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RESEARCH ON HRM PRACTICES IN BANGLADESH:

A REVIEW OF LITERATURE AND DIRECTIONS FOR FUTURE STUDIES
Dr. Mir Mohammed Nurul Absar*
Dr. Mohammad Tahlil Azim†
Sadia Akhter‡

Abstract: Though researchers and practitioners are quite curious

about the field of HRM in Bangladesh, but they have limited access
to the current status of HRM research due to nonexistence of any
central database or any electronic warehouse. This study strived to
fill the gap by compiling thirty seven research studies conducted so
far on HRM practices in Bangladesh. This study also identifies the
research gaps with respect to HRM practices in Bangladesh. Finally,
the present study proposed some areas where future studies can be
carried out.
[Keywords: HRM practices, Literature Review, Bangladesh.]

1. INTRODUCTION

Human resource is the most important out of four basic resources of an

organization such as human, physical, financial, and information resources.1
Proper management of the human resources is also decisive to the success of an
organization.2 Human resource management (HRM) has emerged as a key function
in organizations.3 It refers to the policies and practices involved in carrying out
the ‘human resource’ aspects of a management position including human
resource planning, job analysis, recruitment, selection, orientation,
compensation, performance appraisal, training and development, and labor
relations.4 The purpose of human resource management is to improve the
productive contributions of employees to the organizations.5

Statement of the Problem and Rationale of the Study

Although HRM practices are requisite in enhancing organizational performance

and competitive advantage6, surprisingly very insufficient number of studies have
been conducted on HRM practices in Bangladesh and other developing countries7.

*
Associate Professor of HRM, East Delta University, Chittagong, Bangladesh.

† Associate Professor, School of Business, Independent University, Bangladesh.

‡ Assistant Professor, DBA, Premier University, Chittagong, Bangladesh.

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In Bangladesh, due to nonexistence of any central database or any electronic

warehouse, a researcher has to collect all the research works physically from
sources scattered throughout the country.8 That is why, it is very much thorny
for a researcher to collect research works to conduct literature survey for further
research in Bangladesh context. Though researchers and practitioners are quite
curious about the field of HRM in Bangladesh, they don’t know about the current
status of HRM research and practice. This study strived to fill the gap by
presenting a substantial number of research studies conducted so far in different
aspects of HRM in context of Bangladesh. This study would benefit the
researchers, practitioners, policy makers, students, and various stakeholders by
offering the status of research on HRM practices in Bangladesh. This study would
definitely augment the current research and practice of HRM in developing
countries by showing the contemporary scenario of HRM in Bangladesh.

2. OBJECTIVES OF THE STUDY

The main purpose of the study is to give an overview of the status of research
conducted so far on HRM practices in Bangladesh. The present study has the
following specific objectives:
1. To compile the studies conducted so far on HRM practices in context of
Bangladesh.
2. To identify the research gaps with respect to HRM practices in
Bangladesh.
3. To offer some directions for conducting future research on HRM practices
in context of Bangladesh.

3. RESEARCH DESIGN AND METHODOLOGY

The methodology used for this study was literature survey.9 The study was
completely based on compiling the studies conducted so far on HRM practices in
Bangladesh. The researchers collected different studies on HRM practices in
Bangladesh physically from different libraries, universities, and book stores. In
reviewing the literature, both theoretical and empirical studies were taken into
consideration. In total, 37 studies were collected for the review. With respect to
the major HRM practices10, the collected studies were categorized into six groups
such as overall HRM practices, HR planning, recruitment and selection, training
and development, performance appraisal, and industrial relations. Job analysis
and compensation were not included as no specific study was found on these two
practices. Necessary interpretations were made on the basis of the findings.

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4. RESEARCH FINDINGS

The following sections depict the research studies conducted so far on HRM
practices in Bangladesh.

4.1 Research on Overall HRM Practices in Bangladesh

Rab explored the personnel (HRM) practices of 24 small enterprises operating in

Dhaka.11 He identified that in case of recruitment, personal contact was the
primary means (58%) followed by advertisement in newspaper (21%), walk-in
(13%), and company notice board (8%). All the enterprises, except one, used work
sample test and interview for the selection of employees. On-the-job training was
observed to be the most widely used one. The employee turnover was very low
(less than 10%) in 92% of enterprises. Most of the enterprises (87.5%) paid one or
more types of allowances in addition to salary. Nearly 7% enterprises paid festival
bonus, 20% paid medical allowance, and 20% provided pay increment. A case
study was conducted on the overall personnel management (HRM) practices of
Khulna Hard Board Mills Ltd.12 It discussed about the recruitment, selection,
training and development, compensation, labor relations, and safety and health.
The researcher unearthed different problems related to personnel management
practices of the mill such as conflicts in personnel department, disproportionate
span of supervision, inappropriate grade, high rate of absenteeism, antagonistic
feeling of local workers, inadequate training programs, lack of skill audit,
nepotism and favoritism in promotion and selection of employees, poor industrial
relations, inadequate compensation, and poor safety and health services.
Shelly examined the roles of human resources, and infrastructure in the
industrialization process of Bangladesh.13 He observed that ineffective human
resource management was one of the major problems faced by industrial sector
of Bangladesh. Most of the HRM practices such as HR planning, recruitment,
selection, promotion, performance appraisal, compensation, incentives, and
industrial relations were not performed properly in industries. Mohiuddin and
Mahmood studied the transformation of personnel management into human
resource management.14 Based on different empirical and theoretical studies
conducted in the western world, the authors distinguished between personnel and
human resource management. They also discussed about the impact of HRM
practices on organizational performance. Another researcher discussed about the
linkage between human resource management and corporate strategy.15 He also
revealed that corporate strategies developed by Michel Porter such as cost

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leadership, differentiation, and focus strategies had significant impact on HR

strategies and practices.
Moyeen and Huq studied HRM practices of 92 medium and large business
enterprises (public and private sector) located in Dhaka, Bangladesh.16 They
found that only 62% of surveyed organizations had an HR/IR department. About
96% organizations had training programs. 91% of organizations had performance
appraisal system and similar percent of organizations had a system of rewarding
the good employees. The least prevalent practice among the surveyed
organizations was employee pension plan. The researchers tested two hypotheses
and inferred that union status (presence of unions) was associated with some HRM
practices and firms’ size was found as an important predictor of some of the HRM
practices. They also unearthed that HRM was being practiced, either formally or
informally, to a greater or lesser extent, in business enterprises regardless of the
size. A research study examined the human resource management (HRM)
practices of the ready made garments (RMG) enterprises.17 The study emphasized
on improving productivity of garments workers through proper HRM practices to
face challenges of globalization. They identified that wage rate and labor
productivity of workers in Bangladesh were very low in comparison to competing
nations. Furthermore, they discovered that the reasons for the low productivity
of laborers were unsystematic recruitment and selection of workers,
unavailability of training facilities, inadequate financial facilities, and low
motivation level of workers.
Human resource management practices of ten local private manufacturing
enterprises listed under Dhaka Stock Exchange (DSE) were examined by Akhter.18
She covered different aspects of HRM practices of the surveyed manufacturing
enterprises such as job description, HR planning, recruitment and selection,
orientation, training, promotion, performance appraisal, transfer, salary and
wage administration, incentives, and fringe benefits. She also measured
correlation between employees’ opinions regarding HRM practices in their
enterprises and their age, education, and experience. Islam in a study on the HRM
practices of small businesses of Bangladesh found that small businesses did not
offer reasonable salaries and benefits, training and development opportunities.19
The author mentioned that due to outdated HR practices, the productivity and
motivation level of the employees of small businesses of Bangladesh were very
low. Haque and Prince (2003) assessed the HR practices such as training,
promotion policy, performance appraisal method, and transfer policies of some
private manufacturing industries based in Chittagong.20 They found that the
surveyed companies imparted on-the-job training, vestibule training,

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apprenticeship training, and class room training to employees. They also found
that the surveyed companies filled up vacancies through internal movement. The
companies had formal performance appraisal system. Again, the companies were
found to have no standing policy regarding transfer. An in-depth study assessed
the institutional context of human resource management practices in
Bangladesh.21 The author mentioned that research on HRM did not receive its due
attention in Bangladesh. The researcher observed that other than organizational
contingencies, the institutional context such as national education and training
system, national industrial relations system, regulatory frameworks, and overall
societal context had significant influence on the development of HRM practices in
Bangladesh.
Hossain, Khan, and Yasmin analyzed the nature of voluntary disclosures about
human resource in the annual reports of 40 Bangladeshi companies.22 They found
that contemporary Bangladeshi companies, though not mandatory, were willingly
giving various information regarding their human resources in the annual reports.
Akand, in a case study, investigated the personnel management practices of
Janata Bank.23 Ernst and Young, and Metropolitan Chamber of Commerce and
Industry conducted a survey on HR practices of more than 50 organizations
selected from industries (mainly from the private sector) such as Pharma and
Healthcare, FMCG, IT, Telecom, Manufacturing, Finance, NGO, Textile/Garments,
and Conglomerates.24 They thoroughly examined talent acquisition, performance
management, people development, compensation and benefits, HR strategy and
processes, organizational culture, and HR practices for Workmen, staff and other
non-managerial employees of the surveyed organization. Uddin, Habib, and
Hassan depicted a comparative scenario of HRM practices with respect to the
public and the private sector companies of Bangladesh.25 The study encompassed
the HRM practices of Wartsila, one of the private sector power generation
companies, and BPBD (Bangladesh Power Development Board), the public sector
power generation company. They examined recruitment, selection, training,
performance appraisal, and compensation practices of both the firms. The
authors concluded that the overall HRM practices of Wartsila very much
satisfactory. In contrast, the HRM practices of BPDB were quite inefficient. Huda,
Karim, and Ahmed made a study on the HRM practices of 20 NGOs of
Bangladesh.26 It was identified from the study that the HR challenges faced by the
NGOs were shortage of qualified candidates, insufficiency of qualified female
candidate, poor academic background of applicants in the suburban and rural
areas, and the lack of training infrastructure and training need analysis. The first
three challenges were related to recruitment.

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4.2 Research on HR Planning in Bangladesh

Ahmad and Khalil compared the HR planning practices of two banks - Dutch
Bangla Bank Ltd. and Agrani Bank.27 They observed that none of the banks had
any written HR planning. They emphasized on proper recruitment, selection, and
training to ensure human efforts in the service of organizational goals. Hossain
and Ahmed also analyzed the HR planning practices of CARE, a leading
international organization having operations in Bangladesh.28

4.3 Research on Recruitment and Selection in Bangladesh

Taher and Arefin examined the recruitment and selection (R and S) process of
Bangladesh Open University (BOU).29 They emphasized on proper R and S because
it constitutes the most important features of HRM and the cost of improper R and
S is also very high. Finally, they recommended that BOU should set a full fledged
HR department with experienced and competent people, formulate HR plans, and
introduce computerized HR system to improve the R and S process of BOU. A
similar study assessed the recruitment and selection practices of Square
Pharmaceuticals Ltd (SPL).30 SPL practiced both internal and external sources of
recruitment. About 60% positions of SPL (which were mainly field level positions)
were filled externally through newspaper advertisements. The rest of the
positions were filled internally by employee referrals, and references of reputed
personnel and senior management. It did not use internet for this purpose. SPL
used different tests such as written test, communication skill test, interview,
alcohol/drug test, medical check up, reference check, and skill test in selecting
right people for the right posts.

4.4 Research on Training and Development in Bangladesh

Islam studied the training and development needs of the managers of the public
sector enterprises.31 He uncovered that the employees of the production
management, general administration, and personnel management departments of
the public sector enterprises needed extensive training. The author also
uncovered the problems related to shortage of adequate number of professional
managers in our public sector enterprises with proper knowledge, concepts, and
techniques of management. He mentioned that the problem was rooted in the
vacuum created by the departure of non-local experienced managers (who used
to manage most of our enterprises before liberation), low level of education and
training, and lack of experience and expertise. This caused a severe deterioration
of economic indicators in our country. Hoque investigated 10 industrial

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enterprises (5 public and 5 private) located in Chittagong.32 He found that human

resource development (HRD) had positive impact on organizational effectiveness
(OE). Ather and Solaiman assessed human resource development (HRD) practices
of 50 public and private industrial enterprises located in Chittagong.33 They found
that training needs of the employees of the sample enterprises were identified on
the basis of circumstances, corporate objective, new recruitment, introduction of
new technology, new assignment by promotion, existing requirement for skill
development and improving productivity, requirement for filling present and
future vacancies, trend of profit or loss, and comparative study on productivity
and output. They further unearthed that 75% of the workers of the sample
enterprises went through on-the-job training, followed by 17% apprenticeship
training, and the rest 8% vocational training. On the other hand, 95% of the
executives of the sample enterprises were trained through job orientation,
followed by 40% through job rotation, 35% through understudy method, 32%
through workshop, 25% through special courses, 8.5% through seminar, and 5%
through case method. In case of workers, the areas of training were industrial
relations, safety, machine maintenance, operator orientation, and worker
leadership. On the other hand, the areas of training for executives were
corporate management, financial management, marketing management,
personnel management, security management, and human resource development.
Jahur, Absar, and Hossain examined the training programs of two leading NGOs of
Bangladesh.34 They studied the training needs assessment process, training
methods, and training effectiveness of BRAC and Proshika. They uncovered that
both the NGOs used very sophisticated techniques in assessing training needs.
They also found that effectiveness of the training programs offered by the NGOs
was very high. Ahmed evaluated the personnel training programs of the public
sector manufacturing enterprises of Bangladesh.35 She categorically pinpointed
the problems pertaining to employee training of the public sector industrial firms
such as non-existence of training policy and training need assessment, insufficient
training budget, too much interference of the respective ministries and the like.
Khan and Jahur examined the HRD practices of 38 industrial enterprises of
Bangladesh.36 The study found that the surveyed organizations’ HRD programs
were not up to date.

4.5 Research on Performance Appraisal in Bangladesh

Hamid and Saifuddin assessed the employee performance appraisal practices of

the IFIC Bank.37 They identified some problems related to the performance
appraisal system of the surveyed bank such as trait based appraisal, excessive

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focus on past performance, and confidentiality in appraisal process that kept

appraisees uninformed about their performance. Bhuiyan and Taher studied the
different aspects of performance appraisal.38 They discussed objectives of
performance appraisal, linkage between performance appraisal and
compensation, formal and informal appraisal. They also described the roles of
appraisers and appraisees in performance appraisal. Azim and Haque conducted a
survey on the performance appraisal practices of 58 (30 manufacturing and 28
service) organizations in Bangladesh.39 They found that all the surveyed
organizations practice performance appraisal of some type. The study identified
that 57.1% companies used performance appraisal annually whereas 42.9% of the
samples used performance appraisal bi-annually, quarterly, and monthly. Out of
the performance appraisal methods, Management By Objective (MBO) was found
to be practiced by most of the companies (58.62%) followed by paired comparison
method (31.03%), critical incident method (17.24%), and alternative ranking
method (10.34%). Narrative form was found to be least preferred (3.44%). The
study further observed that organizations used performance appraisal for
different reasons. The most dominant reason behind performance appraisal was
to identify candidates for promotion (82.8%) followed by pay raise (69.0%), and
training and development (62.1%). Most of the organizations used performance
appraisal for taking various important HR decisions. It was found that immediate
supervisors conducted the performance appraisal in most of the surveyed
organizations (69.0%) followed by self-rating, 360 degree, and rating committee.
Another study discussed the employee performance appraisal practices in the
banking sector of Bangladesh.40 The study also explored the gap between the
expectations and realities with respect to performance appraisal of employees in
the selected banks. The study showed that the overall performance of the banks
could be improved by making employees familiar with the performance appraisal
tools and by valuing employees’ expectations in their performance appraisal
process. In a case study, Ahmed and Sultana explored the performance
management of ANZ Properties Ltd.41 They found that performance appraisal was
almost informal at ANZ. Though the company had job descriptions for the
employees, they did not have any performance evaluation form. Performance
appraisal was done by observation and comments of supervisors. The company
used comparative approach to judge performance of one employee against
others. Based on comparison, the employees were ranked. The company relied on
managers or supervisors to get performance information of the employees. At
ANZ, performance feedback was not given on individual basis unless any
complaint or negative comment had been raised against an employee. The best

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performers did not usually get any formal feedback. However, the poor
performers used to get a time limit to improve their performance otherwise
terminated.

4.6 Research on Industrial Relations in Bangladesh

Khan studied industrial relations in Bangladesh with special emphasis on trade

unionism.42 The time frame of his study was from 1971 to 1984 with the
influences of two colonial periods — British and Pakistani periods. Rahman
examined the labor management relations in the Crescent Jute Mills, Khulna.43 He
found the presence of strain between workers and management, labor
discontentment, hostile attitude of workers towards management and vice versa
in the mill. He also observed that job dissatisfaction was very high among the
employees of the mill. Overall labor-management relation was very poor. A
similar study also investigated the labor rations of some selected industries of
Chittagong.44 Another study made by Rahman assessed the influence of labor-
management relations on improving productivity in the context of Bangladesh.45
He described various aspects of labor legislation, labor practices, wages,
productivity, and labor relations of Bangladesh. Taher examined the roles played
by the various governments of Bangladesh in context of industrial relations during
1972-1992.46 He also described industrial relations in two colonial phases – British
and Pakistani periods. He found that governments in different periods played
significant roles in shaping industrial relations of Bangladesh. Ahmed studied
current features and trends of industrial relations (IR) system in Bangladesh and
outlined the future challenges facing the IR paradigms in context to
globalization.47 He mentioned that the highly confrontational and unfriendly
scenario of IR in Bangladesh needed to be changed to meet the requirements of
modern world in order to intensify industrial productivity and employment
generation. Taher and Hossain identified that the reasons for deteriorating labor-
management relations in Bangladesh were: conflicting government decisions,
anomalies of labor laws, delay in settling disputes and grievances, and attitudes
of employers.48 They recommended some measures to be taken for improving
industrial relations such as democratic practices in society and in the industry;
positive roles of the government; mutual trust and respect among state, workers,
and employers; non-interference of political parties; development of efficient
and honest trade union leadership; training and orientation for workers; only one
trade union in each enterprise; reasonable pay structure and benefits; and
favorable labor laws and policies.

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4.7 Research Gaps and Directions for Future Research

The above literature survey reveals that like other developing countries, HRM as
an area of research has not received proper attention in Bangladesh. Though,
both review type and empirical type of studies were carried out, empirical
studies primarily used descriptive statistics such as mean, percentage. Only 5
studies (see reference no. 16, 18, 27, 32, & 36) compiled in this study used
inferential statistics in the data analysis. Research studies were conducted more
on manufacturing firms than on the service oriented firms. Only two studies
researched the HRM practices of small firms. Industrial relations and training
received highest attention out of all HRM practices as the areas of research.
Performance appraisal has also been found to be an attractive area of research.
No specific study has been found on job analysis and compensation. Studies
showing the relationship between HRM practices and organizational performance
have not yet carried out in Bangladesh context. It is also evident from the above
review of literature that except a few articles on different HRM practices, a
limited number of in-depth studies have been conducted so far on human
resource management practices in context of Bangladesh.

As human resource management practices have not been studied extensively in

Bangladesh, therefore, there are a number of areas where future studies can be
directed such as:

o Studies can be undertaken to portray the HRM practices of small and

medium enterprises(SMEs) of Bangladesh
o Case studies may be undertaken on HRM practices of different
organizations for thorough analysis.
o In-depth studies may be conducted to evaluate the impact of HRM
practices on organizational performance through using associational and
difference inferential statistics.
o Studies may be carried out on HRM practices of service sector enterprises.
o Studies may be carried out to portray the comparative scenario of HRM
practices with respect to public and private sector of Bangladesh.
o More studies may be undertaken on least investigated areas of HRM in
Bangladesh such as job analysis, compensation management, HR planning,
career development, safety and health, HR audit, and HR research.

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