CC BY
21ECONOMIC SCIENCES
SCENARIO OF HUMAN RESOURCE MANAGEMENT PRACTICE: EVIDENCE FROM THE ORGANIZATIONS OF RAJSHAHI CITY CORPORATION, BANGLADESH
Mondol D.K.
Professor, Department of population Science and Human Resource Development,
University of Rajshahi, Rajshahi-6205, Bangladesh.
Ali M.A.
M. Phil Fellow, Department of Population Science and Human Resource Development,
University of Rajshahi, Rajshahi-6205, Bangladesh.
Rahman M.M.
Associate Professor, Department of population Science and Human Resource Development,
University of Rajshahi, Rajshahi-6205, Bangladesh.
Sarkar D.C.
Associate Professor, Department of Statistics, Mawlana Bhashani Science and Technology University, Tangail-1902, Bangladesh.
Abstract
Human Resource Management (HRM) practice contributes to enhance the organizational performance as well as the best achievement of the goals and needs of individual employee. This paper was attempted to focus on a broad picture of the organizations and its employee's performance through investigation of the various aspects of HRM practice. The data was collected from 305 permanent employees through a structured questionnaire by direct interview method from selected organizations and institutions of Rajshahi City Corporation. This information was collected by purposive sampling. In this research, most of the respondents (40.7%) had embodied as low HRM index category, 31.8% medium category and 27.5% higher. Therefore, it may be concluded that the organizations are habituated with low HRM practice.
Keywords: Human Resource Management, Organizational performance, Productivity and HRM functions
I. Introduction
The term, human resource management (HRM) can be defined as a set of interrelated and integrated functions and the processes that focus on the effective utilization of peoples work in an organization with strategic, coherent and unified approaches for getting maximum achievement of the aims of organizations as well as the goals and needs of individual employee [1]. For a Government as for any other organization, it is true that the achievement of aims depend on their staff at all levels.
It is worthless without human resource, and its management is a key role player to develop the country's organizational activities, because HRM has emerged with specific objectives of high productivity, increased motivation, low turnover, good labor relations and continuous development of employees [2, 3]. It is related to the process of training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns [4].
It has also the potential role in improving and sustaining organizational performance [5, 6]. In broad sense, the management of people activities in which it's includes anything and everything associated with the management of employment relationships in the organization [7]. Similarly, HRM is an evolving field of academic inquiry focusing on the study of the employment relationship and of the way in which people are managed at work [8]. In addition, it is the ultimate outcome on the behavior of human beings who are considered as
the nucleus of an organization [9]. According to Purcell and Hutchinson [10], HRM is not only the performance of the HR department, but also encompasses the roles of employee and their managers or supervisors who are tasked with enacting HR policy. Depending on the definitions of HRM, it involves all management decisions and practices which directly affect or influence the people, or human resources, who work for the organization. The impact of HRM practice has been a leading area of research in the developed world [11, 12, 13, 14].
It is acknowledged without reservation that the failure of our management to properly develop human resources has substantially contributed to our sluggish economic growth and lower levels of productivity [15]. However, very limited number of studies have conducted on HRM practices in the context of developing countries in general [16, 17, 18, 19] and Bangladesh in particular [20, 21].Hence, there is a strong ground for the study on the field of HRM practice in the organizations of Bangladesh. However, this study would also be able to attract the developed countries investors by the cheap and skilled workforces, and large markets to invest their unexploited capital in developing countries like Bangladesh [17]. The aim of this research is to observe the scenario of HRM practices in different organizations of Rajshahi City Corporation (RCC) which is maiden in nature for Rajshahi City.
HRM Functions
According to [3], the HRM functions and their description are as follows:
HR Planning Recruitment
Selection & Placement Socialization
Training
Performance
Appraisal
Organizationa
l
Development
Rewards Employee Participation Job Enlargement
QWL* Program
Job Security
Health Insurances Employee Relations
Quality of work life
The acquisition process of HRM begins with the attainment of right people who possess the requisite skill, knowledge and attitude to perform their assigned tasks efficiently and effectively. As the central focus of HRM, Human Resource Development (HRD) involves a continuous process of upgrading the skill, knowledge and ability of employees. HRD has currently focused in a large area of managerial action. The important elements of HRD functions are training and development, performance appraisal and organizational development.
In the organizations, acquisition and development of employees are not enough to ensure their good performance. Motivation plays a key role in energizing and activating the employees to put in their best effort for the accomplishment of goals. As performance is a multiplicative function of ability and motivation, it is extremely important to ensure motivation of employees with their development for higher performance and productivity.
An employee can be motivated through financial and non-financial rewards, employee participation, job enlargement and job enrichment, quality of work life program etc. One of the major functions of HRM is to retain and maintain competent employees who are committed to the goals of the organization. The maintenance factors are fair company policy and administration, quality of supervision, relation with supervisors and subordinates, salary and wages, and job security and status.
The Evolution of HRM
World Context
The origin of HRM is not clearly known yet. Although HRM as a field of study is relatively new, it had its primitive beginning in 1930s in Western countries but it has no written documents existed on this subject [1]. Rather the HRM concept is found in the ancient philosophies of Greece, Chinese and India. Some references in this regard are as follows:
Period Reference Brief Details
1800 BC Babylonian cod of Hammurabi Minimum Wage Rate. Incentive Wage Plans.
1650 BC Chinese Division of Labor
1200 BC Moses in Bible Span of Control
600 BC LAO TSE- Chinese Quality of Manager
400 BC INDIA-Kautilya 20 Staffing and Personnel Management • Job description • Job specification • Selection • Incentives • Performance evaluation.
Source: Nair and Nair (1999)
HRM actually began with the development of guild system in towns and cities with the industrial revolution. By the late 1800s, a few employers appointed secretaries known as welfare or social secretaries. The tasks of them were to meet the worker needs and to prevent them from forming unions. Thus, these marked as the birth of today's specialized human resource man-
agement, which is distinct from the day-to-day supervision of personnel by operating managers [1]. Owen, a successful textile manufacturer in Scotland, believed that the performance and the growth of workers were influenced by their environments i.e. conditions on and off the jobs. He is regarded as the father of modern Personnel Management [1].
Until 1930s, it was not felt necessary; to have a separate discipline of management called "Personnel Management" [22]. Since 1930s, certain development tools placed in the field of HRM. These developments greatly contributed to the evolution and the growth of HRM [1]. According to Mathis and Jackson personnel departments concerned with the legal ramifications of policies and procedures affecting employees during the social legislation of the 1960s and 1970s [23]. In the 1990s, globalization, competition, mergers and acquisitions forced Human Resource departments to become more concerned with cost, planning and the implementations of various human resources strategies for both organizations and employees [23].
Bangladesh Context
There is no sufficient and authentic information available about HRM when it was introduced as a separate area of management in Bangladesh. History says, cotton industries particularly hand-woven cotton textile was a highly developed industry in medieval times. There was no machine driven factories in this land until the end of the 19th century [1]. Naturally, HRM in the real sense is not supposed to exist up to that period. During the first half of the 20th century, a few cotton mills were found to operate. In these factories, either the owners or managers on behave of the owners conducted management functions including HRM functions [24]. Afterward, the situation started to change gradually when large-scale industries began to establish in the East Pakistan. Consequently, a large number of employees appointed in those industries and resulted personnel problems of diverse nature. Therefore, it was a big crisis. For these reason, it was experienced that organizations should have a separate management department to handle these personnel related issues. To avoid the odd situation smoothly, the organizations had to establish a separate human resource department (the then name was personnel management department). The officer in charge of this department was known as a labor officer or welfare officer or somewhere administrative officer. A few enlightened organizations appointed personnel managers in 1970. After the liberation war, some organizations had accepted and appointed human resource managers or human resource directors in Bangladesh [1]. In present, human resource department plays an important role in organizations.
II. Data and Methodology
In this study, used data was collected under the authority of the department of Population Science and Human Resource Development of Rajshahi University, and executed from RCC area through sample survey. The survey was purposively conducted at 19 organizations and institutions through a structured questionnaire by direct interview method. The total 305 permanent employees were eligible respondents of this survey. The indicators of the HRM practice have dichotomous value that is either zero or one. The principal component analysis (only first factor is considered since it is more efficient component) is used to determine the weights for an index of the HRM indicators that was presented for asset index by Filmer and Prichette [25]. The following formula is used to construct HRM index:
Aj = f1*(aj1-a1)/S1 + f2*(aj2-a2)/S2 + ... + fn*(ajn-an)/Sn or,
where,
Aj is an HRM index for each employee (j =1,., n) fi is the scoring factor for each HRM indicator of employee (i =1,., n)
aj i is the i-th HRM of j -th employee (i, j =1,., n) ai is the mean of i-th HRM of employee (i=1,..., n) and Si is the standard deviation of i-th HRM of employee (i =1,., n).
The factor scores and the HRM index are calculated using statistical package for social science (SPSS) version16.
III. Results and Discussion
Employee Characteristics
Out of total 305 respondents, 87.2% is male and only 12.8% is female. On the other hand, 80.7% respondents were married, and the average age of the respondent is 39.55 years (SD = 9.361) and the average education is about 16.48 years (SD = 1.940). Among the total respondents, 48.9% employees had job experience before joining the current job. The highest 38.0% respondents' job tenure in the existing organization is 2-8 years, following 20.3% for 8-14 years, 13.4% for <2 years, 12.8% for 14-20 years, 9.5% for 20-26 years and 5.9% for 26+ years.
HRM Situation
The HRM practices are observed in different organizations through their development, motivation and maintenance. According to Bose and Biswas, though the HRM components or elements are interrelated and overlapping, even then, it is possible to identify them separately [3]. The important elements of acquisition process are recruitment, selection and placement and this process is considered as silent in present study [26]. According to Ghosh the recruitment process is involved with locating and attracting adequate human resources to fill-up existing vacancies and the other one is an absolutely critical management activity [27]. On the other hand, selection means choosing number of applicants who are most likely to succeed in the jobs [27].
In this sense, recruitment is a positive process while selection is a negative process of rejecting most of the candidates and accepting only a few among a large number who are considered as suitable. It means, the acquisition of employee is a long process and involves the top level managerial and somewhere governmental. However, necessary data of the present study has collected from different Public, Private and NonGovernmental organizations and institutions and the data regarding the acquisition process of HRM is avoided because of too long process with its time and money limitation. Figure 1 shows the overall scenario of HRM practice through development, motivation and maintenance of RCC which symbolize Bangladesh in a small scale.
Development
Training is continuous processes which enhance the skill of new or present employees to get their better performance in different position in job sectors [4]. Dessler added more that the organizations' training programs must make sense in terms of the company's
strategic goals i.e., the foremost part of HRM which effect motivation of the individual.
In this study, 58.4% employees get training facilities for new objects or revised version from their organization (Table 1). In adverse or changing situation, 55.7% respondents opine that their organization takes step to adapt and the rest (44.3%) have no such activities. More than fifty percent (53.1%) employees expresses their view that organization has no management to adapt in world economic-recession whereas 46.9%
Motivation
Only 10.8% permanent employees of organization have profit share but most of the respondents (89.2%) are avoided to get this facilities (profit share) from their organization in RCC. In addition, the minority (35.7%) persons get transport facility. Incentive and satisfied salary is most appropriate for an organization because of its motivational content that is the imparting of incentives to workers for higher production and productivity [29, 30]. Nevertheless, this study reveals that only 42.3% employee get incentives and 53.8% are satisfied with their existing salary (Table 1). Occasional gift has also impact on individual employee in organizations, but there are less than fifty percent (42.6%) participants' provided occasional gifts in RCC. According to Pfeffer HRM practices are decentralization of decision making as the basic principle of organizational design [31]. The present study reveals that the organizations practice their HRM system through decision making power and 76.7% employees have participation right during the important decision making period.
Maintenance
Job rotation is an important element of HRM. Among the total respondents, only 27.2% respondent's organizations have job rotation practice. This study has also revealed that 53.4% employees are more secured in their profession but 46.6% are not (Table 1). The relation of employees with their employer in the course of running of an organization is more comprehensive and includes all those aspects of HRM [29] .It has found that 58.4% respondents have good employee relation and 41.6% don't.
have such adaptation. Employee's performance appraisal is evaluated by immediate supervisor and then reviewed by his/her departmental head. The system ensures suitable rewards as management factor for staff members for their contributions to the organization [28]. There are 52.5% employees of the selected organization having performance appraisal system. However, 47.5% have no such system. Out of 10 respondents, only 3 respondents have regular evaluation of such appraisal system.
Construction of HRM Index
The result of principal component analysis expresses the HRM practices is 6.06 and per individual it contains 0.0199 in the considered study area. The highest HRM index is 7.75 and the lowest is -5.88. It means that the organizations of RCC habituated with low HRM practice. According to Ali, the performance of organizations in different sectors of Bangladesh is very poor, far away from expectation and the inappropriate HRM system is one of the causes [1]. The present study result is similar with the study of Ali [1]. We sort our considered all respondents with respect to the value of HRM index and establish the cutoff values for dividing as three categories. Afterward, select the respondents into a category out of three according to the setting cutoff values of HRM index. For convenience, it refers to the first category as "low HRM index," the second category as "medium HRM index," and the last category as "higher HRM index". Table 3 depicts the number of respondents with their percent according to three different categories, such as, low, medium and higher HRM index. It has revealed that the low HRM index category contains 40.7% respondents, the medium HRM index category contains 31.8% and the higher HRM index category contains 27.5%. The HRM situation among the organizations in RCC presents in Table 4. It has found that the higher HRM index covers 100% only cell company, whereas the private bank 73.9% and the public bank 12.7% but the other five organizations have no higher HRM index.
90 80 -_ 70 -S. 60
CD
50 -
■S
S 40 -o
fe 30
Q.
20 -10 -0
HRM Practice
Figure 1: Scenario of HRM Practice in RCC, Bangladesh
Table 1:
HRM practices in the organization of RCC
Variables Yes No Total
Training and Development
Training program 183 (60.0) 122 (40.0) 305 (100)
Adapt in adverse/changing situation 183 (60.0) 135 (44.3) 305 (100)
Adapt in economic-recession 143 (46.9) 162 (53.1) 305 (100)
Performance appraisals 160 (52.5) 145 (47.5) 305 (100)
Valuation of performance appraisal 33 (30.2) 213 (69.8) 305 (100)
Motivation
Profit share among employees' 33 (10.8) 272 (89.2) 305 (100)
Incentives 129 (42.3) 176 (57.7) 305 (100)
Satisfied salary 164 (53.8) 141 (46.2) 305 (100)
Transport facility 109 (35.7) 196 (64.3) 305 (100)
Occasional gift 130 (42.6) 175 (57.4) 305 (100)
Employee participation 234 (76.7) 71 (23.3) 305 (100)
Maintenance
Job rotation 83 (27.2) 222 (72.8) 305 (100)
More job security 163 (53.4) 142 (46.6) 305 (100)
Good employee relation 178 (58.4) 127 (41.6) 305 (100)
Health insurance facilities 148 (48.5) 157 (51.5) 305 (100)
Note: Parenthesis indicates the percentages; Source: Primary data-2011, from RCC
Table 2:
Mean, standard deviation and scoring factors of HRM indicators, _and total HRM Index and HRM index per individual_
Variables Mean Standard Min Max Rotated fi
(ajd (a) Deviation(SV) Component Factor(/Î) Si
Tr 0.58 0.494 0 1 0.801 1.621
ACS 0.56 0.498 0 1 0.636 1.277
AER 0.47 0.500 0 1 0.807 1.614
PApp 0.52 0.500 0 1 0.895 1.790
VPApp 0.30 0.460 0 1 0.701 1.524
PS 0.11 0.311 0 1 0.334 1.074
In 0.42 0.495 0 1 0.865 1.747
SES 0.54 0.499 0 1 0.137 0.275
TF 0.36 0.480 0 1 -0.439 -0.914
OG 0.43 0.495 0 1 0.098 0.198
EP 0.77 0.423 0 1 0.192 0.454
JR 0.27 0.446 0 1 0.444 0.996
JS 0.53 0.500 0 1 -.034 -0.068
ER 0.58 0.494 0 1 0.036 0.073
HI 0.49 0.501 0 1 -0.363 -0.725
Total HRM Index of RCC 6.06
HRM index per individual 0.0199
Highest HRM index value 7.75 Lowest HRM index value -5.88
Note: Tr-Training, ACS-Adaptation in changing situation, AER- Adaptation in economic-recession, Papp-Perfor-mance appraisal, VPApp-Evaluation of performance appraisal, PS-Profit share, In-Incentives, SES-Satisfied with existing salary, TF-Transport facility, OG-Occasional gift, EP-Employee participation during important decisionmaking, JR-Job rotation, JS- Job security, ER-Employee relation, HI-Health insurance.
Table 3:
Category and levels of HRM index_
Category No of respondents Percentages (%)
Low HRM (-5.88 to -2.4725) 124 40.7
Medium HRM (-2.4725 to 4.3425) 97 31.8
Higher HRM (4.3425 to 7.75) 84 27.5
Total 305 100.0
Table 4:
HRM index situation among the organizations in RCC__
Organizations & Institutions Low HRM Medium HRM Higher HRM Total
Public Bank 5 (9.1) 43 (78.2) 7 (12.7) 55 (100.0)
Private Bank 0(0.0) 23 (26.1) 65 (73.9) 88 (100.0)
Cell Company 0 (0.0) 0 (0.0) 12 (100) 12 (100.0)
NGO's (Micro-credit) 25 (100.0) 0 (0.0) 0 (0.0) 25 (100.0)
Administration(Police) 0 (0.0) 16 (100.0) 0 (0.0) 19 (100.0)
Mills/Factories 8 (42.1) 11 (57.9) 0 (0.0) 19 (100.0)
Educational Institution 51 (100.0) 0 (0.0) 0 (0.0) 51 (100.0)
Medical/Hospital 35 (89.7) 4 (10.3) 0 (0.0) 39 (100.0)
Note: Parenthesis indicate the percentages
It means cell phone company and banking sectors are maintaining higher HRM practices in RCC. It is also found that HRM is very much applicable as well as practiced in the banking sector in Bangladesh [2].
On the other hand, medium HRM index has found 78.2% for public bank, 26.1% for private bank, 57.9% for mills/factories and only 10.3% for medical/hospital. The administrative (police) organizations completely embodies in medium level HRM. In the study area, NGO's (micro-credit) and educational institutions contain 100.0% low HRM and following 89.7% in medical/hospital, 42.1% in mills/factories and 9.1% in public bank.
IV. Conclusion
It is well known that the organizations cannot directly influence the motivation of employee. In these circumstances, the proper HRM practice is helpful collaborator to assist each organization to make their own quality improvements and help to enhance the satisfaction of employees in the workplace.
During the current period, the most important communication media are cell phone companies. In addition, banking sectors are the potential industry where the growth of a country depends a lot. Present study has revealed that only the cell phone company and banking sector provides higher HRM. In addition, NGO's (Micro-credit) and educational institution contains too much low HRM practice. This study suggests that the organizations should share their profit with all the permanent employees and practice job rotation with evaluation of performance appraisal in the workplace. The organizations are supposed to induce employees to perform well and it may be achieved by providing incentives, occasional gift, transport facility, health insurance and other benefits. They also need adaptation in economic-recession, should offer extensive training and development programs, and must provide well-built job security and good employee relations i.e., sound working condition for the employees.
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ECONOMIC GROWTH AND FOREIGN TRADE: EVIDENCE FROM RUSSIA
Tetin I.
PhD, Assistant Professor I-Shou University, International Finance Dpt.
Kaohsiung, Taiwan Antonenko E.
PhD,
South Ural State University, Research Center for Sport Science
Chelyabinsk, Russia
Abstract
This study builds a VAR model to analyse the dependency of exports, imports and GDP growth through the prism of oil prices for the past 20 years. Causal relationships are estimated using quarterly data from 2000 to 2020. We utilise the Johansen procedure for cointegration testing and Granger causality testing. The results do not confirm the existence of long-run relationships between foreign trade and economic growth in Russia. Moreover, short-run relationships between foreign trade and economic growth in Russia are not verified.
Keywords: economic growth, export, import, VAR, export-led, growth-led.
