HRM Practices and Challenges in Bangladesh's RMG Industry

This report provides a comprehensive overview of Human Resource Management (HRM) practices within the Ready-Made Garments (RMG) sector of Bangladesh. It begins with an introduction to the sector's growth and importance to the national economy, followed by a definition of HRM and its significance. The report highlights good HR practices observed in the RMG sector, such as standardized recruitment, chain of command, monetary and non-monetary rewards, performance appraisal systems, career planning, and adherence to labor laws. A case study of Delta Composite Knitting Industries Ltd. illustrates these practices in a real-world context. The report then addresses the challenges faced by the RMG sector, particularly compliance issues post-RANA plaza and Tazreen fashion accidents, wage concerns, the need for skilled manpower, and labor relations challenges. The report concludes by emphasizing the importance of effective HRM in ensuring the continued growth and success of the RMG sector, and the need to address existing challenges to move the industry forward.

Acknowledgement
The achievement of this journal depends on the contribution of the
valuable time & person especially for one who has shared his thoughtful
guidance and suggestion to complete this finally.
At first, I express my sincere gratitude to my admirable faculty professor
Dr. M. MahmodulHasan for his valuable involvement to the preparation
of this article. He has been cordial enough to spare time out from his
busy timetable for giving me all the necessary assistance throughout the
whole period of the semester and the article writing time. Without his
help this informative creation might not have been an inclusive one.

Practice of Human Resource Management of Garments Sector in
Bangladesh
INTRODUCTION
After liberation when country’s traditional items of export could not yield
expected result, in late 70s the government and a section of
entrepreneurs – young, educated and dynamic, began to emphasize on
development of non-traditional items of export. By the year 1983, ready-
made garments (RMG) emerged to be non-traditional export oriented
sector most promising in the socioeconomic context of the country. By
that time, those entrepreneurs felt a necessity of sect oral trade body,
non-government in nature, free from traditional bureaucracy, to help the
RMG sector and to boost up the foreign exchange earning of the country
urgently needed at that time. Responding to that necessity, 19 (nineteen)
RMG manufactures and exports joined together and by their untiring
efforts got Bangladesh garment manufacturers and exporters association
(BGMEA) incorporated on February 20, 1983, today 2400 small and
medium scale privately owned garment factories, registered with
BGMEA, spread in cluster over the EPZ and urban areas of Dhaka,
Chittagong and Khulna, are manufacturing ready-made garments of
varied specifications as per size and design stipulated by the overseas
buyers. Starting with a few items, the entrepreneurs in the RMG sector
have widely diversified the product base ranging from ordinary shirt, t-
shirt, trousers, shorts, pajama, ladies’ wear and children’s wear to
sophisticated high value items like quality suits, branded jeans items,
jackets-both cotton and leather, sweaters, embroidered wear etc.
Besides accounting for 66% of Bangladesh’s total export earnings in
1995, this sector is employing about 1.2 million people of whom 90%
are woman. Ancillary industries producing carton, polybasic, woven
labels, buttons, sewing thread, strapping band, gum tape etc. Have
emerged in large number with the growth of the sector. The RMG
industry has helped the growth of the sectors like banking, insurance,
shipping, hotel, tourism, road, transportation and railway container

services etc. The sector in which the RMG has helped created the
maximum prospect in the country in the textile sector-supply source of
mother raw-material of RMG sector.
On the other hand, the term “Human resource management” 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 contain an element of risk management for an
organization which, as a minimum, ensures legislative compliance.
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. In the initial stage, the HR practices of
RMG sector in Bangladesh were not so good. But it improved day by day
and now it becomes in a good structured stage.
Good HR practices in RMG sector:
Most of the company now follows the HR norms and compliance. Here I
can mention some examples and good practices--------
 The recruitment and selection process is standard. Most of the
company follows the standard procedure.
 Organization follows chain of command. i.e for the lower level
employee the command and directions provided by higher levels.
 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.
 Intrinsic or non-monetary rewards, career development,
recognition, work environment, job security are present i.e any
award or recognition is available for the employees for their
performance.
 The organization lacks compliance issues, need to improve.
 Assessment and performance appraisal system is used, that means
the performance of the employees is evaluated in the organization
properly.
 The organization practices career and succession planning ,i.e the
organization provide further directions, training for the
development of the employees.
 Corporate rules, regulation and culture are available.
 The organization provides health and medical facilities.
 The organization follows labor law.
 Food and conveyance policy is available. That any food or any
payment for food is made to the employees.
 The organization follows the standard leave policy. That means the
organization follows the leave policy in compliance with the labor
law.
 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.
There is a standard promotion policy i.e the promotion policy is standard
and it is free from biasness
As an example I am choosing HR practices in Delta Composite Knitting
Industries where I worked almost 2 years.

Historical background of Delta Composite Knitting
Industries Ltd(DCKIL):
DELTA Composite Knitting Industries Ltd. is one of the largest 100%
export oriented garment industry in Bangladesh. It established in 1998.
Within short time it has positioned itself as one of the best productive
organization in the field of national economy. Delta Composite Knitting
Industries Ltd have been in the RMG manufacturing business for 17
years now, and can lay claim to be a market leader and trendsetter in
this industry in Bangladesh. Throughout the decade of existence Delta
Composite Ltd concentrated on specializing in the production of a single
item, the RMG, and created our own niche in the market. DCKIL post
MFA strategy is based on quality and reliability supported by large
production capacities, backward linkage, professional management,
refined technology, and market-oriented value-added basics.

Organizational structure of Delta Composite Knitting Industries
Ltd:

Human resource management
To ensure effective utilization of human resources, all other
organizational resources will be efficiently utilized by the human
resources.
 To establish and maintain an adequate organizational structure of
relationship among all the members of an organization by dividing of
organization tasks into functions, positions and jobs, and by defining
clearly the responsibility, accountability, authority for each job and its
relation with other jobs in the organization.
 To generate maximum development of human resources within
the organization by offering opportunities for advancement to
employees through training and education.
 To ensure reconciliation of individual/group goals with those of
the organization in such a manner that the personnel feel a sense of
commitment and loyalty towards it.

Human resource planning:
Human resource planning is the process of an organization ensures that
it has the right number & kind of people, at the right places, at the time,
capable of effectively & efficiently completing those tasks that will help
the organization achieve its overall objectives.
Human resource management is concerned with people activities,
getting & keeping people which are the crucial part of HRM.
The garments industry should be encouraged to install available
machinery, where it can be shown to be economic, in order to
strengthen industry confidence in it to maintain the interest of potential
manufactures in this area.
Co-operative investigating by garment production & management for
manufacturing should be encouraged into the optimum mode of
employment of the machinery type under development, with a view to
defining production systems based on these machines rather that their
potential for substituting existing operations.
Human resource management
Human resource management (HRM) is the function within an
organization that focuses on recruitment of, management of, and
providing direction for the people who work in the organization. HRM
can also be performed by line managers. Job analysis is primary tool in
personnel management. In this method, a personnel manager tries to
gather, synthesize and implement the information available regarding
the workforce in the concern. A personnel manager has to undertake
job analysis so as to put right man on right job.
A Brief Discussion About job analysis process in DCKIL:
1. Job description
2. Job specification

The information collected under job analysis is:
 Nature of jobs required in a concern.
 Nature/ size of organizational structure.
 Type of people required to fit that structure.
 The relationship of the job with other jobs in the concern.
 Kind of qualifications and academic background required for jobs.
 Provision of physical condition to support the activities of the
concern. For example- separate cabins for managers, special cabins for
the supervisors, healthy condition for workers, and adequate store
room for store keeper.

H. R model in Delta Composite Knitting Industries Ltd:

The selection process
The selection process typically consists of eight steps:
 Initial screening interview
 Completion of the application form
 Emulation tests
 Comprehensive interview
 Background investigation
 Conditional job offer
 Medical/physical exam
 Permanent job offer

Challenges of HR practices in Bangladesh RMG sector:
 Compliances issues:According to McKinsey’s report among the five
challenges two are the HR & compliance related like---
i) Compliance
ii) Supplier performance and work force supply.
After the RANA plaza and Tazreen fashion accident, EU and US buyers
were very much concerned about three safety issues--------
i) Building or structural safety
ii) Electrical safety and
iii) Fire safety

They formed ACCORD (by EU buyers) and Alliances for workers safety
(by US buyers) and inspected every factory in the above issues. But they
found most of the factories in good condition and they closed 2-3%
factories for not meeting the compliance of above three issues.
As a developing country, Bangladesh is under close scrutiny by
nongovernmental organization (NGOs) and corporate social responsibility
(stake holder) regarding compliance.
Both CSR experts and buyers report improved labor and social
compliance standards, but there is still a broad range of compliance seen
across suppliers and many unsolved topics still exist. Solving these issues
and achieving ethical labor standards and sourcing practices are key
prerequisites in Bangladesh’s apparel industry form a McKinney
perspective.
Wages:Wages are increasing day by day but still now and near future it
is not a threat because among the all competitors, Bangladesh is the
biggest supplier of cheap labor. But we need to ensure fair wages and
incentive schemes.
Skilled Manpower:Investment in education requires broad initiatives.
On the other hand, middle management education should be combined
with an effort improve the image of the garment industry. And on the
other hand, vocational training needs to be developed and the
appropriate institution must be established either by the government or
via public - private partnership. We have to provide structured in-house
training for both workers and middle management.
Labor relations:Trade Union vs PC committee (Participating
Committee):
RMG industry in Bangladesh faces the above challenge continuously. In
our previous experience in industry trade union activity didn’t work
properly in jute and textile sector, but we are solving this issues by
providing the activity of participatory committee in which workers