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 REVIEW REPORT

ABOUT THE ORGANIZATION:

Thomas Bata, a shoemaker in his family for the 9th generation, created Bata in Zlin,
Czechoslovakia, back in 1894. His modest shoemaking equipment, which he bought with his
money, helped to transform the shoe manufacturing sector at the time. A family legacy of
making high-quality, durable shoes at reasonable prices was born as a result. Over 100,000
independent dealers and franchisees make up Bata's current global network of over 6,000 retail
locations. This covers a wide range of retail concept stores, such as AW Lab Stores, City Stores,
Family Stores, and Angela Stores. The trademark "logo" is one of the most identifiable images in
the entire globe as a result.
The biggest maker and marketer of shoes in the world, Bata, aims to "succeed as the most
dynamic, flexible and market sensitive international organisation with footwear as its main
business." Furthermore, Bata runs an International Shoe Innovation Center in Padova, Italy,
which supports 83 of its businesses globally as well as a number of non-Bata firms by instructing
personnel in anything from fundamental design principles to cutting-edge procedures.
Bata commenced operations in Pakistan in 1942 with the construction of a facility at Batapur
(about 20 km from the provincial capital of Lahore), specifically to manufacture leather boots for
the army. There were very few tanneries in the early 1940s that could consistently produce high-
quality finished leather. As a result, the business started tanning operations within the Batapur
facility.
It flourished rapidly thanks to the entrepreneurial spirit of the owner, and it now bills itself as
Pakistan's largest shoe production facility.
HUMAN RESOURCE MANAGEMENT:
The importance of HRM:
At Bata, the four HR strategy pillars—Talent, Effective Organization, Culture, and HR Excellence.
Since labor efficiency correlates with a business's survival, workers are each company's most
valuable resource. Every institution's core principle states that the bigger picture must take
precedence over the employees' individual demands. This is only achievable through effective
strategic planning and implementation, which would be carried out by the organization's human
resources (HR) department. As a result, the HR department is essential to an organization's
efficient operation. They employ a range of techniques to develop innovative strategies. Below is
a description of the steps: scheduling human resources (recruitment, selection, hiring, training,
and various other processes). Pay and other benefits for employees performance monitoring
Workplace relations
These core processes should be carried out in a step-by-step manner, beginning with human
resource management (HRM) planning, and ending with employee relations.
Human Resource Management:
Primary Process:
The most important and fundamental step in developing an effective strategy for the
organization is this one. This includes placing each individual in the ideal setting for their abilities
and accomplishments. It starts with hiring and continues with appropriate employee training to
make the employee a valuable asset to the business. The following are the general HRM
processes: practice 1. Recruitment or Talent Acquisition: The practice of advertising employment
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opportunities and encouraging prospective workers to register for such positions they seek
inside an organization is beneficial and ensures that the best applicant is chosen. 2. Selection: A
crucial phase in HRM is selection. It entails identifying the qualified candidates who are the
greatest fits for the roles and eliminating the less qualified candidates through the use of testing
procedures or in-person interviews. (To apply for a job, you must have a degree, and the
candidate must be prepared to work in a dynamic workplace.) 3. Hiring: This is the process of
formally presenting the job offer to the most qualified candidate and informing them of the start
date. 4. Training and development: The chosen applicants receive training, and their abilities are
sharpened so they can face obstacles in the years to come and perform more efficiently. (The
process is of about 3 months and the duration period Bata Pakistan trains their salesman
according to the corporate environment they shall work in, the employee must have a complete
understanding of Bata’s product line, and how they are to deal with the customers, how to make
sales and price tag the pasting on each shoe).
 Analysis and Importance of Training and Development:
All levels of employees need to be developed if they are to carry out their responsibilities well
and advance in their careers. A fundamental component of most companies' human resource
development strategies is training and development. It is playing a bigger role as a result of the
development of technology, which has increased competition, raised consumer expectations for
quality and service, and resulted in a desire to cut costs. In order to be effective, training must
be a planned activity carried out after a thorough study of the requirements and targeted at
particular qualities. Even though training and development are both components of the same
system and differ in some respects, they are occasionally confused with one another. The
establishment of chances to encourage employee progress is a component of development.
Compared to training, which often focuses on the present employment, it is more long-term or
future in character. This means that whilst training typically focuses on the demands of the
current workforce or skill gaps, development is more concerned with preparing people for
prospective tasks and responsibilities. Due to technology's rise in the number of deskbound
employees and the replacement of industrial workers by knowledge workers, training and
development are at the forefront of HRD. Due to organizational and training demands, the
human development division must now take the initiative and lead. The two most important
considerations are whether training is actually necessary and whether the intervention would
directly or indirectly aid the organization to achieve its objectives.

 Reward Systems Impacts:

Reward systems are used by organisations for a variety of reasons. The effect of reward schemes
on employee effort and performance is universally accepted, attendance and retention. Also,
the dedication of the workforce to the company.

There are several various reward schemes that can be provided that are geared at both
individual and team performance, including:

Bonus programmes have been in use in American company for a while. They are frequently used
in sales organisations to inspire salespeople to bring in more clients or earn more money.
Typically, they celebrate individual achievement. However, they can also be used to honor
collective achievements. The strategy of designating a specified amount of a company's income
to a fund that will be given to employees is known as profit sharing. An employee often receives
money when a company closes its books for the year that is equal to a portion of their wage.

Or a commission system, which compensates staff financially for each transaction. They may,
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however, be based on either a fixed or a variable proportion of the sale price. Typically,
commission structures differ from business to business.

 Motivation theories:
Managers and leaders are crucial in inspiring their teams to be innovative and productive. When
paired with a person's talent and ability, motivation can cause them to act in a specific way
producing performance.

A theory of motivation is a broad explanation of human behavior that aims to explain why
people behave in certain ways in response to certain stimuli. There are two fundamental kinds:
Content theories: What drives human behavior? How do you inspire individuals according to
process theories?

We shall be comparing and contrasting its negative impacts.

Frederick Winslow developed scientific management, sometimes known as "Taylorism," which

demanded a careful study of costs, output, and input. Taylor compared men to machines that
might be made more productive by eliminating unnecessary effort. He thought workers were
naturally lazy and just worked for the money, therefore he had low expectations for them. Even
though Taylor's notions are still used to promote effectiveness, strict applications of scientific
management may underperform for said reasons listed: A person's most productive manner of
working may be ineffective for another; management and employee economic interests seldom
align; considerable obstacles in evaluating and rewarding service-based jobs. In the explanation
of Maslow's hierarchy of needs, it is believed that people want to achieve more in life and that
their wants are prioritized in importance. The focus of content theories of job satisfaction, which
are based on Maslow's hierarchy of needs, is on the objectives of employees and the elements
that contribute to a level of satisfaction that is acceptable for them. Maslow developed a five-
stage hypothesis with the following categories, listed in decreasing order of importance:
physiological requirements, safety and security needs (physical protection), social needs
(connection with others), esteem needs (getting praise from others), and self-actualization
needs (the desire for accomplishment or to leave behind a legacy). It made an attempt to
elucidate how Maslow's hierarchy of requirements underlies the concept of job satisfaction.
They need the respect and admiration of their peers in addition to the basic necessities of food,
clothing, housing, protection from physical harm, and social interaction. Job satisfaction and
dissatisfaction are not exclusive, according to the Herzberg two-factor theory, often known as
the Herzberg's Hygiene Theory. The research that backs up this theory indicates that while some
job characteristics are linked to job pleasure, a different set of employment factors contribute to
job unhappiness. Satisfaction won't always result from getting rid of misery, and the opposite is
also true. In order to eradicate sadness, the study's findings indicated that management must
identify and get rid of the factors that are causing it. If you wish to increase contentment, you
must incorporate those essential characteristics. But until all the undesirable components are
removed, this won't function.

Performance supervision:
The completed work as well as the long-term objectives should be well managed. Under talent
management, employee evaluation is conducted and enhanced. Encouragement is important for
this type of management in order to boost employee confidence. This may be accomplished by
offering them just rewards that will encourage them to perform as productively as possible. e.g.,
how many customers were satisfied the job well done, how many pairs of shoes did they sell,

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and their attitude towards selling the product.
The performance scheme used by Bata:
A strategic tool and framework that helps managers and businesses assess their performance is
the McKinsey 7S model. According to the McKinsey Institute, it highlights 7 crucial organizational
elements that must be integrated and targeted for efficient change management procedures as
well as continual performance improvements.
The seven components of the McKinsey 7s model can be separated into two groups: hard and
soft. They are acknowledged as (Hard: System, Structure, and (Soft: Shared Values, Skills, Style,
and Staff). The "hard" components of the model are clearer, more concrete, and directly under
the control and guidance of the organisation. These variables have less concrete bases and are
more influenced by organizational culture. The management therefore has no actual control or
authority over them. Even though they can be more challenging to describe and quickly identify,
these elements are just as important for an organization's success and improved performance.
Employee compensation and benefits
The staff's motivation to attain organizational objectives is greatly influenced by their
appropriate compensation or wage. Workers will be satisfied at work when they are rewarded
for their greatest efforts. Monetary perks often include bonuses and fringe benefits in addition
to pay. (There is no commission given on sales of Bata, each salesman is given a bonus on the
percentage of the shoes they sell whereby they get a reward through the bonus slip, there are
office contests where the winning party gets a reward in monetary terms, moreover, a
proportionate off-day is given depending upon the time duration they have spent in the
organization)
Employee Relations
The worker as well as the company ought to have a good working connection. Situational
variables both encourage and discourage employees from sticking with the company. Such
elements may encompass the workplace, labor laws and relations, pay, etc. All of these
conditions must be met by employers in order to promote employee connections, which
increases employee retention.
Bata’ External and Internal Variables impacting the HR planning:
Assessing the current workforce's motivating techniques and skill sets in comparison to what will
be needed in the next years is a key component of human resource planning. In order to
succeed, the organisation must take into account both internal and external issues, as well as
the necessary skills. Through a SWOT analysis, the information below was discovered.
Internal and External Factors:
The organization’s overall orientation is supported by human resource (HR) planning. It is crucial
that the business accounts for the costs associated with hiring, training, and performance
reviews in its budgetary control. The number of workers who are able and willing to work in a
particular occupation for a specific wage is known as the labor supply. It differs between nations,
as well as between regions within those nations, and is impacted by demographic change. The
labor market has an impact on workforce planning.
HR planning as influenced by internal factors
The company's hiring strategies are influenced by the internal climate. The strategic plan for the
organisation will include a size and skill assessment of the staff. Businesses that grow will
probably hire more employees, while some jobs may be eliminated by technology. Changes in
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the nature of the company's operations, such as the addition of additional overseas businesses,
will alter the types and skill levels of the personnel. As profitability changes, so will the amount
of employees needed and the working environment. More staff exits could occur if management
changes. HR planning is influenced by external influences.
The external environment has an effect on how much labour is accessible to potential
employers.
The demographic shift has an impact on the job market. Demography is the study of population
size, age composition, growth, and density of people. Factors include population ageing, rising
migration, rising birth and death rates, and global population expansion.
Population changes have an impact on sociocultural evolution. For instance, the need for a
better work-life balance and increased female employment an increase in part-time and
temporary employment, and a loss in both employee and employer loyalty
Technology innovation has altered both the kind of jobs that are available and the skills that are
required for them. For instance, more people may work remotely thanks to current information
and communication technology (ICT) (from home or from a remote location).
Workplace mobility A person's capacity to change employment has been influenced by their
level of education and training. Geographic mobility is influenced by how desirable a location is
in terms of its environment, climate, amenities, telecommunications, and average earnings
(migration from geographic areas).
The state of the economy has a big impact on the economic cycle. During a recession, there is a
rise in labour availability but a decrease in wages. During economic booms, more people are
able and eager to work due to higher salaries.
The make-up of a workforce is impacted by employment laws and regulations, such as those
limiting maximum working hours.
The Conflicts HRM may Face:
 Communication in the hierarchy of management
 Problems with international Stores
 Less Satisfied with a job
Impact of Human Resource Practices on the Organization:

Engagement and satisfaction among employees increase productivity, which increases the
achievement of company goals. The company-wide work climate must be kept positive by HR.
Online certification programmes for human resources could be beneficial in this case. You could
learn about the most recent HR topics and trends from these courses.

Good HR practices encourage employee happiness and motivation to contribute to a company's

success. A business's competitive advantage can be boosted through education, learning, and
skill development. Effective businesses focus on this positive effect of HR by helping employees
with training, education, and development. To Incorporate changes in the workplace's
demographics better HR practices are required. For their working environment, the millennial
generation has specific expectations. If organisations want to keep employees, they must be
ready to offer a flexible work environment, including the layout of workspaces, tasks, and
schedules, among other things.

Analysis on Bata’s Management Style and Practices

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Every four to five years, there should be modifications in the management team at Bata. A new
MD brings his or her own management style and area of expertise. Each MD sets fresh
objectives and brings a wealth of knowledge and best practices from throughout the world. But
there is a cost to everything. The leadership continuity is disrupted, unlike Servis (competitor),
which may have been run by the same top executives for several decades.
The majority of staff members stayed with Bata until retirement since the company has a history
of rewarding loyalty, and the majority of senior managers have been there for more than 20
years. A large housing colony in Batapur, a provident fund to which both individuals and
businesses contributed 7% of their income, a gratuity system, an annual bonus, subsidized
cafeteria facilities, and a children's scholarship program were just a few of the many benefits
provided by Bata. Bata has allowed the workforce to progressively shrink since the early 1990s
as a result of attrition caused by people retiring. While the number of employees at the Maraka
factory climbed by 30% between 1990 and 2002, it declined by 30% at the Batapur facility. Bata
has allowed the workforce to progressively shrink since the early 1990s as a result of attrition
caused by people retiring. An overall drop of 25% was achieved between 1990 and 2002 as a
consequence of a 30% decline in the Batapur plant's workforce and a 32% growth in the Maraka
factory's workforce.
In the merchandise division, the average age used to be 50. It is 30 now. A modern class of
supervisors is what we want to create, especially in merchandising. For senior general manager
roles in 5 to 10 years and for the ability to accept worldwide assignments in 7 to 12 years, we
need to develop ambitious, self-starting, young people.

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