Executive summary

Outsourcing is a strategy which most of the companies use to reduce the production cost and focus on their core competencies. In world apparel market, lots of fashion brands outsource their production to Asian counties. Sri Lanka is also one of famous country for outsourcing garment production. This has brought lots of economic benefits to Sri Lanka. However simultaneously this industry caused many social issues in Sri Lankan community. However with the time industry has been developed and main players of the industry has successfully faced to those challenges and has rectified many. This report will be discussed the current issues and challenges which Sri Lankan apparel companies faced. This report has been taken Hidaramani Group which is leading Apparel Company in Sri Lanka to analysis the current issues and challenges.

1.0 Introduction

The apparel industry is the highest industrial employment generator and the highest foreign exchange earner of the Sri Lanka. Apparel sector is began in 1970s in Sri Lanka and during 1980s apparel industry were growing rapidly. When it comes to 1986, garment exports acquired largest share of the all exports in Sri Lanka.
However in early stage, there were lot of social issues created around apparel industry. Especially women who work as machine operators faced security issues and less social recognition and many other social issues. Women shift to the industrial zones from rural areas of Sri Lanka to work as machine operators due to poverty of their families. Even the companies operated in the industry less concern about workers’ welfare and machine operators were paid only minimum wages.
However in last two decades, apparel industry of Sri Lanka is completely revolutionized. Especially companies highly focus on employees’ welfare and Sri Lankan companies’ commitment for employees’ welfare had become their competitive advantage. Compared to other countries which operates in apparel industry, Sri Lankan companies follow higher health and safety standards and employee welfare standards. Therefore famous fashion brands are willing to work with Sri Lankan apparel companies. Main apparel companies of Sri Lanka immensely contribute to revolutionize the industry of Sri Lanka.
Hirdaramani Pvt Ltd is one of main apparel company in Sri Lanka which began in the late of 1800s and operates in various sectors. Currently Hirdaramani Pvt Ltd operates in apparel, leisure and power sectors and has more than 60,000 employees. Hirdaramani Group has more than 35 production facilities in Sri Lanka, Bangladesh, Vietnam and Ethiopia and increase production capacity over more than 15 million pieces per month. Hirdaramani Group supply products for leading international brands such as Marks & Spencer, Nike, Calvin Klein, Levi’s, Adidas, Tommy Hilfiger and etc.
This report extensively evaluate the industry group norms and behaviors and the challenges which managers face in people management scenario. Further this critically analysis the motivating factors and motivating strategies deployed in Hirdaramani Group. And also this report recommend how to response to challenges successfully and how to improve further in people management aspects.