Student Evaluation

Summary of a paper titled"  Human Resource Management Practices in Bangladesh

The full version of the chapter is available in my book:  HRM: Theory & Practice

Problems of HRM in Public & Private Organizations

HRM maximizes output and efficiencies of employees. It ensures conductive human relations for uninterrupted production. Therefore, it deserves implementation  in all organizations of all the countries in the world including Bangladesh. HRM is a critical competitive edge under the present homogeneous technological world. Therefore, a special attention and recognition to the HRM  is required to win the competition and to sustain in the volatile sharply competitive market economy. Nevertheless, the management of the firms in Bangladesh doesn’t give much attention to this pivotal resource. Several researchers have identified numerous problems that are involved in the effective functioning of HRM in Bangladesh.

 They are discussed below:

Faulty employee selection criteria

Employees at all levels should be selected on merit, qualification and experiences. Nepotism, regionalism, and political affiliation are given more emphasis in the employee selection process. Even top Managerial positions in the public sector industrial enterprises are selected on the basis of political affiliation.  Many public industrial enterprises are becoming an island of surplus employees. Overstaffing is a serious problem. Many enterprises are becoming sick. They are running at a loss. This is a colossal waste of national resources. Private enterprise, on the contrary, is understaffed in order to maximize profit.

As universities are human capital intensive organizations, HRM practices of a university can be of great help in hiring and managing the highly skilled and competent teachers. Through research, new ideas and innovation can generate; which help us in promoting higher education in the development of human resources.  We come to know that there is no Bangladeshi university even in the top 500 universities of the world, according a ranking given by the website.  Why it is so? We lack in funding, research culture, HRM practices (e.g. Selection, training, performance appraisal, job definition, compensation, career planning, and employee participation), productive politics, highly qualified staff, training of the staff, etc. No adequate research has been conducted on HRM practices at higher education level. Therefore, it is imperative to review HRM practices in the universities.

 In the case of public universities, teachers at the entry level are selected mainly on the basis of academic qualifications (CGPA), very little consideration is given to candidates’ communicative skill. Recruiters are making errors that are called halo effect. The halo effect is an error that occurs when too much emphasis is placed on one point or factor, ignoring other relevant factors.  Few teachers  could not deliver good lectures in the classroom due to lack of communicative skill, and knowledge of current affairs although they are having very sound academic records. It is well known that academic results in a few cases are also manipulated.  It is reported that in spite of poor performance in the viva board, one gets final selection only because of good academic records. It is suggested to consider both academic result and oral communication while finalizing a candidate as a teacher. Lesiker and Flatley (2010) concluded that an employee must have communication skill to get ahead. Most people do not communicate well.  Studies show that there is a high correlation between commutation skill and career success. One of the Ex-Vice Chancellors of a public university alleged that few brilliant candidates are not given the chance to join at the entry level due to the excessive political syndrome (Mannan, 2014).

Most of the private universities (PUs) in Bangladesh are depending on part-time faculties. According to the UGC report, 2008, number of part time teacher is 3,543 out of the total number of teachers 8,364. They greatly depend on teachers who retired from other universities, particularly from public universities, retired bureaucrats, and part timers from public universities who teach at several universities to maximize their ready cash. Dearth of teachers causes some collateral damages on quality (Siddique, 2012). Being part time, these teachers' often fail to be punctual and are unable to concentrate on their classes. Much of their time is taken off in commuting from one university to another (Ehasan, 2008). Some universities do not have the required number of experienced teachers, but are being run by junior and inexperienced faculties (Naser, 2007).   Faculty recruitment system is not well structured and motivation level is very low (Rouf, 2006). Even authorities do not pay their salary on time. No doubt PUs are contributing to meet the growing demand. But only a few are ensuring a regional or global level of standard. Most are not quality concern. Poor infrastructure facilities, inefficient and inexperienced low quality teaching staff with the profit motive of the founders put the sub-sector in a critical situation (Fakhrul (2006). Even founders are not willing to abide by related Act or Guidelines. As an apex body UGC cannot fight against irregularities with weak legal strength and logistics.

Lack of trust

Owners of private firms do not rely on or trust their salaried managers, hire their relatives in key managerial positions. Employees in the private sector organizations are treated as personal servants, mostly are underpaid with low esteem and empowerment.

Lack of HRM expert:

HRM is not recognized by many entrepreneurs as essentially distinct specialized knowledge. Moreover, institutional facilities to train and develop HRM are also very important. Therefore, there is a shortage of specialized knowledgeable  HRM experts.  There is also a  lack of recognition to HRM to contribute to the efficient supply of HRM experts is an important problem of HRM in Bangladesh.

 No separate  HR department:

It is found that HRM is generally performed by people to designate as manager, administration. A very few organization has a separate HR department. Only large organizations have maintained a separate HR department. The HR department is only engaged in routine activities. Employment developmental activities are not given due consideration. Therefore, the function of HRM does not have efficient exposure to the organizational development.

 Lack of effective HR planning:

It is observed that a large number of firms don’t have any formal HR plan, either short term or long term. They go on whims or crisis. This severely affects the organizations in long run performance and survival.

 Lack of career development program

Career development program gives a promotional ladder to the incumbents, and recognition of the talented, high achievement motivated persons to stay in the organization. It is found that, a large number of private concerns don’t have any career development programs for the employees. They rather pressurize to develop themselves in their own cost. Training and development are regarded as useless venture.

Lack of effective evaluation of training and development

The organizations that provide internal and external training and development for employees, don’t give right evaluation and reward to their achievements. Redesigning of jobs with challenging tasks, expanding authorities and/ or appropriate placement where the employees can place their newly acquired knowledge are not done. Therefore, trained and  experienced  employees lost their motivation to contribute effectively to their performance.

 Wrong placement

‘Right man at the right place’ is the doctrine of organizational efficiency. But nepotism, favoritism, partisans, etc. causes the problem of placing the right qualified persons to the appropriate place job. This happens both in private and public organizations in Bangladesh.

Problems associated with performance Appraisal

Siddique (1984) identified many problems of performance appraisal in the industrial enterprises of Bangladesh. Most of the organizations do not write ACR form on time, rather confidential reports are written at a given time to meet specific purposes.  Adverse comments on employee performance are not communicated to the concerned employee. He also identified the reasons behind the dissatisfaction of employees with the PA system. The main reasons are: absence of measurable standard,   nepotisms and favoritism in  the evaluation process, inadequate number of qualified and trained raters, absence of feedback, absence of rewards and penalties for good and poor performance.   Siddique also makes a  few recommendations to improve the PA system in the enterprises of Bangladesh: a) introducing   two way appraisal system, b) training  the appraising officer, c)  establishing proper performance standard, d) focusing on behavior/ performance rather than traits, e) providing timely feedback, f) keeping records in support of adverse comments, 

 Unhealthy trade union movement:

A trade union is an inevitable part of the industrial democracy. It supports moves and prospers the organizational purpose and thereby increases the welfare of the workers. But trade union in Bangladesh is highly polarized, detracted and least committed to their purpose. Politicization of trade unionism is the root of many problems. Akkas (1998) in his article on Trade union movements  in Bangladesh observed that politicization leads to multiple trade unions, inter-union rivalry, poor membership, and weak financial position. Most of the unions are affiliated with the political parties. Every political party has its own labor front. Union leaders are found to be more loyal to the political parties in which they belong. They are not dedicated to the interest of general workers and to the organization. They always try to maximize their self interest by using their political power. Because of political affiliation, there exist multiple trade unions in the public sector enterprises. As long as a multiparty system exists in Bangladesh, the problem of multiple trade unions will prevail in our industrial organizations, whether the legal framework permits it or not (Bhattacharjee, 1983).  In 1978, the then military junta of Bangladesh promulgated that every political party could form its labor front. Thereafter, the political involvement of trade union went on increasing. Moreover, outsiders are allowed to be members of union in Bangladesh.  Outsiders are the potential troublemakers and often initiate labor movement (Talukder, 1998). Trade unions in Bangladesh are enterprise based, rather job based and industry-wise.

Management does not allow the RMG workers to join the trade union or formation of trade union, though the workers have the trade union rights according to the labor law and ILO conventions. Management fires the workers if he/she joined in the trade union. Sometimes they threatened the workers and even close down the plant for the formation of trade unions.

Trade Union movement in garments sector is very weak. Even it is weaker than other sectors. The main reasons of the Weakness of the trade union movement of the garment sector in Bangladesh are: disunity and division of organizations, unlimited and long working hours, absence of Job security, migration from factory to factory, absence of weekly holiday and other holidays, the majority of women workers, state policy, elite class ownership, low wage and unemployment in the country (Shahiduzzaman, 2013).

Democracy International conducted a survey on 150 RMG factories in Bangladesh  and found  that 87% of workers were  not members of any trade unions;  56% of workers did  not have any knowledge about trade union. 35% of the respondents expressed that trade union might create conflicts and workers might engage in party politics. ( Daily Prothom Alo, May, 05, 2014).

 Unfavorable pay structure:

The pay is the vital source of motivation for our people who are struggling for their subsistence. The general wage level of Bangladesh is not favorable to maintain minimum cost of living. Moreover, there is no protection for future uncertainty. Therefore, it affects the labor productivity and labor relations. Siddique (1984) observed that executive performance has little bearing on their compensation. That is, appraisal results are not considered while designing executive compensation structure.  In most of the RMG enterprises, management does not pay the monthly wage and overtime payment within 7th of the next month. In many cases monthly wage and overtime payment is outstanding for 2/3 months.

Government interferes in wage determination bypassing the CBA.CBA is not allowed to play its legitimate role. Government intervention in wage determination, which is a subject matter of CBA, should be stopped with delay.

 Lack of job security

Security is a desirable condition for getting motivation and commitment from people. Jobs of private firms are totally insecure. Financial protection  is insufficient and inconsistent. Gutter protections are not guaranteed. The provisions of existing labor laws are not maintained.  All these situations create an unhealthy, unfavorable and hostile environment to the work force.

 Shahiduzzaman (2013)  has written a paper on compliance in the RMG sector of Bangladesh.  He found that most of the garment factories are not following the labor law and ILO conventions. In many cases the workers do not enjoy the weekly holiday. There is no job security, social security, gratuity or provident fund for the garment workers. Management does not provide appointment letters/ contract letters, identity cards and service books. According to the Labor Law, the maximum working hour per day is 10 including the 2 hours overtime. But in most of the case workers are forced to work 14 to 16 hours per day. Sometimes they work whole night. Overtime work is compulsory and forceful. Management does not ensure the security of the women workers. Women workers face physical and mental harassment outside the factories and sometimes inside the factories. There is another form of gender discrimination. Women workers are deprived from equal wage, equal dignity, equal rights and equal promotions.

Hostile labor-management relations

Labor- management relations in Bangladesh is not cordial and friendly, rather hostile. Workers and managers do not trust each other. Employees are not viewed as an unlimited creative potential. They are not provided with enough opportunity to unlock their creative potentials. Managers are not sincere in its dealings with workers. They play favoritism and partiality. They play dirty game of rule and divide with the workers (Akkas, 1998). The government of Bangladesh, as an important factor of the labor-management relations, is not always neutral and fair. The government tends to interfere in the internal affairs of trade unions. This had led to inter-union rivalries.