HRM Practices in RMG Industry in Bangladesh: Nexus
HRM Practices in RMG Industry in Bangladesh: Nexus
By
NEXUS
Sajjad Shahriar 201503036
Syeda Munmun 201503006
Ali Ahmmed 201601058
Submitted to
Mohammad Abdul Jabber
Assistant Professor
Department of Management
University of Dhaka
WMBA program
Dear Sir,
This is my great pleasure to submit the research paper on (“Human resource management
Practice in Bangladesh’s Garments)” This research paper has been prepared to fulfill the
requirement of our course.
We have put our best effort to make this paper as a successful one. It has been joyful &
enlightening experience for us to work prepares this paper. However this has been obviously a
great source of learning for us to conduct similar types of studies in the future.
We would like to express our sincere gratitude to you for your kind guidance & suggestions in
preparing the paper. It would my immense pleasure if you find this paper useful& informative to
have an apparent perspective on the issue. we shall be happy to provide any further explanation
regarding this research paper if required & please do not hesitate to call us if you have any
query on this paper or any other relevant matters.
Bangladesh is a developing country and it has been increased its development in garment sector
in resent past years. Now a days, garment industry become a promising step in industrialization.it
creates many opportunities for unemployed, especially for uneducated women in the country. It
also increased export business with the rest of the world through Ready Made Garments (RMG)
sector 76 percent of our export earning comes from this sector. At present it has become a radical
changes in garments sector. Most of the export income comes from garment industry. At present
there are about 3000 garments industry in the country where 75 percent of them are located in
Dhaka or its side area such as Gazipur, Savar, Naranyangonj, Valuka, Mymensingh and rest of
them are located in Chittagong and Khulna according to Bangladesh Garment Manufacturers and
Exporters Association (BGMEA) and BBS (2011) Bangladesh Bureau of Statistics Bangladesh .
There have worked near fifty lacks of people in the garments industry which create opportunities
in a vast area for unemployed men and women where 85 percent of them are illiterate rural
women. As it emerges a great export earnings in our country so, Human Resource Management
should be effective to control and maintain efficient production. As we know Human Resource
Management is related with human resources of an organization and garment industry is focused
in vast employment of unemployed people so, the management system should be handled with
effective and efficient manner.
The focus of this report is to HR practices in readymade garments industry in Bangladesh. The
aim of this study is to find out the HR policies and practices industry in Bangladesh.
The term ‘Human Resource’ deals with management of an organization’s employee where
Human Resource Management refers to effective practice of management skill within the
organization. It related to a strategic focus on people resource to facility the organization to
achieve its goal. By practicing good Human Resource Management will help manager of the
organization to achieve their goal with increasing worker concentration about the goal,
specificity and by providing necessary resource to the employee.
Objectives of the study:
The main objective of the study is to know about the present condition of HR practices in RMG
sector in Bangladesh. And also HR practices are maintaining a standard strategy in an effective
manner and facilities the worker /employee employed in garments industry.
Data and other related information are collected from various sources. The report has been
prepared on the basis of primary and secondary data. The methodology of the report is explained
below:
By talking and asking questions in face to face interview with the employee of the
organization.
By visiting organization and observing the management process
Company’s website.
Recruitment and fair report.
Different reports through internet
Business magazine, articles, publication and books
Limitation of the study:
We tried our level best to bring fruitful outcomes of the research, but we actually had some
limitation
Sample size -- the number of the units of analysis we used in your study is dictated by the type
of research problem. But our sample size was too small, so it was difficult to find significant
relationships from the data, as statistical tests normally require a larger sample size to ensure a
representative distribution of the population.
Lack of available and/or reliable data -- As we collected data from the employees of the
garments, after it we represented it the same in our research paper but perhaps the collected all
the data was nor fully available, because due to some confidentiality the employees did not
provide all data accurately
Measure used to collect the data – as we used to collect primary date by using questionnaire, so
huge amount of questions were needed for required study but for it was not feasible.
Self-reported data. (1) we had to remember the unofficial data while talking to the employees
(2) we had to put all the thing regarding the project in the questionnaire which sometimes may
not fully show the actual scenario (3) sometimes worker tried to show their organization in good
position
Access – we had not access to all the departments of the organization to collect more data.
From our side .Like all good researchers, we tried to present adequate evidence, from the data, to
support the stories we told, but a certain amount we took on trust.
Human Resource Management
The term human resource refers to the people in an organization. Human resource management
is concerned with people dimensions in management. When managers engaged in human
resource activities as a part of their job, they seek to facilitate the contribution; people make to
achieve an organizations strategies and plans. Human resource management encompasses those
activities designed to provide for and co-ordinate the Human efforts, so that they can contribute
to achieve the goals of the organizations.
Human resource planning is the process for ensuring that the Human Resources requirements of
an organization are identified and plans are made for satisfying those requirements.
At YOUNGONE, they believe that their Human Resources give the company a significant
competitive edge in terms of knowledge and experiences. Along the line up adopting new
innovative and advanced technologies for its high-tech manufacturing plant, the company
continued to draw talented and dynamic professionals of the industry, as well as, taking
constructive steps in developing the skills of the human resource pool. They acess demand and
supply, and make recruitment according to availability .The effective working days of this
organization is 6 days per week and each employee will work 8 hours per day. If it is required to
slot in them for overtime duties then the duty time will be utmost 60 hours/ weeks. For festival
leave, usually they will get the vacation of 10 days.
Human resource department of YOUNGONE follows the following steps for managing the
human resource.
Recruitment
Selection
Training
development
Performance management
Employee relation
Labor relation
Job analysis
Job design
Incentives
benefits
Recruitment is the very first step or process for seeking person or human resource for
employment in specific job. Selection comes after recruitment which attempts to identify
qualified, skilled, efficient, knowledgeable applicant for the job to perform effectively and
efficiently to achieve organization goal. It has a direct impact on type of employees that is
seeking for recruit and selection in garment industry of Bangladesh. Usually YOUNGONE
follows two kind of source of recruitment:
Internal sources
External sources
Internal sources:
The people or employees who are recruited internally called internal recruitment. Internal
employees are the main resources of an organization. They are more skilled, trained and overall
they have better knowledge about the organization then other external sources. Some internal
sources identified in the garments are:
Job-posting programs:
A Job posting program which informs employees about opening job post, required qualification
and invite qualified employees to apply. The notice usually posted on company’s bulletin board
or notice board. The purpose of job posting is to encourage employees to seek promotion.
Usually Garments industry in Bangladesh recruit from these kinds of internal sources. They
launch promotional offer to increase performance in the industry and give opportunity to express
their performance in a better dimension.
Transfer:
As YOUNGONE has two factories in DEPZ and CEPZ they don’t need make transfer
employees. But the garments industry that have more than one branches they usually transfer
employees one from another branch which is also a sources of recruitment.
Internal advertisement:
Notice board, bulletin board and internal newspaper are used for internal advertisement in
garments.
Extension of services:
The employee who is ready for retirement but he/she can provide good service to the
organization, in that special case government body can extend his or her service period.
Absorption of trainees:
Garments also recruits from trainee or who are doing internship in those organization directly
because they are quite knowledgeable and skill after training program.
Demotion:
It is very rare case in the garments .In this case the employee who has possibility of sack from
job sometimes organization can follow demotion strategy to keep this employee in the
organization.
External sources:
When job opening cannot be filled internally, the HR department of the organization must look
outside the organization for seeking application. There are some external sources which are:
Walk-in-interview
Employee referral
Advertising
Internet
Executive recruiter
Colleague recruiter
Employee referral:
Generally employee working in the garments referred their known person from other
organizations whom are assumed will be able to perform the job. It’s mostly common strategy/
HR practice to recruit in garments industry in Bangladesh.
Advertisement:
Usually garments like YOUNGONE use ads on newspaper and also make poster for recruitment.
It consists of job identity, job responsibility, required qualification, benefits, applying procedure,
and organization identity.
Internet:
Bangladeshi garments industry use online job portal for recruitment. Here YOUNGONE gives
circular for the job post through their website or other job advertising websites.
Selection process:
Although there have many selection processes which are followed in different garments industry,
the common steps are given below:
Emulation test
Comprehensive interview
Background investigation
Medical/physical exam
On the job training is a training that shows the employee how to perform the job and allows him
or her to do it under the trainer’s supervision on the job training is normally given by a senior
employee or a manager like senior merchandiser or a manager. The employee is shown how to
perform the job and allowed to do it under the trainer’s supervision.
Job rotation
Job rotation is a training that requires an individual to teach several different some in a work unit
or department and performer each job for specified time period. In job rotation, individuals learn
several different job within a work unit or department. One main advantages of job rotation is
that it makes flexibilities possible in the department. When one employee like junior
merchandiser absence another merchandiser can easily perform the job
Apprenticeship training
Apprenticeship training provides beginning worker with comprehensive training in the practical
and theoretical expect of work required in a highly skilled occupation. Apprenticeship program
combined of the job and classroom training to prepare worker for more than eight hundred
occupation such as computer operator, sewing technician.
6. Production officer 3
7. Sewing technician 5
8. Sewing Supervisor 5
Classroom training
Classroom training is conducted off the job and probably the most familiar training method .It is
an effective means of imparting information quickly to large groups with limited or no
knowledge of subject being presented. It is useful for teaching factual material, concepts
principle other theories .portion of orientation programs, some expects of apprenticeship training
and safety programs are usually presented utilizing some form of classroom instruction. More
frequently however, classroom instruction issued for technical, professional and
managerial employee
The long term development of human resources as distinct from training for a specific job is of
growing concern to HR departments of YOUNGONE. Though the development of current
employees the department reduces the company’s dependents on hiring new workers. If
employees are developed properly the job openings found throw HR planning are more likely to
be filled internally promotions and transfers also show employees that they have a career not just
a job. The employee benefits from increased continuity in operations and from employees who
fail a greater commitment. HR department is also an effective way to meets several challenges
including employee obsolescence, international and domestic diversity, technical challenges.
Affirmative action and employee turnover. By meeting these challenges the department can,
maintain an effective workforce.
Evaluation criteria > pretest > trained or developed-workers > posttest > transfer to the job
> follow-up studies.
Performance Management
Performance appraisal is the process of assessing employee’s past performance, primarily for
reward, promotion and staff development purposes.
‘Performance appraisal (is) a process that identifies, evaluates and develops employee
performance to meet employee and organizational goals. Performance Appraisal doesn’t
necessarily use to blame or to provide a disciplinary action. Previous management theories used
to view performance appraisal as a stick that management has introduced. Performance
appraisals are now more clarified and they concentrate on developing organizational strengths
and employee performance.
Purpose of Performance Appraisal
To review past performance to assess training needs to help develop individuals To audit the
skills within the organization is to set targets for future performance, to identify potential
for promotion, to provide legal & formal justification for employment decision To diagnose the
hidden problems of an organization
Who Appraises
• Supervisors
• Subordinates
• Peers
• Clients/customers
• Self-appraisal
Employee relation:
Employee relation depends on both employee and employer. Both parties has their own interest
such as employer wants better output from employee and on the other side employee expect
benefit and compensation from employer.
Employee safety:
Garments industry usually labor and employee have to work in factory with a very high risk.
Here in YOUNGONE safety practices are followed such as structural safety, insurance facilities
as well as financial benefit or help.
Employee health:
Medical facilities, such as free medical checkup, health card sometimes they also provide free
medicine from the organization.
Some garments that are developed in this industry have very hygienic working environment and
they do not allow external person in factory. YOUNGONE follows this. On the other hand some
organization takes initiatives to make good working environment.
Employee benefits:
In garments usually permanent employee get benefits from the organization. Basically they
expect financial support as benefit but sometimes they expect other motivational factors such as
transportation facilities, overtime facilities, working compensation social security, family and
medical leave.
Workers’ compensation:
Occupational diseases
Death
Holiday
Vacation
Sick leave
Marriage leave
Maternity leave
Personal leave
Job analysis
There are two outcomes of job analysis: These two outcomes are really essential matter and
need to consider for every HR department of the garments in Bangladesh .
1. Job description
2. Job specification
Job Description
A job description is a list that a person might use for general tasks, or functions,
and responsibilities of a position. It may often include to whom the position reports,
specifications such as the qualifications or skills needed by the person in the job, or
a salary range. Job descriptions are usually narrative, but some may instead comprise a simple
list of competencies; for instance, strategic human resource planning methodologies may be
used to develop a competency architecture for an organization, from which job descriptions are
built as a shortlist of competencies.
when an employee switch a job he / she need to adapt an unknown environment , if job
responsibilities unknown to him/ her he will not able to survive there , from the job description
an employee can aware about his responsibility . In Bangladesh Garments, all most every HR
department apply this term to attract qualified employees and to access its overall
performances.
Job Description is an organized factual statement of job contents in the form of duties and
responsibilities of a specific job. The preparation of job description is very important before a
vacancy is advertised. It tells in brief the nature and type of job. This type of document is
descriptive in nature and it constitutes all those facts which are related to a job such as:
Job Specification
Job Specification is a statement which tells us minimum acceptable human qualities which
helps to perform a job. Job specification translates the job description into human
qualifications so that a job can be performed in a better manner. Job specification helps in
hiring an appropriate person for an appropriate position. The contents are:
Job title and designation
Educational qualifications for that title
Physical and other related attributes
Physique and mental health
Special attributes and abilities
Maturity and dependability
Relationship of that job with other jobs in a concern.
Incentives
Incentives: different types of incentives are given to the employees to motivate them and to
increase the garments production; incentives given are also an outstanding way to harmonize all
the workers.
Individual incentive: different types of individual incentives are given to employees, some
based on performances some based on production. Some based on time frame of production;
basically incentives help to individual worker to generate some extra money and to keep the
working momentum
Group Incentive,
Some incentives are also divided in group wise, incentives are given to based on group
performances when group incentives are declared to boost up the team speed almost every team
personnel works cooperative ways to achieve the desired goal
Group incentive is also two types 1. Team based 2. Small group
Companywide incentive: This incentive is all about profit sharing plan and employee stock
option plan, though these types of incentive are not common or rarely practiced in our garments
industry
Organogram
Managing Director
Executive Director
The Garments Industry was established before three decades in our country. At the beginning of
this Industry Human Resource Management (HRM) was not introduced clearly. With the
passage of time the owners of the Garments Organizations become familiar with HRM practices
and it plays an important role in organization development, growth of production and human
resource development etc. The modern approach to supervision and HR Management engages
more workers’ intelligence, creativity, motivation and loyalty. It tends to reduce absenteeism and
turnover, increasing productivity and problem solving ability. But it is matter of sorrow that all
organizations do not follow the rules and regulations properly. The scenario of Human Resource
Management (HRM) of The Garments Industry particularly YOUNGONE is described below.
at the beginning of this Industry Human Resource Management (HRM) was not introduced
clearly but now it plays an important role.
now they try to do HRM practices but they do not follow properly.
Compensation package covers minimum standard at mid and lower level but at top level it is
standard.
The employees training facilities but they should provide more time .
The organization’s attention is usually focused on the work to increase productivity. This is
helpful to achieve the organizational goal.
The pay and promotion decision are made based on the seniority although it should be related
with performance and sometimes it is not provided properly. And sometimes nepotism works
behind it.
Many of the employees feel job stress that does not always ensure productivity.
Generally the organization does not provide advertisement in the media source such as the
daily newspapers & the internet. And discourages under age workers
RECOMMENDATIONS
No sexual harassment. Ensure good and comfortable work environment. No duty between 7
p.m. to 7 a.m. pays for overtime properly and timely. Increase salary relating with market price.
Company should pay salary to all employees within the first week of the next month.
No reduction in salary in case of being late for exceptional case and no threat to cut job.
Ensure minimum wages that must be adjusted with inflation, and increasing economic
condition.
Reduce labor dissatisfaction and job stress through good behave and incentives.
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.
5 Strongly Agree
4 Agree
3 Undecided
2 Disagree
1 Strongly Disagree
13. Residential facilities for worker who lives far from organization
19. Is existing rules and regulation are equally followed for all workers
a. ……………………………………………..
a. ……………………………………………………………..