Professional Documents
Culture Documents
For our course of International Human Resource Management, we were assigned to submit a
term paper on different companys Human Resource practices in real life or the training
effectiveness of real life scenario. We have chosen the country Switzerland , whos 5 MNCs
are to be compared to their local competitors in Bangladesh. Human resource is the most
important part of any multinational company. Therefore a human resource management
strategy gets a great importance in Multinational Companies in the world.
Almost all developed country uses many techniques and strategy for human resource
management. Human resource practice is being used to make human resource management
more effective and less time consuming. We go through book and try to incorporate that
knowledge with practical world. We find many similarities as well dissimilarity with the
book. We made an interview to a Human Resource manager of different MNCs in and around
Dhaka. The experiences and excitement that we gather was really worth mentioning. The
overall environment and absolute friendly behavior totally drew our attention and created
strive to work in this organization in future.
1.1.
A clear objective helps in preparation of well decorated report in which other take the right
type of decision. So, we identifying objectives are very much important. Our purpose of
preparing the report is:
Recruitment
Selection
Compensation
Performance appraisal
Methodology
This report is based on both primary and secondary data. Interviewing the HR Executive of
the company collected primary data and secondary data were collected from companys
documents, web sites and books. Moreover, it becomes helpful to gather some more
information from the website of the company. Later on, the work progressed through some
1
depth interviews of good range professionals trying to heat some expected area of the study.
After that, an effective questionnaire is designed to collect likely data from the target group
of people. Then we analyze those data from many angles, in different aspect and present the
information in different segment according to their category, in compact way. We highlight
different important things, which we found during our survey.
Five local companies and five multinational companies were selected for the study. In
order to properly contrast findings, the researcher considered asseveration of research method
and research procedures at the data collection stage. The alleviate data collection for this
study, the researcher focused on primary data collection and secondary data collection. In
primary data collection, the research team collected data using methods such as structured
questionnaire and focus group discussion. In this research, a comprehensive structured
questionnaire related to the
HRM practices of local companies and MNCs in Bangladesh was developed.
1.2.
Limitation
We made our term paper on the topic Human Resource management Practice in local and
Swiss MNCs in Bangladesh. We suffered a lot to make appointment a Human Resource
manager in different organization. We spent more time to make an appointment. Some of the
time, the Human Resource Manager of company tried to say that we dont want to give the
data. When we incorporate data in our term paper then we need some additional data. If we
were provided with that additional data, we would have done a more structured term paper.
Literature Review
HRM is the prominent success factor of an organization. The five functional areas are
associated with effective HRM: staffing, human resource development, compensation and
benefits, safety and health, and employee and labor relations (Mondy and Noe 2005). Edgar
and Greare (2005) identified that HRM practices had a significant impact on employee
attitudes such as job satisfaction, organizational commitment and organizational fairness. Yu
and Egri (2005) found that HR practices had a significant impact on the affective
commitment of employees on Chinese firms. Aswathappa (2008) argued that the organization
should have better HR plans to motivate its employees. Sophisticated recruitment and
selection system can ensure a better fit between the individuals abilities and the
organizations requirement (Fernandez 1992). Katou and Budhwar (2007) discussed in a
2
study on Greek manufacturing firms that recruitment and selection was positively related to
all organizational performance variables such as effectiveness, efficiency, innovation, and
quality. The motivation and opportunity focused bundles of HR practices positively related to
affective commitment and negatively related to turnover (Gardner, Moynihanand & Wright
2007).
The best human resource practices areas are recruitment and selection, socialization, job
design, training, communication/participation, career development, performance
management, employee reward and job security (Huselid1995). HRM 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 (Dessler
2007). Training and development has a significant positive impact on employees job
satisfaction (Garcia 2005). Thang and Buyens (2008) believed that training and development
lead to superior knowledge, skills, abilities, attitudes, and behavior of employees that
ultimately enhance excellent financial and nonfinancial performance of the organizations.
DeCenzo and Robbins (1996) suggested that employee training has become increasingly
important as job have become more sophisticated and influenced by technological changes.
Shaw et al. (1998) assert that involuntary turnover is affected by staffing practices
(recruitment and selection process) and employee monitoring (performance appraisal).
Bernardin and Russel (1993) opined that over the years, training has become increasingly
popular as HR tool for improving employee and managerial performance in organization.
Buck and Watson (2002) indicated nine important HRM practices such as decentralization,
compensation, participation, training and development, employment security, social
interactions, management style, communications, and performance appraisal. Klaus,
LeRouge& Blanton (2003) expressed that, through better job assignment or work design;
employees may display greater commitment, leading to better job performance.
The above literature review shows that there have been several studies on HRM practices and
job satisfaction.
In Bangladesh, however, there is a research gap in this area and so the study is undertaken.
To find out the impact of HRM practices on employees job satisfaction, the human resource
planning, working environment, training and development, compensation policy, recruitment
and selection, performance appraisal and industrial relations has considered as HRM aspects.
COMPANY
BACKGROUNDS
Local NGO
Headquarters
Zurich, Switzerland
Dhaka, Bangladesh.
Founder/s
Head of HR in Bangladesh
Ms. JasiyaKhatoon
Samuel Bon
Syed SaifulHaque
Address in Bangladesh
Type of organization
NGO
NGO
1959
1996
N/A
No. of employees
100+
100-120
8Hours
8Hours
Website
www.swisscontact.org.bd
www.warbe.org
Organization Motive
th
Swiss company
Pran-Rfl
Nestle
Dhaka, Bangladesh
Vaud, Switzerland.
Mir ShamsulAlam
Paul Bulcke
Type of organization
17 March 1981
8Hours
8Hours
www.pranfoods.net
www.nestle.com
Head of HR in Bangladesh
Current CEO or Chairperson
Address in Bangladesh
Organization Motive
Logo
Swiss Pharmaceutical
company
Novartis
Headquarters
Basel, Basel-Stadt,
Switzerland
Founder/s
Joerg Reinhardt
Tongi, Dhaka,
Bangladesh.
Head of HR in Bangladesh
Shafayat Ahmed
Joseph Jimenez
Address in Bangladesh
Type of organization
Pharmaceuticals.
generic drugs, over-the-counter
drugs, vaccines, diagnostics,
contact lenses, animal health
Novartis was created in 1996
through the merger of Ciba-Geigy
and Sandoz.
Sell products in more than 150
countries, with their global
headquarters in Basel,
Switzerland.
Care and cure people. They want
to discover, develop and
successfully market innovative
products to prevent and cure
diseases, to ease suffering and to
enhance the quality of life.
Headquarters
Taneem Square (Level 2-3-4-6 &
7) 158. Kemal Ataturk Avenue,
Block-E, Banani, Dhaka-1213
Dhaka, Dhaka 1213 Bangladesh
Pharmaceutical
Organization Motive
By Transcom in 1990
N/A
No. of employees
1028
2600
8 Hours
8 Hours
http://www.novartis.com.bd/
http://www.skfbd.com/
Logo
Local Cement
Company
Holcim Cement
Fresh Cement
Headquarters
Jona, Switzerland
Founder/s
Bernard Fontona
Head of HR in Bangladesh
Saleh U. Ahmed
Rolf Soiron
Address in Bangladesh
Type of organization
1912
2010
N/A
645
482
8Hours
8Hours
Website
www.Holcim.com
www.meghnagroup.biz
Organization Motive
Logo
Human Resource
Practices of the 10
Companies
10
Yoberries
Bdjobs.com is mostly
preferred
Only Bdjobs.com
Newspapers
Newspaper advertisements
are not preferred.
No.
Nil
Formal
Formal
Well-structured format
being followed.
Interview
Formal
Resume Interview
Taken
Taken
Fit Interview
Nil
Nil
Case Interview
No.
Quota for
Physically Challenged
No
No
Medical Test
Not Needed
Not Needed
Negotiation
Semi-Formal
Job
Advertisement
TV commercials
Screening
Written Test
Recruitment &
Selection
Process
IQ Test
Referral
11
Nil
Training and
Development
Promotion
System
Performance
Appraisal
System
Similar industry
Candidates
Not necessary
Criteria
Venue
In house and
abroad
Type
Depts
requirement
Trainer
In house
Basis
Productivity and
performance
Job vacancy,
performance,
capabilities, previous
experiences
Frequency
% of increment
Not fixed
N/A
Issued by
Frequency
Annually
Twice a year.
Criteria
KPI driven
Perks
No
No
Status
Given
Recognition
Not held
Not held
Recreational activity
Annual picnic
12
Given
Appraised by
Festival Bonus
Twice a year.
Twice a year.
% of Bonus
undefined
undefined
Provided
No
Annual Leave
20 days
20 days
Sick Leave
10 days
Not defined
Casual Leave
Not given
10 days
Maternity Leave
16 weeks
6 months
Paternity Leave
2 weeks
15 days
Parental Leave
Not given
Not given
Not given
Not given
Transportation
Not given
Compensation for
work place injuries
Provided
Covered by health
insurance.
\Health Insurance
Yes
Yes
Life Insurance
No
No
Compensation
and Benefit plan
13
OSHA (
Occupational Safety
and Health
Administration)
Profit sharing
Not applicable
Not applicable
Work Environment
Emergency Information
Posting
Given
Given
Safety Drills
Given
No
Fire Prevention
Given
Not given
Emergency Exit
No
Electrical System
No
No
Material storage
No
No
Ergonomics
( user friendly systems)
Yes
Yes
14
Yes
Warbe Development
Foundation
Bdjobs.com
Bdjobs.com
In-process
Nil
Formal
Formal
Screening
Written Test
Highly Formal
Formal
IQ Test
Nil
Nil
Interview
Highly Formal
Highy Formal
Resume Interview
Taken
Taken
Fit Interview
Nil
Nil
Case Interview
Taken
Taken
Quota for
Physically Challenged
NO
Provided
Medical Test
Not Needed
Not Needed
Negotiation
Semi-Formal
Semi-Formal
Referral
Similar industry
Highly preferred
Not necessary
Newspapers
TV commercials
Recruitment &
Selection
Process
15
Candidates
Training and
Development
Promotion
System
Performance
Appraisal
System
Criteria
Job Need
Job Need
Venue
In house and
abroad
Type
Incumbents need
Grass-root level
in 11districts.
MISC programmes
(Migration Information
Support Centre)
Depts
requirement
Trainer
In house
Basis
Productivity and
performance
Performance
Frequency
% of increment
Not fixed
N/A
Issued by
E.C members
General Secretary
Frequency
Annually
Anually
Criteria
KPI driven
KPI driven
Perks
No
Given
Status
No
Given
Recognition
Given
Given
Not held
Not held
Recreational activity
Annual picnic
16
Appraised by
Festival Bonus
Once yearly
Once yearly
% of Bonus
undefined
undefined
Provided
No
Annual Leave
20 days
20 days
Sick Leave
10 days
Not defined
Casual Leave
Not given
10 days
Maternity Leave
16 weeks
6 months
Paternity Leave
2 weeks
15 days
Parental Leave
Not given
Not given
Not given
Not given
Transportation
Not given
Compensation for
work place injuries
Provided
Covered by health
insurance.
\Health Insurance
Yes
Yes
Life Insurance
No
No
Compensation
and Benefit plan
17
OSHA (
Occupational Safety
and Health
Administration)
Profit sharing
Not applicable
Not applicable
Work Environment
Homely environment,
despite being an office.
Emergency Information
Posting
Given
Given
Safety Drills
Given
Given
Fire Prevention
Given
Not given
Emergency Exit
No
Electrical System
No
No
Material storage
No
No
Ergonomics
( user friendly systems)
Yes
Yes
18
Yes
Nestle
TV commercials
N/A
N/A
Screening
Formal
Formal
Written Test
Formal
Highly formal
IQ Test
N/A
Interview
Highly formal
Resume Interview
Yes.
Fit Interview
N/A
N/A
Case Interview
Takecase interview
Quota for
Physically Challenged
Medical Test
Negotiation
Semi-Formal
Referral
Top
management jobs
Job
Advertisement
Online Job Portals
Newspapers
Recruitment &
Selection
Process
Consider Similar
industry candidate
Similar industry
Candidates
19
Job Need
Job need.
Venue
In the organization.
Centralized training
Type
Trainer
Basis
Performance base
promotion system
Frequency
Not Fixed
% of increment
Issued by
HR & Administration
department
Frequency
3 time in a year
Criteria
Performance based
reward
Perks
Gift hamper
Status
Recognition
Given
Yes.
Not Held
No.
Criteria
Training and
Development
Promotion
System
Performance
Appraisal
System
20
Compensation
and Benefit plan
Recreational activity
Appraised by
HR & Administration
department
Festival Bonus
2 Eid bonus
2 Eid bonuses.
% of Bonus
Gross 15%
N/A
Annual Leave
Depends on the
employee productivity
and organization
performance as well.
Around 20 days a year.
Sick Leave
17 Days
12-14 days.
Casual Leave
10 Days
12 days.
Maternity Leave
16 Weeks
Around 18 weeks.
Paternity Leave
No paternity leave
2 weeks.
Parental Leave
N/A
No.
Pension Scheme/
Provident Fund
Transportation
Compensation for
work place injuries
provide compensation
for work place injuries
21
\Health Insurance
Yes.
Life Insurance
N/A
Profit sharing
N/A
Work Environment
Homely environment
and quite congested.
Emergency Information
Posting
Yes, it is there.
Safety Drills
Fire Prevention
No fire prevention
Emergency Exit
Not really.
Electrical System
No
No.
Material storage
Yes.
Ergonomics
( user friendly systems)
Yes
Walking / working
surfaces
OSHA (
Occupational Safety
and Health
Administration)
22
Yes.
Novartis
ESKAYEF
BANGLADESH
LTD
TV commercials
N/A
N/A
Screening
Formal
Formal
Written Test
Formal
Highly formal
IQ Test
N/A
Interview
Highly formal
Resume Interview
Yes.
Fit Interview
N/A
N/A
Case Interview
Quota for
Physically Challenged
Medical Test
Negotiation
Semi-Formal
Referral
Top
management jobs
Job
Advertisement
Online Job Portals
Newspapers
Recruitment &
Selection
Process
23
Consider Similar
industry candidate
Job Need
Job need.
Venue
In the organization.
Centralized training
Type
Trainer
Basis
Performance base
promotion system
Frequency
Not Fixed
% of increment
Issued by
HR and admin
HR & Administration
department
Frequency
Annually
Criteria
Performance based
reward KPI driven
Perks
Gift hamper
Status
Recognition
Given
Yes.
Not Held
No.
Similar industry
Candidates
Criteria
Training and
Development
Promotion
System
Performance
Appraisal
System
24
Compensation
and Benefit plan
Recreational activity
Appraised by
HR and admin
HR & Administration
department
Festival Bonus
2 Eid bonus
2 Eid bonuses.
% of Bonus
Gross 15%
N/A
Annual Leave
Depends on the
employee productivity
and organization
performance as well.
Around 20 days a year.
Sick Leave
17 Days
12-14 days.
Casual Leave
10 Days
12 days.
Maternity Leave
16 Weeks
Around 16 weeks.
Paternity Leave
No paternity leave
No paternity leave
Parental Leave
N/A
No.
Pension Scheme/
Provident Fund
Transportation
Compensation for
work place injuries
provide compensation
for work place injuries
25
\Health Insurance
Yes.
Life Insurance
N/A
Profit sharing
N/A
Work Environment
Homely environment
and quite congested.
Emergency Information
Posting
Yes, it is there.
Safety Drills
Fire Prevention
No fire prevention
Emergency Exit
Not really.
Electrical System
No
No.
Material storage
Yes.
Ergonomics
( user friendly systems)
Yes
Walking / working
surfaces
OSHA ( Occupational
Safety and Health
Administration)
26
Yes.
Fresh Cement
Bdjobs.com is mostly
preferred
Only Bdjobs.com
Newspapers
Newspaper advertisements
are not preferred.
No.
Nil
Formal
Formal
Well-structured format
being followed.
Interview
Formal
Resume Interview
Taken
Taken
Fit Interview
Nil
Nil
Case Interview
No.
Quota for
Physically Challenged
No
No
Medical Test
Not Needed
Not Needed
Negotiation
Semi-Formal
Job
Advertisement
TV commercials
Screening
Written Test
Recruitment &
Selection
Process
IQ Test
Referral
27
Nil
Training and
Development
Promotion
System
Performance
Appraisal
System
Similar industry
Candidates
Not necessary
Criteria
Venue
In house and
abroad
Type
Depts
requirement
Trainer
In house
Basis
Productivity and
performance
Job vacancy,
performance,
capabilities, previous
experiences
Frequency
% of increment
Not fixed
N/A
Issued by
Frequency
Annually
Twice a year.
Criteria
KPI driven
Perks
No
No
Status
Given
Recognition
Not held
Not held
Recreational activity
Annual picnic
28
Given
Appraised by
Festival Bonus
Twice a year.
Twice a year.
% of Bonus
undefined
undefined
Provided
No
Annual Leave
20 days
20 days
Sick Leave
10 days
Not defined
Casual Leave
Not given
10 days
Maternity Leave
16 weeks
6 months
Paternity Leave
2 weeks
15 days
Parental Leave
Not given
Not given
Not given
Not given
Transportation
Not given
Compensation for
work place injuries
Provided
Covered by health
insurance.
\Health Insurance
Yes
Yes
Life Insurance
No
No
Compensation
and Benefit plan
29
OSHA (
Occupational Safety
and Health
Administration)
Profit sharing
Not applicable
Not applicable
Work Environment
Emergency Information
Posting
Given
Given
Safety Drills
Given
No
Fire Prevention
Given
Not given
Emergency Exit
No
Electrical System
No
No
Material storage
No
No
Ergonomics
( user friendly systems)
Yes
Yes
30
Yes
Comparison between
Local and Foreign
Firms
31
32
After conducting the survey on Pran-RFL and Nestle, in terms of their HR practices and
issues, what we came across is that, it is not always true that the local firms are always behind
the international ones in terms of following the HR practices in their workplaces. On the
other hand, in this case, both the firms had very poor HR results in few of the aspects. The
below discussions would show their HR results in terms of all the aspects that we have
surveyed for:
Recruitment & Selection Process: In this section, we tried to collect information of
Recruitment circulars, screening test, writing tests, interview, referral and priority to
uptake similar sector people. For recruitment circulars Pran-RFL used to circulate
formal circular. They give advertisements on Bdjobs.com and Daily Star for
recruiting people which is formal recruiting system. Formal screening test and formal
written test is observed in this NGO. Swiss firm, Nestle also gives advertisements for
recruitments but their ways are different from the ones from Pran-RFL. Their
screening test, interview and written test are highly formal. If we compare with the
Swiss one stated above, we found many similarities with local ones. They dont
demand any medical test. In case of negotiation both the firms are semi- formal.
Similar industrys candidates are highly preferred in Nestle but it is not necessary for
Pran-RFL.
Training & Development: Training is the integral part for the development of the
employees which is carried out by both local and global firms though we found some
difference. Pran-RFL does in house training for the employees whereas Nestle
arranges abroad and out sourced training. Pran-RFL give trainings at grass- root level
in 11 districts. Nestles trainers are from Bangladesh but sometimes they call some
trainers from outside our country. But Pran-RFLs trainers are from our country they
dont demand for outsiders. Purpose of training varies from firms to firms. Local
NGO arrange training as per the department need on the other hand Swiss NGO
arrange as per incumbents need.
Performance Appraisal System: Pran-RFLs promotional system is based on
employees productivity and performance and it is issued by the department and the
admin. On the other hand Nestles promotional system is based only on performance
and issued by the E.C members and the General Secretary and the promotional
33
culture and environment. Effective HRM enables employees to contribute effectively and
productively to the overall company direction and the accomplishment of the organization's
goals and objectives.
In this report we are going to sketch the current situation and culture of two NGOs. In
Bangladesh there are several local and global NGOs running their operations. We have
surveyed on a local NGO and on a Swiss NGO to compare their organizational policies.
Considered NGOs are as follows:
Swiss NGO: SwissContact (Saro)
Local NGO: WARBE Development Foundation
Recruitment & Selection Process: In this section, we tried to collect information of
Recruitment circulars, screening test, writing tests, interview, referral and priority to
uptake similar sector people. For recruitment circulars WARBE used to circulate
formal circular. They give advertisements on Bdjobs.com and Daily Star for
recruiting people which is formal recruiting system. Formal screening test and formal
written test is observed in this NGO. Swiss NGO SARO also gives advertisements for
recruitments. Their screening test, interview and written test are highly formal. If we
compare with the Swiss one stated above, we found many similarities with local ones.
They dont demand any medical test. In case of negotiation both NGOs are semiformal. Similar industrys candidates are highly preferred in SARO but it is not
necessary for WARBE.
Training & Development: Training is the integral part for the development of the
employees which is carried out by both local and global NGOs though we found some
difference. Local NGO do in house training for the employees whereas Swiss NGO
arrange abroad and out sourced training. WARBE give trainings at grass- root level in
11 districts. SAROs trainers are from Bangladesh but sometimes they call some
trainers from outside our country. But WARBEs trainers are from our country they
dont demand for outsiders. Purpose of training varies from NGO to NGO. Local
NGO arrange training as per the department need on the other hand Swiss NGO
arrange as per incumbents need.
35
36
37
Training & Development: Training is the integral part for the development of the
employees which is carried out by both local and global companies though we found
some difference. Local company do in house training for the employees whereas
Swiss company arrange abroad and out sourced training. Novartiss trainers are from
Bangladesh but sometimes they call some trainers from outside our country. But
SK+Fs trainers are from our country they dont demand for outsiders.
Purpose of training varies from company to company. Local company arrange training as per
the department need on the other hand Swiss company arrange as per incumbents need.
Performance Appraisal System: Novartiss promotional system is based on
employees productivity and performance and it is issued by the department and the
admin. On the other hand SK+Fs promotional system is based only on performance
and issued by the E.C members and the General Secretary. Both of the company
frequency of promotion and criteria is same.
Compensation & Benefit: Two companies have almost similar policy. In this
section we mainly surveyed the satisfaction of employee on the salary they are
drawing, availability of health insurance, rent and transport expenses. We have found
that both companys employees are satisfied with their salary. All companies cover
health insurance for the job holders. But they dont give any life insurance. In case
of festival bonus, annual leave, sick leave, maternity leave and parental leave we
found almost same scenario. In case of transportation both company are very much
with their female employees. They provide transport for female employees and male
employee on official purpose.
Occupational Safety and Health Administration (OSHA): It is pleasant to hear
that most of the OSHA guidelines maintained by both company. They have sufficient
walking space, safely drills, fire preventions, emergency exits. But electrical system
and material storage is absent.
38
work after finishing the work assigned to him and c) if the employee is capable to
maintain consistency if he receives promotions to greater responsibilities. Holcim
gives promotion based on the employees own KPI and departments KPI. Every year
at the end HR department combine the KPI and give promotions to the employees.
This process is called E-Dialogue.
40
Findings
Local vs MNC
There are several differences in HRM practices between local cement companies
and multinational cement companies in Bangladesh. Multinational companies tend to
follow more structured way in their recruitment and selection process, training &
development, promotion system and in performance appraisal system. But local
companies have a mixed and less formal way of practicing HRM in their
organizations.
Recruitment and Selection Process
In job advertising both MNCs and Locals try to follow formal proceedings. They give
their job advertisement in print media and also in online job pages like BDJobs.com,
ProthomAlo Jobs, Lose Monkey etc. Very few MNCs do their recruitment and
selection through third parties. So they dont do any job advertising form their own.
Screening process is mostly structured in both MNCs and in Local companies.
MNCs have much standard way of screening comparing to locals. Written test is
taken formally in MNCs as well as in locals. But sometimes some MNCs dont take
written test for some of its hiring positions. It completely depends on their
departments need. Locals mostly have written test for their most of the required
positions. After the written test next step is interview. MNCs and locals both have
structured interview method. MNCs have highly structured and structured interview
process and locals have structured and semi-structured process in interviewing.
Several MNCs requires medical test must and for some its essential. Locals are not
that serious on medical test. If its essential for the post to take medical test then
medical test is taken or else its not necessary. Negotiation is at the end of
recruitment process. Once the candidate has been through all the screening process
he then gets the opportunity to negotiate on salary. Not all the organizations offer
negotiations for candidates. Most of the MNCs offer negotiation option for the
candidates and they have the freedom for asking on their salary. Even if the locals
offer negotiations it remains under a benchmark. Most of the MNCs have referrals
and they are mostly from the top management. Locals hardly have referrals and if so
its from the top management. Similar industry candidates are preferred in both
locals and in MNCs.
Training and development
In training and development the primary training is given in office which is known as
on the job training. Then according to the requirements the training is allocated.
MNCs have various training for its employees including fire drill, factory safety
41
training. Local companies are not that far behind either when it comes to training.
They also provide opportunities for going abroad when it comes to talented
employees but more often than not training is done in house. MNCs tend to display a
pattern of training their workers on a location basis especially when it comes to
safety concerning their onsite workforce.
Promotion System
MNCs go the all American way when it comes to promotion with performance
leading the way when it comes to the deciding factor. Local companies operate on a
more yearly foundation for their promotion system. Both sides are neutral towards
succession planning leading the job description and position requisites to choose the
initial pool of candidates. Performance appraisal is practiced in both MNCs and in
locals. These performance appraisals are done by the Human resource department
and respective departments. The competitive advantage MNCs have against local
companies lies in its facilities, skilled human resource and management. Thats why
local organizations in specific try to minimize its turnover rate in terms of top
performers. Employees leave organizations for many reasons; oftentimes these
reasons are unknown to their employers. Employers need to listen to employees
needs and implement retention strategies to make employees feel valued and
engaged in order to keep them.
Compensation and benefits
MNCs have a much open mentality when speaking of their salary
packages when
compared against their local competitors. Fringe benefits range from company car
privileges to medical expenses duly paid along with festive bonuses. Things are
more undisclosed in the local companies with the base salary kept a bit lower to stay
within tax breaks. This in return is made up of the multitude festival bonuses on offer
throughout the year.
OSHA
While health and safety regulations are maintained in all forms everywhere we have
found that MNCs take a more proactive approach to ensure disciplined work
practices for their employees so that they not only reach the industry standard but
create a brand new benchmark in the process. Local companies place their trust in a
"flexicurity" model: new ways of balancing flexibility and security in relation to
employment, income and social protection. ILO also encourages a "flexicurity"
approach which requires, but also promotes, high employment rates. Without
competitive enterprises which are able to adjust their workforces to market
conditions, employment performance will be poor.
42
Conclusion
For the past 3-4 weeks, we have interviewed 10 HR managers of Bangladeshs top
companies 5 Local and 5 MNCs. We surveyed around 30 employees and got to
know how the companies are run by the administrators using the help from HR
department.
From our surveys and findings we have found out a very important thing. The HR
practices in MNCs are lot better than that of local. The five major areas of HR which
are Recruitment and Selection Process, Training and Development, Promotion
System, Performance Appraisal System and Compensation Benefits are followed by
the MNCs very well. Of course big companies like Holcim and Novartis lack in some
areas, but as they are given guidelines and policies from the parent company, they
have to adhere to it strictly.
The recruitment process is seen to be very structured in the MNCs than that of
locals. As they are all of them are service oriented T&D, performance appraisal and
promotion are similar. But the compensation packages are more and preferable in
MNCs than the local ones.
From all this we found out that HR is still new in Bangladesh and most companies
are still not ready to fully implement it, but most of them are aware of it. Everyone
knows its importance and HR is getting recognized as it should be.
43
Appendix
Novartis Pharmaceuticals LTD
44
PRAN-RFL Limited
45
Swiss contact
46
Holcim Cement
47