Human Resource Practice in BD

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Introduction: In todays globalize world, for any country to attain and ensure good governance in support of enhanced development, the issues of efficiency, effectiveness, capacity and quality of public administration system is of utmost value. At the beginning of the millennia, the World Public Sector Report 2001 asserted that countries with the most developed and comprehensive public sectors, compared to the weak, inefficient and sluggish ones, have been more successful in reaping the benefits of globalization (United Nations, 2001). But public service efficiency is of diverse nature in developed and developing countries because of different attributes of public administrative systems (Jreisat, 2002). While these attributes led to negative citizens’ perception of the bureaucracy with subsequent delivery of unsatisfactory services in most of the developing countries, the case is different in the developed world. For this reason, public administration system in general and public sector human resource management (PHRM) in particular in the context of a developing country like Bangladesh is the focal point of this paper. People, coordinated by institution as

description

HRM

Transcript of Human Resource Practice in BD

Page 1: Human Resource Practice in BD

Introduction:

In todays globalize world, for any country to attain and ensure good governance

in support of enhanced development, the issues of efficiency, effectiveness,

capacity and quality of public administration system is of utmost value. At the

beginning of the millennia, the World Public Sector Report 2001 asserted that

countries with the most developed and comprehensive public sectors, compared

to the weak, inefficient and sluggish ones, have been more successful in reaping

the benefits of globalization (United Nations, 2001). But public service

efficiency is of diverse nature in developed and developing countries because of

different attributes of public administrative systems (Jreisat, 2002). While these

attributes led to negative citizens’ perception of the bureaucracy with

subsequent delivery of unsatisfactory services in most of the developing

countries, the case is different in the developed world. For this reason, public

administration system in general and public sector human resource management

(PHRM) in particular in the context of a developing country like Bangladesh is

the focal point of this paper. People, coordinated by institution as to deliver

public services efficiently, are considered the most integral part of human

resource management (HRM) in effective public administration (United

Nations, 2005). However, due to lack of appropriate HRM framework, public

administration systems in the developing countries are believed to develop

negative attributes (table 1) that the citizens dislike. In this paper, it is thus

hypothesized that weaker the human resource management framework in a

country, the less efficient, effective, impartial, capable, and responsive is the

public administration system in the country. The significance of appropriate

human resource unsatisfactory services in most of the developing countries, the

case is different in the developed world. For this reason, public administration

system in general and public sector human resource management (PHRM) in

particular in the context of a developing country like Bangladesh is the focal

point of this paper.

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Definition of HRM:

Human resource management is concerned with the “people” dimension in

management. Since every organization is made up of people, acquiring

their services, developing their skills, motivating them to high level of

performance and ensuring that they continue to maintain their commitment

to the organization are essential to aching organizational objectives.

A number of authors have explored the links between individual HR practices and corporate financial performance. Lam and White (1998) reported that firms’ HR orientations (measured by the effective recruitment of employee, above average compensation, and extensive training and development) were related to return on assets, growth in sales, and stock values. HRM function is increasingly important in shaping a new organization in which the quality and commitment of people are keys to survival. According to Gordon (2000) each aspect of HRM needs to be reassured; but none is more pivotal or difficult than Performance Management System. Employees at all levels experience a need to know clearly what they should be doing and what is expected of them in terms of quantity and quality of output. Performance appraisal should lead to identification of training and development needs. It also creates a new basis for improvement and development. Performance Management System provides some of the essential components of effective motivational strategies. In particular feedback that permits an employee to learn how well he or she is performing is of necessity. The system also provides relevant information required for validating selection methods. Wright and Mcmahan (1992) defined the planned HR deployments and activities intended to enable to achieve its goals. Boselie et. al. (2005) defined that HR deployment reflects the central assumptions behind the conceptualization of what HRM is and does: namely, that it respondsaccurately and effectively to the organization’s environment and completement other organizational systems and contingencies. Boselie and Deitz (2003) and Katou and Budhwar (2006) report that there are commonalities and also contradictions in HRM and performance research (Wall and Wood, 2005: Wright and Boswell, 2002).

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MaintenanceSafety and HealthEmployee/Labor relation

MotivationPerformance evaluation Rewards Job evaluation Compensation Discipline Recognition

Training & Development

Employee training Management Development Career Development

Human resource planning.

Recruiting a. Internal b. External

Employee Socialization

External Influence

Theoretical Frame work :

Function:

HRM suggest that is a process consisting of four functions:-

Acquisition/ Stuffing

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Acquisition/stiffening: The acquisition function begins with planning. Relative

to human resource requirements, we need to know where we are going and how

we are going to get there. This includes the estimating of demands of and

supplies of labor. Acquisition also includes the recruitment selection and

socialization of employees. HRM actinides also concern with seeking and hiring

qualified employees, It also ensure that it has the right number and kinds of

people, at the right places, at the right times.

Development: The development function can be viewed along three

dimensions. The first is employee training, which emphasizes skill development

and the changing of attitudes among workers. The second is management

development, which concerns itself primarily with knowledge acquisition and

the enhancement of an executive’s conceptual abilities. The third is carrier

development which is the continual effort to match long-term indindual and

organizational needs.

Motivation function: The motivation function begins with the recognition that

indinduals are unique and that motivation techniques must reflect the needs of

each invidual. With in the motivation function job satisfaction, performance,

compensation and benefits administration and how to handle problem

employees are reviewed.

Maintenance function: The final function is maintenance. In contrast to the

motivation function, which attempts to stimulate performance the maintenance

function is concerned with providing those working conditions that employees

believe necessary in order to mantain their commitment to the organization.

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Since the effective management of human resources depends on refining HRM

practices to changing conditions. This is done to in the belief that HRM is a

day-namic and changing field.

The theoretical framework of this paper is borrowed from the WPSR 2005

which outlines the contents and reform measures required in the PHRM –

especially in developing and transitional countries. In constructing the

theoretical framework, the WPSR 2005 first distinguishes among three models

of public administration and management underlining the fact that they are

chronological but overlap in both historical time and substance (United Nations,

2005). Understanding the characteristics of these public administration models,

outlined in table 2, is thus important as the theoretical framework of the WPSR

includes important attributes from all these models. The Constitution of the

People’s Republic of Bangladesh provides the framework for PHRM under

whose authority a plethora of statutory and non-statutory rules and regulations

have been adopted in Bangladesh for managing the civil service (Siddiquee,

2003). Under the constitutional framework, different governments of

Bangladesh have enacted major rules regulating the structural and functional

aspects of Bangladesh public service. These include, among others, Bangladesh

Civil Service (Recruitment) Rules, 1981; Government Servants (Discipline and

Appeal) Rule, 1985; Government Servants (Conduct) Rule, 1979; Government

Servants (Special Provisions) Ordinance, 1979; Public Servants (Retirement)

Act, 1974 and so on. The supervision of the PHRM in Bangladesh is done by a

number of authorities including government ministries and a constitutional

body. While Ministry of Establishment and Public Service Commission (PSC)

act as the central personnel agencies of the government, there are few other

ministries that are also associated with PHRM related activities. The

importance of PHRM is evident from the fact that the head of the government in

Bangladesh has always taken the leadership of the Ministry of Establishment

portfolio. Ministry of Establishment (MoE) is the lead personnel agency in

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Bangladesh responsible for framing the broad policies, principles, rules and

regulations for civil service management. Major decisions concerning creation

of cadre services, recruitment and promotion

HR practices in Bangladesh:

HR practice in Bangladesh is better than the past. In the past, HR role was

concentrated to hiring firing and letter issuance-dispatching-filing stage. Now it

has started to perform more than that. Such as ....Employee motivation,

Employee development, employee retention, facilitating organizational

development initiatives etc. and thus contributes to the achievement of

organizational goals. These value added job has just begun in BD. For a good

tomorrow, this is a starting point.

Employers have started to understand that the more they invest in human

resources they more output is likely which lead them to emphasize on employee

capability development. As such in many organizations, employee development

is viewed as part of business plan. In these organizations, training budget is

calculated as a percentage of total budgets of the organization.

Employer - Employee relationships is better than the past. Employers now

recognize the importance of employees participation in business planning,

major decision making and organizational change process. Many organizations

now conduct employee opinion surveys for collecting employee feedback and

improve employer- employee relationships.

Some HR actions have legal implications. But in the country context legal

explanation does not seem to be adequate. There is lack of uniformity of the

interpretation of law that lead to practice by organizations in different way.

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There is also ambiguity of existing legal policy or detailed policy framework on

HR actions seems to be incomplete.

„« In future the overall HR practice is expected to be brighter in Bangladesh

because more are feeling the necessity of an established HR department in the

organizational structure

„« employer-employee relationship is expected to improve,

„« IT will be part of HR practices which will make HR actions, decision making

process faster and accurate

HR practice in Bangladesh is better than the past. In the past, HR role was

concentrated to hiring firing and letter issuance-dispatching-filing stage. Now it

has started to perform more than that. Such as Employee motivation, Employee

development, employee retention, facilitating organizational development

initiatives etc. and thus contributes to the achievement of organizational goals.

These value added job has just begun in BD. For a good tomorrow, this is a

starting point.

Employers have started to understand that the more they invest in human

resources they more output is likely which lead them to emphasize on employee

capability development. As such in many organizations, employee development

is viewed as part of business plan. In these organizations, training budget

miscalculated as a percentage of total budgets of the organization.

Employer - Employee relationships is better than the past. Employers now

recognize the importance of employee’s participation in business planning,

major decision making and organizational change process. Many organizations

now conduct employee opinion surveys for collecting employee feedback and

improve employer- employee relationships.

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Some HR actions have legal implications. But in the country context legal

explanation does not seem to be adequate. There is lack of uniformity of the

interpretation of law that lead to practice by organizations in different way.

There is also ambiguity of existing legal policy or detailed policy framework on

HR actions seems to be incomplete.

How to improve HRM practices in Bangladesh:

To sincere traveler, the way is never too long. Bangladesh believes in “progress

in diversity and service through entrepreneur”. They are merchants and

missionaries, doers and dreamers, entrepreneurs and professionals. They are

futuristic with emphasis on creating thinking and dynamic action.

     High quality financial services with the help the latest technology.

     Fast and accurate customer services

     Balance growth strategy

     High standard business ethics

     Steady return on shareholders equity.

     Innovative banking at a competitive price.

     Attract and retain quality human resource.

   Firm commitment to the society and the growth of national economy.

Enterprise is Bangladesh spirit. Bangladesh manufactures superior import-

substitute consumer and industrial products. Their cutting edge precision leads

to greater public utility and hygiene, with a great care for the environment and

human inhabitation. It is the very ingredient that gives their organization the

integrity upon which their reputation is built and we zealously guard it

everyday.

Miller and Wheeler (1992) found that the lack of meaningful work and

opportunities for promotion significantly affected employees' intentions to leave

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an organization. Organizations were able to improve their employees' retention

rate by adopting job enrichment programs and enhancing their advancement

opportunities. Besides promotion opportunities, the evaluation criteria used in

the promotion and reward system also had significant effects on employees’

turnover intentions (Quarles 1994). Ineffective performance appraisal and

planning systems contributed to employees' perceptions of unfairness and they

were more likely to consider leaving the organization (Dailey & Kirk 1992).

In studies related to compensation, Park, Ofori-Dankwa and Bishop (1994) and

Trevor, Barry and Boudreau (1997) found that salary growth had a pronounced

effect on turnover. Particularly, salary growth effects on turnover were greatest

for high performers, that is, high salary growth significantly reduced turnover

for high performing employees. Abassi and Hollman (2000) in their study have

identified lack of recognition and lack of competitive compensation systems are

some reasons for employee turnover in the organization.

Many a thousand minds of their group contributed to their gathered knowledge

to keep the wheels rolling that in turn leads them to goal. This cumulative

strength of knowledge is required, today, to find new solutions for the manifold

problems of fast- changing economic cultural and ecological milieu.

Techniques of Motivation Changes in Demand for Labor

Demonstrate Effective Presentation Skills

Differences Between Personnel Management and HRM

Finding a Job

Judging a Job Seeker Within 10 Minutes Remedies of Absenteeism Training Strategies

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Ways to Improve Working Relationships Discrimination Effective Communication skill Employee survey Everyday workplace policies Frustration at workplace How Industrial Psychology works in an Organization Why HRM is increasingly important Impact of HR Training Individual Differences of industrial personnel Interview : Acquainting with confidence Leadership Maximize the impact of Training Motivational theories Ways to improve working relation Training & Development policy & its importance Plan the audit process Performance appraisal Participatory Management in Development Organizations Leadership Building Through Gaining Knowledge

Bangladesh is a customer focused modern banking institution thriving fast in

both earning and ability to stand out as a leading banking institution in

Bangladesh. They deliver unparalleled financial services with the touch of heart

to Retail, Small and Medium Scale Enterprises (SMEs), corporate, institutional

and governmental clients through the outlets of branches across the country.

Their business initiatives center on the emerging need of the clients.

Conclusion The objective of the current study was to examine the direct relationship

between HRM practices and organizational innovation, as well as indirect

relationship between HRM practices and organizational innovation via

knowledge management effectiveness. The statistical results obtained in this

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study showed that HRM practices have a significant positive impact on

organizational innovation. And also, the knowledge management effectiveness

has a mediation effect on relationship between HRM practices and

organizational innovation. Only one of five HRM practices, namely training

was found to have both direct and indirect effect on all three dimensions of

organizational innovation (product innovation, process innovation, and

administrative innovation). This result entailed that when organizations have

higher implementation level of training, it will advances the growth of

employees’ requisite skills and their potential to learn. Employees are able to

generate new understandings and new ideas that will be useful for

organizational innovation. As a result, efforts taken to enhance knowledge

management effectiveness in the manufacturing firms will be useful in

enhancing the organizational innovation performance. The results of this study

also offer several suggestions to manufacturing firms in Malaysia to focus on

training program. Employees undertake the training programs are expected to

apply the knowledge acquired on the task and job assigned. In another word, the

higher level of implementation of training, the more transfer and flow of

information and knowledge which will increase organizational learning and

instil new ideas, leading to product innovation, process innovation and

administrative innovation.

Performance appraisal, on the other hand, was found to have both direct and

indirect effect on administrative innovation, but not on product innovation and

process innovation. One of the possible explanations may due to administrative

innovation is usually done within a shorter period of time since administrative

processes and systems can be adjusted according to the needs of the

organization. Hence, feedback obtained from performance appraisal activities,

usually conducted at least once annually can help organization further improve

administrative processes. On the other hand, product innovation and process

innovation take a longer period of times, may be several years to yield results

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due to technical constraints faced during product and process actualization.

Hence, the feedback from performance appraisal activities may not have any

impact on product innovation and process innovation. This means the higher

level of implementation of fair performance appraisal, the higher level of

employees’ motivation towards their tasks. High motivation will help to

increase employees’ willingness to generate new ideas in order to increase

administrative innovation.