1. FORMULATION AND
IMPLEMENTATION OF
ORGANIZATIONAL BEHAVIOR
CONCEPT IN PENGUIN
SPORTSWEAR PVT LTD
Submitted to National Instituteof Business management
Lecturer :Mr.Lalith Weragoda
Group Members :Vichithra Siriwardena
Prasanathika Dissanayake
Dinushika Madhubhashini

2. 1
Contents
Acknowledgement ...................................................................................................................................... 2
Introduction................................................................................................................................................. 3
PENGUIN GROUP & EMJAY INTERNATIONAL............................................................................. 3
Variables of Organization Behavioral......................................................................................................... 4
Dependent variables................................................................................................................................ 4
Independent variables ............................................................................................................................. 5
Individual level variables-................................................................................................................... 5
Group level variables .......................................................................................................................... 5
Organizational level variables............................................................................................................. 6
Literature Review........................................................................................................................................ 6
Turn Over................................................................................................................................................ 6
Problems related to turnover............................................................................................................... 8
Review ........................................................................................................................................................ 8
New strategies they adopted in last couple years.................................................................................... 9
Penguin Sportswear (Pvt) Ltd Employee Turnover Details ................................................................. 11
Comparison and contrast between the OB theories and actual OB implement in Penguin (Pvt) ltd.... 12
Recommendations..................................................................................................................................... 13
Abstract ..................................................................................................................................................... 14
References................................................................................................................................................. 15
Annexes..................................................................................................................................................... 16
Figure 1-Vision and Mission statement ...................................................................................................... 3
Figure 2-Peguin Sportswear (Pvt) Ltd Employee Turnover Detail graph ................................................ 11
Table 1-Job Satisfaction and Turnover ....................................................................................................... 8
Table 2-Adopted new strategies................................................................................................................ 10
Table 3- Penguin Sportswear (Pvt) Ltd employee turnover Details ......................................................... 11
Table 4-OB implementation...................................................................................................................... 12
Table 5-Recommendations ....................................................................................................................... 13

3. 2
Acknowledgement
We consider it is a great privilege to thank all those people who helped me to complete this project
work. To express our sincere thanks to the management of National Institute of Business Management-
Kandy branch and my project guide Mr.Lalith Weragoda for giving us this opportunity to commence the
project work and guidance do so.
We express our profound thanks to, Mr.Hemantha, Group General Manager in Human Resource,
Penguin Sportswear (Pvt )Ltd and all the HR executives, line supervisor and staff for giving their valuable
assistance and guidance and sparing valuable time in clarifying various points raised by us.
At for last not for least like to thank our parents who gave me a great deal of helping hand to make this
project a success.

4. 3
Introduction
PENGUIN GROUP & EMJAY INTERNATIONAL
Penguin Group & Emjay International; a leading manufacturer of high quality apparel in Sri Lanka offer
a range of innovative and customized clothing and manufacturing solution to suit your apparel needs.
Most of their plants are based in city of Kandy. Penguin Sportswear, Casualwear & Pony Euro are all
located in Kandy with Kalacraft being the only exception, which is located in Kalutara
From beginning in 1989 with a workforce of just 125 and 80 machines the Penguin Group of companies
has grown to a company employing over 4000 people with 2000 machines servicing the best high street
Retails both in Europe and the USA.
Today the Penguin Group of companies is gaining new vistas in management strategies, increasing their
efficiency and effectiveness with their “One thought process to the goal” service philosophy.
At the Penguin Group of companies believe in a more participatory management system; being
committed to their team as much as to their customers. They strive to create a dedicated workforce with
high morale. This, they believe is the key to their success.
VISION
We Make Your Dreams Our Goals
MISSION
G ive our time money and resources to develop the communities we are in.
O ut do the competition by keeping our promises to our customers and
stakeholders.
A chive internal excellence in our processes.
L ove for the company by creating a self inspired culture in our team.
Figure 1-Vision and Mission statement

5. 4
Variables of OrganizationBehavioral
Organizational behavior is a term related to the study of the impact of individuals, group and structure
within the context of an organization, as well as the nature of the organization itself. This is an
interdisciplinary field that includes sociology, psychology, communication and management. Main
purpose of studying such area is to improve the organizational effectiveness and efficiency.
Main purpose of organizational studies is to understand and model these facts. A model can be defined
as abstraction of the real situation or real world phenomena. It can be explained as a presentation of
factors, for creating something meaningful.
Organizational behavioral models mean a model represented the behavior of an organization. There are
two types of variables in the O.B models. As,
 Dependent variables.
 Independent variables.
Dependent variables
Dependent variables are the key factors which are affected by other factors. They are the responses
that are affected by the activities of independent variables. There are different variables in an
organization as follows,
 Absenteeism - Absenteeism mean failure to report to the work. It becomes difficult for the
organization to operate smoothly and to attain its objectives if employee fails to report to their
job. Level of absenteeism is an indicator of the effectiveness and effectiveness of an
organization.
 Turnover- Turnover means voluntary and involuntary permanent withdrawal of employee in an
organization. Every organization has convinced amount of turnover. High turnover may increase
the cost of recruitment, selection. However, turnover cannot be eliminated completely because
there are certain unavoidable situations as death of an employee.
 Job satisfaction- Job satisfaction means employee’s aptitudes towards his work. If he is satisfied
with his job that’s meant to be his positive attitude towards his job. A person gets satisfied by the
level to which his expectoration of needs fulfill.

6. 5
 Productivity-Productivity is a term which measure effectiveness and efficiency. Combination of
effectiveness and efficiency called as productivity. Effectiveness measures by achievements of
goals whereas efficiency measure rate of input and output.
Productivity = value of output (effectiveness)
Cost of input (efficient)
 Organizational citizenship- organizational citizenship is the behavior of an employee towards
his organization. If a person is highly attached with his organization then it is said that there is
high organizational citizenship with that person. Successful organization need employee who
will do more than their usual work and perform better.
Independent variables
Independent variables mean the variables which directly affect the dependent variables such as
productivity, these variables are describe under three sub levels as,
1. Individual level variables.
2. Group level variables.
3. Organizational level variables.
Individual level variables- There are different individual level variables like perceptions,
learning, motivation and attitude and so on such factors of individuals affects the behavior at
work. Personal characteristic like age, gender,etc
Group level variables- The behavior of people in group is more than the sum total of individual
acting in their own way. The behavior of an individual is different when being alone and when in
a group. The behavior of people working in group is affected by many factors like,
 Communication within the group.
 Communication with other group.
 Level of conflict in a group.
 Level of group cohesiveness.
Different group have different behavior or have different individual performance. With different
groups such concepts increased the complexity of organizational behaviors models.

7. 6
Organizational level variables
Organizational level variables are accumulation of group behavior and individual behavior. In
other words, formal structure of group and individual behavior is known as organization
behavior. Groups are more than the collection of individual members, in the same way
organizations are more than the sum of their groups. It is collection of the formal structure, work
process, technology, human resource policy, organizational culture are the factors which affect
organizational behavior. It’s a field of study that investigates the impact that individuals group
and then it applies knowledge to make organizations work more effectively; reduce absenteeism
and turnover while increasing employee citizens and job satisfaction.
Literature Review
Turn Over
Regular crisis Penguin Sportswear (Pvt) Ltd is facing is labor turn over. Hence proper knowledge on this
organizational behavior variable is a must. Many academic scholars pointed out turnover as the
correlation between job dissatisfaction and decreased organizational commitment.

8. 7
The rate of turnover varies from company to company. The highest level of turnover normally found in
private sectors than public sectors. Sometimes employee turnover benefits organizations positively. This
might happen when a poor performer is replaced by a more skilled employee and when a retired
employee replaced by a younger one. Yet information on turnover can help the planning, prediction and
control of resources too.
Labor turnover index
The labor turnover index (sometimes referred to as the employee or labor wastage index) is the
traditional formula for measuring wastage.
 Why Employees Stay –Job satisfaction  Why employees go-Reasons for
turnover
 Career growth, learning, and development  Further payments and higher salary
 Exciting work and challenge  Better prospects
 Meaningful work, making a difference and a
contribution
 Poor relationships with manager/team
leader
 Great people  Lack of providing essential training
 Being part of a team  Better working conditions
 Good boss  More opportunity to develop skills
 Recognition for work well done  Poor relationship with colleagues
 Fun on the job  Bullying or harassment
 Autonomy, sense of control over my work  Personal reasons – pregnancy, illness,
moving away from area
 Flexibility  Additional job security
 Fair pay and benefits
 Inspiring leadership
 Pride in organization, its mission and
Number of leavers in a specified period (usually 1 year) × 100
Average number of employees during the same period

9. 8
Problems related to turnover
 Employees leave the company; the employer has to incur a considerable amount of direct and
indirect expense.
-These costs include advertising expenses, headhunting fees, resource management expenses,
loss of time and productivity, work imbalance, and employee training and development expenses
for new joiners.
 It makes the employers difficult to maintain a
steady and successful operation.
 Can reduce investors’ confidence in the firm
 Effects that not only impact on the organization, but also the individual employee and the society
Review
Turnover is one such dependent variable influence overall organizational behavior and its objectives.
Within penguin sportswear (pvt) ltd had undergone massive problem of turnover and we hope to
deliberate our research. In past years up to 2010 annual turnover rates were 8%-9% .After dynamic
changes in top management, merging with EMJAY international caused changes in strategy of
management aspect and the way they deal with individual objectives. Turnover ratio has decrease to 5%
almost due to those sudden changes. But still we can identify changers that should be done to make that
achieved turnover ratio stable.
quality of product
 Great work environment
 Location
 Job security
 Family-friendly
Table 1-Job Satisfaction andTurnover

10. 9
New strategies they adopted in last couple years
MATTER BEFORE2010 PRASENT PROCEDUER
Selection
Process
Recruitments were done randomly,
with a brief interview and regardless
suitability.
Present selection process within 2 hours
1. Applicants welcome by the Guard Room &
inform the HR Department
2. Fill the application
3. Formal interview done by the HR Assistant
4. General Written Test
5. Practical test
6. Medical Checkup
7. Interview with the counselor
8. Final recommendation by the HR Manager
As a result all the employees suits for the position
Leave
Request
There is no proper Leave Request
system
 Employees apply leave at the
same time.
 All the leaves approved
affect the production process,
 Not approved employees
are dissatisfied.
Introduced proper leave plan.
1. Employees must apply leave before one
week
2. Sectional heads consider leave requests.
3. Approve leave hence production is not
disturbed.
Night
Shifts
Target couldn’t meet due to
workers’ inefficiency and poor
attendance. Therefore night shifts
were necessitated and this was a
factor to the Turnover.
Workers are efficiently recruited so the
productivity increased. Therefore the night shifts
are not essential hence Turnover is reduced.

11. 10
Table 2-Adopted new strategies
Grievances
handling
There wasn’t proper system
grievances handling
1. Two Peer Counselors1 appointed among
workers from each Line. Join Consultant
Committee (JCC)2 of the works has been
setup and meetings with peer counselors and
the management are being held monthly to
discuss the works’ problems and give
solutions then and there.
2. HR Assistants are titled as Business
Partners3 and they are responsible assist
problems in the divisions which they are
entrusted.
3. Counselor4 assigned to identify potential
leaver.
4. An Internal Communication Unit (ICU)5 has
been setup to maintain an accurate
communication system between the workers
and the management.
Motivation Monetary motivators
1. Legitimate benefits given to employees.
 Reasonable Salary
 Over Time
 EFP & ETF benefits(EPF - 8% deducted
from employee, 12% contribution of the
company, ETF - 3% contribution of the
company)
 Gratuity Payments
 Leave(Annual Leave – 14 days [after one
year]/Maternity Leave)
2. Selection of best efficient workers, best
attendance, best quality of the month
and awards and pay incentive.
3. All workers are given a Multi Skill
Training so that they can attend to cover
up other workers’ duties in case of an
emergency.
4. Moreover the workers are enjoying
following facilities also,
 Welfare Loan
 Death Donation
 Transport facilities
 Free breakfast and Tea

12. 11
Penguin Sportswear (Pvt) Ltd Employee Turnover Details
Table 3- Penguin Sportswear (Pvt) Ltd employee turnover Details
Figure 2-Peguin Sportswear (Pvt) Ltd Employee Turnover Detail graph
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Apr-10
Jun-10
Aug-10
Oct-10
Dec-10
Feb-11
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
Aug-12
Budgeted Turnover %
Total Turnover %
Month Budgeted
Turnover %
Total Turnover
%
Apr-10 5% 6%
Aug-10 5% 8%
Dec-10 5% 7%
Apr-11 5% 5%
Aug-11 5% 7%
Dec-11 5% 6.5%
Apr-12 5% 5.4%
Aug-12 5% 4.9%

13. 12
Comparison and contrast between the OB theories and actual OB implement in Penguin
(Pvt) ltd
Categories OB Theories Actual Situation
Job Satisfaction -Job satisfaction mean the
general attitude employee got
about his job.
-Attitude based on their values
- Positive attitudes like worker
relationships, working
condition, rules, career ladder,
payments make high job
satisfaction.
- Positive relationship between
job satisfaction and
organizational performances.
- Satisfaction of an employee
comes secondary to achieving
targets.
-And organization tries to
keep the employee by
answering their problem with
shorter remedies.
-It is difficult to find a time for
the inter relation with bosses
/core workers due to the tough
work schedule.
Job Involvement -Job involvement mean up to
what degree employee has
understood about his job
activities.
- High level of job
involvement will show by less
absenteeism and less
resignation.
-This can improve by applying
organizational culture and
organizational commitment.
-Employees are highly
specialization on their task,
than understanding its
practices.
- Employees are more
mechanically involve than
morally involvement with the
job.
-Organization doesn’t have
time to develop the culture
and commitment which effect
job involvement.
Organizational Commitment - Level to an employee
understands a particular
organization, its goals and
wishes to maintain
membership within it.
-Low organizational
commitment is shown by high
absenteeism and turnover.
-Commitment employees are
good indicator of turnover and
absenteeism than job
involvement.
- Employee reduces
absenteeism and tries to stay
within the organization mainly
for the economic benefits than
their commitment.
-Employees are more
concerned on monitory benefit
as gratuity payment, payment
for less leaves, child care
facilities.
Table 4-OB implementation

14. 13
Recommendations
Problem Recommendation
1. Problem related to peer counselors may
cause turn over
a) Operational level labors neglect
peer counselors because they
consider as part of management.
b) Not enough time to discuss with
peer counselors
c) Some personal issues may not be
discussed
 Change peer counselors periodically to
change their aspect on what they contribute
 Encourage to make personal working
relationships among workers
 Workers-peer counselors who travel
together discuss problems while travelling.
2. There are many theories add to solve
turnover make conflicts and
unproductive
 Do a SWOT analysis/research to choose
and implement appropriate concept
3. Discontinuous of adopted OB concepts  Continuous observation of the chosen
concept
4. Added stress for middle line managers
cause managerial turnover
a) HR executives job enlarged being
business partner in JCC, member
of Barrier Remove Team, a
member of ICU
b) Financial management had to
constantly calculate turnover.
c) Production department had to
train new employees
 Do a SWOT analysis/research to choose
the best concept and adopt it
 Hire the right person, for right position; in
right time
 Make a proper span of control and chain of
command(authority, responsibility, unity of
command)
5. Problems with counselor won’t make
counseling as a method of reducing
turnover
 Encourage to make a industrial relationship
with counselor
6. Workers don’t have organizational
commitment(as companies like MAS)
 Provide uniform to all the workers
 Let them understand how their
performance important to organization
7. Use money as the only motivator
a) Replace leisure and recreation by
monetary benefits which cause
long term fatigue, occupational
burnout till it becomes turnover
 Provide flexible work schedules adopted to
the needs of the individual
 Use career development as a motivator
8. Offer short term solutions to employee
problems which create unsatisfied and
potential leavers in long term
 Make long term employee retention plan
Table 5-Recommendations

15. 14
Abstract
This study was conducted in a leading export oriented Penguin Sportswear (Pvt) Ltd , Sri Lanka. The
organization was a leading apparel manufacturer to US market. General objective of the study was to
observe the effect of Labor Turnover on achievement of Organizational objectives. Specific aims of the
study were to identify the major influential factors for labor turnover, to examine the factors contributing
to labor turnover, and to analyses the impact of current practices and measures taken by the organization
in addressing labor turnover.
Study was focused on the labor turnover, specifically the sewing machine operators. Study has examined
the models and sources of labor turnover, paying attention to Study analyzed, and verified a range of
factors that were consistently linked to employee turnover. There was a relationship between variables
affecting employees to have intention to leave shown positive relationships.
Factors that tip Team members to leave the organization were linked to its processes, practice and
methods. Organization needs to consider exact necessities of employees for benefits to be perceived
positively by them. Results of this study would facilitate organization’s decision makers to understand
the overall nature of employee turnover and its’ likely causes, and contexts as well.

16. 15
References
Name of the book or Website Author Published
year and the
edition
Publisher and address
Organizational Behaviour Stephen P. Robbins 2002
10th Edition
Perentice Hall, One Lake
street, Upper Saddle river,
NewJersy, 07458
Fundamentals of Organizational
Behaviour
Robert Kreitner,
Angelo Kinicki Nina
Cole
2003
2nd Edition
Canadian
Edition
McGraw-Hill Ryerson
Limited, a Subsidiary of
The McGraw-Hill
Companies.
Handbook Of Principles Of
Organizational Behavior
Edited by
Edwin A. Locke
2nd Edition John Wiley & Sons Ltd,
The Atrium, Southern
Gate, Chichester, West
Sussex, PO19 8SQ,
United Kingdom
A Handbook of Human Resource
Management Practice
Michael Armstrong 2006
10th edition
120 Pentonville Road ,
London N1 9JN United
Kingdom
525 South 4th Street,
#241, Philadelphia, PA
19147, USA
International Students Edition
Managing the Human Resources.
International Students Edition
-G.Bohlander -
S.Shell
2007
13th Edition
Thomas Higher Education,
519 Natorp Boulevard,
Mason OH 45040, USA
http://top7business.com/
http://www.nwlink.com/~donclar
k/leader/leadob
http://nature.berkeley.edu/
http://www.penguinsl.com/
www.obmnetwork.com/

17. 16
Annexes
FACTORIES
 Penguin Sportswear (Pvt) Limited-Pallethalawinna
 Penguin Sportswear (Pvt) Limited-Panwila
 M.G International-Theldeniya
 M.G International-Karadagolla
BUYER
 Helly Hansen
 Mark & Spencer
 Next
 Gap/Old Navy
 Victoria Secret
 Sanma
 Oshkosh B’gosh
 Craghoppers
 Geox Respira
 GAS
SELLING ITEM
 Ladies Outerwear
 Ladies Underwear
 Mens Underwear
 Mens Outerwear
 Kids Underwear
 Kids Outerwear
CERTIFICATIONS
The certificates earned by the Penguin Sportswear (Pvt) Ltd group are,
 WRAP - Worldwide Responsible Accredited Production
 ISO 9001 GWG – Garments without Guilt
 ETI – Ethical Trade Initiative
 C-TPAT - Customs-Trade Partnership Against Terrorism

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