Report on

HRM Practices of Bangladeshi companies

VS

UK Based MNCs in Bangladesh
Introduction:
Bangladesh is a developing and democratic country. Nowadays it is known to world for its
manufacturing of readymade garments. But most importantly attracting MNCs (Multi-National
Companies) for its cheap labor force to produce labor intensive goods. As per as we are
concerned Bangladesh has a comparative advantage in cheap labor. So, MNCs of many country
are opening their operation in this country. Moreover, countrys political environment and
economic environment is also suitable to attract FDI. On the other hand local companies also
doing well in their local business. As a result, many strong brand developed by local companies
which became market leader in the local market in spite of competition from many MNCs.
So, nowadays Human Resource Management (HRM) is becoming very important for every
organization in the country. Even though HRM concept, its policy and practices are very new for
local companies. As a result many local companies are integrating HR department in their
respective organization. Whereas MNCs are using their HR policies by differentiating and
adapting local culture. So it is very important for both MNCs and Local companies to understand
local culture.
So we have gone through primary data collection by interviewing HR managers with a structured
questionnaire. We believe this study will enhance application of our theoretical knowledge and
gain practical knowledge also.



Executive Summery
The main purpose of this report is to compare and contrast HR policies and practices between
five local companies and five UK based MNCs of same industry. This report has contributed us
with practical knowledge of HR practice. Moreover throughout studying data we have concluded
that HR practices among local companies are very less compare to UK base MNCs. But it is also
a matter of concern that local companies also learning from MNCs and focusing and improving
HR practices. We recommend local companies to invest more in training and development,
because it will enhance to develop skill in employee and bring efficiency in organization. Finally
the major limitation of our data collection was getting appointment with HR manager and our
limited knowledge in HR.













Data of the Companies:
About the organization:



Category


Local

ACI Islami
Bank
D.Net Spotlight Ibn Sina
Pharma

Main Products & services

Consumer
Good
Banking NGO Advertising Pharmaceuticals
Organization type

Flat Tall Flat Tall Tall
No. of Departments

SBU-4 5 8 7 7
Establishment Year

1992 1983 2001 2006 1983
No. of employees

8000
(approx.)
12000 90 34 3200+
Avg. Education

Masters Bachelor Bachelor Bachelor Masters
Avg. Employee turnover
rate

N/A N/A N/A N/A N/A
Category


MNC

HSBC

Sirius
Marketing
(WPP)

Reckitt
Benckiser
Muslim
Aid
GSK
Main Products & services

Banking Advertising Consumer
Good
NGO Pharmaceuticals
Organization type

Tall Flat Flat Tall Flat
No. of Departments

8 5 5 4 5
Establishment Year

1998 1995 2003 1991 1949



HR Practices
a. Local Companies:
Recruitmen
t &
Selection
Category Local
ACI

Islami
Bank
D.Net Spotlight Ibn Sina
Pharma

Knowing Job
Vacancies

Individual
Dept.
Individual
Dept.
Individual
Dept.
Individual
Dept.
Individual
Dept.
Preferable
candidate type

Internal and
External
Internal
and
External
Internal and
External
Internal and
External
External
Main attribute
of selection

Result, job
knowledge
Result, job
knowledge
Convincing
capacity
job
knowledge
Result, job
knowledge
Recruitment
source
Website,
Own portal,
social media
Website,
Own portal
Website, Own
portal
Website,
Print Media
Website
Print Media
Type of
interview

Panel Mass Panel Variable Panel
Number of days
for selection

>7 days 4 month 6 weeks 1 week 1 Week
Number of
steps in
recruitment

5 4 3 Variable Variable
No. of employees

800 60 550 150 600
Avg. Education

Masters Bachelor Masters Masters Bachelor
Avg. Employee turnover
rate

N/A N/A N/A N/A N/A
Time spend in
each step

Variable Variable Variable Variable Variable
Media Own HR
dept.
Own HR
dept.
Own HR dept. Own HR
dept.
Add Firms
Medical Test

Yes No No Yes Yes
Training &
Developme
nt
After
recruitment
training

Yes Yes Yes Yes Yes
Types of
training
Operational
and
instrumental
Operational
and
instrumenta
l
Operational,
Motivational
and functional
training
Operational,
Motivational
Operational
,
Motivation
al
Cross Cultural
Training

Yes Yes No No Yes
Training period

6 months 15 days 2 weeks 10-20 days 1months
Training
Location

Home and
Abroad
Home and
Abroad
Home Home Home
Training in
changing job
role

Yes Yes No No Yes
Mentoring
facility

Yes Yes Yes Yes Yes
Regular Tech
Upgrade

Yes Yes No No No
Technological
up gradation
training

Yes Yes No No No
OJT

Yes Yes Yes Yes Yes
Training
Facilitator

HR/MDP HR HR HR HR
Promotion
System

Variables of
promotion

Performanc
e
Performanc
e and age
Performance Performance Performanc
e and Age
Changing of job
responsibility
after promotion

Variable Variable Yes Yes Yes
Main authority
regarding
promotion

CEO BOD Executive
Director
CEO,
Executive
Director
CEO
Job rotation

Variable Yes Yes Yes Yes
Salary &
Benefits

Salary Fixing
scale

Job position Job
position
Job position Job position Job
position
Increment rate

Not fixed Not fixed Not fixed Not fixed Not fixed
Increment
period

Yearly Yearly Yearly Yearly Yearly
Types of other
benefits

Health
insurance,
leave,
retirement
plans etc.
Health
insurance,
Retirement
plans, and
Maternity
leave,
festival
bonuses,
performanc
e bonus, 4
incentive
bonus
Health
Insurance and
Parental leave
Health
Insurance,
Maternity
Leave,
Provident
Fund
Health
Insurance,
Maternity
Leave,
Provident
Access to
company share
buying

Yes Yes N/A N/A Yes
Taking Leaves

Yes Yes Yes Yes Yes
Types of
Retirement
facilities

Provident
fund
Provident
Fund
Gratuity and
Encashment
Provident
Fund
Provident
fund
Gratuity
Profit sharing

Yes No N/A N/A Yes
Policy of leave
encashment

Yes Yes Yes Yes Yes
Performan
ce
Appraisal
Employee talent
program

Yes No No No No
Types of Talent
Program

On Campus
Recruiting
N/A N/A N/A N/A
Performance
Appraisal

Yes Yes Yes Yes Yes
Frequency

Yearly Yearly Yearly Yearly Yearly
Employee
Motivation
Types of
motivational
work
Variable Variable Variable Seminar and
Workshop
Workshop
Availability of
refreshment
policy
Yes Yes Yes Yes Yes
Kinds of
refreshment
policy

Picnic,
foreign trip,
social
gathering

Picnic,
foreign
trip, social
gathering

Picnic,
domestic trip

Picnic,
domestic trip

Picnic
Frequency of
refreshment
activity

Variable Variable Yearly Yearly Yearly
OSHA Availability of
safety measures

Yes Yes Yes Yes Yes
Available
firefighting
elements

Water, Fire
extinguisher
Water, Fire
extinguishe
r, sand
bucket
Fire
extinguisher
Fire
extinguisher
Water, Fire
Extinguishe
r, fire exit
Number of fire
exits

1/ Floor 1/ Floor No 1 1/floor
Fast aid facility

Yes Yes Yes Yes yes
Emergency
Medical Access

Yes Yes Yes No Yes
Fire drill
practice

1/ year 1/ year No 1/year 1/year
Precautions for Yes Yes No No No
other natural
disasters




b. HR practices in MNCs:
Recruitmen
t &
Selection
Category MNC
HSBC

Sirius
Marketing

GSK Reckitt
Benckiser
Muslim
Aid
Knowing Job
Vacancies

Individual
Dept.
Individual
Dept.
Individual
Dept.
Individual
Dept.
Individual
Dept.
Preferable
candidate type

Internal and
External

Internal and
External
External External External
Main attribute
of selection

Convincing
ability, job
knowledge
Job
knowledge
Job
knowledge,
Convincing
ability
Result, job
knowledge,
suitable
personality
Job
knowledge
,
Convincin
g ability
Recruitment
source

Website,
Own portal
Website,
Own Portal
Website,
Print Media
Website,
Own portal,
print media
Website,
print
media
Type of
interview

Panel Panel One to One Panel One to
One
Number of days
for selection

>7 days >7 days Variable >7 days >7 days
Number of
steps in
recruitment
4 4 3-4 Steps 3 3
Time spend in
each step

Variable Variable Variable Variable Variable
Media Own HR
dept.
Own HR
dept.
Own HR
dept.
Own HR
dept.
Own HR
dept.
Medical test No No Yes Yes No
Training &
Developme
nt
After
recruitment
training

Yes Yes Yes Yes Yes
Types of
training
Operational,
Motivational
and
instrumental

Operational
and
Motivational
Pre and Post
Employment
Training
Operational
and
instrumental
Operation
al and
instrument
al
Cross Cultural
Training

Yes No Yes Yes Yes
Training period Variable Variable Variable
Training
location
Home and
abroad
Home Home and
Abroad
Home and
Abroad
Home and
Abroad
Training in
changing job
role

Yes Yes Yes Yes Yes
Mentoring
facility

Yes Yes Yes Yes Yes
Regular Tech
Upgrade

Yes No Yes Yes No
Technological
up gradation
training

Yes No Yes Yes Yes
OJT

Yes (online
and
interactive)
Yes Yes Yes Yes
Training
Facilitator

HR and out
sourced
training
organization
HR HR HR HR
Promotion
System

Variables of
promotion

Performance
and service
age
Performance Performance Performance Performan
ce and
service
age
Changing of job
responsibility
after promotion

Yes (get new
appointment)
Yes Yes Yes Yes
Main authority
regarding
promotion

Department
head
Department
head
CEO CEO Departme
nt head
Job rotation

Yes Yes Yes Yes Yes
Salary &
Benefits

Salary Fixing
scale

Job position
(varies
department
to
department)
Job position Job Position Job position
and job role
Job
Position
Increment rate

Variable Variable Variable Variable Variable
Increment
period

Yearly Yearly Yearly Yearly Yearly
Types of other
benefits

Health
insurance,
leave,
retirement
plans etc
Health
insurance
Health
Insurance,
Parental
Leave,
Retirement
Plans
Health
insurance,
leave,
retirement
plans etc
Health
insurance
retirement
plans etc
Access to
company share
buying

N/A N/A Yes Yes N/A
Taking Leaves

Yes Yes Yes Yes Yes
Types of
Retirement
facilities

Provident
Fund
Provident
Fund
C.P.F.,
Pension
Provident
fund and
Gratuity
Others
Profit sharing

No No Yes (5%) Yes N/A
Policy of leave
encashment

Yes Yes Yes Yes Yes
Performan
ce
Appraisal
Employee talent
program

Yes No Yes Yes No
Types of Talent Future N/A On Campus On Campus N/A
Program

Leader
Development
program
Recruiting Recruitment
Facilities for
good
performers
Fast
promotion/
incentive
Fast
promotion/
better
increment
Fast
promotion/
incentive
Fast
promotion/
better
increment
Fast
promotion
/ incentive
Frequency

1 to 5 times
in a year
Yearly Yearly Yearly Yearly
Employee
Motivation
Types of
motivational
work

KPI (key
performance
indicator)
Seminar and
Workshop
Workshop,
Counseling,
One to one
discussion

Variable Variable
Availability of
refreshment
policy

Yes Yes Yes Yes Yes
Kinds of
refreshment
policy
Picnic,
Employee
Night

Picnic, trip,
social
gathering

Picnic, social
trip
Picnic,
others
Picnic,
social trip
Frequency of
refreshment
activity

Yearly Yearly Yearly Yearly Yearly
OSHA Availability of
safety measures

Yes Yes Yes Yes Yes
Available
firefighting
elements

Fire
extinguisher
Fire
extinguisher
Fire
extinguisher
Fire
extinguisher
Fire
extinguish
er
Number of fire
exits

2/Floor 1 1/Floor 1/Floor 1
Fast aid facility

Yes

Yes Yes Yes Yes
Emergency
Medical Access

Yes No Yes Yes Yes
Fire drill
practice

1/Year 1/Year 1/Year 1/Year 1/Year
Precautions for
other natural
No No No No No
disasters



Comparison
Local vs. MNC

Recruitment & Selection
All the local companies and MNCs know their job vacancies from their individual dept. Among
locals ACI, Islami Bank, D.Net and Spotlight prefer both external and internal candidates only
Ibn Sina Pharma prefer external candidates. Among MNCs HSBC and Sirius Marketing prefer
both internal and external, other MNCs prefer only external. All the locals prefer job
knowledge but ACI, Islami Bank IBn SIna also looks for good result. All the MNCs look for job
knowledge and convincing capacity but only GSK and Reckitt Benkiser looks for suitable
personality. All local and MNCs use website and print media for recruitment source. Among
locals.In the local org ACI D.Net and Ibn Sina take Panel interview, Islami Bank and Spotlight
takes Mass and one to one. Among MNCs HSBC, Sirius and Reckitt Benkiser takes Panel other
two takes one to one interview. All the local and MNCs takes more than 7 days for selection.
Among all the local and MNC mass media for advertisement is driven by their HR.

Training & Development
All the local and MNCs give training to their new employees. All the locals take operational
training but ACI and Islami Bank takes instrumental and other three gives motivational training.
Among MNC HSBC and Sirius gives operational and motivational training, GSK an Muslim
AID gives Operational and instrumental training only GSK gives pre and post employment
training. In the local ACI, Islami Bank and IBN SIna give cross cultural training and in MNC
except Sirius Marketing all the other org. give cross cultural training. For training Islami Bank
D.Net and Spotlight gives 2 weeks training IBn Sina gives 1 moth training and ACI gives 6
month training. Among MNC Sirius gives 2 week training. Both GSK and Reckitt Benkiser
gives 2 month training and Muslim AID give 1 month training. In The HSBC training is depend
on requirement. In the local Only ACI and Islami gives Home and abroad training both other
three gives only home training. In the MNC Except Sirius all the other give home and abroad
both training. All the MNC and Local gives training in changing job role except D.Net and
spotlight. All the local and MNCs have mentoring facility. In the local only ACI and Islami
bank have regular tech upgrade and among MNC except Sirius and Muslim aid all the other have
it. All the MNC and Local have on job training and the training is facilitated by HR.

Promotion System
In the local org all of them gives promotion on performance basis only in addition Ibn Sina and
Islami Bank also give priority to age. Among MNC All of them look for performance in addition
only HSBC and Muslim Aid look for age. Among local and MNC both job responsibility
changes after promotion. In ACI and IBn Sina CEO is the main authority regarding promotion..
In ISlami bank BOD is responsible and in D.net executive director is main authority regarding
promotion. All the local and MNCs practice job rotation.

Salary & Benefits
Among both local and MNC salary fixing scale in based on job position. Increment rate is not
fixed in all the local and MNCs. All the Local and MNC gives health insurance and retirement
plans but in the local except ACI all other gives parental or maternity leave. In the MNC only
GSK and Reckitt Benkiser gives parental and maternity leave. All the org allowed taking leaves.
Among local only ACI Islami Bank and IBN Sina and among MNC only GSk and Reckitt
Benkiser have option to buy company share. In the Local only ACI and IBN Sina shares profit
with their employyes. In MNC only GSK and Reckitt benkiser have this option. Others dont
have it. All the Local and MNC have policy for leave encashment.

Performance Appraisal
The entire local and MNC have Performance appraisal system and performance appraisal form is
varied by department to department in all org. Among local only ACI have employee talent
program others dont have it.ACI have on campus recruiting talent program. Among MNC
except Sirius and Muslim Aid all others have it. HSBC have Future Leader Development
program others have on campus recruiting. Frequency of performance is yearly among all the
local and MNC. All the local and MNC give fast promotion or better incentives to better
performers.

Employee Motivation
In the MNC HSBC have KPI for motivation. All others give Seminar and workshop. Only GSK
have one to one discussion facility. In the Local all of them gives seminar and workshop. The
entire local and MNC have refreshment policy for their employees. All the local and MNC give
their employees annual picnic. Among Local only ACi and ISlami gives foreign trips others give
only domestic trips. Among MNC they only give domestic trip but only HSBC give employee
night in addition. Among locals in ACI and ISlami bank frequency of refreshment policy in
variable others give it yearly.

OSHA
The entire local and MNC have available safety measurs. In the local ACI Islami bank and IBn
Sina have both water facility and fire extinguisher others only have fire extinguisher. Among
MNC all of them have only fire extinguisher. Among local firm ACI, ISlami bank and IBn Sina
have 1 fire exit every floor. D.Net and spotlight only have 1 fire exit. Among MNC only HSBC
has 2 GSK and Reckitt Benkiser have 1 fire exit every floor. Sirius and Muslim Aid only have 1
fire exit. All the locals and MNCs have fast aid facility. Except Spotlight and Sirius and Muslim
Aid all of them have emergency medical access. Althe org. practice fire fighting drill every year.
Among local ACI and Islami bank and among MNC Only HSBC have precaution for other
natural disaster like earth quake. Others dont have this precaution.