SOUTH EAST UNIVERSITY

Mohammad Hasan Al Masud

ID: 2019210004062
Program: MBA (1 Year)
The Practice of HR Management System in Bangladesh | HRM
System

Human Resource Management is the process of managing and monitoring the employees in an
organization with a proper system. The worldwide HR management system incorporates several
processes like recruitment, monitoring, storing data, payrolls, administration, and attendance data
and so on. This worldwide system is applicable to Bangladesh too, so the practice of the
HR Management System in Bangladesh is similar here.

Recruiting and Hiring System

Private Bank and Financial Organization
The recruitment and selection process depends on the category of organization. In terms of a
private organization, this process goes a little bit informal except for the banking and financial
organization. As the banks and financial organizations are regularized by the Banking act, so the
private ownership cannot influence the illegal or improper recruitment process.

Other Non-banking and Multinational or Non-government Agency

These sectors are not bound to abide by any legal requirement to recruit people. So Management
may tend to focus on any criteria that nobody can question. They can focus on qualifications or
relations & references. In Bangladesh, these organizations may depend on the growth of the
business on the political parties or influential groups. So, those companies are bound to consider
the requests of them during the recruitment process.

Public Sector
Bangladesh Public Service Commission (PSC) arrange all the activities of the recruitment and
selection process. These examinations are conducted for different ministries, department and
certain divisions. Every year thousands of cadres and non-cadres come out of the recruitment
process and join different positions.
Public companies other than civil service also recruit every year according to individual
regulated processes. The recruitment process in the public sector is not left with legal procedures
and consistency all the time. Political intervention hampers the activities most of the time.

Private Sector
One of the important factors of human resource development in Bangladesh is the training
process. In recent several years, some private organizations keep an allowance and budget for
investing in the training of the employees. But as a middle-income country and with labor
surplus, in Bangladesh, the training cost may not turn into an investment for middle-sized
companies. Moreover, the ignorance of the training need put obstacles in the training programs.
On the other hand, the existing training also may not succeed all the time in the lack of proper
instruction and trainers. However, there are many hr recruitment firms in Bangladesh.

Public Sector
For civil service PATC -Public Administration Training Center is the authority that is vested
training responsibility for every fresher employees. There are other different training centers too
besides PATC that are liable to provide training on behalf of government organization. The
respective ministry of specific department authorizes all those training courses, syllabuses, and
duration for overall foundation training. In the course of non-civil government jobs, training
would not be provided effectively through courses that are available here too. The selection of
the trainees may be based on the relationship with the top officials. Corruption prevails
everywhere.

Managing Payroll
Private Sector
Except for some private financial institutions and banks, there is not any specifically structured
pay scale in private organizations. There are not any legal obligations and regulations in terms of
the pay scale. Management fixes the salary to a different level of positions. Sometimes fixation
may differ within the same levels in terms of qualification and experience in an arbitrary way.

Public Sector
Whether it is civil service or non-civil service, NPC-National Pay Commission introduces and
manages the pay scale. For public sector employees, there is a 20 graded pay structure
determined by NPC. These job grades are evaluated by educational qualifications and expertise.
Sometimes, the Government restructures the pay scale according to the economic condition of
Bangladesh. There would be some regulation alterations to the advancement of employees of all
grades too. Collective bargaining is not allowed in the public sector.

Private Sector
Performance appraisal is an important factor to access the performance of an employee
according to his or her achieved target level. The correct appraisal can help to manage the
performance based on the appraisal. In private commercial banks and other financial institutions,
it is very strictly managed by the management.

Public Sector
Unlike the private sector performance appraisal system in HR management of public companies
is not perfect. The system becomes manipulated and ineffective to provide proper appraisal
reports. Actually, the bottlenecks of providing proper appraisals are many- political intervention,
discretion between parameters and results, wrong purpose, improper criteria. These causes
cannot let the management to make the perfect appraisal process for the employees. A proper PA
system is 100% effective if it considers three functions like administrative, informative and
motivational ones. But the system is biased with so many things that perfect appraisal is far
distant than these.

Employee Benefits
Private Sector
For the employee benefits scheme in the private sector, there was a drive to allow pension
schemes for this sector in 2015. From then employees in private companies would opt for
gaining a pension after retirement. But this is not exercised fully yet. The financial institutions
and fully organized private companies allow these benefits arbitrarily. This would create a push
from both the employees and employers to save a similar amount every year. Ultimately, there is
no law at present for the pension scheme in the private sectors.

Public Sector
For pension scheme, there is an organized law for the employees of the public sector. Every
employee can get a benefit according to the pay scale and grade after retirement. For several
years this scheme has been improved to a large extent with the increase of the pay scale. So
government employees can have a better future and security in the public sector for this type of
benefit.

Final Touch
The HR management system in Bangladesh is now emerging differently. But there is more way
to go. Still, there is deprivation of the minority groups in terms of employment opportunity.
There are also some bad practices, red tape, corruption and lack of diversity management skills.
Government standards and regulations is also a crucial point to have an effective HR
management practice in our country. The digital technology also can help a lot with the
management of labor surplus with different software. Lots of companies are using distinct
system applications like payroll software, HR management software, benefits administration
module, attendance module, etc. So there is a huge prospect to have a beneficial strategy for both
the employees and employers.