Human Resource Management Practices in Bangladesh: A Review Paper On Selective HRM Functions
Human Resource Management Practices in Bangladesh: A Review Paper On Selective HRM Functions
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Review Article
Human Resource Management Practices in Bangladesh: A Review Paper on
Selective HRM Functions
Mahmudul Islam Choudhury, Safayet Ahmed Chowdhury, Abdul Muhaymin Mahdi and Md. Saidur Rahaman
Abstract: The focus of this study is to gain an insight into the current HRM practices in Bangladesh, as well as the future challenges the country faces.
The data was collected from secondary sources such as, journal article, books, and websites. Based on secondary sources, we explain the organizational
contexts of the four primary generic HRM functions: HR planning, recruitment and selection, training and development and industrial relations
practices. Here, we too highlight recent advancements and future challenges with respect to HRM practices. Whereas valid research on HRM practices
in Bangladesh is still uncommon, this study will be useful to researchers and HRM specialists curious about Bangladesh and other developing nations
and, we trust, will empower future research.
Key words: HRM Practice, Recruitment and Selection, Training and Development, Performance, Motivation
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Human resource management (HRM) is considered a impact employees’ behavior, attitudes, and performance [11].
basic organizational resource that helps an organization The purpose of this article is to provide an outline of
maintain its successful operation. It is an vital zone that current status and future prospects of developing efficient
influences a number of employees' demeanors and behavior and high-performing HRM practices in Bangladesh. Hence,
such as aim to leave, levels of work satisfaction, and different secondary sources and materials were utilized to
organizational commitment [20]. Pfeffer proposed that review the situations. The sources comprised of articles in
delicate or high commitment human resource management scholarly journals, professional magazines and newspapers on
practices are those that create trust in employees and these HRM practices in Bangladesh. We moreover utilized
practices incorporate giving employees strengthening and documents published by national and international
involvement in decision making [24]; broad communication organizations to evaluate the current situation and future
about working and performance of the employees service; challenges with respect to HRM in Bangladesh. In conclusion,
designing training for skills and individual advancement of we went to websites of public and private division
employees [27]; particular hiring; team-working where organizations to gather relevant data of HRM practices in
thought are pooled and imaginative arrangements are Bangladesh.
encouraged; rewards system that commensurate with effort;
reduction of status between the management and staff and 2. RESEARCH ON HR PLANNING IN BANGLADESH
all laborers are valued regardless of their role. According to
Macky and Boxall, the scientific writing assumes a causal Ahmad and Khalil compared the HR planning practices of
interface streaming from HRM practices to organizational two banks - Dutch Bangla Bank Ltd. and Agrani Bank [4]. They
performance through the reactions of employees [21]. watched that none of the banks had any composed HR
Organizations that don't pay impartially compared to others planning. They emphasized on appropriate recruitment,
may lose their employee’s since of the non-competitive selection, and training to guarantee human efforts within the
remuneration package [3]. According to Lawler, society has service of organizational objectives. Hossain and Ahmed
entered a new period within the relationship between moreover analyzed the HR planning practices of CARE, a
organizations and their employees [19]. In this modern time, leading universal organization having operations in
individuals are the essential source for a company’s Bangladesh [13].
competitive advantage and organizational success and
survival depends on how employees are treated. The ‘human’ 3. RESEARCH ON RECRUITMENT AND SELECTION
perspective of HRM is concerned with the relationship IN BANGLADESH
between manager and employee and is related with the
human relations movement and the concept of high Taher and Arefin examined the recruitment and selection
commitment work practices developed till the day [34]. process of Bangladesh Open University [32]. They emphasized
According to Huselid exceedingly commitment human on appropriate recruitment and selection because it
resource exercises increase organizational viability by constitutes the foremost critical features of HRM and the cost
progressing working conditions for workers to feel more of improper recruitment and selection is additionally
secure in work & included within the achievement of the exceptionally high. At last, they suggested that BOU ought to
organization’s goals [14]. Huselid proposes, after investigation set a completely fledged HR department with experienced
over 900 organizations within the US that HR practices can be and competent individuals, formulate HR plans, and present
separated into two categories: first, skill enhancing HR computerized HR framework to progress the recruitment and
functions including selection, training, and development are selection process of BOU. A comparative study evaluated the
related with minimizing turnover and improving monetary recruitment and selection practices of Square
performance and second, motivation enhancing pursuit Pharmaceuticals Ltd (SPL) [6]. SPL practiced both inner and
including performance assessment and compensation outside sources of recruitment. Approximately 60% positions
activities are related with measures of productivity [28]; of SPL were filled remotely through newspaper promotions.
within the word of [10]. HRM is the method of getting, The rest of the positions were filled internally by employee
training, evaluating, and compensating employees, and referrals, and references of rumored faculty and senior
keeping up labor compatibility, wellbeing and security, and management. It did not utilize internet for this reason.SPL
fairness concern. In this respect, Haslinda, contends that HRM utilized distinctive tests such as written test, communication
refers to the approaches, practices, and frameworks that ability test, interview, alcohol/drug test, medical checkup,
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Choudhury, M.I., et al., JSSEH 2020, Vol. 1, No. 2: 43-49
reference check, and skill test in selecting right people for the Rahman examined the labor management relations within
proper posts. the Crescent Jute Mills, Khulna [26]. He found the presence
of strain between workers and management, labor
4. RESEARCH ON TRAINING AND DEVELOPMENT discontentment, threatening attitude of workers towards
IN BANGLADESH management and vice versa within the mill. He too observed
that job dissatisfaction was exceptionally high among the
For the public segment employees, the government, workers of the mill. Generally labor-management connection
through the Ministry of Establishment, selects the learners was exceptionally poor. A comparative study too examined
and determines training programs singularly, without any the labor apportions of a few selected industries of
discussion from the particular ministries [22]. The Ministry of Chittagong [7]. Another study made by Rahman evaluated the
Establishment decides the substance of the training courses influence of labor management relations on progressing
and vests the obligation within the Public Administration productivity within the context of Bangladesh [25]. He
Training Centre (PATC), which confers foundation training to described different aspects of labor legislation, labor
all respectful service cadre officers [16]. In expansion to the practices, compensation, productivity, and labor relations of
PATC, there are training institutes in Bangladesh that prepare Bangladesh. Taher inspected the roles played by the different
civil service officers and other authorities of the governments of Bangladesh in context of industrial relations
government’s independent organizations. Most such training amid 1972-1992 [31]. He moreover described industrial
organizing as it were engage in orientation training, or relations in two colonial stages – British and Pakistani
foundation training, for distinctive categories of employees periods. He found that government’s totally different periods
beneath the respective departments [22]. played critical roles in forming industrial relations of
The primary restriction of government training programs Bangladesh. Ahmed studied current features and trends of
is that training or capabilities don't benefit employees, as industrial relations (IR) system in Bangladesh and laid out long
these exercises seem not to have any affect on their career term challenges confronting the IR standards in context to
way or promotion opportunities. In public segment globalization [5]. He specified that the exceedingly
organizations, promotion or career progression isn't confrontational and unpleasant situation of IR in Bangladesh
connected with further skill development and qualification required to be changed to meet the necessities of modern
procurement, but or maybe depends on position and world in arrange to heighten industrial productivity and
mediations from canvassers and peers. Employees have no business era. Taher and Hossain distinguished that the
scope to maintain a strategic distance from the entry-level reasons for breaking down labor management relations in
position list to get promotions and career progression. Bangladesh were: clashing government decisions,
Training of human resources has however to rise from its peculiarities of labor laws, delay in settling disputes and
dismissed position in private sector organizations in grievances, and states of mind of bosses [33].They suggested
Bangladesh, which still don't see the require for training and a few measures to be taken for moving forward industrial
development activities for both employees and supervisors relations such as democratic practices in society and within
[2,23]. In an economy with a colossal work overflow, training the industry; positive roles of the government; mutual trust
activities are considered a fetched instead of an investment and regard among state, laborers, and managers; non-
for organizational development, and in private sector interference of political parties; advancement of proficient
organizations, there are few precise training practices for and fair trade union authority; training and orientation for
employee development. In common, training is considered laborers; as it were one trade union in each venture; sensible
the duty of employees, in spite of the fact that a few pay structure and benefits; and favorable labor laws and
companies, most outstandingly, pharmaceutical companies, policies.
are starting to understand its significance.
6. PAY STRUCTURING AND JOB GRADING IN BANGLADESH
5. RESEARCH ON INDUSTRIAL RELATIONS IN BANGLADESH
Pay structure of public sector is designed by National Pay
Khan examined industrial relations in Bangladesh with Commission (NPC) and have 20 pay structure for public
extraordinary accentuation on exchange unionism [17]. The employees. NPC used backdated pay structured which were
time frame of his study was from 1971 to 1984 with the used by British earlier. There are four categories of
impacts of two colonial periods -British and Pakistani periods. employees: officers and executives, junior officers,
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Choudhury, M.I., et al., JSSEH 2020, Vol. 1, No. 2: 43-49
clerical/secretarial, and custodial. For wages pay structured recognized HRM pros to promote the HRM profession and
is designed by National Wages and Productivity Commission advancement of HRM practices in Bangladesh. The BSHRM is
(NWPC).Each commission gives 4 main parameter that is pay organizing yearly HR conferences on regular premise and
should serve basic needs, industrial wages is higher that rural working to develop professionalism among the HRM
or agricultural wages, wages and productivity must be linked, managers of the nation [2].The commitment of BSHRM is
and also ability of enterprise is also considered. The latest pay broadly recognized by the worldwide HR community, and it
commission is formed in 2014 which is (National Pay and has allowed membership of Asia Pacific Federation of Human
Service Commission). This suggest pay raise up to 112.5% Resources Management (APFHRM) and the World Federation
compared to 94% of 2005. It focuses on better recruitment of People Management Association (WFPMA). Hence, further
pay grade reduced to 16. But in reality, expect few advancements in terms of HRM practices and
organizations none of the private institution has developed acknowledgment HRM professions are anticipated in close
any pay structure. But pay structure for managerial and non- future. Second, shifts in recruitment and selection practices
managerial employee’s pay structure is almost similar as like are moreover obvious in Bangladesh [1,23]. Private segment
public organization. Generally, the salary is declared by the organizations are starting competency-based approaches in
head of the department. Moreover, non-managerial pay their recruitment and selection practices. Organizations are
structure is determined by burgeoning with (CBA), usually moving absent from the traditional view of instructive
there is 8-12 pay scales. In private organization employee qualifications and experience to one centered more on
with high qualification can go for higher position but individual accomplishments and work-related competencies.
unfortunately, in Bangladesh 26% of workers are illiterate. Managers are changing their focus from “what” to “how” to
utilize qualifications and knowledge criteria.Within the
7. EMERGING TRENDS OF HRM PRACTICES context of tremendous levels of unemployment, where in
IN BANGLADESH some cases more than 1000 candidates compete for a single
position, educational achievement is still utilized to decrease
In spite of the fact that HRM in Bangladesh still takes the number of applications to a reasonable figure. In any
after traditional work force management practices, in recent case, since competencies are evaluated in a subjective
years, analysts have distinguished changes that demonstrate manner, the control of such criteria may still happen. As the
progress in terms of strategic HRM practices [2,18]. First, the HRM profession picks up momentum and HRM managers
role and significance of HRM is expanding in organizations in become better prepared, the utilize of competency models
Bangladesh. Numerous large organizations have as of now shows up to be more widespread. The dissemination of
built up separate HRM divisions and contracted professional competency-based practices from multinational enterprises
HRM work force with relevant education, knowledge and and universal organizations is very apparent totally different
experience. Some organizations have indeed updated the segments [2,8]. Globalization has changed the scene of
status of HRM managers and consolidated the head of the modern workplaces, and organizations are confronting
HRM department on the corporate board. The development continuous computerization and technological challenges
of professionalism and the foundation of professional within the changing nature of their trade.These innovative
associations and organizations may have provoked this rise of changes have set expanded pressure on organizations to
HRM roles, since it has changed the attitude and recognition upgrade employees’ knowledge and abilities in arrange to
of trade communities towards the significance of HRM compete within the global arena. The pace of industrialization
practices [2].The government, with offer assistance from the in Bangladesh too has heightens the competition for talented
World Bank, built up the Bangladesh Institute of employees among organizations. To manage with the
Administration, which offers specialized degrees and competition, organizations are presently realizing the
diplomas in HRM and related zones. Most public and private significance of investing in worker training and development
universities in Bangladesh presently also offer Bachelor of activities, and are setting up partitioned human resource
Business Administration (BBA) and Master of Business development (HRD) divisions, including specialized
Administration (MBA) degrees, with specialization in HRM. In professionals and specialists. In a few cases, the appointment
expansion to the educational institutions, two proficient of a Human Capital Manager or Talent Development Manager
associations, to be specific, the Institute of Personnel shows the expanded presence of HRD activities in Bangladesh
Management (IPM) and the Bangladesh Society for Human [2].States of mind towards employees are changing. Instead
Resource Management (BSHRM), have been shaped by of considering employees as a cost or irrelevant resources,
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managers are realizing the potential esteem of highly supervisors are battling to attract and retain the talent
talented employees and are investing in employee training required by organizations.
and development activities. Certainly, this appears a bright As Bangladesh is moving from being a developing
future for HRD. economy to an emerging economy, people’s desires and
values are too changing. Within the last 20 years, since of
8. FUTURE CHALLENGES OF HRM PRACTICES globalization and the IT transformation, individuals are way
IN BANGLADESH better informed about the world, work and civic offices of
modern life. Whereas previous generations stressed about
In Bangladesh the equal employment opportunity is savings and job security, the modern generation of employees
totally absent. Women participation in labor market is far is more concerned about relationships, a work–life adjust and
behind and it quite non-existence. It is been blamed that meaning in their work. Women are joining the labour market
HRM practice in Bangladesh is unethical and further have in expanding numbers, and the number of working couples is
labor exploitations. Employers here do not find well skilled expanding as well. Whereas women experts are moving
workers for their organizations. They complained there are towards higher-level employment positions, they face an
many highly graduates how have lack of technical and overwhelming challenge to maintain a work–life balance and
vocational learning’s. These create a huge gap in the labor career advancement within the traditional Bangladesh society
market. Recently the organization with strong financial [15]. In Bangladesh, legislative issues determine or influences
abilities is hiring talents with the help of free market most trade decisions. It is troublesome to distinguish between
economy. Further it is restricted for employer to initiate are a businessperson and a politician.Businesspeople ought to
recruitment without the approval of trade union. Labor law keep up contact with political leaders to get loans from banks
is quite complicated in Bangladesh. Many public organizations or to induce essential support from the government or
have over staff employees, we is resulting operational loss in supporting agencies. As specified earlier, recruitment,
the organization. Hiring a part time employee is bit promotion, trainee selection, compensation adjustment,
complicated for organizations too. New generation of management–union relationships and so on, are all affected
employees are much more well concern about their work life by legislative issues and politicians. Political belief system got
balance and work environment in Bangladesh. Along with to be prominent in employee recruitment and selection,
man, women are also facing work life balance difficulties and training and promotion activities in public segment
carrier expansion in the traditional society of Bangladesh. organizations. Private segment trade owners also consider
In spite of the fact that Bangladesh could be a country political links or the background of employees to realize their
with inexhaustible labour, managers still complain about a long-cherished political thought processes [8]. However, for
deficiency of exceedingly talented employees in numerous long-term industrial improvement, businesses ought to
professions, as well as a lack of competent senior level separate themselves from national politicsIn expansion,
employees. Within the nonappearance of an integrated national policies have to be remain steady across changes
national education and HRD policy, educational institutes are within the government, and businesspeople ought to not be
creating thousands of non-technical and non-vocational harassed for their political convictions. For HRM managers,
graduates each year. This makes a tremendous imbalance moving beyond this tradition of political links, without the
within the labour market. Numerous highly educated consent of owners, may well be a big challenge when
graduates stay unemployed, on the one hand, whereas executing the latest HRM practices [12]. The HRM managers
knowledge-intensive industries confront skill shortages on the in multinational enterprises too confront a dilemma in
other. In expansion, in recent years, the free-market economy keeping up the balance between worldwide HRM
has heightens competition in several industries, and prescriptions and the requirements of nearby subsidiaries in
companies presently face stiff competition in procuring and Bangladesh [29]. As globalization bring the world closer, HRM
retaining skilled employees. Already, with limited options in practices in Bangladesh are also impacted by multinationals
terms of employment opportunities, work security and and other dominant philosophies. Numerous multinationals
seniority based pay and promotion were utilized to persuade have been operating in Bangladesh for a long time, and their
employees. However, the expectations of the unused monetary performance is better than that of the local
generation are very different to those of prior generations, competitors. MNCs are role models in developing precise
and traditional strategies of propelling employees are not HRM practices and driving local companies are trying to
successful within the new labour market. As a result, HR imitate their practices [8].However, owing to social and
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