A study on: HRM practices in Garments Industries and its Impact

Human Recourse Management Practices in Garments Industries and its Impact: An analysis on some selected Garments

1.     Abstract:

The focus of this study is to investigate HRM practices (application of formal HRM policies and practices) in Garments Industries. Our assumption is that more formal HRM policies and practices lead to better firm performance. The aim is to investigate the current state of HRM policies and practices employed In Garments Industry sectors in Bangladesh, We will also study the relevant factors (contextual, institutional and cultural) that may influence HRM policies and practices in this specific context of Bangladesh. The study will explore the HRM style (HRM system, policies and practices) and firm performance with a focus on identifying possible dissimilarities of HRM policies and procedures practiced in different Garments Industries. Besides this study is an attempt to explore the evaluation of Human Resource Policy in garments sectors and how the policy affects the garments Industries. Finally, results of this study will provide information about ‘HRM Policies and Practices’ that have a positive association with organizations’ performance for recommendation and benefit to Garments sectors in Bangladesh.

2.     Key words:

Human Resource (HR), Management, Garments Industry, HRM Practice, HRM Policy, Industrial Sectors, Garments Sectors in Bangladesh.

3.     Introduction:

In recent years, the Garments sector has emerged as the biggest earner of foreign currency in Bangladesh. This sector has experienced an exponential growth since the 1980s. The sector contributes significantly to the GDP. It also provides employment to around 4.2 million Bangladeshis. This has affected the social status of many people coming from low income families. In the field of Industrialization garment industry is a promising step for economy of Bangladesh. It is the only multi-billion-dollar manufacturing and export industry in Bangladesh. Whereas the industry contributed only 0.001 percent to the country’s total export earnings in 1976, its share increased to about 75 percent of those earnings in 2005. Bangladesh exported garments worth the equivalent of $6.9 billion in 2005 which was about 2.5 percent of the global total value ($276 billion) of garments exports. The country’s garments industry grew by more than 15 percent per annum on average during last 15 years. The foreign exchange earrings and employment generation of the Garments industry are increasing day by day.

On the other hand, the term “Human resource” is a broad concept. Its meaning is the management of an organization's employees. While human resource management is sometimes referred to as a "soft" management skill, effective practice within an organization requires a strategic focus to ensure that people resources can facilitate the achievement of organizational goals. Effective human resource management also contains an element of risk management for an organization which, as a minimum, ensures legislative compliance. It is referred as the systems and processes of basic HR activities and processes in organizations. Practicing good human resource management (HRM) enables managers of an enterprise to express their goals with specificity, increasing worker comprehension of goals, and provide the necessary resources to promote successfully accomplishment of said goals. When HRM is properly employed members of the workforce are expressive of the goals and operating practices of the firm.

HRM is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organizations.

Research in the area of HRM has much to contribute to the organizational practice of HRM in the Garment industries. For the last 20 years, empirical work has paid particular attention to the link between the practice of HRM and organizational performance, evident in improved employee commitment, lower levels of absenteeism and turnover, higher levels of skills and therefore higher productivity, enhanced quality and efficiency. The researcher group intends to know the basic HR Practices in those garments industry to explore the policies and practices followed by the garments industries. And for this purpose the researcher group investigates on some selected garments in Bangladesh and collects various data and information and data relating to HR from 30 respondents who are the employees of those garments industries.

4.     Objectives of the Study:

The objective of the study is to know the present condition of Human Resource Practice In garments sectors in Bangladesh and also provide recommendations for better implementation of Human resource Policy in Garments Industries.

4.1. Specific objectives:

The specific objectives of this study are to verify the following hypotheses:

¹H₁: Recruitment and selection process in the Garments Industry is good;

⁷H₁: Career and Succession planning Culture is available in Garments industry;

¹¹H_a: Employee turnover in the Garments Industry is frequent;

¹³H₀: The Leave Policy in the Garments Industry is Standard;

¹⁶H_0: The working hour is flexible in Garments Industry; and

¹⁷H₁: The Garments Industry provides high job security to their employees.

5.      Methodology of the study:

Data and relevant information is has been collected from various sources. These sources include both primary and secondary sources. The primary and secondary sources are:

5.1. Primary source:

Primary Data & information has been collected from the employees of some selected Garments Industries in Bangladesh. And for this purpose a Five Points Likerts Scale questionnaire has been used. Response has been collected from 30 respondents about the Human Resource Management practices in their organizations.

5.2 .Secondary Source:

Information has also been collected from secondary sources along with primary sources. The researcher group has collected information from various Business magazines and journals, Articles, Publications and Books also.

6.     Data Analysis:

Data have been collected from different employees of the garments industry in Bangladesh. And these were collected on the basis of following five scale likerts scales:

01.The recruitment and Selection process is Standard. That means the selection and recruitment systems available in the organization is good.

02.Organization follows chain of command, i.e., the lower level employee follows the command and directions provided by higher levels.

03.Extrinsic or Monetary Rewards, Findings from Base pay, Additional pay, incentive pay, and welfare and Benefit are presented i.e., any payment is made in addition to the basic pay to the employees for their performance.

04.Intrinsic or Non-Monetary Rewards, Career Development, Recognition, Work environment job security are presented, i.e., any award or recognition is available for the employees for their performance.

05.The organization lacks compliance aspects. As a result this has following aspects on the organization.

06.Assessment and performance appraisal system is used. That means the performance of the employees is evaluated in the organization properly.

07.The organization practices Career and Succession Planning, i.e., the organization provide further directions, training for the development of the employees.

08.Corporate rules regulation and culture is available.

09. The Organization provides Health and Medical Facilities.

10.The Organization Follow Labor Law i.e., the organization is fully compliance with the labor law of Bangladesh.

11.Frequently employee turnover is happened.

12.Food and conveyance policy is available. That any food or any payment for food is made to the employees.

13.The Organization Follow The Standard Leave Policy. That means the organization follows the leave policy in compliance with the labor law.

14.The Organization practice Office Utility Management. That means the organization uses other utilities in addition infrastructural facilities;

15.There is a Policy Regarding Use of Transport. That is the organization provides transport facility to their employees or any kind of payment is made for the employees.

16.Flexible Working Hours system is present. That means the time schedule for the employees are flexible and convenient for the employees.

17.The Organization follows high Job Security.

18.There is a standard Promotion Policy, i.e., the promotion policy is standard and it is free from biasness.

And on the basis of above questions, the following responses has been collected and tested with statistical measures (Z- test) at 5% level of significance.

(Click on the picture to view the original size)

Following is the graphical presentation of weighted average of the responses of employees and their ranks.

(Click on the picture to view the original size

 

7.     Analysis and findings:

On above data analysis and statistical calculation (Z- test), the followings are found:

1.     For ¹H_1, a hypothesis (H_o) is taken considering that recruitment and selection is bad, i.e., not standard.

Since the calculated value of “Z” is greater than critical value, i.e., (25.71> 1.96); so the hypothesis H_o is rejected considering the acceptance of hypothesis (H₁) that Selection and recruitment process is standard.

2.     For ⁷H_1, a hypothesis (H_o) is taken considering that there is no career and succession planning system available in the garments industry.

Since the calculated value of “Z” is greater than critical value, i.e., (4.15> 1.96); so the hypothesis H_o is rejected considering the acceptance hypothesis (H₁) that the career and succession planning system is available.

3.     For ¹¹H_1, a hypothesis (H_o) is taken considering that employee turnover is happened frequently in the garments industry.

Since the calculated value of “Z” is greater than critical value, i.e., (3.45> 1.96); so the hypothesis H_o is rejected considering the acceptance of the hypothesis (H₁) that the employees are not turned over frequently.

4.     For ¹³H_0, a hypothesis (H_o) is taken considering that the organization follow standard leave policy.

Since the calculated value of “Z” is smaller than critical value, i.e., (1.22< 1.96); so the hypothesis H_o is accepted considering the rejection of the hypothesis (H₁) that the organization does not follow standard leave policy.

5.     For ¹⁶H_0, a hypothesis (H_o) is taken considering that working hour is flexible in the organizations.

Since the calculated value of “Z” is smaller than critical value, i.e., (0.34< 1.96); so the hypothesis H_o is accepted considering the rejection of the hypothesis (H₁) that the working hour is not flexible i.e., fixed.

6.     For ¹⁷H_1, a hypothesis (H_o) is taken considering that the organization does not provide job security to their employees.

Since the calculated value of “Z” is smaller than critical value, i.e., (2.67> 1.96); so the hypothesis H_o is rejected considering the acceptance of the hypothesis (H₁) that the organization provide high job security to their employees.

8.     Present practices of Garment Industries:

From the above analysis, it is found that the Human Resource Management practices in garments industry in Bangladesh is at satisfactory level. The Selection and recruitment procedures in the garments factory are good. Employees are satisfied on their organizations and work environment so that the employees are not frequently turned over. The garments Industry follow the leave policy and working hours systems provided by the relevant acts. Moreover, the employees get high job security in their organizations.

9.     Conclusion and Recommendations:

It may be affirmed from the whole analysis, Garments industry has been practicing the Human Resource Management policy in an ordinary way. Here the employees’ Job satisfaction level is high, organizations provides various monetary benefits to their employees along with non monetary benefits. Although some of the topic should be further considered. The organizations should develop its Food and Conveyance policy should be developed, it should maintain the standard leave policy for its employees. To get best performance and higher efficiency, the organization should maintain flexible working hour for the convenience of the employees rather than fixed working hour systems. Besides these, the organization must provide high job security, so that the employees shall feel relaxed in their working environment.

10. References:

www.wikipeadia.com

(Information was collected through direct survey)