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
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
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
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.