Tinkerball hotdogs & Ice-cream Essay Example for Free

Tinkerball hotdogs Ice-cream Essay The purpose of this paper is to perform a case study analysis and provide a solution to the review questions pertaining to different aspects of projection evaluation and, thereby, concluding with recommendations. Mr. Terry Bell is planning to sell ice-cream and hotdogs by acquiring Mr. Jonathan van and other equipment from Mr. Luigi. Mr. Jonathan wishes to sell off his van and has asked Mr. Terry’s services to sell it off. There is a resale price for this van. Mr. Luigi had been in the same business of mobile vending van for almost 10 years and had an accident recently. He wishes to sell off his equipment and supplies at a price to Mr. Terry. Mr. Luigi was selling ice-cream under a franchise agreement with a company Mr. Whippy which will be no longer applicable after completion of 10 years and Mr. Terry shall not be entitled to terms under this franchise agreement. Mr. Terry has been provided with financial data by Mr. Luigi for last 10 years and has been able to draw the cash flows from the operating activities of the business. We will now look at the review questions and provide answers for them: If it is assumed that no cones are wasted the average price per icecream is $8.33 Term 1 2 3 4 5 6 7 8 9 10 Icecream Sales 55,660 37,660 49,880 54,350 57,560 44,350 56,430 57,990 55,320 58,010 Cones 2,783 1,883 2,494 2,718 2,878 2,218 2,822 2,900 2,766 2,901 Icecream 3,340 2,260 2,993 3,261 3,454 2,661 3,386 3,479 3,319 3,481 Franchise Fees 557 377 499 544 576 444 564 580 553 580 Total Payments 6,680 4,520 5,986 6,523 6,908 5,323 6,772 6,959 6,638 6,962 Price : Sales/Payments 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 Figures are stated in U.S. Dollars terms Table 1: Average Selling Price of Icecream As we can see from Table 2, the sales of icecream are more revenue generating and the return on investment / cost is higher compared to the sales of hotdogs, therefore, icecream is more profitable. Term 1 2 3 4 5 6 7 8 9 10 Icecream Sales 55,660 37660 49880 54350 57560 44350 56430 57990 55320 58010 Total Payments 6,680 4,520 5,986 6,523 6,908 5,323 6,772 6,959 6,638 6,962 Net Cash Flow 48,980 33,140 43,894 47,827 50,652 39,027 49,658 51,031 48,682 51,048 ROI % 733.23 733.19 733.28 733.21 733.24 733.18 733.28 733.31 733.38 733.24 Hot dogs Sales 21,210 33,320 23,240 22,210 19,990 24,380 20,890 21,990 21,210 24,300 Total Payments 4,772 7,497 5,229 4,997 4,498 5,486 4,700 4,948 4,772 5,468 Net Cash Flow 16,438 25,823 18,011 17,213 15,492 18,894 16,190 17,042 16,438 18,832 ROI % 344.47 344.44 344.44 344.47 344.42 344.40 344.47 344.42 344.47 344.40 Figures are stated in U.S. Dollars terms Table 2: Products Profitability From table 3, it is apparent that the sales of hotdogs are riskier. The rationing is based on the net cash flow from two products. The net cash flow from sales of ice cream are more consistent in terms of increasing trend, however, that from sales of hotdogs has a variant trend and is therefore considered to be riskier. Term 1 2 3 4 5 6 7 8 9 10 Icecream Net Cash Flow 48,980 33,140 43,894 47,827 50,652 39,027 49,658 51,031 48,682 51,048 Change% (32.34) 32.45 8.96 5.91 (22.95) 27.24 2.76 (4.60) 4.86 Hot dogs Net Cash Flow 16,438 25,823 18,011 17,213 15,492 18,894 16,190 17,042 16,438 18,832 Change% 57.09 (30.25) (4.43) (10.00) 21.96 (14.31) 5.26 (3.54) 14.56 Figures are stated in U.S. Dollars terms. Negative figures are in bold parenthesis. Table 3: Risk Evaluation Diversification Diversification is a risk management technique. From table 3 above we can conclude that by diversifying into two products it allowed Mr. Luigi to cater different customers. By doing this it is also noted that if one is product does not perform well in a year then the other product which may be doing comparatively well can reduce the negative impact on the cash flows. For projecting the remaining 3 weekends’ estimates (A) we assume that a constant average growth in figures based on 47 working weekends. This is performed by apportioning 47 working weekends result to total 50 working weekends. Another prudent approach can be adopted (B) where the YoY% change is adjusted for remaining 3 weekends. It is also assumed that franchise fees and license fees are paid at the start of the financial year and will remain the same. Year / Item 9 10 (47 weekends)    Actual Figures x 50/47 (A) Growth Rate   Ã‚  x 50/47 (B) Icecream sales 55,320 58,010 61,713 58,182 Hotdog Sales 21,210 24,300 25,851 24,497 Total Sales 76,530 82,310 87,564 82,679 Cones 2,766 2,901 3,086 2,910 Icecream 3,319 3,481 3,703 3,491 Buns 2,651 3,038 3,232 3,063 Hotdogs 2,121 2,430 2,585 2,450 Vehicle-related payments 2,880 2,660 2,830 2,646 Franchise fees 553 580 580 580 License fees 150 150 150 150 Total payments 14,441 15,239 16,166 15,289 Net cash flow 62,089 67,071 71,398    67,390    Figures are stated in U.S. Dollars terms Table 4: Estimates for remaining 3 working weekends For calculating the average annual rates for both products we assume figures from Table 4 Col B as the cash flow for the last year. Average Annual Growth Rate (AAGR) is ‘the average increase in the value of an individual investment or portfolio over the period of a year’ (Investopedia n.d.). Average annual rate is calculated by taking the arithmetic mean for 2 years. We also assume that cash flows are generated at the end of the financial year. In the first year it is assumed to have 100% growth. All other aspects of investment and setting up business expenses are ignored for the first year. Term 1 2 3 4 5 6 7 8 9 10 Given 10 New Icecream Net Cash Flow 48,980 33,140 43,894 47,827 50,652 39,027 49,658 51,031 48,682 51,048 51,201 Change% 100 (32.34) 32.45 8.96 5.91 (22.95) 27.24 2.76 (4.60) 4.86 5.17 AAGR % 33.83 0.06 20.71 7.43 (8.52) 2.14 15.00 (0.92) 0.13 0.29 Hot Dogs Net Cash Flow 16,438 25,823 18,011 17,213 15,492 18,894 16,190 17,042 16,438 18,832 24,497 Change% 100 57.09 (30.25) (4.43) (10.00) 21.96 (14.31) 5.26 (3.54) 14.56 15.49 AAGR % 78.55 13.42 (17.34) (7.21) 5.98 3.82 (4.52) 0.86 5.51 5.97 Figures are stated in U.S. Dollars terms. Negative figures are in bold parenthesis. Table 5: Average Annual Growth Rates Assumptions: Terry pays Mr. Jonathan the resale value of the van as prescribed by Mr. Joe. Terry pays for repairing of the van to Mr. Joe. Terry pays for van equipment and supplies to Mr. Luigi. Franchise agreement with Mr. Whippy is cancelled. Goodwill from Mr. Luigi business is ignored. Taxes are ignored. License fee is applicable at the same rate for next 10 years. There will be no new competition. There will be no new food regulations. There is no wastage. The demand for ice cream and hot dogs will be stable or growing at steady pace. Sickness or weekends off are ignored. An allowance of Mr. Terry time of 860 hours per year costing at $40 will be considered as cash outflow. Vehicle related expenses are considered to be $2,601, a constant figure, when indicated to be declining in previous years. However, they are extrapolated in the years when increasing based on respective years’ growth rate in these expenses. In the year 4th, 6th and 8th, they are assumed to increase by 22%, 12% and 9% respectively. The figures from Table 4 Col B are considered as base figures. The number of working weekends remains the same i.e. 50. The AAGR for both products are used for estimating future projections. Year / Item 0 1 2 3 4 5 6 7 8 9 10 Purchase Van (2,000) Equipment (1,200) Supplies (50) Repairing Van (2,500) Icecream sales 77,865 77,908 94,039 101,029 92,419 94,401 108,564 107,566 107,704 108,017 Hotdog Sales 43,739 49,609 41,006 38,048 40,323 41,865 39,971 40,315 42,536 45,075 Total Sales 121,604 127,517 135,045 139,077 132,743 136,267 148,535 147,881 150,240 153,092 Cones 3,894 3,896 4,703 5,052 4,622 4,721 5,429 5,379 5,386 5,402 Icecream 4,672 4,675 5,643 6,062 5,546 5,665 6,515 6,455 6,463 6,482 Buns 5,468 6,202 5,127 4,757 5,041 5,234 4,997 5,040 5,318 5,635 Hotdogs 4,374 4,961 4,101 3,805 4,032 4,187 3,997 4,031 4,254 4,508 Vehicle-related payments 2,601 2,601 2,601 3,165 2,601 2,913 2,601 2,835 2,601 2,601 License fees 150 150 150 150 150 150 150 150 150 150 Allowance 34,400 34,400 34,400 34,400 34,400 34,400 34,400 34,400 34,400 34,400 Total payments 55,560 56,885 56,724 57,391 56,392 57,270 58,089 58,291 58,572 59,178 Net cash flow (5,750) 66,044 70,631 78,320 81,685 76,350 78,997 90,446 89,590 91,668 93,914 Figures are stated in U.S. Dollars terms Table 6: Average Annual Growth Rates Net present value is the total value of cash flows from a project discounted at a suitable interest rate. This is a measurement tool used for predicting whether a project will be successful or not. Time Net Cash flow Discount Factor Present Value Net Present Value 0 (5,750) (5,750) 1 66,044 0.952381 62,898.71 2 70,631 0.822702 58,108.64 3 78,320 0.746215 58,443.92 4 81,685 0.676839 55,287.79 5 76,350 0.613913 46,872.49 6 78,997 0.556837 43,988.60 7 90,446 0.505068 45,681.23 8 89,590 0.458112 41,042.16 9 91,668 0.415521 38,090.12 10 93,914 0.376889 35,395.34 480,059 Figures are stated in U.S. Dollars terms Table 7: Net Present Value Conclusion: The NPV of future cash flow projections is positive which implies that the project may be accepted. They are other factors which Mr. Terry should consider before undertaking this business. Mr. Luigi has been in the business for almost 10 years. There is not much regarding his prior business history but he has done well in icecream and hotdogs selling business as well. Expectation to produce the same result by a teacher is somewhat subjective. Mr. Terry is a retired teacher ad has no prior experience of this business and it is assumed that he is in good health which would surely be an important factor for such business. We have assumed that despite of cancellation of Mr. Whippy franchise, Mr. Terry would be able to create good business for icecream and he would be able to purchase his supplies from a reliable source offering competitive prices. Other assumptions made for the above project evaluation can change hence altering the outcome of the project. Additional item which could be added to the above cash flow projections is tax liability and any financing activity which Mr. Terry may require to finance his initial investments.   We have also ignored the goodwill of business which Mr. Luigi has developed over the years. In accounting terms, a value for goodwill is an asset for business and should therefore be paid for to Mr. Luigi as commented by Mrs. Anita. This will be considered as part of initial investment. However, some may argue that Mr. Terry is not using the same name for his business and assumingly will not using Mr. Luigi goodwill for promoting his own business. It is however, likely f or Mr. Terry to enter this business with small investment and try to serve his customers with the same enthusiasm and strength as Mr. Luigi did for last 10 years. A more accurate projection can be made with further detailed information regarding the market and other issues. Finally, these projections will be adjusted once Mr. Terry actually enters this business. List of References Investopedia- A Forbes Digital Company (n. d.) Average Annual Growth Rate (AAGR). [online] available from www.investopedia.com/terms/a/aagr.asp [30 July 2008]   Ã‚  Ã‚  Ã‚  Ã‚   Tinkerbell hotdogs icecreams – Case Study. Financial Analysis Decision Making

War On Drugs :: essays research papers

Have you ever heard the expression â€Å"War on drugs†?. That was first used in 1972 when Richard Nixon described a series of govern-mental programs intended to suppress the consumption of certain recreational drugs. Marijuana was one of them. However the first attack on Marijuana occurred not in 1972 but in1937 when the Marijuana TaxAct was passed. According to Legalizationofmarijuna.com Harry Anslinger (bureau of narcotics commissioner) testified in hearings on The subject that the hemp plant needed to be banned because it had a violent â€Å"effect on the degenerate races.† This referred specifically to Mexican immigrants who had entered the country, seeking jobs during The Great Depression. The law passed quickly and with little debate. Making possession of marijuana a criminal offense has only increased crime rates. As more and more people find it enjoyable to smoke. By legalizing marijuana law enforcement will be utilized somewhere of more importance. Because possession of marijuana is a common criminal offense, jails are over crowded and court rooms are cluttered with marijuana cases instead of real problems. In Amsterdam marijuana was made legal and the result was that Crime rates dropped by 60% and the amount of drug users did not Increase. Now you may be thinking that marijuana is dangerous, you may Be thinking of all the things you’ve heard about marijuana, like it Causes hallucinations, impairs your vision and judgment, and gives you paranoia. Those are in fact things that smoking marijuana can cause. But they are all short term. Do you want to know how many people a year are killed by marijuana and marijuana related deaths? ZERO. There have been no credible reports of death from marijuna. However, 430,000 deaths a year are caused by Tobacco making it The nations leading cause of death. 116,113 total alcohol related Deaths. And 200,000 deaths from prescription drugs. Now with all the illegal drugs combined there (excluding marijuana) there have been14,218 deaths. And remember there have been zero deaths even remotely related to marijuana. Cigarettes are legal although, according to health.com they are more addictive, cause cancer, damage the respiratory system, raise blood pressure, decrease oxygen to the brain and body, and cigarette smoking is a significant risk factor to the cause of emphysema, chronic bronchitis, stroke, high blood pressure and osteoporosis.

Feminism in Literature Essay

Feminism has gradually become more far-ranging and subtle in its attacks on male-dominated society. Many injustices still need to be corrected, but equally necessary is a more down-to-earth, tolerant and compassionate view of fellow human beings. Introduction Many feminists dislike theory. Sharp intellectual categories, argumentation, seeming objectivity, and the whole tradition they grow out of are just what feminists are seeking to escape. And if their reasoning seems unsystematic they can draw support from the psychoanalysis of Lacan and Julia Kristeva, fromDerrida’s deconstruction, and from Rorty’s view that philosophy should model itself on an edifying conversation seeking rapprochement rather than no-holds-barred gladiatorial combat. Androgynist Poetics Critics, being generally male, had not generally concerned themselves with gender issues. Most of the world’s great literature had been written by men. Sappho, Austen, the Brontes and Emily Dickinson apart, it was difficult to think women really had it in them to write at the highest level. Literature was literature, and critics saw no need to distinguish a specifically feminine way of writing or responding to a text. Virginia Woolf was herself a refutation of that thesis, though her mental breakdown was perhaps brought on by the strain of balancing male self-realization with female abnegation. But in her essay Professions for Women, Woolf complained only that women’s social obligations hindered a writing career. Their lives gave them a different perspective, but women were not fundamentally different from men in their psychological needs and outlooks. Gynocriticism The gathering feminist movement very much disagreed, and argued that women’s writing expressed a distinctive female consciousness, which was more discursive and conjunctive than its male counterpart. Such consciousness was radically different, and had been adversely treated. Simone de Beauvoir in The Second Sex documented the ways â€Å"Legislators, priests, philosophers, writers and scientists have striven to show that the subordinate position of women is willed in heaven and advantageous on earth. † Women had been made to feel that they were inferior by nature and, though men paid lip-service to equality, they would resist its implementation. Some men might be sympathetic to women’s issues, but only women themselves knew what they felt and wanted. And perhaps they always knew. The essays collected in Susan Cornillon’s 1972 anthology Images of Women in Fiction all suggested that nineteenth and twentieth century fiction was simply untrue to women’s experience. Rather than search for the essentially feminine, critics now turned to the social context of women’s writing, to the ways a male-orientated society had formed or deformed individual novels, plays and poems written by women. Adventure and romance, whoever written for, seemed to stress the male competitive element, and even the submissive partner of gay literature only imitated the female stereotype. Not all agreed, of course. Norman Mailer’s The Prisoner of Sex: disliked the blanket criticism of Kate Millet’s Sexual Politics, arguing its examples were too selective chosen. Gynesis Nonetheless, by the early eighties, feminists had advanced to a much more confrontational attack on male hegemony, advocating a complete overthrow of the biased (male) canon of literature. French feminists argued that women should write with a greater consciousness of their bodies, which would create a more honest and appropriate style of openness, fragmentation and non-linearity. Parallel studies in the visual arts stressed a feminine sensibility of soft fluid colours, an emphasis on the personal and decorative, and on forms that evoked the female genitalia. And the problem lay deeper still, in the language itself. Words had been coined to express a male point of view, and that was indeed misogynist. Some 220 words exist in English for the sexually promiscuous woman, but only 22 for promiscuous men. And in the sexual matters that really concerned them, the vocabulary was hopelessly restricted. Discourse was power, said Foucault, and psychoanalysts likeLacan and Kristeva stressed the liberating role that literature should play, particularly to allow the semiotic flux of the unconscious in early childhood, i. e. before the symbolic world of public discourse imposed its male-favouring rules. Poets worked on the boundaries of the two realms, and Kristeva urged them to engender political and feminist revolutions by dissolving the conventions of normal discourse. Gender Theory Five years later the debate had moved on, from exclusively feminine concerns to the wider issues of gender in social and cultural contexts. Patriarchy and capitalism should be examined more closely, perhaps as Althusser had attempted, and sophisticated models built to integrate the larger web of economics, education, division of labour, biological constraints and cultural assumptions. Michele Barrett demanded facts, research. How does gender stereotyping arise in various social contexts? How are the canons of literary excellence actually established? What is the practical effect on literature? Shouldn’t we remember that attitudes are struck within a fictional framework, and can’t be simply pulled out and convicted by a kangaroo court of feminist morals? Critique Literature will often reflect the cultural assumptions and attitudes of its period, and that of course includes attitudes towards women: their status, their roles, their expectations. But a literature doctored of male-orientated views would be failing in its first requirement, to present a realistic or convincing picture of the world. Moralizing, which includes political correctness, has its dangers. Feminists have argued for positive discrimination as the only way to correct centuries of bias. Nonetheless, the consensus emerging among black Americans is that positive discrimination is counter-productive. Disadvantaged minorities desperately need the odds levelled, but not patronizingly tilted in their favour. Psychoanalysis has little scientific standing, and Lacanian theory is further disputed within the psychoanalytical community itself. Feminism does itself few favours by relying on these supports. A more damaging criticism is the concept of the feminine itself. Does it really exist? There are very real differences in the psychological make-up between the sexes, but testing also indicates what anthropologists have long accepted: the expression of those differences is more determined by cultural factors than sexuality per se. Feminists who argue for a more understanding, fluid, and delicate attitude are not so much advocating qualities native to women but for attitudes still repressed by society. That in turn suggests society itself needs exploring rather than sex differences per se, which is indeed a view more recognized in contemporary feminist studies. Feminist Literature Feminist literature, as the name suggests, is based on the principles of feminism, and refers to any literary work that centers around the struggle of a woman for equality, and to be accepted as a human being, before being cast into a gender stereotype. Not all these works follow a direct approach towards this goal of equality. It is only through such media that women believed a change was possible in the way they were perceived in society. Not all feminist literature has been written by women, but also by men who understood women beyond the roles they were expected to fit into, and delved into their psyche to understand their needs and desires. Some works may be fictional, while others may be non fictional. Here, we take a look into the characteristics of feminist literature, and give you a list of some of the many works of feminist literature, that make for a good read if you truly desire to learn extensively about this form of writing and what it stood for. Characteristics of Feminist Literature Feminist literature is identified by the many characteristics of the feminist movement. This will help you understand exactly what is feminist literature. Authors of feminist literature are known to understand and explain the difference between sex and gender. They believe that though a person’s sex is predetermined and natural, it is the gender that has been created by society, along with a particular perception about gender roles. Gender roles, they believe, can be altered over time. The predominance of one gender over the other, is a common concept across almost all societies, and the fact that it is not in favor of women is an underlying, yet blatant, characteristic of feminist or women’s literature. Here, it is argued that any society that does not provide channels of learning and knowledge to both genders equally is not a complete and impartial society. Critics argue that there wasn’t much difference between male and female authors, and that there was no need to identify a separate class of literature termed as feminist or look for traces of feminism in literature. However, if you read any such work, you will realize how such writers criticized society’s andocentric (male-centered) approach, and tried to understand the beliefs and needs of the opposite sex with a subjective, and not an objective, approach. Take for example Jane Austen’s Pride and Prejudice. The protagonist, Elizabeth Bennett was a woman of her mind. Despite the societal pressure (put on her by her mother) to choose a partner, and to lead a life that was decided for all women, she decided to choose her own path towards what she wanted. And none of this was blatantly approached. She did not put an outward fight, in order to choose her life course. The entire piece of work is subtle, and the only clear characteristic of the protagonist you will notice is her assertiveness. And that is one clear characteristic of the feminist approach toward literature. Women in literature of the feminist nature are always featured as the protagonist, who, more often than not, do not readily accept the traditional role of women as decided by society. They are ready to make their own decisions, to express this choice of personal decision-making, and are ready to deal with the consequences of these choices, actions, and decisions. Though a daughter, a mother, a sister, or a wife, any piece of feminist literature first deals with a woman as a woman. It is not these relationships, roles, or stereotypes that give these female characters in literature their identity. Their identity is defined by their choices and their beliefs which are then associated with these roles. It is important to note, that, not all works of feminist literature have happy endings, both for the character, and for the author of the work. Women have been ostracized by society for openly demanding equality, and have had to face several negative consequences of their decision to go against the waves. Not only feminist literature, women have been treated as important subjects even in many literary works by men. For instance, Henrik Ibsen, a Norwegian author and playwright, often focused on women, women’s issues, their troubles faced by society, and the decisions they made based on their personal values and beliefs. If you take a look at the play called ‘A Doll’s House’, by this very same author, you will clearly notice the strength and character of the protagonist. Not all, but some pieces of feminist literature (particularly non-fiction) showcase and stress on women’s suffrage and a demand for equality in society, for political, social, and economic rights. In modern feminist literature, the attack on a male-dominated society became more forthright and straightforward, where women demanded a closer look into the patriarchal and capitalistic approach towards feminism.

Factors influencing the various Compensation Packages - Free Essay Example

Sample details Pages: 11 Words: 3295 Downloads: 10 Date added: 2017/06/26 Category Economics Essay Type Cause and effect essay Did you like this example? The main purpose of this project is to describe about compensation packages and factors influencing in this packages. And also discuss the impact of staff turnover and the employee absenteeism ratio which effecting the organisational productivity. Bangladesh is a developing country. Don’t waste time! Our writers will create an original "Factors influencing the various Compensation Packages" essay for you Create order According to UNDPs Human Development Report 2007/2008 Bangladeshs rank is 140th out of 177 countries. In Bangladesh, 40% of total population lives below the poverty line. In other report of Bangladesh Garments Manufacturer and Exporters Association (BGMEA), 2007 it shows that garments sector provides maximum export (76%) of total export in Bangladesh and 1.7% of total population of Bangladesh is working in Garments industries. Ready made garments exports mainly are doing in the European market US market. The ratios of exports are 49% to European Market, 33% to the US market rest (18%) to other countries. In a report shows that due to a strong demand for skilled labour combined with insufficient wage and discontinuity of payment, dissatisfaction of job, bad attitude in job etc. there is high level of migration of workers between factory to factory, and the average turnover is around 20% and absenteeism ratio is also increasing. Methodology: Secondary data is the main source of d ata of this project. I collected information from internet, journal about Bangladesh labour issue, some local magazine and newspaper, and books of human resource management. This project is based on exploratory research. I share my personal experience in based on my previous work. Literature Review: According to Bratton (2007) Reward refers to all of the monetary, non-monetary and psychological payments that an organization provides for its employees in exchange for the work they perform. So, reward can be wages, pay, money, recognition, compensation, psychological contact, promotion, etc. according to Human capital centre tool box series rewards can be anything which is receiving something in exchange for services or actions. However, the worker is getting return from their employer for the work done, can be describe as rewards and rewards is used for various terms or purpose. Earlier reward used only as the term payment (Torrington et al, 2005) but currently it find as bein g too narrow in extent people do not accept only financial form as a reward on the return of their work, they like to take non-monetary and recognitions for their work (Bratton Gold, 2007). And I used compensation the term as motivational factor. The term compensation is broadly used in the American literature alternative to reward (Torrington et al, 2008; Armstrong, 1998 cited on Bratton Gold, 2007). Moreover, the design of reward systems depends on two factors i.e. economic and social factors. Nowadays managers are forced to improve labour productivity and the quality of the products and services based on the local consumer tastes and different local markets. A better social environment between management and other employees of the organization and employee believe and organizational loyalty, all work to the concept of high-commitment-high-performance work coordinations reward which positively helps to improve the performance of the firm (Paauew, 2004 cited on Bratton Gold 2007). Kessler (2001) identified reward role as performance-related pay which plays vital system within the workforce. Paauwe (2004) state that reward management can be interrupt by the social and psychological factors and reward is a significantly essential in lead to system of impartial distribution. And helps to decision making by creating a employees conception of equality and reliance (Boselie et al, 2001). Due to problematic nature of pay system Brown (1989) describes that the reasonable management of compensation is necessary for the involvement of the adequate management, it is not prerequisite to be satisfy. (Bratton Gold, 2007) Furthermore, Bird and Beechler (1995) cited in Briscoe Schuller (2008) established that employee performance (e.g. morale and turnover rate) in firms that successfully adopted the strategic fit concept was significantly better than in firms that did not do so. Although managerial performance (e.g. profit margin and sales) was also better, the d ifference was not significant. The concept of fit refers mainly to the close linkage of HRM strategies and business strategies in ways that will help retain and motivate employees. Yes it is very good point retain and motivation of employee, as because every organisation aim is finding way to keep there employees. Motivation is one of them; it can be two types money and appraising employee. In most of the case money is main motivational factor for the employee especially in Bangladesh. The reason why money is the main factor then we can see from table 1 about the monthly income of average employee is low and there life status is not much standard based on there income and expenses. So they always looking for better opportunity when ever they got good offer from other company they migrate or switch the company. Main body: Compensation System Analysis: Saiyadain (2006) describes that I am only marking my time in this organization till I get a better paying jobÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦[4] Financial compensation represents a part of total reward system in an organization. Even though for the overall satisfaction of the employees money still plays a significant, more constant and more difficult role. The major responsibilities of HR managers are to give compensation or pay employees for their work and increasing structures of compensation packages. As because a good pay packages helps the organization for talent hiring and retaining employees for long time that necessary for the high productivity (Saiyadain 2006). Determining Compensation: According to Saiyadain (2006) to set the compensation structure is the most complicated and time consuming activity of HR manager. This decision is depends on a numbers of variables which are discussed as bellows: Trade Union: Trade union is one of the im portant variable in determining the levels of compensation because they always pushing organization and force to pay better compensation for the employees. Hiring and retain talent: Better pay structure works significant role in the organization to attract and retain talent employee. A good compensation system helps to influence a great number of applicants where organization may get the opportunity to select the best candidate among them. Region-cum-industry basis compensation: In Bangladesh context organization has to determine compensation structure based on the region-cum-industry. Organization cannot afford to pay less than region-cum-industry due to chance to lose the employees for their better opportunity. And on the other hand organization they are not allowed to give high compensation because the pressure of the other organization. Job security: Some times employees are looking for good reputed organization where jobs are more secured. And they are not giving prefe rences which are providing high compensation but hire-fire is the regularly happened in the organization. Ability to pay: Ability to pay is also a factor in determining the compensation. Sometimes organization is not affordable to pay high compensation due to the size and profitability of the organization. The Civil Rights Act 1964 or Equal Pay Act: The civil rights act which is determine the standard minimum wages of the employee based on living expenses and life status. This law also covers not to discriminate man or woman in the workplace who are doing same values and equivalent job. Methods for Determining Compensation: Saiyadain (2006) describes there are two broadly uses methods for determining compensation such as salary survey and job evaluation. These are discusses as follows: 1. Salary survey: HR manager can determine compensation by conducting a survey in similar industries for similar positions. It is quick and less expensive way to determine compensation. Th is survey could be done at two levels such as organizational and professional levels. In the organizational level the HRM department responsibility to undertake a study to find out equivalent compensation package in the similar industries. They can collect data from different source for example checking with HR managers of similar industries, collect information about compensation packages from newspaper advertisement and electronic media including websites for related jobs in similar industries. In addition HR department also can arrange a formal salary survey to determine compensation. However organization can determine compensation with the help of professional consultants who are expert in this sector. They use variety of technique to suggest compensation package (Saiyadain 2006). 2. Job Evaluation: Bloom (1998) cited on Torrington et al. (2002) describes job evaluation is a systematic process designed to aid an establishment in establishing differentials across jobs within a single employerÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ The culmination of this appraisal process is a hierarchy of jobs denoting their relative complexity and value to the organization. This method is the way to build up a connection between the employee contribution and compensation for this contribution. It is a good method to evaluate employee skills and also helps to show the best performance in a job. Job evaluation is the best way to observe the outcomes of skills, capabilities, measures the responsibilities and work environment which is closely related to the best performance. Basically it does not set the value of job but it gives foundation for it. And this is a performance appraisal technique which helps to improve the job descriptions and requirement (Saiyadain 2006). According to Saiyadain (2006) there are four methods of job evaluation. These are ranking method, job classification, point system and Factor comparison system. These methods are discusses as below: Ranking met hod: This method is the simplest method of job evaluation. In this method the whole job is being categories based on the difficulty level. For example in garments industries employer segments operator in 4 different levels such as Tr. Operator, Jr. operator, operator and Sr. operator. They categories based on the skills and experience but there is not specific way to indicate the performance levels. It is only showing the difficulty levels of the jobs. Job Classification: This method is identifies the classes, categories and grades of job. This is a grading systems of job for example in garments industries there are some operation which are important for making garments but normally anybody can not do that process with maintaining target. In this method it classified or grades the operation such as A grades, B grades, and C grades operation and performance ranges such as above 80% is very good, 60% 79% good, 40% 59% average and below 40% is poor. This is the good method of clas sify operators grades. Point System: It is a most practical method of job evaluation as because operator in garments industries may have variety of skills. Each segmented operations are important in the garment industry with 100% target and this is important for the company productivity. One operator can do several good categories operation with 100% target or some average operations with 100% target but on the other hand one can do several good categories operation but only can give the 60% 80% target in that case point system is the best way to evaluate operators performance and influence to improve their performance. Factor Comparison System: This is a complicated and expensive method due to it required consultation of professionals and specialists for judgment and assessment of jobs. In this method it compared the money value of one factor in one job with the money value of the same factor in other job. This is a more suitable method because it is structured based on the well-known compensation systems (Saiyadain 2006). Labour turnover analysis: Some consultants, academics and management gurus states that There are no longer any jobs for lifeÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦[3] Torrington et al. (2002) argued about the impact of staff turnover rates is depends on the organization to organisaiton. In some organization is successful in business with high turnover rates which are impractical to function in other sector due to the different in operation and difficult to replace skill workers. For example in some chains of fast food restaurants are generally managing business and become successful with turnover rates in excess of 300 percent that means standard occupancy for each employee is only four months (Ritzer 1996; Cappelli 2000). On the other hand, in a professional service organization where personal relation is more important between employees and clients to organizational success, it is badly hampered to the organization if the turnover rate s are excess of 10 percent. Bevan (1991) cited on Bratton Gold (2007) indicates several causes for high staff turnover. He identified that pay in not only the reason for staff turnover and there are some other factors works on that issue. They are follows: Employee expectation: The employees expectations are not matching with the job such as bonus, benefits, holidays and etc (Torrington et al 2002). That factors causes dissatisfaction of job. It is more likely happened with the new employees of the organization. A lack of attention: Employees are found that managers are not giving attention to them and they are not providing supporting training to develop themselves. For that reason they are not well perform in the job. Work environment: Work environment is not friendly with the employee such as lack of freedom in work, limited responsibility, no challenging environment and there are no innovative works within the organization. Appraisal system: Some organization doe snt have the proffer evaluation systems. So employees are disappointing with the unfair promotion and worried about the development opportunities system. Management system: Due to unskilled management and their unfair treatment with the employees and lack of knowledge of how to motivate employee. Gregg and Wadsworth (1999) cited in Torrington et al. (2002) demonstrate in their study of 870,000 workers starting new jobs in 1992 out of that 17 per cent had left within three months and 42 per cent within 12 months. The above discussion of all issues are the main reasons rather than pay issues which depends on the employees, management, the work environment and organizational systems what welcomes staff turnover rates in the organization. Saiyadain (2006) point out that I changed my previous job to this because it pays wellÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦[4]. So pay is the crucial issues for quitting job. According to Torrington et al. (2002) there is some argument in the reten tions literature about raising pay levels reduces staff turnover. In one side some researcher found that usually, employers who offer the most attractive reward packages to the employees have lower turnover rates than those who pay poorly (Gomez-Mejia and Balkin 1992), for that reason many organization uses pay rates as their major weapon in retaining employee (Cappelli 2000; IRS 2000a; IRS 2000b cited on Torrington et al. 2002). On other research based on questionnaire suggests that pay is a good deal and less important than other factors in a decision to quit ones job (Bevan et al. 1997; Hiltrop 1999 cited on Torrington et al. 2002). In a study Sturges and Guest (1999) cited on Torrington et al. (2002) point out that in the field of graduate employment pay rising is not vital factors for quitting job that only resulting greater job satisfactions but they wants more challenges and innovation within the job roles. In addition, a result of research cited on Torrington et al. (2002 ) appears to verify the views of Herzberg (1996) where he indicates pay as hygiene factor rather than a motivator. Therefore it shows as a cause of dissatisfaction at work, other than not of positive job satisfaction. People who are not get paid well by the employer they automatically motivated to leave the job but if they satisfy about their pay, the additional benefits do not effect to change their mind to quit job. Absenteeism analysis: In everyday life employees need a little extra effort to come to work in an emergency. A little little problem makes a tremendous impact on work attendance such as problem with bicycle, a drizzle, a small tiff with spouse and several such types of incident. But it depends on satisfaction or dissatisfaction of work and for the dissatisfied worker these minor problems becomes the major issues for missing from work on the other hand for the satisfied worker is totally irrelevant. However, it causes extra cost to cover this situation. An organizati on has to recruit extra manpower or retaining large number of manpower as they required due to the increasing rates of the fact of absenteeism. Bhatia and Valecha (1978) cited on Saiyadain (2006) defines that organization has to retain extra 10 per cent workforce of the total workforce. However, there are several definition of absenteeism are available and most of them are describes absenteeism as absence from work when one is expected to work. Absence from work could be happened several reasons such as inability or unwillingness to come to the works. Any absence with prior notice or approval did not count as absenteeism only unexpected sickness or injury is counted as absent. Moreover, According to Sinha and Nair (1965) cited on Saiyadain (2006) study on absenteeism shows that the lower job satisfaction is causes the higher rates of absenteeism. They classified their research based on respondents in two groups as low absentee and high absentee group. Their result also points out that low absence groups are more satisfy with their job than the high absence group. Case analysis: Pacific Jeans Ltd. is one of the leading garment industries in Bangladesh. They are working with world renowned buyers like GAP, HM, NEXT, Lee, Wrangler etc. This company introduced modern technology with high-tech machine which is ensured high quality product and increases there production upto 20% annually. Up to year 2004 they use to set compensation packages without any job evaluation process. They only were taking the recommendation from manager to determine compensation of the employee. But that was not fair system and it was badly affected to the employee. Due to that unfair system operators turnover and absenteeism ratio was surprisingly increases where company loosing there productivity and efficiency. For finding the solution of that company introduces a new team whose duty is to find out the problem and give the best solution for that. However, this team introduce s operator ranking method of job evaluation like Tr. operator, Jr. operator, operator and Sr. operator where any have chance to go any categories with showing high performance. They also introduce process or operation classification method like A B C grades based on the difficulty of the operation. Therefore every operator was motivated himself to do good grades operation which helps him/her to promote themselves. Moreover, the team finds out the solution about the new operator recruitment process which helps to select the best and necessary operator the team. They taking cycle time (cycle time is observed time of a process how long it takes to complete the operation) of operation (at least 10 cycle) with the help of stop watch which the operator knows best and calculate the capacity of the new operator with giving 10% 20% allowance (for example bobbin change, needle broken, thread cut etc.) based on the operation categories (see appendix I). Based on his/her capacity and doing which grades operation it can easily identify the ranking of operator and determine the compensation package. It is fair judgments system for the operator. So far that is best and fair way to evaluate the operator. As a result of fair evaluation system and compensation packages operators are motivated to do best performance and reduces the absenteeism and turnover rates that lead to high job satisfaction to the employees. Conclusion: Compensation is a crucial issue for the employee. If an employee is not well compensated for his contribution then s/he is not happy in his job. So it guides employees to increases absenteeism and turnover. There is a proverb that money is sweater than honey. Every body in any organization is work for survival for the fittest especially in the developing country or poor country. From the analysis of compensation system it could see that how fair judgment effecting employee mind and motivate the employee turn into satisfaction or dissatisfaction of jo b. Human Resource Management is playing a vital role in an organization to change all the factors by taking some necessary steps about employee motivation. Finally it can say that good compensation packages for employee works as motivational factors in an organization while it reduces absenteeism and turnover rates in an organization on the other hand it also helps to increases company productivity.