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Dissertation on" Human resource management practice in rmg sector in bangladesh " by Akash islam Akash
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“HUMAN RESOURCE MANAGEMENT PRACTICE IN RMG SECTOR IN
BANGLADESH”
BY
MD.KHAIRUL ISLAM
ID:161051024,GROUP: B
A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF
BACHELOR OF ARTS (HONORS)
IN
APPAREL MANUFACTURING MANAGEMENT AND TECHNOLOGY UNDER THE
DEPARTMENT OF
APPAREL MANUFACTURING MANAGEMENT AND TECHNOLOGY
WE ACCEPT THIS DISSERTATION AS CONFORMING TO THE REQUIRED
STANDARDS:
...............................................................................................................................
.......
FARJANA MITA
ASSISTANT PROFESSOR AND DISSERTATION SUPERVISOR DEPARTMENT OF
APPAREL MANUFACTURING MANAGEMENT AND TECHNOLOGY
DATED THIS 22
th
DAY OF February, 2020, IN AMMT CAMPUS, SMUCT, AND DHAKA, BANGLADESH
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DISSERTATION CERTIFICATION
I MD. KHAIRUL ISLAM, Id No: 161051024 affirm that this Dissertation, submitted in partial
fulfillment of the requirements for the award of Bachelor of Arts in Apparel Manufacturing
Management & Technology under the Department of Apparel Manufacturing Management
& Technology , Shanto-Mariam University of Creative Technology, Dhaka, Bangladesh is
unreservedly mine unless otherwise referenced or acknowledged. The document has not
been submitted for qualifications or other purposes at any other institution.
…...............................
MD.KHAIRUL ISLAM
February, 2019
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ACKNOWLEDGEMENT
I am grateful to the following people and acknowledge that without their valuable
contributions, this thesis would not have been successfully finished.
Farjana Mita, my supervisor, who has not only guided us through the work process but also
has provided his own valuable critiques. He has challenged me on several occasions as an
approach tostimulate me too efficiently implements my exposure on this Dissertation.
Mr.Dr.Masud Al Noor, head of the department, AMMT, who has nurtured me throughout
the academic semester with his excellent study plan and with his ability to generate high
level of industrial knowledge among the students.
Thanking you in anticipation.
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TABLE OF CONTENTS
ABSTRACT…………………………………………………………………………………….…..05
CHAPTER – 1
1.1 INTRODUCTION ………………………………………………………………….…07-08
1.2 IMPORTANCE OF HRM…………………..…………………..………………....08-09
1.3 TYPES OF HRM……………..………………………………………………………..09-11
CHAPTER – 2
2.1 LITERATURE REVIEW …………………………………………….…..………...13-16
CHAPTER – 3
3.1 RESEARCH METHODOLOGY …………………………………………………..18-19
3.2 AIM ……………………………………………………………………………………..…….19
3.3 OBJECTIVES………………………………………………………………………………..19
3.4 RESEARCH DESIGN ………………………………………………………………..19-20
3.5 DATA COLLECTION INSTRUMENT……………………………………………….20
3.6 SCOPE ………………………… ……………………………………………...................21
3.8 LIMITATION ………………………………………………....................................21
CHAPTER – 4
4.1 HUMAN RESOURCE MANAGEMENT…………………………………………..23
4.2 HUMAN RESOURCE PLANNING……………………………….................23-24
4.3 HR MODEL OF RMG SECTOR ………....................................................25
4.4 THE SELECTION PROCESS……………………………………………………………26
4.5 CHALLENGES OF HR PRACTICE IN RMG ………………………………..26-28
4.6 HRM RELATED TERMINOLOGIES……………………………………….....28-31
4.7 NECESSITY OF HRM IN THE CONTEXT OF GLOBALIZATIO................31
4.8 SWOT ANALYSIS ……………….........................................................32-35
5.RESULT....................................................................................35-38
6.RECOMMENDATIONS………………………………………………..............38-39
7.CONCLUSION...........................................................................39-40
8.RREFERENCES...............................................................................41
9. APPENDICES………………………………………………………………………….41-43
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Abstract
Though researchers and practitioners are quite curious about the field of HRM in
Bangladesh, but they have limited access to the current status of HRM research due to
nonexistence of any central database or any electronic warehouse. This study strived to fill
the gap by compiling thirty seven research studies conducted so far on HRM practices in
Bangladesh. This study also identifies the research gaps with respect to HRM practices in
Bangladesh. Finally, the present study proposed some areas where future studies can be
carried out.
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1.1Introduction
The practice and implementation of HR functions is a contemporary issue in RMG (Ready
Made Garments) industry in Bangladesh. Lots of questions were being asked in several
studies & conversation. RMG is one of the booming economic sectors in Bangladesh
economy. Many scholars recommended nursing this sector with proper care for the
betterment of the Bangladesh economy. HRM (Human Resource Management) can be
considered in two important ways. One way is; HRM is thought as supportive function for
staff in every organization which assists the HRM related issues to line employees. The other
way is; HRM is the function of all the managers’ job that means managing organization’s
employees effectively and efficiently. (decenzo& Robbins, 2015) Effectively explains “doing
the right thing” where efficiently refers “doing the thing right”. (Robbins & Coulter, 2011)
The study assumed that a bulky percentage of the garments employees are not satisfied to
their current job in the RMG sector. The amount of wages they earned causes noteworthy
displeasure for workers in the RMG industry The RMG owner frequently refutes that they
have the capacity to increase laborers’ circumstances or wages. (Morshed, 2007) Another
study run on investigate the HR practice in Bangladeshi garments industry. The presumption
is better practice of HR policies ensure better firm performance. The study exposed that, the
HR policies are being handled very much ordinarily (Anonymous, 2012). Majumder&Anwara
(2000) found that although the reality is that garments industry matches in with the
prescribed division; the staffing technique is to a vast degree casual contrasted with the
practice in western. Since there have nothing agreement or formal letter, several garments
workers are become helpless against losing jobs instantly without having any notice.
Moreover, sexual harassment related issues in this industry is accountable for creating job
uncertainty, uneven wage payment, deficiency of least amount of wage and endorsement
policy. Reality is been contrasted with the other industries in Bangladesh. The unsteadiness
of work in RMG sector is higher.
Mammon & Islam (2001) investigated the HRM practices in RMG segment. The research
pointed on increasing efficiency in pieces of clothing specialists by using justifiable HRM
practices to chase the challenges of
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Globalization. The study found that, reasons behind the workers’ low efficiency is nothing
but the chaotic staffing and selection of employees, nonexistence of training & development
facilities, insufficient financial supports, and low motivation level. Majumder (1998) He has
pointed that, work zones are frequently crowded with restricted work places, bringing about
word related dangers such as physical turmoil and infectious infirmities.Alam (2004) has
sorted out that, restless work schedule, wage related penalties, and substantial & oral
abuses are common issues. Female workers face substantial abuse and unsuitable behavior
within and moreover outer surface of the firm; nevertheless management does not
assurance the safety of female employees. Another study revealed that, the working
condition in Bangladesh RMG sectors is below the standard. Wellbeing and security policy,
as suggested in 1979 Rules regarding Factory operations are routinely ignored by
administration as well as government. (Absar, 2006) Kumar (2006) said that, Garments
workers are concerned with extensive working periods or double chronological shifts, risky
workplace, bad working environments, payment and sexual isolation.
The research is designed as following patterns; the second section covers some closely
related literatures regarding HR practices. After that the third section covers the purpose &
methods of the research. The fourth section shows general research framework and FGD
(Focus Group Discussion) questions & findings. The experimental result reveals after the
FGD findings along with the data interpretation. Finally the last section exposes the
recommendations and concludes with ending remarks.
1.2 Importance Of Hrm
Objective :-
HRM helps a company to achieve its objective from time to time by creating a positive
attitude among workers. Reducing wastage and making maximum use of resources etc.
Facilitates professional growth :-
Due to proper HR policies employees are trained well and this makes them ready for future
promotions. Their talent can be utilized not only in the company in which they are currently
working but also in other companies which the employees may join in the future.
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Better relations between union and management :-
Healthy HRM practices can help the organization to maintain co-ordinal relationship with
the unions. Union members start realizing that the company is also interested in the
workers and will not go against them therefore chances of going on strike are greatly
reduced.
Helps an individual to work in a team/group :-
Effective HR practices teach individuals team work and adjustment. The individuals are now
very comfortable while working in team thus team work improves.
Identifies person for the future :-
Since employees are constantly trained, they are ready to meet the job requirements. The
company is also able to identify potential employees who can be promoted in the future for
the top level jobs. Thus one of the advantages of HRM is preparing people for the future.
Allocating the jobs to the right person :-
If proper recruitment and selection methods are followed, the company will be able to
select the right people for the right job. When this happens the number of people leaving
the job will reduce as the will be satisfied with their job leading to decrease in labor
turnover.
Improves the economy :
Effective HR practices lead to higher profits and better performance by companies due to
this the company achieves a chance to enter into new business and start new ventured thus
industrial development increases and the economy improves.
1.3 Types Of Hrm:
Here are the Top Ten HR Practices that can help you achieve your organizational goals every
year.
1. Safe, healthy and happy workplace
Creating a safe, healthy and happy workplace ensures that employees feel at home and stay
with the organization for a very long time. Capture their thoughts through frequent surveys.
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2. Open book management style
Sharing information about contracts, sales, new clients, management objectives, company
policies, employee personal data, etc. Ensures that the workforce is as enthusiastic about
the business as the management. It helps in making people interested in your strategic
decisions, thus aligning them to your business objectives. Be as open as you can. Employee
self-service portal, manager on-line etc. Are some tools available today to practice this style.
3. Performance linked bonuses
Awarding bonuses or including a variable component in compensation can be both an
incentive and a disillusionment based on how it is administered and communicated.
Bonuses must be designed in such a way that employees understand that there is no payout
unless the company hits a certain level of profitability. Additional criteria could be the
team’s success and the individuals performance. It is good for employee retention also.
4. 360 Degree performance management feedback system
This system, which solicits feedback from seniors (including the boss), peers, and
subordinates, has been increasingly embraced as the best available method
for collecting performance feedback. Every person in the team is responsible for giving
relevant, positive and constructive feedback.
5. Fair evaluation system
Develop an evaluation system that clearly links individual performance to corporate
business goals and priorities. Each employee should have well-defined reporting
relationships. Self-rating should be a part of the evaluation process as it empowers
employees. Evaluation becomes fairer if it is based on achievements of the
employee, tracked over the year. For higher objectivity, besides the immediate boss, each
employee should be evaluated by the next higher level (often called a reviewer). Cross-
functional feedback, if obtained by the immediate boss from another manager (for whom
this employee’s work is also important), will add to the fairness of the system.
6. Knowledge sharing
Adopt a systematic approach to ensure that knowledge management supports strategy.
Store knowledge in databases to provide greater access to information posted either by the
company or the employees on the knowledge portals of the company.
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work place) should also be posted on these knowledge sharing platforms. However, what to
store and how to maintain a knowledge base requires further and detailed plans.
7. Highlight performers
Create profiles of top performers and make these visible though company intranet, display
boards, etc. It will encourage others to put in their best, thereby creating a competitive
environment within the company.
8. Open house discussions and feedback mechanism
Ideas rule the world. Great organizations recognize, nurture and execute great ideas.
Employees are the biggest source of ideas. The only thing that can stop great ideas being
implemented in your organization is the lack of an appropriate mechanism to capture ideas.
Open house discussions, employee-management meets, suggestion boxes and tools such as
Critical Incidents Diaries can help identify and develop talent.
9. Rewards
Merely recognizing talent may not work, you need to couple it with public appreciation.
Getting a cash bonus is often less significant than listening to the thunderous applause by
colleagues in a public forum.
10. Delight employees with the unexpected
Last but not least, occasionally, delight your employees with unexpected things in the form
of a reward, a gift or a certificate. Reward not only the top performers but also a few others
who need to be motivated to exhibit their potential.
Empxtrack is a composite HR solution which helps you implement most of these best
practices by utilizing software tools. We provide you with relevant performance
management system which is synchronized with your HR processes.
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2.1 Literature review
Many studies have been conducted to explore the HR practice and implementation
throughout the world in various organization & management related sectors along with
rmgs as well. HR practices have remarkable association with hierarchical responsibility and
employee turnover. (Billahet et al., 2009) Rab (1991) explored the HRM practices in 24 small
ventures functioning in Dhaka. He differentiate that in terms of recruitment, respondent
interaction was the crucial means (58%) lagged by advertisement in daily newspaper (21%),
walk-in interview (13%), and notice board of organization (8%). All of the ventures, with the
exclusion of one organization, utilized work sample testing and interviewing for employees’
selection.
Another study to investigate on Khulna Hard Board Mills Ltd about the overall work force
management (HRM) practices. It analyzed about the recruitment policies, selection
procedures, training and development program, compensation management, relationship
between management &labor, and the safety and health issues. The investigator revealed
miscellaneous problems recognized with administration practices for staffs, for instance,
collision in faculty division, unstable supervision range, faulty assessment, high proportion
of hostile sentiment neighborhood laborers, non-attendance, poor programs for
preparation, lack of aptitude assessment, favoritism and preference in workers’ progression
and choice, poor contemporary relationships, insufficient remuneration, and poor welfare
and wellbeing supervisions. (Taher, 1992) Medcof& Song (2013) Human resource (HR)
applications for employee selection, performance evaluation, connection between training
and performance-compensation are discovered as less categorized in entrepreneurial HR
arrangements (exploratory) than in supportive HR arrangements (exploitative).The outcome
expresses, HR methods and implication should diverse in dainty of the organizational
procedures in which those are being functioned. Shelly (1994) scrutinized the functions of
HR base on the procedure of industrialization in Bangladesh. He inspected that insufficient
Human Resource Management (HRM) exercise was one of the factual problems confronted
by industrial zone of Bangladesh. A bulk portion of the HR implications, for example, HR
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positioning, organization, determination, progression, execution assessment, remuneration,
motivations, and contemporary relationships were not executed justifiably in commercial
organizations.
The progress of learning orientation is checked as a managerial responsibility but HR policy
makers can play a crucial role in the endorsement of learning by boosting the more
conventional HR practices towards the feat of organizational successes (Gardiner & Sadler-
Smith, 2001). Islam (2003) A study on miniature organizations’ HRM practices of
Bangladesh. Result showed that small ventures did not provide rational pay rates and
compensation, training & development facilities to their workers. The researcher pointed
out that the reason of old trait HR rehearses, the success and encouragement level of the
respondents of those Bangladeshi small ventures were low.
Ozola (2014) the purpose of the exploration was to detect the HRM practices which are
effective for the dropping of employee turnover. For this resolution the approaches of
document study and expert analysis were used. On the base of exploration of the scientific
works reclaimed from academic databases the HRM practices, stated in linkage with worker
turnover, were noticed and defined its effect on worker turnover. By guiding two distinct
expert investigations, the preliminary information about the extent of some known HRM
practices and about the possible effectiveness of those practices in organizations of Latvia,
is developed and study
40years, study on recruiting employee has increased drastically. The paper observes the
study on recruitment issues that have received substantial consideration (e.g., recruiting
techniques, accurate job performances). It also addresses topics (e.g., aimed recruitment,
the spot visit) that have established relatively low attention but which have the probability
to be pretty significant. In exploring these issues, the variables of job applicant (e.g., self-
insight), that should impact how a boss conducts the recruiting procedure but that have
regularly been mistreated, are narrated. Throughout the research, significant areas for
future exploration are recommended. (Breaugh, 2008) In an investigation of HR practice in
Lebanese hospitals of a group of 96 respondents from 61 various hospitals. The result
disclosed that, the most commonly responded challenge was weak employee maintenance
(56.7%), limitations of experienced personnel (35.1%), and short of proper performance
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appraisal system (28.9%). A little number of strategies utilized to alleviate the mentioned
challenges consisted with offering continuous training & education for employees (19.6%),
upgrading salaries (14.4%), and developing maintenance strategies (10.3%). Difference
between strategies & responded challenges were detected. (El-Jardali et al., 2009)
Zhu et al. (2008) in a study of 618 managers, employed in state-owned enterprises, foreign-
invested, and domestic/private firms running at the Jiangsu Province in China; explores the
degree to which Human Resource practices have been strategically development to
line/middle managers and the affiliation between this development and those firms’
performance. On the whole, there was little substantiation of devolvement to line or middle
managers and found no substantiation of an association between the performance of firm
and the extent of devolvement, though the provision of official training to middle or line
managers was predictive of performance. Different categorized fifteen industries in India
(such as, automobiles, chemicals, gas, infrastructure, metal, mining, oil, power etc) that use
best HR practice were selected for the study. The paper tried to estimate whether all the
selected organizations have same manner of HR practice or not and their relevant corporate
strategy was classified as focusing quality, reducing cost, and flexing the systems. (Tomar,
2011)
The above literatures reviewed the HR practice in many managerial sectors both the
Bangladesh and foreign countries. Based on this literatures the study explore the HRM
(Human Resource Management) practices & implementation in garments industry of
Bangladesh by using the four HR functions as, staffing, training & development, motivation,
and maintenance proposed by decenzo& Robbins and provide some guidelines to the
concerned authority for improving the existing circumstance of human resource
management practices & implementation in garments industry of Bangladesh.
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Armstrong (1997), Human Resource Management can be defined as “a strategic approach
to acquiring, developing, managing, motivating and gaining the commitment of the
organisation’s key resource—the people who work in and for it.” HRM deals with concerns
related to human resources such as hiring, training & development, compensation,
motivation, communication, and administration.(Patidar, 2014) HR experts in each discipline
may execute more than one of the more than six vital functions such as recruitment, safety,
employee relations, compensation & benefits, compliance, and training & development.
(Mayhew, 2017)
Mooney (2017) The HRD deals many crucial functions in business. It is influential in given
that labor law compliance, record keeping, hiring and training, compensation, relational
assistance and assists with handling specific performance topics. The HRM holds out three
separate functions such as a line functions, a coordinative functions, and staff functions.
(Dessler&Varkkey, 2011) The functions execute by managers are familiar to all
organizations. For the handiness of study, the function execute by the resource
management can roughly be categorized into two categories Managerial functions (staffing,
directing, and controlling), and Operative functions (Procurement, Development,
Compensation, and Maintenance). (Chand, 2016)
To look at HRM more expressly recommend that it consists of four fundamental functions
staffing, training and development, motivation, and maintenance. That might say that HRM
is contained of four activities like hiring people, preparing them, stimulating them, and
keeping them. (decenzo& Robbins, 2015)
Ready Made Garments (RMG) Industry in Bangladesh
Bangladesh Investment Development Authority (2017) the unique growth in the (RMG)
sector in the previous decade generated many latest factories and employment
opportunities. Having pleasured more than 70% of total outlays in the manufacturing sector
throughout the first six months of the 1990s, RMG and knitwear now having about 4,825
factories and a labor force of 3.1 million out of them 80% are women. This sector now
occupies over 50% of the manufacturing workforce and having 79% of the total export
incomes of the country. The upward trend in the textile and the garments sector denotes
that Bangladesh is flawlessly placed to appeal to foreign patrons.
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3.1 Methodology
The methodology used for this study was literature survey.The study was completely based
on compiling the studies conducted so far on HRM practices in Bangladesh. The researchers
collected different studies on HRM practices in Bangladesh physically from different
libraries, universities, and book stores. In reviewing the literature, both theoretical and
empirical studies were taken into consideration. In total, 37 studies were collected for the
review. With respect to the major HRM practices1, the collected studies were categorized
into six groups such as overall HRM practices, HR planning, recruitment and selection,
training and development, performance appraisal, and industrial relations. Job analysis and
compensation were not included as no specific study was found on these two practices.
Necessary interpretations were made on the basis of the findings.
The research will be conducted and prepared through both primary and secondary data.
For the empirical part of the study primary data will be collected through a structured
questionnaire. This questionnaire will include some statements regarding the security and
employment relations of RMG sector in Bangladesh. Qualitative technique like Focus Group
Discussion (FGD) was also used to collect primary data. For this study we will conduct
interview to gather new information, through facts and opinions of the garments workers
and experts besides to investigate and aimed to verify the information gathered through the
literature review .The interviews will be in open questions in order to give room to the
interviewees to express their own view regarding the question asked. The open question
choice is also given due to our research aim to give a qualitative analysis of the current
situation of the security and employment relation.
The secondary data will be collected through literature review from various reliable
sources like Journals, Research articles, Thesis papers, Newspapers, Online news and
survey reports, garments ,manufacturing Industries Annual reports, Export Promotion
Bureau (EPB) Reports, BGMEA, BKMEA and BTMA Yearly reports and Files etc.
The questionnaires will be designed in such manner so that the garments workers can
express their opinions without any prejudice and bias finding the obstacles as to safety net
in consonance with ILO Conventions and standards. The findings of the mixed approach
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will be categorized systematically and the common findings will be offered as
recommendation to amend the current labor law regarding the security issue in the country.
3.2Aim
The researchers selected focus group study to observe the current situation regarding HR
practice of garment sectors in Bangladesh then structured a questionnaire on the basis of
FGD to justify the participants’ opinions. In details, the basic reason is to see the HR practice
and implementation tendency by the authorities in case of garments sector. The study paid
attention on that practice in two areas; especially in EPZ (Export Processing Zone) areas and
outside the EPZ areas. The researchers tried to show descriptive statistics of the quantitative
response regarding HR practice by using the mean, standard deviation & variance of
responses, after that they tried to show the correlation of the HR functions on the basis of
respondents’ answers.
3.3 Objectives
The main purpose of the study is to give an overview of the status of research conducted so
far on HRM practices in Bangladesh. The present study has the following specific objectives:
To compile the studies conducted so far on HRM practices in context of Bangladesh.To
identify the research gaps with respect to HRM practices in Bangladesh.To offer some
directions for conducting future research on HRM practices in context of Bangladesh.
3.4 Research design
I was talking with General Manager, Production manager, & other supportive labors.
Collecting the information, I was getting together for sorting the information & preparing it
into a research. I generate data for this project in two ways those are Primary Data
collection method & secondary data collection method.
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Primary data collection:
For this project I have make Group studies to others and visiting garments for generating
some ideas and directly question.
Secondary data collection:
The major portion of this research is based on secondary data. I collect data for this project
from internet.
3.5 Data CollectionInstrument
The following date collection instruments are used during preparation of Dissertation.
Questionnaire :
Data has been collected through questioning owners, workers, labor union leaders and staff.
Checklist :
Checklist has been used during the preparation of the dissertation.
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3.6 Scope:
• To satisfythe buyer.
• Large number of labor.
• Good business environment.
• EU is willingto established industry in big way as option china particularly for knits, including
sweater.
3.7 Limitations:
The main limitation of the research is that it includes the data of a few industries but not all
RMG industries because there was not enough time,and also permission by factory owner.
During visiting the factories were not available from the part of concerned person for their
work load. This study is a working document. Parts of the background study can become
updated at anytime.
• Communication problem.
• Timeschedule problem.
• Data information & internet problem.
• Shortage of time and money.
• Problems in data collection.
• A tendency of hiding the real information among the respondents.
• Methodological Limitations.
• Because of concealing real information we can’t collect authentic data from
respondents.
• Because of limited time we can’t properly observe the behavior of person with
disability
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4.1 Human resource management
Human resource management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. HRM can also be performed by line managers. Job analysis is primary tool in
personnel management. In this method, a personnel manager tries to gather, synthesize
and implement the information available regarding the workforce in the concern. A
personnel manager has to undertake job analysis so as to put right man on right job. To
ensure effective utilization of human resources, all other organizational resources will be
efficiently utilized by the human resources.
To establish and maintain an adequate organizational structure of relationship among all the
members of an organization by dividing of organization tasks into functions, positions and
jobs, and by defining clearly the responsibility, accountability, authority for each job and its
relation with other jobs in the organization.
To generate maximum development of human resources within the organization by offering
opportunities for advancement to employees through training and education.
To ensure reconciliation of individual/group goals with those of the organization in such a
manner that the personnel feel a sense of commitment and loyalty towards it.
4.2Human resource planning
Human resource planning is the process of an organization ensures that it has the right
number & kind of people, at the right places, at the time, capable of effectively & efficiently
completing those tasks that will help the organization achieve its overall objectives.
Human resource management is concerned with people activities, getting & keeping people
which are the crucial part of HRM.
The garments industry should be encouraged to install available machinery, where it can be
shown to be economic, in order to strengthen industry confidence in it to maintain the
interest of potential manufactures in this area.
Co-operative investigating by garment production & management for manufacturing should
be encouraged into the optimum mode of employment of the machinery type under
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development, with a view to defining production systems based on these machines rather
that their potential for substituting existing operations.
the information collected under job analysis is:
• Nature of jobs required in a concern.
• Nature/ size of organizational structure.
• Type of people required to fit that structure.
• The relationship of the job with other jobs in the concern.
• Kind of qualifications and academic background required for jobs.
• Provision of physical condition to support the activities of the concern. For example-
separate cabins for managers, special cabins for the supervisors, healthy condition for
workers, and adequate store room for store keeper.
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4.4 The selection process
The selection process typically consists of eight steps:
• Initial screening interview
• Completion of the application form
• Emulation tests
• Comprehensive interview
• Background investigation
• Conditional job offer
• Medical/physical exam
• Permanent job offer
4.5 Challenges of HR practices in Bangladesh RMG sector:
Compliances issues: According to mc Kinsey’s report among the five challenges two are the
HR & compliance related like---
Compliance
Supplier performance and work force supply.
After the RANA plaza and Tazreen fashion accident, EU and US buyers were very much
concerned about three safety issues--------
Building or structural safety
Electrical safety and
Fire safety
They formed ACCORD (by EU buyers) and Alliances for workers safety (by US buyers) and
inspected every factory in the above issues. But they found most of the factories in good
condition and they closed 2-3% factories for not meeting the compliance of above three
issues.
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As a developing country, Bangladesh is under close scrutiny by nongovernmental
organization (ngos) and corporate social responsibility (stake holder) regarding compliance.
Both CSR experts and buyers report improved labor and social compliance standards, but
there is still a broad range of compliance seen across suppliers and many unsolved topics
still exist. Solving these issues and achieving ethical labor standards and sourcing practices
are key prerequisites in Bangladesh’s apparel industry form a mckinney perspective.
Wages:Wages are increasing day by day but still now and near future it is not a threat
because among the all competitors, Bangladesh is the biggest supplier of cheap labor. But
we need to ensure fair wages and incentive schemes.
Skilled Manpower: Investment in education requires broad initiatives. On the other hand,
middle management education should be combined with an effort improve the image of the
garment industry. And on the other hand, vocational training needs to be developed and the
appropriate institution must be established either by the government or via public - private
partnership. We have to provide structured in-house training for both workers and middle
management.
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Labor relations: Trade Union vs PC committee (Participating Committee):RMG industry in
Bangladesh faces the above challenge continuously. In our previous experience in industry
trade union activity didn’t work properly in jute and textile sector, but we are solving this
issues by providing the activity of participatory committee in which workers representative
and management representative attend. So these issues can be solved for both the greater
interest of the workers as well as the investors.
4.6 Human Resource Management (HRM) related Terminologies
Human Resource Management is not a different arena. It is an orientation of HRM practices
in a different way. Most of the HRM terminologies are also related to HRM terminologies.
Important HRM terminologies are given below:
Discipline
Discipline is a condition in the organization when employees conduct themselves in
accordance with the organization’s rules and standards of acceptable behavior.
Human Capital
Knowledge kills & abilities of the employees are considered as human assets.
Job analysis
A Job analysis is a systematic exploration of the activities within a job. It is a technical
procedure used to define duties, responsibilities and accountabilities of a job. There are two
products of a job analysis program. A) Job description & b) Job specification.
Job description
A list of a job’s duties, responsibilities, reporting relationships, working conditions and
supervisory responsibilities.
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Job specification:
A list of a job’s “human requirements”, that is the requisite education, skills, personality,
and so on.
Job evaluation
Job evaluation is the process of using job analysis information in establishing a
compensation system.
Job enrichment
Job enrichment is a process of allowing employees to do more planning and controlling of
their work.
Recruitment
Recruitment is the process of discovering potential job candidates. Recruiting is the
discovering of potential applicants for actual or anticipated organizational vacancies. It
involves searching and souring for viable job candidates.
Selection
Selection is a process of hiring suitable people for job. Right man for right job is the main
goal of selection. The selection process involves many steps such as preliminary reception of
application, interviewing, test, medical test, references and final decision of hiring.
Orientation
Orientation is a process of getting new employees acquainted with the organization, its
culture, rules and regulation, objectives and supervisors and other employees. It is the act of
introducing new employees to organization and their work units. It is important because it
helps new employee to adapt with new situation.
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Training & Development
Training is a continual process of helping employees to perform at a high level. It is a
process of acquiring new skills to do job properly. Training changes and modifies employee
attitudes and behaviors that will improve his ability to perform on the job. To be effective, a
training program must accomplish a number of objectives. First, it must be based on both
organizational and individual needs. Second, the objectives of training should spell out what
problems will be solved. Third, all training should be based on sound theories of learning.
Finally, a training program must be evaluated to determine whether it is working.
Motivation
Motivation is set of forces that cause people behave in a certain way. On any given day, an
employee may choose to work as hard as possible at a job, to work just hard enough to
avoid a reprimand or to do as little as possible.
Performance appraisal
Performance appraisal is a formal assessment of how well employees are performing their
jobs.
Placement
Placement is the assignment or reassignment of duties to employee. It may take different
forms such as promotion, transfer, demotion, and termination.
Compensation
Compensation is the reward or price for labor. The goal of compensation administration are
to design the lowest-cost pay structure that will attract, motivate and retain competent
employees, and that also will be perceived as fair by these employees.
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Demotion
If suspension has not been effective and management wants to strongly avoid dismissing
the problem employee, demotion may be an alternative. A demotion is a constant
punishment to the demoted employee and hence has broad motivation implications.
Suspension
A period of time off from work as a result of a disciplinary process.
4.7 Necessity of HRM in the context of Globalization
In the age of globalization, no organization can ignore the impact of globalization. Even pure
domestic firms face competition with the global firms. If it is the large organization
especially for the multinational enterprises the impact of the globalization is tremendous.
Necessities of SHRM in the context of Globalization are pointed out below:
Cost effective utilization human resources to obtain & retain competitive advantage in the
global arena
SHRM links HRM activities with the goals & objective of the organizations. This facilitates
the goal realization.
Efficiency & effectiveness of the global firms are increased through the implementation of
the SHRM policies
Recruitment & maintenance effective workforce that right man in the right place at the right
time
Ensuring effective training system to cope with the rapid technological changeHiring
qualified workforce so that they can handle any volatile/extra-ordinary situation Through
the HR information system SHRM provides information to the other departments to
perform their role.
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4.8 SWOT Analysis of Human Resources management practice in RMG sector
Strength
Open HR Manual: The Human Resources Manual of rmg open for all of its entire employees
giving total understanding of the terms and condition of the organization to its entire
employees to assist the benefits and growth they can ever achieve and the role of Human
Resources Department with all other departments/divisions of the organization. This HR
manual is uploaded in the internal website of rmg
Empowered Work Force: The Human Resource of rmg is exactly well thought and perfectly
managed. As from the very first, top management beloved in empowered employees,
where they refused to put their finger in every part of the pie. These employees are not
suffocated with authority but are able to grow as the organization matures.
Strong Bonding and Belongingness: rmg employees are one of the major assets. The
employees of rmg have a strong sense of commitment towards organization and also feel
proud and a sense of belonging towards rmg. This strong organizational culture of rmg is a
main strength of the organization.
Information Technology: Online banking, e-mail and personal computer for all employees
enabled the employees work easier and faster with full of professionalism. All kinds of
benefits, salaries, monetary rewards are directly given to employees’ bank account through
flex cube.
Different Staff Loans: There is a set of staff loans in rmg which increases the employees’
satisfaction in terms of monetary benefits enabled them to work more stress free and put
dedication.
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Employee Evaluation: Employee evaluation process by Human Resources Division became
strength for its fair judgment and put trust among the employees of other department on
Human Resources Department.
Centralized Banking: Centralized banking means the core function of business coordinated
by the head office gives an immense effect for reducing the internal conflicts among the
branches and the Head office.
Weaknesses
Job Description: Job description is a necessary accomplishment should have for each
position for recruiting the most suitable candidate on the basis of skill and experience
required. Still hundred percent job description is not prepared or collected by the HR
Division.
HR Accounting: Human Resources Accounting is a strong tool for matching the benefits of
each new recruitment done in the organization, calculation turnover, etc. Human Resources
Division o frmg has not yet established this practice.
Compensation and Benefits: Compensation and benefits of rmg’s employees are provided
by the Human Resources Division through two different software’s named EZHR and flex
cube. Both of that software are not flexible to use and have lot of limitations.
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Opportunities
Management Information System: In recent business practices the importance of MIS is
unavoidable. Human Resources Department is not out of it. HRD of rmg has every potential
capability to establish new MIS and use it in various manpower reporting.
Human Resources Information System: Human Resources Information System is must for a
corporate environment like rmg. Rmg is going to establish a new HRIS very soon.
Research and Development: Though rmg has almost all due capabilities to command
extensive research and development activities, Rmg done a little in this area.
Salary Survey: rmg is going to start its salary survey with the most reputed consultant of
Bangladesh for its salary survey.
Training and Learning: Training and learning is the core function for making the executives
cope with the new scenario and make them update and knowledgeable.rmg is going to
utilize its fullest capacity and enthusiasm in this regards by establishing a library, arranging
extensive element etc. Very soon.
Threats
Competitive Salary and Turnover: The salary package of rmg is not as competitive as the
market demands, so the turnover of manpower is increasing day by day.
New/Multinational Companies/Bank Policy: New multinational companies and bank policy
as threat to rmg in respect of increasing the salary expectation of the employees and new
HR practices that turning the existing employees dissatisfied.
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Bangladesh Bank Regulation/Legislation: The regulation and legislation of Bangladesh bank
is randomly changing the scenario of the human resources policy and scope suddenly.
5. RESULT
According to the results, job description and job specification are well maintained. 43% of
the companies opted For moderately structured, 36% chosen well structured and only 21%
of companies have chosen very structured Job description and specification. The
recruitment process of the workers in the industry is primarily informal And follows
internal recruitment. 50% employees are being selected by internal recruitment, 36%
are walk-in And rest 14% has local referrals but mostly they follow internal
recruitment process. For recruiting new Workers apart from walk in interview follow
some methods such as verbal, written test or interview and
According to the survey 64% respondents confirmed that some sorts of selection test they
use occasionally.
Almost none of the companies provide any training and development opportunities for the
workers. Training is A must for making people effective and efficient and also to increase
the level of awareness about safety, hygiene Maintenance, and health issues. Only 5%
respondents confirmed that they have training facilities for their Employees though
some reported that they have got training initiative for the managerial people. Training
for Supervisor’s workers is common (70%) because workers development depends to a
great extent on learning on The job. General workers are recruited as non-skilled and
learn the work technique under close supervision of The floor supervisors. So, the
companies use the supervisor technique to develop the workers and ensure quality. Skill
training institute for garments workers is rare and as a result, general workers in
many cases feel Frustrated. 86% of the respondents reported that there is no training or
institutes for enhancing their knowledge And capability.
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Performance evaluation is primarily carried out through rating scales methods and
depending on supervisor’s Report. Evaluating employee performance is crucial for employee
retention and development. Generally, most of The organization follows the supervisor’s
report for evaluating employee performance. Performance evaluation Is the basis for
employee reward decision and proper reward is important for employee satisfaction
and Organizational success. Evaluation most of the time depends on supervisors reports and
observation.
For compensation system most companies used the governments rules and regulations,
some bonus system also Present there. Reward system mainly follows monetary reward
system and this will help them not only Financially, also mentally by motivating them.
57% respondents observed that the compensation system is well Structured and 43%
opined that it’s very moderate to structure. Majority (50%) of the companies reported that
They follow performance based compensation package for workers and employees
and(43%) follow industry Based compensation system. Monetary reward is the most usual
form of compensation. 86% of the respondents Follow the monetary reward system.
Interestingly, there is no discrimination among the women and men Workers in terms
of compensation structure, leave policy and HR issues. However, managers of some
companies State that middle and upper level positions are mostly filled up by males.
Apart from the salary some benefits like festival bonus, performance bonus, health
insurance, gratuity and Provident fund also given for the betterment of the workers.
Festival bonus and performance bonus offered by Almost all the organizations.
Technical competency and seniority level are the two variables used by the workers
for job progression. Supervisors’ report also contains technical expertise of the
employees. 90% of the respondents reported that Supervisors’ are asked to provide
adequate information about the employee’s technical skill. Most of the Respondents
reported that they maintain fairness and justice, while considering the promotion
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decisions. However, employees past record, supervisors report, behavior, disciplinary
records are all considered before Making final decisions.
Companies are very much careful about the workers right, health and safety. The
management maintains good Relationship with the employees. Majority 55% of the
companies maintain good relation with the employee, 21% have excellent relation and
rest 24% of the companies maintains moderate relationship. Majority of the Companies
follow the Bangladesh labor law in respect to workers rights, facilities and safety.
According to
Bangladesh labor code 2006, all workers have the right to know about all issues related with
their safety, rights, Freedom, responsibilities and company have to maintain the labor law
properly. None of the companies surveyed faced any problems in case of labor outrage
in the previous 5 years. Majority The respondents reported that management-employee
relationship is very positive in their organization though Some problems occur. However,
these problems occur due to misunderstanding between supervisor and Worker,
personal issues, conflicts among the workers etc. It was also revealed in the interview RMG
companies Now a day become very much careful about labor relation, dealing with
media, and social auditors. Since International buyers are very much sensitive about the
labor standards, they also look for self-regulation so that They do not get involved with any
controversies. The surveyed firms try to maintain the best practices to avoid Any disputes
and controversy Best HR policies and practices should be maintained and implemented
in RMG sector. RMG factories have Become the part of a global supply chain so these
firms have to maintain the global standard in respect to work Environment, employee’s
responsibilities, relationship with the management and workers, proper maintenance Of
rules and regulations, and health, environment and safety. HR practices always
supposedly contribute to an Improved bottom line performance are generally perceived
as “good” for “workers” like, employee security, Training and development, information
and consultation, higher levels of pay and work-life balance, which looks Like an attractive
scenario for employees and workers alike. Most of the RMG workers are illiterate in
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.• Reduce discrimination in case of salary payment. According to CPD Report garments
Owner have earned 8.5% profit but paid workers only 1.5% which is beyond discrimination.
Company should pay salary to all employees within the first week of the next month
• Company should provide training facilities for all employees.
• No reduction in salary in case of late and should be allowed weekly holiday, sick leave
with salary, and pregnancy leave with compensation. Understand the dignity of labor.
Realize and appreciate the right and privileges of the workers. No threat to cut job.
• No duty more than 8 hours because labor movement had been going since1886 for 8-
hour per day. Understand the significance of international Labor Day i.e. May day. Ensure
weekly holiday and other leave according to Bangladesh Labor Law 2006.
• No obligation in case of trade union and collective bargaining.
• Strictly follows “owner-labor-government agreement” of 22 & 23rd may, 2006. Ensure
minimum wages that must be adjusted with inflation, and increasing economic condition.
Minimum wages should be taka at least taka 5000. Ensure safety and security of workplace.
• Behave as human being with the worker; not machine.
• Reduce labor dissatisfaction and job stress through good behave and incentives.•
Discourage child and young labor.
• Company should provide transportation facilities for all employees. The worker should be
more conscious about their rights and also the owner must fulfill and respect the
employee’s right and choice.
Must follow BGMEA & Government rules and regulation that is updated time to time.
7.Conclusion
HRM practices of RMG sector of Bangladesh has been done in the context of a case study.
The study reveals that HRM practice of the RMG sector satisfactory except minor
exceptions. Some of the poor HRM practices are found in case of absenteeism, job turn out,
any kind of up gradation, recruitment and selection, training and performance evaluation. It
is also assumed from the study that the garment company maintains HRM but it is bookish
in nature and practical application of different areas of HRM is hardly visible. Evidences
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show that garments companies which are owned by the non Bangladeshi citizens are
conscious of HRM practice than those garments companies owned by the Bangladeshi
citizens as it is also seen in the past studies. Previous studies mainly kept importance of the
Bangladeshi owner operated garments industries and found many lacking of HRM practices.
The present study reveals that HRM practices of Journal for Studies in Management and
Planning Available at http://edupediapublications.org/journals/index.php/JSMaP/ e-ISSN:
2395-0463 Volume 02 Issue 4 April 2016 Available online:
http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 139 RMG in
Bangladesh is not poor as it is addressed by the past studies. Most of the previous studies
are done in the context of Bangladeshi owner operated RMG industries and their HRM
practices were found poor. It can be concluded that RMG sector in Bangladesh is not
missing the proper HRM practices rather HRM practices are particularly better in the foreign
owner operated RMG in Bangladesh. This is proven in the present study. Considering the
result of study, RMG industry of Bangladesh should improve the HRM practice either in
Bangladesh or elsewhere. At the same time, more in depth analysis should be done by
consolidating the results of the present study