Topics: Human resource management, Human resources, Private sector Pages: 31 (6805 words) Published: December 4, 2013
International Review of Business Research Papers
Vol. 7. No. 2. March 2011. Pp.118-136

New HRM Practices in the Public and Private Sector
Industrial Enterprises of Bangladesh: A Comparative
Mir Mohammed Nurul Absar1 and Monowar Mahmood2
This study explored adoption of new HRM practices in the public and private sector organizations of Bangladesh. We collected data from sixty industrial enterprises located in the main industrial city of country, i.e. Chittagong. The study revealed significant difference on adoption of new HRM practices between public and private

sector industrial enterprises of Bangladesh. Employees in the private sector organizations appeared to be more satisfied than public sector organizations with organizational HRM practices.

Keywords: HRM practices, Public Sector, Private Sector, Bangladesh.

1. Introduction
In the age of knowledge economy, human resource is considered as the most important resource of the organizations and it became decisive for success of any organization (Moyeen & Huq 2001; Schuler 1990; Werther & Davis 1996). Human resource management (HRM) refers to the policies and practices including human resource planning, job analysis, recruitment, selection, orientation, compensation, performance appraisal, training and development, and labor relations (Dessler 2007). The purpose of human resource management is to improve the productive contributions of employees and provide competitive advantage to the organizations (Werther & Davis 1996). It is well recognized that an organization enriched with committed, motivated, talented, and competent human resource can achieve any kind of challenging goals. Success of managers in the new century would absolutely depend upon their capabilities in managing human resources (Budhwar & Debrah 2001). McClelland (1961) questioned, “Why should Argentina lag so far behind the United States or Australia in per capita? Is it so much less favored by climate and natural resources?”.In answering the question it is conceived that economic development does not depend on the supply of natural resources, rather it depends upon the effective and efficient utilization of resources (Azim 2008). If resources are used properly, productivity would be increased, which will lead to lessened cost and increased profit. If profit increases, organizations will be able to offer better compensation, training, and working environment for the employees. It will also enhance the job satisfaction and organizational 1

Associate Professor, School of Business, East Delta University, Chittagong, Bangladesh, Email:
Bang College of Business, Kazakhstan Institute of Management, Economics and Strategic Research (KIMEP), Almay 050010, Kazakhstan, E-mail:

Absar & Mahmood
commitment of the employees, which will in turn lead to further improvement of productivity. Therefore, productivity has been a great concern for every organization of developed and developing country. Human resource management practices can contribute to superior productivity directly by finding better and more efficient ways to achieve objectives and indirectly by improving the quality of work life for employees (Werther & Davis 1996). Effective HRM practices can achieve high productivity and corporate financial performance, low scrap rate, and low employee turnover (Arthur 1994; Huselid 1995). Proper human resource management practices such as incentive pay, teams, flexible job assignments, employment security, and training can improve productivity enormously (Ichniowski, Shaw & Prennushi 1997; Katou & Budhwar 2007). In developing countries, the scenario of HRM is quite unimpressive except in Taiwan and South Korea, where HRM is linked to the formulation of business strategy (Budhwar & Debrah 2001). Both the countries, South Korea and Taiwan, have excelled in industrialization. Although Taiwan lacks natural resources, it has accelerated its economic...

References: Ahmad & G. Mclean (Eds.), Bangladesh business research reports (pp.8894). Dhaka: UGC.
Research in Personnel and Human Resource Management, Vol. 16, pp. 53101.
Ernst & Young, & Metropolitan Chamber of Commerce and Industry (MCCI)
(2007), HR practices survey- Bangladesh
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