HR Practices :

Aarong

Team Members

Fardeen Ameen

Karishma Rahman

• Aarong is a pioneering fashion house in

Bangladesh, established in 1978 with the ideology

of “providing a stable & gainful source of

employment for the underprivileged rural artisans ,

• Despite it’s success in the market – it labels itself as

a social enterprise & supports the informal market

& rural areas of the country with grassroot

initiatives such as enabling 2000 villages to utilize

their artistic skills to produce handicrafts & other

creative services for Aarong

Business

Background

Aarong Today• Nation’s leading

lifestyle brand

• Over 100 product

categories

• Flagship outlet in

Uttara

• Supports artisans in

various sectors, over 75% being

women

• Profit re-invested

back to BRAC’s

development

initiatives i.e.

education, health, microcredit, legal s

22.14

29.56

14

7.24

7.34

7.11

7.11

1.182.68

5

% Sales

Men's

Women's

Children

Home Decor (textile)

Home Décor (non-

textile)

Jewellery

Leather

Beauty

Nakshi Kantha

Jamdani

The HR Approach

• Top-Down Approach(Senior , Mid-

Level , Support System)

• Involves BRAC , The Ayesha Abed

Foundation & Aarong

• Key Functions : Selection , Recruitment

, Delegation & Performance

Evaluation

• Ensure Inflow of Quality Workers

• Applicant Screening/Selection Process

• Problems ? : Slow/Bureaucratic Process

, Lack of Important Specifications

Recruitment

Policy

• On-The-Job Training

• High Performance Work System

• Strategically Fosters Environment of

Punctuality & Productivity

• Problems ? : Sudden Transfers , Lack of

Orientation.

HR Planning

• Fixed Base Salary

• Annual Increments/Festival Bonus

• Multiple Allowances(Travel , Transfer , Discounts ,

Medical

• Commission for Sales Team

• Problems ? – Complex , Unsatisfactory Proportions

Compensation

• Personalized Assessment – Marked

using Evaluation Forms

• Competency Based Approach

• Reward Mechanisms(Promotions ,

Transfers , Increments , Bonuses)

• Problem ? – Mismanaged Data ,

Disproportionate Allocation.

Performance

Evaluation

• Refined Job Specification & Communication

• Effective Job Orientation to bridge information gap

• Simplified Explanation of Compensation , Refined

Proportions

• Human Resource Management Information System

– Greater Transparency , Minimization of Human

Error & Fairer Allocation & Data Management

Possible

Solutions?

The Bigger

Picture

Conclusion

• The Effectiveness of HR Units within the

organization has far reaching impact

• Steps taken to minimize error &

increase worker motivation leads to

greater productivity

• The effects are felt amongst all

stakeholders – the scope to empower

the socially handicapped remains &

can be strengthened.

Thank you for your attention!Do you have any questions?