Chapter 1 hrm practices in bangladesh- introduction
- 1. Course Code: HRM 409 Course Title: HR Practices in Bangladesh Chapter-1 Program: BBA, Semester: Spring, 2021 Department of Business Administration Leading University BAB, Faculty of Business Administration, LU
- 2. Course Teacher: Professor Dr. Bashir Ahmed Bhuiyan Dean School of Business BAB, Faculty of Business Administration, LU
- 3. HR Practices in Bangladesh An Introduction BAB, Faculty of Business Administration, LU
- 4. Historical Background of HR Practices in Bangladesh Bangladesh started its journey as an independent and sovereign nation in 1971. Characterized by high density of population and cultural homogeneity. Influences of Islam, Hinduism, Jainism, Buddhism, and Christianity. It was the part of a successive Indian empires and during British period eastern part of Bengal was dominated by British rulers, Hindu Professionals, commercial and landed elites. In 1947, after the establishment of Pakistan present Bangladesh came under the hegemony of West Pakistan. Until 1947, Hindus controlled about 80% of all rural holdings, urban real estate and government jobs in East Bengal and dominated finance, commerce and the professions. BAB, Faculty of Business Administration, LU
- 5. Historical Background of HR Practices in Bangladesh After partition Hindu economic and political elites left the country and vacated place were occupied by Muslim elites. Creating for the first time in East Bengal an economy and government is in the Muslim hand. Opportunities have been created in the Civil Service and Profession but regrettably these were dominated by West Pakistani Elites to whom the then govern provided direct and indirect support to them. In 1971, ill prepared Bangladeshi elites moved into areas vacated by Pakistanis. Bangladeshi Muslims almost immediately established control over all small and medium sized industrial and commercial enterprises. In 1972 nationalization of non-Bengali large industries accelerated the indigenous economy. BAB, Faculty of Business Administration, LU
- 6. Historical Background of HR Practices in Bangladesh Bangladesh followed a socialist economy by nationalizing all industries after independence from Pakistan. Sudden rise of new managerial class and the expansion of the civil and military bureaucracy upset the balance both the urban and rural sectors. Party affiliation, political contacts and documented revolutionary services became the main prerequisites for rapidly growing new elite of political and industrial functionaries. The established middle class and its values played lesser roles. New elites having links with the villages bought property to establish their socio- political control. Rural political elites took the advantage of situation exploited fortunes in land and rural based enterprises. So, growth of new, land based, rural elite class has been created replacing by formerly entrenched wealthy entrepreneurs. BAB, Faculty of Business Administration, LU
- 7. Historical Background of HR Practices in Bangladesh Bangladesh was pursuing market economy Service sector and agricultural sector were contributing merely equally. Other industries were textiles, jute, fish, vegetables, fruit, leather and leather goods, ceramics, ready-made garments. After 1975, Bangladesh turns attention to developing new industrial capacity by rehabilitating its economy. Massive nationalization of the industrial sector resulted in inefficiency and economic stagnation. In late 1975 government started to encourage private sector participation in the economy. Many state-owned enterprises, like banking, telecommunication, media and jute have been privatized. BAB, Faculty of Business Administration, LU
- 8. Historical Background of HR Practices in Bangladesh Inefficiency in the public sector has been rising at a gradual pace. In the mid 1980s, economic policies aimed at encouraging private sector enterprises, privatizing public industries and liberalizing the import regime were accelerated. Many new jobs have been created mostly for women in the dynamic readymade garment industry which grew at a double digit rates through most of the 1990s. In the late 1990s, about 1.5 million people, mostly women were employed in the garment industry as well as leather goods especially Footwear industry. Globalization has created opportunities and challenges for business organization as well as individuals. HRM practices are expected to play a vital role in firms performance improvement. To employ, retain and develop skilled and talented human resources becomes important for creating and maintaining. This linkage enhance organizational success in the rapidly changing business environment. BAB, Faculty of Business Administration, LU
- 9. Historical Background of HR Practices in Bangladesh Inefficiency in the public sector has been rising at a gradual pace. In the mid 1980s, economic policies aimed at encouraging private sector enterprises, privatizing public industries and liberalizing the import regime were accelerated. Many new jobs have been created mostly for women in the dynamic readymade garment industry which grew at a double digit rates through most of the 1990s. In the late 1990s, about 1.5 million people, mostly women were employed in the garment industry as well as leather goods especially Footwear industry. Globalization has created opportunities and challenges for business organization as well as individuals. HRM practices are expected to play a vital role in firms performance improvement. To employ, retain and develop skilled and talented human resources becomes important for creating and maintaining. This linkage enhance organizational success in the rapidly changing business environment. BAB, Faculty of Business Administration, LU
- 10. Historical Background of HR Practices in Bangladesh Bangladesh was facing tremendous problems and challenges due to illiterate, unskilled, un trained or under trained, under paid or under employed mass industrial work force. HRM is a strategic and coherent approach for management of the valued assets and achievement of the organizational goals. HRM can be regarded as a set of interrelated policies with an ideological and philosophical understanding. It deals with the employment, development and reward people and maintain congenial relationship between management and workforce. HRM maximizes efficiency and output of employees and conducive relationship in an organization Thus, practice of HRM is foremost for all the countries including Bangladesh to obtain multiple goals as mentioned above. BAB, Faculty of Business Administration, LU
- 11. HRM Practices in the Civil Service of Bangladesh: Recruitment and Selection For ensuring efficient civil service system, government must ensure talented, qualified and committed persons are to be recruited in the civil service. Sound HRM practices are must for the development of the civil service although not expectedly present in the country’s civil as well as industrial sector of the country. According to the study of Noor A Alom (2010) HRM practices in the Civil service are mentioned below: Recruitment and Selection In Bangladesh two bodies are responsible for administering recruitment and selection in the Civil Service. These are: Ministry of Public Administration(MOPA) and Public Service Commission (PSC) PSC follows three types of recruitment procedure to recruit different BCS cadres, namely, direct recruitment through open competitive examination, promotion, transfer or deputation. Process followed in the recruitment are: needs assessment, budget allocation, advertisement, screening application forms, preliminary test, written test, viva voce and medical test. BAB, Faculty of Business Administration, LU
- 12. HRM Practices in the Civil Service of Bangladesh: Recruitment and Selection Staff Requirements: Different ministries, divisions, departments, and subordinate offices identify staff requirements for different levels periodically. Allocation of Budget and Circulation: After allocation of budget , MOPA asks PSC to circulate through a newspaper and distributes form through Sonali Bank. PSC advertise with related information. Conducting Preliminary Test: Preliminary test is conducted for selecting suitable candidates for written test. Written Test is conducted for successful candidates in the preliminary test. Candidates qualified in the written test are called for viva voce and then medical test for final selection. BCS recruitment and selection policy is the combination of merit and quota.
- 13. HRM Practices in the Civil Service of Bangladesh Career Planning In Bangladesh most of the organizations at government services are lagging behind the scientific career development scheme. Public Administration Sector Study (PASS1993) found problems of career development in civil service. Career plans are generally made by ministries / organizations or training institute to which very few employees were satisfied with the career plans developed by them. Career plans are generally non existent or unsatisfactory among the senior civil servants. Placement MOPA is responsible for placement of the Bangladesh Civil Service ( Administration) Cadre. Others are placed by respective cadre controlling ministries. In placement lobbying plays an important role. It is generally claimed that when there is no fit in place for an employee he or she is destined to dumped in training institute. Demotivated trainer can not train employee properly.
- 14. HRM Practices in the Civil Service of Bangladesh Transfer in Bangladesh Civil Service (BCS) In BCS much importance is given to recruitment and selection the requires a longer period of time to round of the processing cycle but less attention is given to transfer. There is provision to transfer an employee from one place to another after completion of three years of service. Transfer of BCS officers are done on an ad-hoc basis. Promotion There are three criteria for promotion: merit, seniority and compliance or adherence to rules of conduct. Merit is determined by the Annual Confidential Report (ACR) which is found adverse possibility of promotion is badly affected.
- 15. HRM Practices in the Civil Service of Bangladesh Training and Development Government organizations have got a systematic training and development program. BPTAC provides training to government, autonomous and non-government employees. Three training course are given below provided to the specific target group: Foundation course is designed to the new entrant civil savants, Advanced Course on Administration and Development is Deputy secretaries and their equivalents, Senior Staff Course is designed for Joint Secretaries or their equivalents. They have sufficient autonomy in administrative and financial matter for providing training. Salary and Incentives The government follows wages and salary structure recommended by wages and salary board. Besides, salary and wages government employees get several incentives and benefits such as leave with pay, leave without pay, festival bonus, medical allowances and support etc.
- 16. HRM Practices in the Civil Service of Bangladesh Employee Separation: Government organizations follow a specific time limit. 60 years is the retirement age.
- 17. Problems of HRM in the Civil Services in Bangladesh Politicization of Bureaucracy: Reservation of Post or Quota System: Bangladesh largely follows closed entry system in the civil service but there is a provision for 10% lateral entry into the service from outside. In addition, the PSC is required to reserve an appointment of class I posts according to the following quotas: 30% reserved for freedom fighters or children of freedom fighters, 10% for women, 5% for tribal group, 10% reserved for different districts (based on district’s population density). Besides, merit based open competitive system 45% leaves to the quota system. The PSC should be made more transparent and efficient and let it operate freely without any political influence to maximize the human resource development within the civil service. Mismatch between Job Description bnd Job Specification:
- 18. Problems of HRM in the Civil Services in Bangladesh Faulty and Lengthy Examination System: The existing procedure of BCS examination is considered to outdated, questionable and time consuming. In case of direct recruitment, the literature suggests that the examination system is not sufficient to bring meritorious personnel to into public service. Question leakage is another problem in the examination system for which beneficiaries are the student wing of ruling political regime. Frustration Due to Unequal Opportunity in the Promotion, Posting and Transfer: Deprivation of Merit and Talented in the Training and other Facilities:
- 19. Problems of HRM in the Civil Services in Bangladesh Problem of Placement: Putting the right man in the right position is important to make best use of human potential. But in civil service if there is no other place to fit in for an official he is destined to dump in a training institute. Ultimately, who are trainer, are dissatisfied with their job so, how can train others in a right way. Rampant Corruption and Decreasing Credibility: Bangladesh civil service is plagued with rampant political and administrative corruption. The study of World Bank, UNDP and TIB indicate the dismal scenario of corruption in the bureaucracy and civil services in Bangladesh. Dissatisfactory Inducement and Compensation:
- 20. Problems of HRM in the Civil Services in Bangladesh Lack of Motivation: Motivation is quite absurd here. Qualified people are frustrated as they are deprived of due promotion and placed in an unimportant position. Promotion decisions are made based on political loyalty rather than considering seniority or merit. No Recognition of Honest Service: Dishonest officers enjoy better facilities, lucrative placement, greater importance and reward under false veil of honesty, so, it is far cry to produce honest officer in the service. Frequent Job Rotation: One of the greater impediments in the way of proper career planning in the civil service of Bangladesh is that of frequent job rotation devoid of considering appropriate career progression and professional development.
- 21. Problems of HRM in the Civil Services in Bangladesh Partiality, Nepotism and Favoritism in Recruitment, Placement and Promotion: The very common and ever known scenario of Bangladesh civil service is that here recruitment, selection, placement and promotion are influence by politics, favoritism and nepotism. In the present situation almost no one get promotion without the recommendations of political leader or party. *illustration from book.
- 22. Recommendations for Making Civil Service Effective Introduction of the Effective Civil Service Act without Delay: Political force become one of the powerful constraints on the way of applying and implementing time based administrative reform. Most civil servant adopt protectionist attitude toward the existing power configuration, which usually benefits vested interest group including themselves. Quota reservation in the recruitment and promotion should be abolished: Politicization in the Selection and Promotion should be Stopped: Selection and Promotion Should be Based on Merit and Performance: A Transparent and Fair Performance Appraisal Should be Introduced: Present Unpredictable Job Rotation is Unfruitful rather Career Development Plan Considering Specialization is Warranted: Training Program Should be Designed in a Customized Manner Considering the Needs and Level of Receptiveness of the Trainee.