The Kathmandu Textile Company was established in Makwanpur producing different textiles for 20 years . The company has its market in Kathmandu and…

The Kathmandu Textile Company was established in Makwanpur producing different textiles for 20 years. The company has its market in Kathmandu and Pokhara too. The company was formed by Mr. Biraj Thapa and Mr. Sachin Karki. Mr. Biraj has a good idea on textile production whereas Mr. Sachin was good in managing employees. Miss Kajal was working in the marketing department since the establishment date. From the past seven years, the company has high turnover and good profits due to marketing efforts. There are 15 employees in marketing, 40 in production, and 5 in finance.

Employees requested bonuses, but owners wished to expand to other major cities. Expansion required communication and basic computer skills, which existing staff lacked. A dispute arose between Biraj and Kajal/Sachin over bonuses. Consequently, absenteeism started, salary was stagnant for 5 years, grievances grew over irregular appraisal and compensation, employee turnover began, and competitors started replacing their market share.

Questions:

• a. Is training need assessment necessary to expand the business? Justify your answers linking process of training.

• b. How can Sachin work on improving compensation system of the company?

• c. Identify, how company can reduce increasing absenteeism and employee turnover compete again?

• d. If Sachin needs to do performance appraisal of employees, please suggest him a suitable performance appraisal method and why?