RESEARCH REPORT 01

HR PRACTISE IN RMG SECTOR IN BANGLADESH

SUBMITTED TO: Prof. Dr. Nazrul Islam, Phd

Honorable Dean, School of Business
MBA Program, Canadian University of Bangladesh

SUBMITTED BY:
1) Md. Abdus Sabur Chowdhury Student ID: 19302021 MBA Program
2) Md. Jahidul Alam Student ID: 19302009 MBA Program
3) Rabia Binte Ashraf Student ID: 20206002 MBA Program

SUBMISSION: 29/08/2020 (SUMMER 2020)

COURSE: Compensation Policy (HRM-611)
INTRODUCTION :

Bangladesh is a developing country and it has been increased its development in

garments sector in recent 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.
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.

Methodology of the study:

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:

Primary sources of data:

 By talking and asking questions in face to face interview with the employee of the
organization.
 By visiting organization and observing the management process

Secondary sources of data:

 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.

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.

HR practices in garments industry in Bangladesh: (study case YOUNGONE)

Human Resource Planning

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 and Selection process:

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.

Selection process:

Although there have many selection processes which are followed in different garments industry,
the common steps are given below:

 Initial screening interview

 Completion of the application form

 Emulation test

 Comprehensive interview

 Background investigation

 Conditional job offer

 Medical/physical exam

 Permanent job offer

Training and Development program

Training is a learning process that involves the acquisition of skills, concepts,
rules, and attitudes to increases the performances of the employees in the organizations. It gives
people an awareness of the rules procedures to guide their behavior. It attempts to improve their
performance on the current job or prepare them for an intended job. On the other hand
development is more future oriented, and more concerned with education, than is employees
training or assisting a person to become a better performer. Development is a related process. It
covers not only those activities which improve job performance but also those which bring
growth of the personality; help individuals to the progress towards maturity and actualization of
their potential capacities so that they become not only good employees but better men and
women. In organizational terms, it is intended to equip person to earn promotion and hold greater
responsibility.

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.

Steps in the Evaluation of training and development

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

Performance Appraisal Process

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.
Employee working condition:

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:

 Injured when working

 Occupational diseases

 Death

Pay for leave :

 Holiday

 Vacation

 Sick leave

 Marriage leave

 Maternity leave

 Personal leave

 Other religious 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

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.

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:

 Title/ Designation of job and location in the concern.

 The nature of duties and operations to be performed in that job.
 The nature of authority- responsibility relationships.
 Necessary qualifications that is required for job.
 Relationship of that job with other jobs in a concern.
 The provision of physical and working condition or the work environment required in
performance of that job.

Job Specification

Also known as employee specifications, a job specification is a written statement of

educational qualifications, specific qualities, level of experience, physical, emotional,
technical and communication skills required to perform a job, responsibilities involved in a
job and other unusual sensory demands. It also includes general health, mental health,
intelligence, aptitude, memory, judgment, leadership skills, emotional ability, adaptability,
flexibility, values and ethics, manners and creativity, etc.
 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.

Organogram
Managing Director
 Executive Director

HR/Admin dept. planning dept. Accounts dept. Merchandising Commercial

dept. dept.
Director Director Director Director Director
Assistant Assistant Assistant Assistant Assistant Director
Director Director Director Director
General General General General General Manager
Manager Manager Manager Manager
Deputy Manager Deputy Manager Deputy Manager Deputy Deputy Manager
Manager
AGM AGM AGM AGM AGM
SR. Manager SR. Manager SR. Manager SR. Manager SR. Manager
Manager Manager Manager Manager Manager
Assistant Assistant Assistant Assistant Assistant
manager manager manager manager manager
sr. Officer sr. Officer sr. Officer sr. Officer sr. Officer
Officer Officer Officer Officer Officer
Assistant officer Assistant officer Assistant officer Assistant Assistant officer
officer

Production Cutting Quality dept. Finishing dept. Store dept.

dept.
Director Director Director Director Director
Assistant Assistant Assistant Assistant Assistant
Director Director Director Director Director
General General General General General
Manager Manager Manager Manager Manager
Deputy Manager Deputy Manager Deputy Manager Deputy Manager Deputy Manager
AGM AGM AGM AGM AGM
 SR. Manager SR. Manager SR. Manager SR. Manager SR. Manager
Manager Manager Manager Manager Manager
Assistant Assistant Assistant Assistant Assistant
manager manager manager manager manager
sr. Officer sr. Officer sr. Officer sr. Officer sr. Officer
Officer Officer Officer Officer Officer
Assistant officer Assistant officer Assistant officer Assistant officer Assistant officer
Line Chief Cutting man Quality Worker Supervisor
Supervisor
Supervisor Worker Quality
Inspector
Sewing Worker

FINDINGS

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.

 the recruitment and selection process is standard.

In some cases rules and regulations are not performed.

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.

They always try to measure quantity with quality.

Less caring about their further career development

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

Most of the employees do not feel job securities.

RECOMMENDATIONS

There are some suggestions can be prescribed bellow:

 Minimum wages cannot ensure standard of living. So compensation should be increased.

 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.

 Provide employment and recognition letter to all workers.

 Reduce discrimination in case of salary payment.

 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.

 Employ worker according to Bangladesh Labor Law 2006.

 Ensure weekly holiday and other leave according to Bangladesh Labor Law 2006.

 No obligation in case of trade union and collective bargaining.

 Ensure minimum wages that must be adjusted with inflation, and increasing economic
condition.

 behave as human being with the worker; not machine.

 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.

HRM practices in RMG industry in Bangladesh

Five point Scale for rating

5 Strongly Agree

4 Agree

3 Undecided

2 Disagree

1 Strongly Disagree

1. Employee working condition/environment is healthy and safe

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

2. Origination provide fair wage and salary

b. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

3. Salary is given in regular basis to worker

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

4. Pay for time not worked

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

5. Holiday pay given

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

6. Sick leave /personal leave is given

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

7. Sick leave /personal leave with pay is given

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

8. Promotional offer is given

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

9. Day care facilities provide to women worker

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

10. Maternity leave is given to women worker (more than 6 moths)

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

11. Transportation facility given

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

12. Medical facility given

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

13. Residential facilities for worker who lives far from organization

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

14. Fire exit is available in garments

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

15. Labor union rules are followed

 a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

16. Employee and manager relation is good

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

17. Job security is high in this garments

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

18. Management of garments is good

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

19. Is existing rules and regulation are equally followed for all workers

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

20. How many times training of employee is given in a year

a. ……………………………………………..

21. Job stress in garments are very high

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

22. How many steps is a employee selection process

a. ……………………………………………………………..

23. Employee selection process is too complex

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

24. Employee are skilled enough to complete job effectively

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

25. Advertisement is published to find employee for job

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

26. Frequently employee turnover is happened

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

27. Organization follow chain of command

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

28. The recruitment selection is standard

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

29. Experience is mandatory for candidate

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree

30. Do you evaluate the working efficiency of the employees?

a. Strongly agree b. agree c. undecided d. disagree e. strongly disagree