Report on Decision Making United International University Faculty: Prof. Md. Salim Bhuiyan

2. A Decision to Bring Significant
Change in Our Organization-
“Rimers Tea Estate”

3. What is Decision Making
The act of choosing between two or more
courses of action.
Objective: Arriving at a solution for a certain
problem.

4. • Previously known as “Shatgaon Tea Estate”.
• Purchased the ownership of “Shatgaon Tea
Estate” in 2012.
• Named it as “RIMERS Tea Estate”.
• Established 250 years ago by British colony.
3 divisions are-
• RIMERS Tea Estate
• Makrichara Tea estate
• Ichamoti Tea Estate

5. Organogram of “Rimers Tea Estate”
Chairman
Managing
Director
Director
Marketing
Manager
Marketing
Executives
Trading
Manager
Trading
Executives
Delivery
Men
Accounts
Manager
Accounts
Executives
IT Manager
IT
Executives
General
Manager
Sales
Manager
Sales
Executives
HR
Manager
HR
Executives
Logistics
Manager
Logistics
Executives
Store
Keepers
Drivers
Operations
Manager
Operations
Executives
Workers

6. Problems we are Currently Facing
• Lack of co-ordination
• Weak distribution channel
• Low sales margin & Production
• High competitions in market
• Lack of awareness of labor
group
• Lack of motivation &
Monitoring
• No labor insurance

7. Causes of the Problems
• Growing cost of living
• Higher fuel price
• Better salaries offered by competitors
• Management crisis due to turnover
• Lack of opportunities

8. Our Decision
Maintain present employees, change
their compensation package &
balance the pay policy with present
economic situation of Bangladesh.

9. SWOT Analysis of the Decision Taken
• Strengths
• Weaknesses
• Opportunities
• Threats

10. Developed Alternative Solutions
• Maintaining present employees.
• Changing their compensation
package.
• Hiring more efficient sales
executives with present salary
package.

11. Developed Alternative Solutions
(Contd.)
• Use Job Rotation & Cross
Function Policy.
• Job Evaluation of managers &
proper training.
• Performance appraisal for
employees.

12. Justification of the Decision
• Increase in base pay
• Cost of Living
• Short Term Incentives
• Long Term Incentives
• Income Protection
• Work Life Balance
• Allowances

13. Situation before the
Compensation Package
• Poor Compensation Package
• Employee Dissatisfaction
• Poor Performance of the Organization
• Less Profit
• More Risk
• High Turnover

14. Rate of increase in Compensation
Package
Base Pay will be increase by:
• Top Level: 6%
• Mid Level (1st Tier): 12%
• Mid Level (2nd Tier): 11%
• Low Level (1st Tier): 8%
• Low Level (2nd Tier): 7%

15. Our Revised Compensation Package
Total
Return
Total
Compensation
Cash
Compensation
Base
Cost of
Living
Short-Term
Incentives
Long-Term
Incentives
Benifits
Income
Protection
Work/Life
Balance
Allowances
Relational
Return
Recognition &
Status
Employment
Security
Challenging
Work
Learning &
Training
Opportunities

16. Action Plan
Level and Tier Current Salary Cost
(Per anum)
Increased Salary cost
(per anum)
Top Level : 4 persons 1,95,00,000/= 2,04,75,000/=
Mid Level (1st Tier): 7 persons 91,00,000/= 1,04,65,000/=
Mid Level (2nd Tier): 18 persons 1,56,00,000/= 1,71,60,000/=
Low Level (1st Tier): 54 persons 1,13,75000/= 1,27,40,000/=
Low Level (2nd Tier): 51 persons 4,160,000/= 44,92,800/=
Total 59,735,000/= 65,332,800/=
Extra amount needed Tk. 55,97,800/=
Transport cost per annum
Monthly rent and fuel for 2 Micro
buses (12 seated)
25 Days * 2500 Tk * 12 months *
2 = 15,00,000/=

17. Action Plan (Contd.)
Calculate
existing
salary cost
Measure
increased
salary &
Transporta
tion cost
Setting new
sales target
Involving
employees in
organization
al activities
Providing
daily
incentive, if
target met
Compare
acquired
sales return
Make a
network
among
supervisors
Timely
monitoring
reserve
fund
Monthly
Performance
Evaluation

18. Situation after the Compensation
Package
• Effective running of the organization
• More Profit
• Better Performance of the Organization
• Employee Satisfaction
• Better Compensation Package

19. Its all about decision making, upon
which the success of an
organization largely depends. We
believe in ourselves, so believed in
our decision….
Thank you…