New Study Shows How Management Training Improves Garment Supervisors’ Practices and Factory Performance
In Phnom Penh:
Ann Bishop
Phone: + 012 931 244
Phone 2: +855 23 210 922
Email: abishop1@ifc.org
Phnom Penh, 31 October 2006 — A
report released at a seminar in Phnom Penh recently shows that training
in management skills can significantly improve garment supervisors’ practices
and factory performance in Cambodia’s leading industry.
The report, A Stitch in Time, presents evaluation results from a
four-day supervisory skills training pilot program, conducted jointly by
the International Finance Corporation’s Mekong Private Sector Development
Facility and Gap Inc., the clothing retail giant. The program was conducted
36 times between January 2005 and March 2006 for 650 supervisors who manage
nearly 20,000 workers in seven factories that produce garments for Gap.
Dorothy Berry, IFC’s Vice President for Human Resources and Administration,
stated that “Managerial skills are an often overlooked necessity. They
are important for small companies with fewer than 20 employees, but when
companies want to grow locally and internationally and achieve their full
potential, management skills are crucial and can make the difference between
success and failure.”
Summing up results of the evaluation, which surveyed 1,800 people including
supervisors, human resources managers, factory managers, and workers, Berry
stated, “When you think about training, don’t think of it as an expense
– think of it as a necessary investment. The Supervisory Training Program
results show a number of improvements that contribute to greater productivity.
Labor relations improved, with a 12 percent reduction in employee warnings
and an 8 percent drop in absenteeism. Production quality improved as well,
with a 39 percent reduction in in-line rejections and a 44 percent reduction
in shipment rejections.”
H.E. Prak Chantha, Secretary of State for the Ministry of Labor and Vocational
Training, emphasized the important role that garment factories play in
Cambodia’s economy: “In the first half of 2006, the industry earned Cambodia
$2 billion, represented more than 80 percent of manufactured exports, and
employed over 300,000 people. The garment industry is the driving force
behind this country’s recent impressive economic growth.” She also stressed
the importance of good labor practices, which help the industry grow in
the face of strong regional competition.
The supervisory skills training program was adapted from successful training
conducted in Gap factories in India and Indonesia. “We chose IFC-MPDF
as our partner because of its extensive experience in developing affordable
and locally tailored resources for management training in Cambodia, Lao
PDR, and Vietnam,” said Vannchhai Leng, Gap Inc. Project Manager, Global
Partnerships for Social Responsibility.
Based on the success of the pilot, IFC-MPDF, Gap, and the International
Labour Organization’s labor monitoring and remediation program, Better
Factories Cambodia, plan to extend the program industry-wide. According
to Conor Boyle, Training Manager for Better Factories Cambodia, “It’s
important to develop a version of the course for senior managers. We are
keenly aware that without buy-in from them, no training program can achieve
its intended impact. This will require an expansion of the existing, locally
based trainers’ network and the cooperation of other socially responsible
buyers.”
An industry-wide training strategy is being developed by IFC-MPDF and the
ILO in collaboration with employers, unions, buyers, the government, and
nongovernmental organizations. This is expected to result in a range of
training programs and other initiatives that will raise the level of skills
across the industry.
About IFC
The International Finance Corporation, the private sector arm of the World
Bank Group, is the largest multilateral provider of financing for private
enterprise in developing countries. IFC finances private sector investments,
mobilizes capital in international financial markets, facilitates trade,
helps clients improve social and environmental sustainability, and provides
technical assistance and advice to businesses and governments. From
its founding in 1956 through FY06, IFC has committed more than $56 billion
of its own funds for private sector investments in the developing world
and mobilized an additional $25 billion in syndications for 3,531 companies
in 140 developing countries. With the support of funding from donors,
it has also provided more than $1 billion in technical assistance and advisory
services. For more information, visit www.ifc.org
The Mekong Private Sector Development Facility is a multidonor funded
initiative set up by IFC in Cambodia, Lao PDR, and Vietnam to reduce poverty
through sustainable private sector development. Its interrelated
programs seek to improve the business environment; develop the financial
sector; improve managerial capacity; and increase sustainable business
practices in sectors that are central to economic growth and poverty reduction
– tourism, agribusiness, and garments. The facility’s donors are the
Asian Development Bank, Australia, Canada, Finland, IFC, Ireland, Japan,
New Zealand, the Netherlands, Norway, Sweden, Switzerland, and the United
Kingdom. For more information, visit www.mpdf.org.
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