly environment is a primary
condition for the capital growth of a country.
MICFL is a Bangladeshi company, which is economically a third world country of

the world. As a result industrialization faces many problems in the way to its
development. All the technologies come from abroad. So modern technologies
are not being used in the production. But for rapid development in the field of
industry new technologies and their implementation is necessary.
Dependency on Raw Material:
When a company is depending on external raw material, it cannot decide the

market price for its own product, while high pricing is a threat for any company.
MICFL is grinding mill and almost all the raw materials are imported. It imports
mainly from Thailand, Indonesia, Korea, Japan and India. At first the
management representatives visited such countries and manufacturers of raw
materials to ensure desired quality conforming to produce quality cement. For
producing composite cement MICFL imports slag from Japan for an additive with
clinker.
Supply Chain:
Supply chain delivers the product to the end users from the factory. If anyway
this supply chain is broken there is no meaning of business. End users are main
customer of the product.
The mission of MICFL is to provide Bangladesh with high quality cement for solid
foundation of its physical infra-structure. Catering to the home market the
company wants to cross the border and let their product to enter into world
market. All these could by possible if the supply chain is strong. But due to the
lack of proper routes and shipping facility supply of cement is hampered.
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External Quality Assurance Institute:
Periodic quality check improves the quality of the product. So a company should
have its own quality control department in its factory premises. Quality should not
be tested at the end of the production moreover it should be started form the
stage of procuring raw material.
For assuring better quality highest importance is given for procurement of quality
raw materials. The samples from the intending suppliers/manufacturers are
tested to find out quality and acceptability. After arrival the raw materials are
tested through some known trading houses who have been tested to be bonafide
and dependable. This is done to see that low graded materials are not procured.
The product is analyzed and tested by BUET, LGED, etc. apart from the
company’s own laboratory test to ensure quality before the cement is being put
into market. So from the beginning of the production company is being
dependent on external quality assuring institute e.g. BUET, LGED etc. while it is
recommended that a company should have its own quality testing facility.
Health & Safety:
A healthy and safe environment helps the employee to work efficiently. For
avoiding any kind of accident an uneven occurrence to happen the company
should provide healthy and safe environment at the factory.
M. I. Cement Factory cares for keeping the environment free from pollution. So it
takes appropriate measures for preservation and protection of environment. For
this end in view it keeps its desired mechanical devices and gives due emphasis
for well congenial health condition within the factory for its employees. For
financial security against any mishappening it brings its employees under of
Group Insurance facility. But due to the dusty environment in the factory, proper
health condition could not be ensured.
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Opportunity:
Vital for construction works:
Construction is vital for any kind of development of a country or a locality. There

is always a demand of new homes, new factories, new buildings and these all
means new construction.
Cement is vital for any kind of construction work. And there is no alternative of
cement. Research shows that there is a 12 percent increase in domestic demand
of cement every year. As a result there will always be an existing market in home
and abroad. By ensuring better quality and service company can gradually
capture the market. Development of new product and service will help the
company to gain more profit.
Customers abroad:
To increase the profit and to increase the volume of the market a company
considers the world as its product market. After fulfilling the needs of the local
customer the company looks abroad to fulfil their needs.
The investors cannot rely on only the domestic demand of the cement. They
have to look for markets abroad. It is understood that there is no way to get the
market abroad without producing international standard quality cement.
Bangladesh has started exporting cement from January 2003. Crown Cement of
M.I. Cement Factory Ltd. takes the pride of part of it. MICFL is the country’s first
proud exporter of cement, where the product has been received with dignity for
its high quality.
Increasing Demand in International Market:

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The increasing demand of cement in international market will open the

opportunity for gaining more foreign currency. As a result Bangladesh will earn
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more remittance by exporting cement. This increase in foreign remittance will
develop the socio-economic condition of our country.
On the other hand more industrial development will occur. With the establishment
of M.I. Cement Factory Ltd. it has been possible to save and directly contribute
about 500 million in local currency to the national exchequer. Moreover MICFL
has been also able to bring reduction in the price structure with supply of fresh
product and creation of employment opportunity.
Threat:
Competitive market:
Business is always being a competitive way of earning profit. The availability of

modern transportation and globalization it has been more competitive nowadays.
The market of construction materials has been very competitive nowadays. So

far, about 100 Factories got government's approval of which 56 factories are on
production with a production capacity of 1.30 crore metric tons against a
domestic demand of 60 lakh tons in a year, while The production in eight private
factories stood 34 lakh tons in 1997.
Environmental Threat:
Environment plays an influential role on business. Without the proper

environmental condition it is very difficult to run any production properly. One
important consideration is that human cannot control the environment, so there is
always a threat of improper environment.
M.I. Cement Factory Ltd. was set up on the bank of river Dhaleswari in the
industrial belt of Mukterpur in Munshiganj district, nearest to the capital city of
Dhaka. As Bangladesh is a monsoon country it is often strike by flood and heavy
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rain fall during rainy season. At that time demand of cement is decreased at
home and transportation also become troublesome.
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Political Situation:
Without stable political situation business is always in a threat of political

instability. A stable political situation helps to grow the business while instable
condition fails it.
Political situation of Bangladesh changes very rapidly which is a threat for any
kind of business. Stable political situation is helpful for expanding business.
Hartal, Abarodh, Strikes called by the opposition party often makes the situation
more severe.
Price Hike/ Maintaining Substantial Price:
Price of the construction material controls the market. In any kind of construction
work huge amount of construction material is used, so an increase in price of
construction material stops the construction works.
Though the company aims to maintain the substantial price inside the country but
due to the price hike and increase in oil price it has become impossible to
maintain the rate at constant level. On the other hand increase in price hampers
the construction work. There are many construction farms which have stopped
their work for the increase of the price of construction material. As a result usual
market of cement is being interrupted.
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Union Perspective:
The company arranges training to its employees and workers in their
respective field both internally and also engaging experts on contractual
basis.
Keeping the employee up-to-date, through proper training, garnished salary-

benefits and annual showdown, developing and maintaining a innovative
environment through TQM, E-commerce team, Automation team, Marketing
Strategic team, Distribution team, MIS team and so on, arranging training
program in other developed countries to improve the creative and innovative
ideas of the employees.
Developed to provide employees with the tools and competencies necessary to

face new challenges and further the organization's mission, the organizational
training program offers individual workshops covering a broad range of subjects.
Training workshops can be taken on a case-by-case basis, or employees may
pursue a more focused set of skills by participating in one of the Certification
Pathways. As we all know that in-house training can help the employees and
employers in many ways.
The company is more conscious internal selection process rather than

about the qualification of employee. As a result, they are becoming failure
to gain more efficient worker for their company.
M.I. Cement factory would always follow a standard system to recruit its new
employees for the vacant post. But they are more interested to internal
recruitment than external recruitment. As a result they are losing many efficient
workers for their company. Crown cement would always follow a standard
system to recruit its new employees for the vacant post. In this case it will
conduct both internal and external hiring process.
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Employees are the heart of any organization. Without them, a company cannot
run or sometimes impossible. But they are more interested to internal recruitment
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than external recruitment. As a result they are losing many efficient workers for
their company. If the company wants to recruit employee externally they have to
think about some issue like what is the time we have, what kind of employees we
need, how much money (resource) we can spend for the selection process.
A team of excellent efficient work force is in its employment who feels a

homely atmosphere in the company. They try to give them liberty to
contribute their best in production of quality products and imparting high
quality services to the utmost satisfaction to its customers.

rule. If Crown cement can empower their employees they will feel that it’s their
performance.
Employee empowerment helps employees serve customers at the level of the

organization where the customer interface exists. Empowerment is a solution for
many organization ills, when empowerment is implemented with care. Managers
and employees say they want empowerment. Organizations see empowerment
as a strategy to develop employees and serve customers. Empowerment is great
for customer service and employee motivation.
In M.I. Cement factory employee and employer relation are more hassle
free, flow of communication are clearer and everybody get fair treat from
the management. There is no communication gap between management
and the workers.
The free flow of information and ideas among the individuals and between the
management and the labour is necessary for an organization to work effectively
and efficiently as well to progress and succeed in this competitive age of the
business area. Reward and recognition for successful ideas and for facilitating
smooth communication can be good means to encourage the employees to
share their views and ideas with the management.
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In addition, the top managements need to have good personal and working
relationships with the person who is expected to become and working
relationships with the person who is expected to become the firm’s leader and a
fellow board. When one wants to change an aspect of the culture of an
organization one has to keep in consideration that this is a long term project.
Corporate culture is something that is very hard to change and employees need
time to get used to the new way of organizing. For companies with a very strong
and specific culture it will be even harder to change.
M.I. Cement factory should focus the way of how they are going to serve
the market and what competitive advantage should the employees
possess.
Employee empowerment is a strategy and philosophy that enables employees to

make decisions about their jobs. Employee empowerment helps employees own
their work and take responsibility for their results. Employee empowerment helps
employees serve customers at the level of the organization where the customer
interface exists.

rule. If Crown Cement can empower their employees they will feel that it’s their
performance.
M.I. Cement factory focuses on professional development to develop its

employees in using the latest technology to achieve productivity and
overcome the threat posed by competitors who also focus on productivity.
The Professional development is the area where Crown Cement’s employees

develop themselves in order to be updated in relevance to the technology. Based
on the findings from knowledge assessment and determining what they can do,
the people who will be using the technology can undergo training in order to be
able to operate the latest technology. Once they are updated with the desired
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knowledge, their productivity will automatically increase, as they would be able to

use the technology more efficiently.
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After the need of technology has been determined and the users of technology
have been upgraded with the skills, the use of technology is the next concern.
Having the latest technology is not just enough. It is important to determine how
this technology is to be used, how standardized should be processes that are
used in producing the products and how effectively and efficiently is the
technology used in production.
M.I. Cement factory should train their employees perfectly so that these
employees can act as an asset of the company and should establish a
proper Reward & Recognition (R&R) system to boost up its employee
morale. If employees are happy, they will never ask for union.
HR department need to follow a detail procedure to implement the solutions

which is recommended previously. Firstly, they need to designate an individual to
oversee designing the new and workable compensation program. After that they
need to restructure the compensation philosophy by comparing the market
research and their job evaluation of employees.
The employees need to maintain some rules for working in Crown Cement so
proper training and proper management can make it happened. HRM should be
accorded priority, how training in them could be delivered, and what concrete role
is expected from an employers' organization. Crown Cement can secure
commitment through building strong cultures. This involves promoting
organizational goals by uniting employees through a shared set of values
(quality, service, innovation, etc.) based on a convergence of employee and
enterprise interests.
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Recommendation:
Crown Cement of M.I. Cement Factory Ltd. is one of the best selling cement
in Bangladesh. They have been continuing their operations for many years.
Since our country has started to export cement in other countries, M.I.
Cement Factory Ltd. has been part of it. Their mission is to provide
Bangladesh with high quality cement for solid foundation of its physical infra-
structure. They have achieved huge success nationally and internationally as
well. Where there is success, crisis can also be seen. Though M.I. Cement
Factory Ltd. is very successful, it is facing some problems. We have
mentioned a few problems that M.I. Cement Factory Ltd. is facing and have
recommended solution for those problems.
Problem 1:
M. I. Cement Factory Ltd. has no workers and employees union. A company, as

big as this, should have a union for the workers. But since the establishment
date, it has not formed any union for all their staff. There have been disputes
between management and workers and absence of a union has made the
situation worse. The workers need to be guided. The situation that has occurred
in the past, management will not wish for it in the future.
Recommendation 1:
M. I. Cement Factory Ltd. is a cement factory with huge workforce. But it has not
formed any workers’ union. As most of the factories in Bangladesh have workers
union, the workers of M. I. Cement Factory Ltd. should also have one. Moreover,
union is workers’ right, and management should be considerate in this matter. In
addition, workers needs someone who will guide them, they need a leader. The
leader will guide them; communicate with the management on behalf of the
workers. There have been a few disputes between management and workers. As
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there is no union, workers usually go on direct force to the management. So, for
the betterment of both workers and management, workers should be allowed to
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form union.
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Justification 1:
Union is very necessary for both workers and management. The workers need a
leader to guide them, to differentiate between right and wrong. Union can prove
to be helpful for the management as a way of communication with the workers.
Union will be able to decrease misunderstanding between workers and
management and also will be helpful to make management-worker relationship
stronger. As dispute has risen among them, union can be a way of making the
situation a little bit improved. If the management had allowed them to establish a
union in the past, this kind of situation would not have appeared. So for the better
future, the management should allow the workers to establish a union.
Problem 2:
In M.I. Cement Factory Ltd. employee’s job rotation is very frequent.

Management keeps switching the employees’ place very often. It is either
management decides or employees demand, but frequent job rotation is not
good. Job rotation creates problems for employees as they do not get to learn
appropriately. Frequent job rotation makes employees confused about their
working areas and responsibility. Job rotation is not unexpected but it should not
be frequent.
Recommendation 2:
Job rotation is a common matter in any organization. Job rotation enables

employees to learn different works of different departments and enhance their
skills and abilities. But if job rotation is frequent, it creates many problems.
Employees do not get to learn much on frequent job rotation and their skills do
not get developed much. Employees feel confused when they switch
departments repeatedly. If employees switch departments repeatedly, the
respective departments will face crisis. The departments the employees join may
face overflow and the departments they leave may face scarce. The
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management should not stop job rotation but can make it less frequent. In this
way employees will be able to learn and get adapted to new things. Less
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frequent job rotation will be helpful for the employees to adapt stability which is
very important as job rotation enhance the idea of employees’ turnover.
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Justification 2:
Frequent job rotation may create confusion among employees. They may feel
disoriented. It may also hamper their productivity. Employees may be willing to
contribute less to their jobs. Frequent job rotation may also increase employee
turnover. Job rotation practice is good but management should not practice it
frequently. If they make it less repeated it will be helpful for them as well. The
departments will not face threats due to less frequent job rotation. And
employees will not feel confused about their job responsibilities and areas to
handle. Less frequent job rotation will help the employees to enhance their
productivity and will also help them to be stable and confident.
Problem 3:
M.I. Cement Factory Ltd. is one of the cement factories who export cement in
other countries. It has distributors mainly in Dhaka division. In other divisions
they have just two distributors, one in Chittagong and one in Jhalkathi. They do
not have enough distributors in local borders as much as they should. The fewer
distributors have made them unable to penetrate in other markets. In the near
future they may fail to fulfil the local demand and their sale may drop. That is not
expected for any company.
Recommendation 3:
M.I. Cement Factory Ltd. produces Crown Cement which is one of the most
demanded cement in Bangladesh. The consumer of Crown Cement is huge.
Though M.I. Cement Factory Ltd. has quite a few distributors, but they are not
enough to satisfy this large amount of consumers. As we know that M.I. Cement
Factory Ltd. has distributors mostly around Dhaka city, we suggest that they
should locate distributors in other divisions as well. They do not have any
distributors in Rajshahi, Rangpur Khulna and Sylhet and in Chittagong they just
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have one distributor. So we recommend that they should expand their distribution
channel. The expansion of distribution channel will be very helpful to attract more
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consumers.
Crown Cement
Group - E
Union
Justification 3:
Expansion of distribution channel will help M.I. Cement Factory Ltd. in many
ways. They will be able to reach to more consumers. Their sales will increase as
well. If they get more distributors they will be able to get more market information.
M.I. Cement Factory Ltd. is also exporting their cement in other countries. If the
distribution channel is vast, the importers of other countries will be able to pull out
more information about them and about Crown Cement from the local market.
The expansion of distribution channel will not only help to gather information from
the market, it will also be helpful to gather information about consumer demands.
They will be able to keep connection with their consumers through distribution
channel. Distributors will be able to bring more consumers.
Problem 4:
M.I. Cement Factory Ltd. has many workers but they do not have provided health
and security measures for the blue-collar workers. As a cement factory, workers
have to face many dangerous situations. If any worker is hurt or has serious
accident, management does not take any responsibility. Workers are imperative
part of an organization; the management of M.I. Cement Factory Ltd. should not
be ignorant towards them. The workers should not be neglected.
Recommendation 4:
The environment and working condition in any cement factory is dangerous.

Workers get hurt frequently but the management does not take effective steps to
control it. The management has taken steps to lessen environmental pollution.
They have provided health and security measures for white-collar employees.
The management gives the white-collar employees Group Insurance but not for
the blue-collar workers. The management should provide health and security
measures for blue-collar workers as well because the chance of getting hurt in
workplace is higher for them. The management should take responsibility of the
workers when they get hurt. They can provide Group Accident Insurance for the
48
worker. They can also provide safety equipments so that the occurrence of
accident can be decreased. The management should start taking responsibility of
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the workers and take corrective steps as the company will face dilemma if the
rate of accident is increased.
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Union
Justification 4:
The management is not providing any health and security measures for the
workers. They provide health and security measures for the white-collar
employees. They do not understand the fact that blue-collar workers are lower
income level people of the society and if they face accident, it will be hard for
them to pay for the medical treatment. And there are many cases of accidental
death at workplace and mostly those cases were of blue-collar workers. Blue-
collar workers face danger more than office-workers i.e. employees. Thus
management should start taking care of the workers. They should take effective
steps so that workplace accidents can be reduced. Lessening environmental
pollution is not enough, they should also ensure security for the workers. Blue-
collar workers are poor people but that does not mean that they should not be
included in health and safety measures.
Problem 5:
departments. They do not hire as many people as they should and because of
job rotation and job switching, many posts remain unoccupied. They are facing
employment shortage. They are in need of workforce. The workforce, they
currently have, is huge but not enough to maintain the whole organization.
Recommendation 5:
Workforce is a vital part in an organization. They play an important role in

organization’s success. Sufficient workforce is very necessary for any company.
M.I. Cement Factory Ltd. has quite a few vacant posts in the departments. The
management is not hiring enough people to fill-up the vacant posts. The vacant
post needs to be occupied. Employee turnover rate is not high but as they are
not hiring enough people the situation might get worse. The management needs
49
to hire more people for those vacant posts. If they get to hire enough employees,
the employee turnover will not be very crucial for them. Hiring is not an easy task,
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but for the betterment of the company the management of M.I. Cement Factory
Ltd. needs to start hiring.
Crown Cement
Group - E
Union
Justification 5:
As we have said earlier that sufficient amount of employee is necessary for every
company, M. I. Cement Factory Ltd. should start hiring more people. Moreover
they need to hire right people for right job. If they do not begin to hire people for
the vacant posts, they may face serious problem in near future. The vacant post
creates shortage of talent within the organization. Recruiting many people is not
good and neither hiring less people is beneficial. Hiring more employees may
appear costly in the beginning but it will be help the company to grow more and it
will bring more success to their doorstep in the future.
Problem 6:

Ltd. is not pleasant. The workers take forceful attempt whenever they have to
place a demand in front of the management. The unpleasant relationship has
cost M. I. Cement Factory Ltd. very highly. If this communication gap is not
reduced, the gap will increase constantly and it is not acceptable.
Recommendation 6:
The management of M. I. Cement Factory Ltd. should be more understandable

and sympathetic towards the workers. The workers’ income is very low and they
are very poor. The management does not give any benefits to them either. They
should focus on workers’ improvement. The management should try to solve
problems with their workers. If management becomes more concerned about
them, the workers may also pay more attention to them. To build a successful
organization, both workers and the management need to be cooperative. If the
management is not concerned about the workers, they will not cooperate with the
management.
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Justification 6:
Good management-worker relationship is very necessary for the betterment of

organization. A healthy relationship between the workers and the management is
the company’s achievement. If the management shows care and sympathy
towards the workers, the workers will be more willing to build long-term
relationship with the organization. Long-term relationship with workers is
essential for company’s reputation. If the management does not try to improve
the situation, the workers will create more problems in future. In the past, the
workers have taken steps for which the company had to suffer. If the
management does not want this happen again, they should start bridging the gap
with the workers. Otherwise if the workers take forceful actions again, it will be
vulnerable for the company.
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Implementation:
M.I. Cement Factory Ltd. started its journey with the aim of fulfilling the demand
of cement in the country. So far, they have been very successful in fulfilling the
national and international demand. Crown Cement is highly preferred in the
consumer market. Like other huge organizations, M.I. Cement Factory Ltd. is
also facing problems. In the previous section we have mentioned some problems
and recommended solution for them. In this section we will discuss the
implementation process of the recommended solution.
Problem 1:
M. I. Cement Factory Ltd. has no workers and employees union. A company, as

big as this, should have a union for the workers. But since the establishment
date, it has not formed any union for all their staff.
Recommendation 1:
M. I. Cement Factory Ltd. should have a union. Union is workers’ right, and
management should be considerate in this matter. There have been a few
disputes between management and workers and without the union, the situation
was pretty worse. So, for the betterment of both workers and management,
workers should be allowed to form union.
Implementation 1:
Union is one of the most important parts in an organization. Workers form union
to get united and to achieve certain goals. Union is also a way of bridging gap
52
between management and union. To form a union, the workers need to go

through certain steps. In the following we have discussed how to implement it,
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who to implement it, where to implement it and when to implement it.

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Union
How to implement it:
To form union, the workers first need to get approval from the management.
Union is workers association but the management has to be agreeable with the
workers in forming a union. Employees cannot form unions without the consent
of the management. It is illegal to form union without employers’ approval.
After getting permitted by M. I. Cement Factory Ltd. management, the workers

will select their leader, the one who will guide them. The workers will also choose
other representatives along with the leader. To maintain huge workforce, the
leader cannot work alone; he will need the help of other representatives.
Election can be proved as an effective way in choosing workers’ leader and

representatives. In this way workers will choose few other workers who have
potentials of becoming union leader and then election will be arranged. The one,
who will get highest votes, will be the union leader.
As we have said, choosing a leader is a tough job because the leader is the
guide of all the workers. The leader is workers representative who will
communicate with the management.
Who to implement it:
Union is a part of an organization. Workers’ union is institution for workers and

workers are a part of the organization and so is the management. Thus forming a
workers’ union is not a single decision of the workers. The management has to
give approval. So it is a worker-management decision.
Where to implement it:
The union will be established in M. I. Cement Factory Ltd. The conflict between
the workers and the management is getting worse day by day. And thus, the
establishment of union is very necessary in M. I. Cement Factory Ltd.
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When to implement it:
The union for the workers needs to be formed as soon as possible. The problems
that M. I. Cement Factory is facing now will loosen up most of it if they let the
workers form a union immediately.
Problem 2:
In M.I. Cement Factory Ltd. employee’s job rotation is very frequent.

Management keeps switching the employees very often. Frequent job rotation
makes employees confused about their working areas and responsibility; they do
not get to learn properly.
Recommendation 2:
Job rotation enables employees to learn different works of different departments

and enhance their skills and abilities. The management should not stop job
rotation but can make it less frequent. In this way employees will be able to learn
and get adapted to new things. Less frequent job rotation will be helpful for the
employees to adapt stability.
Implementation 2:
Job rotation is very common in job field. Job rotation enables employees to learn
different aspects of job fields. But frequent job rotation can be very problematic
for an organization. Frequent job rotation arises many problems and confusions.
We have recommended solution for this problem in the previous section. And
now in the following we have discussed how to implement it, who to implement it,
where to implement it and when to implement it.

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Frequent job rotation is hectic as we know. We suggested that the management

should make job rotation less frequent. In this regard the management can
Crown Cement
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Union
establish a rule that the employees have to continue their job in a particular
department for six months or a year.
If the management decides to make the job rotation less frequent, it will be very
helpful for the employees. If an employee is bound to continue their job in a
department for six months or one year, they will get to learn many things and
they will also learn to adjust. They will not feel puzzled in adjusting in new
environment.
The management can also offer benefits in department basis such as if a

department keeps 20 or 30 particular employees they will get bonus or certain
benefits. In this way management can make job rotation less frequent.
The management of M. I. Cement Factory Ltd. will implement the steps stated
above. Only the management has the authority in taking the course of action and
thus its management’s responsibility to implement.
This has to be done in the M. I. Cement Factory Ltd. It will be implemented in

every department of the company.
The procedures that the management of M. I. Cement Factory Ltd. will be taking
to handle this situation should be taken immediately before the situation gets
worse and beyond recovery.
Problem 3:
M.I. Cement Factory Ltd. has distributors mainly in Dhaka division. In other
divisions they have just two distributors. They do not have enough distributors in
local borders as much as they should.
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Union
Recommendation 3:
M.I. Cement Factory Ltd. has quite a few distributors, but they are not enough to
satisfy this large amount of consumers. So we recommend that they should
expand their distribution channel. The expansion of distribution channel will be
very helpful to attract more consumers.
Implementation 3:
Expanded distribution channel is very necessary for company’s success. M.I.

Cement Factory Ltd. has few distributors but they are not enough to sustain in
the long run. We have recommended solution previously. In this section we will
be discussing how to implement it, who to implement it, where to implement it
and when to implement it.
Distribution channel is very important for an organization. M.I. Cement Factory

Ltd. has Ltd. distributors for their products. If they start to expand their distribution
channel it will be beneficial for them. They can establish dealer shops in other
divisions. In this way they will be able to expand their market reach. They own
dealer shop will be very useful in spreading their name in the consumer market
and if they get to build a good reputation the consumers will prefer Crown
Cement more than other cements. In this way Crown Cement will be sold even
more than before.
They can also contact with the local distributors in other cities. They can start
trading with them. They can place their own distributors in other cities. The
distributors they have now can also help them in this matter. The distributors can
contact with the distributors on other districts. In this way they will be able to
expand their business and reach for more consumers.
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above. The distributors they have can also be of help in this matter. The
management can also get help from reliable sources in this matter.
The mentioned steps will be taken in the other cities where M. I. Cement Factory
Ltd. does not have distributors. In this way they will be able to penetrate in new
consumer market.
The procedures must be taken immediately. If M. I. Cement Factory Ltd. gets

more distributors in other districts soon enough, they will be able to increase their
sale.
Problem 4:
M.I. Cement Factory Ltd. has many workers but they do not have provided health
and security measures for the blue-collar workers. The management does not
take any responsibility of the workers. The management of M.I. Cement Factory
Ltd. should not be ignorant towards them.
Recommendation 4:
The management should provide health and security measures for blue-collar
workers as well because the chance of getting hurt in workplace is higher for
them. The management should take responsibility of the workers when they get
hurt. They can provide Group Accident Insurance for the worker. They can also
provide safety equipments so that the occurrence of accident can be decreased.
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Implementation 4:
Workers work in the dangerous places and thus they need health and safety
measures so that the accidents can be avoided and the injuries will be less. We
have recommended solution for this problem in the previous section. And now in
the following we have discussed how to implement it, who to implement it, where
to implement it and when to implement it.
We have mentioned that the management of M. I. Cement Factory Ltd. can

provide Group Accident Insurance for the workers. The group insurance will not
be very costly and it will give the workers certain assurance that if they get hurt
their family will not be in big trouble paying the medical bills and they will get
enough treatment for recovery.
The safety equipments will come handy in the sectors. Safety equipment will be
helpful to avoid some accidents to occur and in some cases the injuries will be
less. So, providing safety equipments will be a very good idea, as it will be very
helpful in keeping the workers protected.
above. The management should start taking responsibility of the workers
otherwise the situation will get worse.
This has to be done in the M. I. Cement Factory Ltd. It will be implemented where
they have workers like in the factory, in packaging and in warehouse. The
management should implement the recommended solution in the sectors where
the accident occurs regularly.
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The situation of the workers in M. I. Cement Factory Ltd. is not very pleasant.
The management should start taking necessary steps to improve the situation as
soon as possible.
Problem 5:
departments. They do not hire as many people as they should. The workforce,
they currently have, is huge but not enough to maintain the whole organization.
Recommendation 5:
M.I. Cement Factory Ltd. has quite a few vacant posts in the departments. The
management needs to hire more people for those vacant posts. If they get to hire
enough employees, the employee turnover will not be very crucial for them. For
the betterment of the company the management of M.I. Cement Factory Ltd.
needs to start hiring.
Implementation 5:
M.I. Cement Factory Ltd. needs to hire employees for the vacant posts. The
company is in need of workforce for the vacant sections. They have to go
through the whole recruitment process. In this section we will be discussing how
to implement it, who to implement it, where to implement it and when to
implement it.
Previously we have mentioned that M. I. Cement Factory Ltd. needs to hire

59
employees. M. I. Cement Factory Ltd. has HR Department and the HR

Department will execute the whole hiring procedures for the company. The HR
Department will first establish a “Recruitment Committee”. This committee will be
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formed by Head of HR Department and two other Head of the Department. The
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HR Executives will form the whole recruiting process and will execute it. They
may first begin with taking resumes and setting up a written test.
The ones who will qualify in the written test will give interview. HR Manager and
other Head of Departments will take their interview. Then the “Recruitment
Committee” will decide who to hire. They will also take corrective steps in the
recruitment process.
The HR Department of M. I. Cement Factory Ltd. will execute the whole

recruiting process for the company. The “Recruitment Committee” will take the
responsibility of executing this task successfully.
This will be implemented in the departments of M. I. Cement Factory Ltd. where

recruitment is necessary.
The recruitment procedures in the departments must be taken immediately in M.

I. Cement Factory Ltd.
Problem 6:

Ltd. is not pleasant. If the gap between management and workers is not reduced,
the gap will increase constantly and it is not acceptable.
Recommendation 6:
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The management should try to solve problems with their workers. To build a
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successful organization, both workers and the management need to be

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cooperative. If the management is not concerned about the workers, they will not
cooperate with the management.
Implementation 6:
Building a good relationship with the workers is crucial for the management. M. I.
Cement Factory Ltd. has suffered in the past they if they do not take corrective
steps they will suffer in the future. In the following we have discussed the
implementation process; how to implement it, who to implement it, where to
implement it and when to implement it.
To form a good relationship with the workers, the management first needs to
understand their situation and problems they are facing. If the management
cannot understand the workers, they will not be able to build a good relationship
with them.
Then the management of M. I. Cement Factory Ltd. has to understand their

demand and try to fulfil them as much as possible. The management not only
has to understand the situation of the workers, the management has to make the
workers to understand. The living standard of the workers is below poverty level.
Money cannot solve every problem but they can reduce a few. If management
increases the wages of the workers a little bit or provide certain benefits, it will be
very helpful for the workers. Their lives will not improve in a day but it will decline
some problems.
The management of M. I. Cement Factory Ltd. has to take the first attempt to
reduce the communication gap. It is their responsibility to build good worker-
management relationship. If they take the initial step, workers will attempt as
well.
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The mentioned steps will be executed in M. I. Cement Factory Ltd. The workers
are underprivileged and deprived in which case the management has to work
very hard in bridging the gap.
The conflict between management and workers has put the company in danger
in the past and it will create more damages in future. So, the management should
start trying to build good worker-management relationship very soon otherwise
the situation will be dreadful.
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Appendix:
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Background:: Bangladesh Cement Industry

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Background:: Bangladesh Cement Industry

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M.I. Cement Factory Ltd.

Cement Industry is a relatively fast growing industry in Bangladesh which is

The amount of cement now annually consumed in Bangladesh is about 5 million

The Rise of the Cement Industry:

Private enterprises dominated production and import of cement to cater to the

So we can say that the cement industry of Bangladesh is a rapidly increasing

Currently, domestic production is unable to meet the complete demand for

Over the years, however, cement emerged as a substitute to traditional

infrastructure projects, accelerated rate of urbanization and increased

construction of multistoried buildings, there was a sharp increase in its demand.

M.I. Cement Factory Ltd. - Crown Cement:

The beginning of journey:

Directors Ownership in Other Companies:

Crown Power Generation Ltd Managing Director

Crown Power Generation Ltd. Director

Crown Power Generation Ltd. Director

Crown Power Generation Ltd. Director

Crown Power Generation Ltd. Director

Their management is apt to satisfy their customers by quality product and

Management development is associated with managerial personnel.

Crown Cement company use management development to ensure the long-run

 To furnish competent replacements,

Brief Overview of the Company:

Organogram of M.I.Cement Factory Ltd. - Crown Cement:

 Guarantee of quality products

 Door to door service

In order to maintain above they introduce following production process through

 They give highest importance for procurement of quality raw materials.

 They always get the sample from the intending suppliers/manufacturers

 They maintain their production process state of art machineries.

 Proper maintenance to the mechanical technical equipment is made

Friendly Working Environment:

Employee involvement is creating an environment in which people have an

Provide highest standard products and secure customers satisfaction.

Secure strongest competitive production through creative product and

Have highest entrepreneurs’ skills.

Create a team of employees of highest professional skills.

For conversation of natural resources to engage in research and

Extension of facilities to customers MICFL has taken steps to supply to

They take care of procuring raw materials, production procedure; packing

secure high quality cement.

Fulfil Customers Demand:

Quality Makes Difference:

The Path of Establishing a Cement Factory:

This has backed up us to give a serious thought to establish a cement factory

cement factories in Bangladesh and daily production capacity is 16.687 Million

MT. Its growth daily.

Unique Cement Industries Ltd.:

Holcim (Bangladesh) Ltd.:

MTC Cement Industries Ltd.:

Lafarge Surma Cement Ltd.:

Lafarge/cement mills is setting up the only modern, integrated cement

manufacturing plan known as Lafarge Surma Cement Ltd. in Bangladesh at

Premier Cement Mills Ltd:

Its transportation subsidiary, with three prominent transport companies in

The Company was founded in 2001 as the private cement producer in

The factory is equipped with world-class European technology built in Denmark

The Marketing Policies of Crown Cement:

Their department is pledged-bound to give the facilities of speedy shipment of

Excellent Employee and Employer Affiliation:

Employee and employer relation should be more hassle free, flow of

 ADVANCED DEVELOPMENT TECHNOLOGIE

 BEXIMCO TECHNOLOGIES LTD.