Human Resource Management Practices of A Study On Aarong Company Ltd. in Bangladesh

Thesis Topics: HUMAN RESOURCE MANAGEMENT PRACTICES IN AARONG
Thesis Paper On:
Human Resource Management Practices of a study on Aarong

Company Ltd. In Bangladesh
[This Thesis Paper is submitted for the Partial Fulfillment of the Degree of
Regular Master of Business Administration (RMBA) with a Major in HRM]
Submitted by:
Jubier Hosen Sanu
ID: 180072000045
th
7 Batch Major in HRM
Faculty of Business Administration
Cox’s Bazar International University
Submitted to:
Farha Siddique
Lecturer (Supervisor)
Kolatoli Circle, Cox’s Bazar-4700, Bangladesh

Program in Regular Master of Business Administration

Date of Submission: 16th November, 2019
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM i

Post-Graduation Degree of RMBA Program

[This thesis paper is submitted for the Partial Fulfillment of the Degree Regular Master
of Business Administration a study on Aarong
Thesis Papers on
“Human Resource Management Practices in Aarong”
Submitted to:
Farha Siddique
Submitted by:
Jubier Hosen Sanu
ID: 180072000045
th
7 Batch Major in HRM
Date of Submission: 16th November, 2019
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM ii

Approval Page
The thesis paper on “Human Resource Management Practices of a study on Aarong”has
been approved for the Faculty of Business Administration for the award of Post-
Gradation Degree of Regular Master of Business Administrating (RMBA) majorin
Human Resource Management.
I have been successfully completed by Jubier Hosen Sanu, ID No. 180072000045, 7th Batch
& Major in Human Resource Management, Faculty of Business Administration, Cox’s Bazar
International University I have read the paper and found that it meets the standard of thesis
paper for getting the Regular Masters of Business Administration (RMBA) post-graduation
degree
By
___________________ ___________________
Farha Siddique RAJIDUL HOQUE
Lecturer (Supervisor) Head of Department
Faculty of Business Administration Faculty of Business Administration
Cox’s Bazar International University Cox’s Bazar International University
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM iii

Letter of Transmittal
Date: 16th November, 209
The Coverer
Internship/Dissertation Committee
Subject: Submission of the Thesis paper
Dear Sir,
It is my great pleasure and honor to submit my Thesis paper on Human Resource
Management Practices of a study on Aarong. I have tried as far as it was possible to meet
all the specifications and instructions you have provided for the paper and necessary to
prepare paper. I appreciate having a chance to prepare this paper. I have tried my best to
prepare this project in a proper way in spite of various constraints like time and complications
in understanding. I earnestly hope that this paper will meet your specifications and would be
delighted to furnish you with any clarification if required.
Thanking you,
_____________________
Jubier Hosen Sanu
ID No: 180072000045
7th Batch &Major in HRM
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM iv

Acknowledgement
All submission and gratitude goes to the Almighty of Allah, who in his infinite love and
mercies gavemetheknowledgeandmaterialI neededincompletingthisthesispaper.To Allah
alone is all the Glory as He remains my strength and wisdom.
I will forever be grateful to my thesis paper supervisor & Lecturer (Supervisor) of the
Faculty of Business Administration Mr. Farha Siddique, as Her drilled me into
producing my best. He made me recognize the fact that there’s always a reward for hard
work, both mentally and physically.
Words will not be able to describe my appreciation to my loving family, my mother, &
Father, Iowethemmyall.Ithankmymentorand Assistant Professor Mr.RajidulHoque,
Head oftheDepartment, Faculty of Business Administration; I also thank Mr.A.S.M. Saifur
Rahman Controller of Examinations at Cox’s Bazar International University
Finally, I want to thanks all of my friends for their help in different issue in the time of
preparation of paper.
To Allah Be the Glory.
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM v

Supervisor’s Certification
I am Pleased to certify that, the Thesis paper on How Human Resource Management
Practices of a study onAarong. Has been successfully completed by Jubier Hosen Sanu,
ID No. 180072000045, 7thBatch & Major in Human Resource Management, Faculty of
Business Administration, and Cox’s Bazar International University I have read the report and
found that it meets the standard of thesis paper for getting the Regular Masters of Business
Administration (RMBA) post-graduation degree.
I wish him all the success.
__________________
Farha Siddique
Kalatoli Circle, Cox’s Bazar-4700
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM vi

Student’s Declaration
My name is Jubier Hosen Sanu, ID No. 180072000045, 7thBatch & Major in Human
Resource Management, Faculty of Business Administration, Cox’s Bazar International
University;Iam student of Cox’s Bazar International University, Cox’s Bazar. My program of
Regular Masters of Business Administration (RMBA) at major in human resource
management, do hereby declare that the thesis paper entitles How Human Resource
Management Practices of a study onAarongis an original. The assigned work is by me for
partial fulfillment of my Regular Masters of Business Administration (RMBA) degree and as
a part of the academic curriculum. It has not been submitted by me before for any other
degree.
I also conform that the thesis paper is only prepared to meet my academic requirement not for
any other purpose.
It will not act anything that will hamper the confidentiality and interests of Aarong. It might
not be used with the interest of opposite bodies of Aarong.
The work I have presented does not breach any copyright.
I further undertake to indemnify the University against any loss or damage arising from
breach of the foregoing obligations.
_____________________
Jubier Hosen Sanu
ID No: 180072000045
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM vii

Preface
The dissertation is a part of the academic discipline for the Regular Masters of Business
Administration (RMBA)student has been designed to acquire practical knowledge. It is
expected that the integration of knowledge in theories and practice will enable us to become
effective. The program helps me to acquire the organizational behavioral patterns necessary
in responsibility as an executive through this program. I can gather practical knowledge on
the systems, procedures and techniques used in performing different job.
_____________________
Jubier Hosen Sanu
ID No: 180072000045
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM viii

Executive Summary
Aarong is one of the lifestyle retail chains in Bangladesh. It was established in 1978. Aarong
operates under BRAC; a non-profit NGO operates its production as a part of a social
enterprise model and provides the market linkage through its own retail outlets.
This is thesis paper is prepared in order to analyze the human resources practices of Aarong.
The primary objective of this thesis paper is to get hands-on experience of human resource
management and applying the knowledge learned in theory.
As a leading retail chain of Bangladesh to conduct business operations Aarong needs
qualified staffs that would help the organization to run the business. The organization has a
separate Human Resource Department (HR department) to ensure inflow of qualified human
resources in the organization and to create the appropriate working environment that utilizes
employees' potential to achieve organizational goal. Human Resource Department performs
core activities which are- recruitment and selection of staffs, performance appraisal related
activities, job separation, and grievance management and administrate work for human
resource. There some very important issues which could not be included in the thesis paper
for confidential issue. However I have tried my best to work with the most important Human
Resource activities, which I mentioned in the thesis paper.
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM ix

Table of Contents
Name of the Topics & Particular Page No
Approval Page iii
Letter of Transmittal iv
Acknowledgement v
Supervisor Declaration vi
Student Declaration vii
Preface viii
Executive Summary xi
Chapter-01
01-08
Introduction
1.1 Introduction 02
1.2 Objectives of the study 03
1.3 Statement of the Problem 04
1.4 Methodology of the Study 05
1.5 Scope of the Study 06
1.6 Significance of the Study 07
1.7 Limitation of the Study 08
Chapter-02
09-18
Literature Review
2.1 Literature Review 10-11
2.2 Role of HR department 11
2.3 Who perform HR role? 11-12
2.4 Motivation 12-13
2.5 Benefits of motivation to the organization 14
2.6 Maslow need hierarchy theory 14
2.7 Herzberg’s motivational theory 15
2.8 Expectancy theory 15-16
2.9 Challenging 16
2.10 Contributed Papers 16-17
2.11 Communication 17
2.12 Motivation 17-18
2.13 Training and development 18
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM x

Chapter-03
19-25
Organization Profiles of Aarong
3.1 About of Aarong 20
3.2 Mission & Vision 21
3.3 Values 21
3.4 HRM Practice at Aarong 21-22
3.5 Recruitment of Aarong 22-23
3.6 Recruitment process for staffs of Aarong 23-24
3.7 Compliance and Separation Management of Aarong 24
3.8 Performance Appraisal of Aarong 25
Chapter-04
26-
Findings, Recommendations & Conclusion
4.1 Findings & Analysis 27
6.2 Recommendations 28
6.3 Conclusions 29
6.4 References 30
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM xi

Chepter-1
Introduction
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM xii

1.1 Introduction
This thesis is prepared as a requirement of the course “How Human Resource Management
Practices of a study on Aarong” We selected Aarong. Working on this organization we came
to know various Kind of HRM practice which are use here. Though it is a textile, it has
proved itself in the related industry as a major competitor. In this thesis we have followed the
guidelines provided by the teacher. Here we have tasked not only the HRM practice but also
the marketing, management, finance and operational area of the Aarong.
In compliance with the academic rule the RMBA (Regular Master of Business
Administration) students must complete thesis at the end of their RMBA (Regular Master of
Business Administration) program. It aims to provide an on-the-job exposure to the students
and an opportunity to translate theoretical concepts in real life situation. Students are placed
in business enterprises, NGOs and research institutions for thesis paper.
It’s an opportunity for the students to do the project report and it bears a great significant for
us. It gives knowledge to the students with the practical business operations. The students of
project report program have the opportunity to get the chance to understand the real business
world closely and involve themselves with internal and external aspects of business. It’s an
opportunity for them to develop the analytical adeptness and scholastic aptitude.
To introduce adept employee, only theoretical erudition in the field of NGO studies All over
the world the dimension of NGO has been transmuting rapidly due to Deregulation,
Technological innovation and Globalization. NGO’s in Bangladesh have to keep pace with
the transmutation in ecumenical business. Now NGO’s have to compete in rialto both with
the local institutions as well as with the peregrine institutions.
During thesis a student is given the opportunity to learn something about particular business
as well as make a contribution to the organization by performing some job responsibilities
and duties. I did my internship in the Aarong, one the largest lifestyle chain retails in
Bangladesh. I have done double major in Human Resource Management and Marketing. I
was placed by in the Human resource department of Aarong by Office of Career Services and
Alumni Relations (OCSAR), BRAC University. I was assigned with some specific job duties
and responsibilities. I performed those job responsibilities and duties and achieved practical
experience. It was a great experience working as an intern in Aarong.
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM xiii

1.2 Objectives of the Study

There are two types of objectives are involved in the thesis paper. They are:
Broad objectives
Specific objectives
These two types of objectives are as follows:
Broad Objective
The broad objective of this internship program is familiarizing with the professional world.
To gain practical experience related to major concentrated area is the broad objective.
Specific Objectives
The specific objectives of thesis paper are
 To meet the academic requirement.
 To have acquire the knowledge of assigned organization -Aarong
 To gain knowledge about Aarong's overall human resource related operations.
To provide Company overview:
 To provide market overview and analysis
 To reveal operational, management and HRM planning.
 Discuss all HRM practice
The company sets the following objectives for it to achieve:
 To strive hard to optimize profit through conduction of transparent business
operations within the legal and social framework with malice to none and justice for
all
 To create more jobs with minimum investments
 To be competitive in the internal as well as external markets
 To maximize export earning with minimum imported in-puts
 To reduce the income gap between top and bottom categories of
employees.
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM xiv

1.3 Statement of the Problem

The Human Resource Management System will address the Automation of the Performance
of the Employees as regard to what is monitored on them. Their performance would be
according to the qualities of what they’re working on. On the present situation, the
performance of the employees were poorly evaluated and monitored before, during and after
every period of their jobs. Although HR departments would evaluate them, it is a very ideal
thing for them to accomplish every evaluation of employees regularly to update their
performance and their quality of work.
Another thing is many companies on our days have conflict on giving their employees
rightful bonuses on the hard works they produce for the welfare of the company, so the
system would like to make a possible solution to this by the evaluation of the automation of
the performance ratings of the employees, their bonuses would depend on their performance
rate as what would be stated according to what would be their ratings in their automated
performance rating in the system. This would be the basis of their salary bonuses whenever
an employee have a high rating performance, he/ she could get bonuses on certain occasions
as given by higher authorities of the company
In line with this, their automated performance rating could also be used if an employee is
subject for a promotion. This would certainly base their nomination from what the HR
Department would post about their performance. The higher the rating of the performance,
the higher possibility that certain employee would be enlist first for a promotion that, of
course, would be from the higher management of the Organization.
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM xv

1.4Methodology of the Study

The thesis has been prepared based on both primary and secondary data. Data collected from
the organization and other sources is assembled and used in different part of the thesis. Based
on the collected thesisis prepared.
Primary Data
The primary data is collected to prepare this thesiswas obtained through my personal
observational and through performing my assigned duties and responsibilities during my
thesis.
Secondary Data
Secondary data is collected from sources like thesis, published documents, internet and
articles.
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM xvi

1.5 Scope of the Study

This paper is a type of contextual analysis. So the extents of this report are restricted. The
primary extent of this report is to have down to earth understanding about how an exploration
is done in the business associations. This paper has the extension to cover diverse parts of
Human Resource Management, which incorporate Human Resource Planning, enlistment and
determination strategies, choice gadgets, work investigation, work configuration, preparing
and improvement.

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1.6 Suggestions of the Study

The present study is expected to contribute to the literature since it provides a basis to
compare HRM practices in Bangladesh against those in other countries. However, there are
several limitations/drawbacks of the study that needs to be mentioned. One of these
drawbacks is that the number of organizations participated in the research was 200, so the
size of the sample was not large enough to be a good representative of the population of
interest (i.e., all private sector organizations in Bangladesh). Yet, it is a consolation that the
sample of the present study included organizations from a wide range of sectors. Secondly,
the data were collected via questionnaires answered by HR professionals working in
organizations. These individuals may have a tendency to answer the questions in a more
positive way. Thus, there is a probability of social desirability problem in the given answers.
Thirdly, most of the organizations in the sample were large- or medium-sized organizations.
Thus, the results of the study may not generalize to HRM practices install-sized organizations
in Bangladesh. Fourthly, in this study HRM practices in different countries were examined by
reviewing the related literature. However, it would be a much better strategy to conduct a
cross-cultural comparison study, using the same data collection instrument across different
countries and collecting data from organizations that are similar teach other in terms of size,
sector, etc. Lastly, the present study solely focused on the current practices of HRM in the
surveyed organizations but it is also important to assess the influences of HRM practices on
business performance. The issue of effects of HRM on business performance of organizations
was beyond the aim of this Report yet it may be an important point to consider in future
research.

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1.7 Limitation of the Study

Some obstacles have come across while preparing this report, which can be termed as the
limitation. The limitations that were faced:
 The internal and sensitive information is confidential and are not accessible
 Lack of sufficient time of the HR personnel hindered the opportunity to learn about
certain issues or practices deeply.
 Lack of sufficient accessible books and journals about HR practices in the
organization.
 Published information is not up to date and unavailability of enough relevant
records and information
Time period of the thesis is not sufficient enough to learn practices and procedures of a large
organization like Aarong
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM xix

Chapter-02
Literature Review
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM xx

2.1Literature Review
Human resource management is a strategic approach to managing employment relation which
emphasizes that leveraging people capabilities is critical to gain sustainable competitive
advantage, this being achieved via a distinctive set of integrated employment policies,
programs and practices (Bratton J and Gold J, 2003). The actual capital of the organization is
the human abilities to utilize the human being as a capital. Each organization has too much
cash to commence the business but have not professional bodies to use them at the right pace
and at the right time. And HR is strategic partner of the business which runs with the business
and takes the business towards the success.
The global and competitive market environment has led to new challengers for the
individuals and organization. Without having a well-trained and well prepared labor force,
businesses drop the ability to compete with national and international rivals, resulting in
decreased economic success. For the last ten years, the workplace in the organization has a
lot of issues, like increased international and national competition, fast technologies and
scientific changes, workforce demography, wider utilization of information technologies etc.
Human resource managers should understand all kinds of these issues and should develop
suitable strategies in order to help their organization.
In turn, HRM is increasing used to recognize the importance of employees as corporate
assets. Employees must have, therefore, a wide variety of technical and interpersonal
workplace skills and competencies that allow them to work with advanced technologies and
function optimally in today’s high performing organizations. The skills, knowledge and the
experience of the employees are economic values for the organization because the employees
enable the organization adaptable and productive. The organizations that run their HR
department successfully have higher level of productivity, higher market value, higher
profitability and meeting the needs of their shareholders, investors, customers, employees and
at the end the needs of the society.
CEOs and managers need to analysis their human resource strategies and practices if they
hope to create and retain a viable workforce. In the manufacturing sector, Lam and White
(1998) present strong evidence that a combination of extensive training and development
programs, above-average compensation and benefits, and effective recruitment practices
positively influence corporate performance. Huselid (1995) demonstrated convincingly too
that human resource management practices known as high-performance workplace practices
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM xxi

(HPWP) (e.g. training, incentive compensation, selectivity all of which are performance
enhancing) are linked to greater productivity and financial performance. Combs et al. (2006)
found a positive correlation between HPWP and both operational (e.g. retention and
productivity) and financial (e.g. accounting or marketing returns) performance.
2.2 Role of HR department
During the 1990, the HR functions were performed by the line managers in the large
organization. They were responsible for supporting daily people management and act as
strategic business partners range from advisors to line managers. In the organization, the line
managers are the main bodies who implement the HR strategies and policies and put it into
reality.
According to SHRM-BNA Survey No. 60: the activities of HR department are listed below
Employment and recruiting;
 Training and development;
 Compensation;
 Benefits;
 Employee services;
 Employee and community relations;
 Personnel records;
 Health and safety;
 Strategic planning.
HR function is a support part of the whole business management process and cannot be cut
off regarded (Personnel Standards Lead Body, 1993), the overall role of it is to conduct
effective people management in employment and development, and organize the relationship
between management and the workforce in order to make the best use of its workforce to
achieve organizational goals and benefit.
2.3 Who perform HR role?
Role of line managers
Line managers put HR policies into reality (Nicola, eds; Hutchinson and Wood, 1995; Hall
and Torrington, 1998; Hutchinson and Purcell, 2003; Renwick, 2003). HR managers initiate
HR policies and practices, but it is the line managers that implement them because of their
“direct accountability” over the utilized human resources at workplace (Nicola, eds). Purcell

i
et al (2003) pointed that line managers own the “largest amount of discretion” in the ways of
execute policies and lead and control over issues during the process.
The factors affecting the role of line managers are their reluctance to carry out assigned HR
tasks (Purcell, 2003), and their ability to do the tasks (Hirsh et al, 2001; Hamel, 1994). As
acknowledged by Hamel (1994) that it is difficult for line managers to identify the relevant
skills of people who comes from other departments, as well as negotiating transfer’s issues.
This requires the training of line managers’ skills in people oriented activities, such as
interviewing, coaching, providing feedback, and identifying learning and development needs.
Besides, line managers should be given enough guidance from HR managers on the way to
achieve success.
2.4 Motivation
One of the vital function of HR department is motivation and it is taken to mean as a state
arising in processes that are internal and external to the individual, in which the person
perceives that it is appropriate to pursue a certain of action directed at achieving specific
outcomes and in which the person choose to pursue those outcomes with a degree of vigor
and persistence.
The employee motivation is the willingness of employees achievesCore Corporation goals
with high level employee job satisfaction also fulfill individual needs and want as well
(Robbins, 1998). This is very crucial for any organization that its employee have been
motivated, because if employee motivation level is at strong position than they can make
good performance to get organizational goals.
In 2000, Hendry said that in the past decades, employee motivation is very deficient area,
therefore it is the responsibility of managers to take solid and effective steps to building
motivation level of employees. On the other hand in 1994, Lawler stated that if your labour is
less motivated than there would be high labour cost, less productivity, poor performance and
also affect other working environment of organization. Therefore it is necessary for an
employee to be motivated at his workplace.
In 2000, Thomas said that if your employees are committed and motivated with
organizational vision/mission statement then it is easy for management to tackle its
competitors through this competitive edge. When employees are motivated intrinsically and
extrinsically their job performance defiantly improves and corporation goals will be achieved
efficiently and effectively with in short time period. Therefore these days’ modern

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organization’ policies and procedures are mostly focuses on employee’s motivation area in
HR. Because highly motivated and skillful employees are the core competitive advantage of
any organization
Actually employee’s best performance rewards and job appraisal are performing fundamental
role in job satisfaction and motivation on the workplace. Therefore it is vary from employee
to employee and corporation to corporation. But this is very magnetic tool for HR to build
efficiency and effectiveness in corporation (Hendry, 2000). It is very vital for organization’s
management to know about their employee’s motivation needs and wants according to their
social and professional requirement (Linder, 1998).Beach. S (1994), described that there are
two kinds of motivation, one intrinsic and second extrinsic. In extrinsic, it refers to the
holding out of incentive or external rewards for the successful completion of tasks. Such
incentives may be bonuses, higher pays, and better working condition. In intrinsic motivation,
the work itself is satisfying to the individuals who takes pleasure in the work or schooling and
derives a feeling of accomplishment upon the successful completion. Walton, (1985) in
particular, argues that commitment results in better quality, lower turnover, and a great
capacity for innovation and flexibility to employees. Commitment could be influenced by the
personal characteristics of the employee, the job role experience, structural factors, and
personnel policies. If the behavior in an organization is favorable, and its employees are
motivated, satisfied and committed then it is more likely that the business they work for will
have a competitive advantage as well as good performance in the market (Torrington, D &
Hall, and L.1995).
Motivated employees are desperately needed in a fastlychaning workplace. No matter the size
of an organization, having a team of motivated and hard-working employees is critical to
business success. When employees lose their motivation their job performance suffers, less
creative, they become less productive and less of an asset to the organization. Further, when
employees lose their motivation they are more likely to seek alternative job opportunities
thereby incurring a great cost to the organization. And when an organization replace an
employee the organization bears indirect direct and expenses such as headhunting fees, cost
of advertising, human resource costs, new hire training, customer retention and loss of
productivity. According to an estimation, all of these expenses can add up to anywhere from
3 to 200 percent of a single employee’s annual salary.

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2.5 Benefits of motivation to the organization

Employee’s turnover in the organization could be reduced with the motivation. There are a
lot of motivation factors that mitigate the employee’s turnover in the organization. Best factor
among them is problem solving of the employees given by Gradle Gardner, (2009) because
if their problems would be sort out then they would have no need to leave the job. First see,
what is the problem with which employees are leaving the organization, as may be they are
not being offered enough responsibilities to satisfy their needsthis may be in term of self-
management, development, creativity etc. secondly, increase responsibility of employees.
Organization should give extra responsibilities to make full satisfaction of her/his job. Like,
they should be free for organizing their working days. In this ways, they would show their
trust and loyalty in the work. There are different theories of motivation that elaborate how
employee turnover could be reduced in the organization. Because there are massive losses
that are caused to the organization with high turnover ratio
2.6 Maslow need hierarchy theory
Robertson.et al (1992), quotes American physiologist Abraham Maslow the theory suggested
that motivation claims that human hierarchy of needs develop sequentially.
In 1954 Maslow presented a theory that it is human nature that his needs can’t be fulfill, if
first need has fulfill then he will move toward second one. After the satisfaction of second
need human is ready toward his third therefore this chain is continuously moving onward.
Maslow hierarchy of need runs step by step. first is physiological need in which all basic
need are involved for instance food, water, sex, sleeping ; in second step safety need in which
shelter, employment, family, health; in third step social relationship like friendship, sexual
intimacy; in fourth self-esteem, self-confidence, respect from other and in fifth one creativity
, problem solving, morality, experience purposes are involved. There are many universal
concepts in this theory; that’s way this theory is very useful in research objectives to
enhancing employee motivation. Once all these level are achieved by the organization for the
employees in their particular job, the company can be confident of retaining the employees
for considerable time of period.
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM xxv

2.7 Herzberg’s motivational theory

Herzberg’s motivational theory in 1959, in which Frederick tried to change the Maslow
theory. It also named as two factors theory. According to this there are intrinsic factors that
are linked with satisfaction and extrinsic factors linked with dissatisfaction. Motivational
elements are related with employee intrinsic like individual challenges, personal growth,
personal goals achievement, fulfill responsibilities etc. directly and hygiene elements are
represented the extrinsic for instance job security, workplace conditions, corporation policies
for employees, supervisors relationship with subordinates. Therefore in this theory
Herzberg’s said that employee’s dissatisfaction comes due to hygiene factors and employee’s
satisfaction toward their job come from motivational.
2.8 Expectancy theory
One of the most charming and vital theory is expectancy theory to motivate all employees. It
state that an individual has the highest motivation to put forward effort if he/she believes the
effort will lead to good performance and good performance will lead to ideal
outcomes(Newsom, W). In the case of problem employees they have a negative doubt or
expectancy that effort will lead to performance or that performance will lead to outcomes.
Also, problem employees may not like or want the outcomes connected with performance.
Walter Newsom, (a professor at Mississippi State University), gave a methods to use this
theory into practice called 9Cs. The nine Cs can be used by manager/supervisors as a
diagnostic tool in understanding employee motivation. These nine Cs are questions that
supervisors/managers should ask when a problem employee is detected. By asking questions
from the employees, their problems would be solved and they would not think to leave the
job. Does the employee have the capability to perform the job in a proper way? Too often
managers guess that people have the capability to do the job assigned to them and leave them
alone in their own way. The incoming new employees especially need to watch them
carefully because they are new to work. And an active role of the managers and supervisors
will build the capability of the new hire until the supervisor can take a more passive role. If
this active role is not taken by the managers or supervisors then new employees may quickly
become a problem employee. Does the employee believe he/she can perform the job well? As
confidence is the perception one has of their ability and directly affects capability.

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Managers/supervisors sometimes suppose that the employees can do it when they may not
have the confidence to do it. Managers can avoid this difficulty by describing confidence in
the subordinate, which will remove the passive employee.
2.9 Challenging
Does the employee have to work hard to perform the job in a proper way and well? Jobs that
are so easy for the employee that they can do them in their sleep usually result in employees
working as if they are asleep. Problem employees must be made to take responsibility for
their work and expand the meaning of their work with job enrichment. In production lines,
which have traditionally little challenged) quality circles make employees responsible for the
quality of their work, which in turn lets them be treated as responsible adults.
2.10 Contributed Papers
In other words a manager should make sure that any problem employee has the right balance
between capability and confidence with challenge in their job, and correct the mix where
necessary. A common misconception by managers is that they assume that the difference is
obvious. In numerous cases people are fired for bad performance when they feel they have
been performing satisfactorily. A simple method to solve this problem “is for the manager
and employee each to list four or five major responsibilities of the employee’s job according
to importance. Compare the two lists. This can reveal major discrepancies in their
understanding of job responsibilities, as well as daily reality in the office of which a manager
might be unaware”. When an employee is new or is a problem, it is critical that positive
performance be commended and negative performance be specifically addressed in a
constructive manner. “Some managers dislike saying anything critical. They hope
subordinates figure it out for themselves and change. The most effective managers are those
who deliver on their promises, no matter how small a promise and to whom they gave it.
However, many managers forget what they said, or were lying for convenience. Problem
employees often arise because they were promised rises, bonuses or promotion for good
performance and the manager does not come through. A manager must first obtain approval
for any promise he may give outside his authority, so that the promise can be acted on.
Conversely, threats which a manager may make need to be followed through to preserve
credibility. Any threats that a manager makes need to follow company policy; otherwise they
lack force and authority. Problem employees need to believe in the promises (threats) made
to them by their manager; otherwise they will not take that manager seriously. New managers

ii
who take over problem employees need to take scrupulous care that all promises and threats
are fulfilled to the letter, since even a minor deviation will be seen as a weakness. Do
subordinates believe that all individuals obtain similar preferred outcomes for good
performance and similar less preferred outcomes for poor performance? Many
managers/supervisors treat their employees in same way and think that this consistency. A
problem employee can result from mixed treatment by the managers/supervisors. For
instance, a problem employee can result from mixed signals being sent by a manager. For
example, one employee who is regularly late may never be reprimanded while another might
be disciplined for being one minute late. Do the outcomes linked with good performance
reward the individual? Many managers/supervisors do mistake of thinking that money is only
compensation and forget about employees that they also look at the nonmonetary rewards for
their good performance. The most overlooked source of compensation for an employee is a
simple “Thank you”. Many bosses of the organization suppose that their pay is enough
compensation to retain employees and to make happy. What does it cost an individual, in
effort and outcomes forgone, to perform well? Some managers allot projects to employees
without taking into account that employee’s life activities outside the organization. For
instance, giving a task that requires many times to complete it to an employee going to
studying MBA School. That employee will become a problem employee simply because
he/she cannot give the time essential to work and school as well.
2.11 Communication
It is very vital element of the 9Cs and since none would work without it. Does the manager
communicate with the subordinate? Almost all supervisors/mangers assume that
communication is talking but actually it is listening. Most of the problems have very little
communication. Thus, using the nine Cs, communication is the main way for a supervisor to
turn a problem employee around.
2.12 Motivation
The different theories of Motivation suggest that employee’s motivation is directly
proportional to the work value being allotted to him along with it, is dependent upon priority
of needs of an employee along with the presence of intrinsic and extrinsic motivators and
demotivate factors in the employee environment. In the nutshell, motivation results in the
well vision of getting better performance resulting in the job satisfaction and then encourages
Retention process and policies of an organization. Other factor for employees motivation are ,

iii
social behavior, bonuses, incentives ,working conditions, nature of growth and personal
growth, gratitude, accomplishment and responsibility.
2.13 Training and development
Almost all the organizations provide training for their employee for many reasons. The
purpose of training the employees is to teach them in their initial tasks and produce more
skills to enhance organizational productivity. Training improves the present performance of
employees who may not be working as efficiently as desired or plan employees for future
promotions or increase organizational productivity, for coming changes in design, processes
or technology in their present jobs (Fisher et al., 1999).Trainees obtain new scheming skills,
technical knowledge, , problem solving ability good tricks to perform good tasks, attitudes.
Training is different completely from the education that is gained in the universities, colleges
or school. It is Organizational Vocational and work oriented in nature. Long term
profitability, good productivity and optimum performance of organizations are determined by
the quality employees training and development in the organization. It is good policy to
invest in the development of employee’s skills, knowledge, and abilities so that
organizational productivity could be increased. Training is only given to the new employees
traditionally. This is mistake made by the organization. Training for the existing employees
also helps to enhance productivity (Evans and Lindsay, 1999). According to Evans and
Lindsay (1999), Xerox Business Products and Systems invest over $125 million in quality
training. Motorola & Texas Instruments give at least 40 hours of training to every employee
quarterly. Now training and development have become a vital responsibility of Human
Resource Management departments in organizations mainly as employees require new
knowledge, skills and abilities, which enhance the employee’s performance, organizational
productivity and increase profit of the organization. Now organizations are starting to
understand the important role of training and development that it play vital role in increasing
productivity and enhancing performance, and eventually stay in competition. But a recent
ACAS Consultants, John Bradford, survey indicates that too little attention is paid to this area
of human resource development, could have a lot of advantages like, high performance, high
productivity and profitability. Human resource development (HRD) consist a set of activities
that develop the performance of individuals and the organizations.

x
Chapter-03
Organization Profiles of
Aarong
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM xxx

3.1 About of Aarong

Aarong – Bengali for ‘village fair’ – one of Bangladesh's largest and most popular lifestyle
retail chains under the umbrella of BRAC, one of the largest NGO in the world. Aarong was
established in 1978 as a means to empower rural artisans to overcome poverty. In 1976
BRAC engaged a small number of rural women to produce crafts. At that time their only
buyers were a few scattered retailers in Dhaka. Days, weeks, even months would pass
between supply and payment. To ensure on time payment for the rural women for their goods
BRAC intervened and established Aarong. For past four decades, Aarong has seized a unique
market segment for handicrafts, revitalizing rich heritage of Bangladesh and impacting the
lives of more than 325,000 people through 850 small entrepreneurs and the Ayesha Abed
Foundation. Ayesha Abed Foundation acts as a facilitator in gathering and organizing both
the skilled and previously untrained artisans from various village organizations across the
country and providing them with training and employment. The foundation also provide the
artisans access to BRAC’s holistic support including, maternal health care, hygiene
awareness and subsidized latrines, micro-credit, legal aid, day care and education for their
children in its numerous centers and serves as production hubs of Aarong. At present the
foundation has 13 centers and 637 sub-centers spread all over the country. Now, with 16
retail stores across Bangladesh and over 100 fashion and lifestyle product lines, Aarong
supports 65,000 artisans with fair terms of trade. It has revolutionized the retail industry with
high standards for quality and artistry by blending the traditional with the contemporary in
ways that won consumer appeal both at home and abroad. From clay pots to diamond
jewelry, and silk and cotton fabrics to brass and leather merchandise, Aarong’s vast range of
innovative products, supported by a strong supply chain and distribution network, makes
Aarong a true household brand in Bangladesh. Through fair-trade networks and the e-
commerce Aarong presence is growing outside of Bangladesh and continues to broaden the
market for Bangladeshi crafts internationally, providing more opportunities for artisans to
protect their age-old art and livelihoods.

i
3.2 Mission & Vision

Mission:
The mission of Aarong is to create appeal for a Bangladeshi life style experience by being the
best socially responsible enterprise empowering people to realize their potential.
Vision:
Aarong has a vision to establish itself as one of the famous fare trade fashion house of the
world. Aarong‘s vision is to remain market leader in Bangladesh to expand its business in
international arena. Aarong has a dream to develop more artisans of Bangladesh and
empowering them by attracting international customers toward Bangladeshi culture and
heritage.
3.3 Values
Aaron has four core values. They are:
Innovation: Aarong values innovation to create opportunities for the poor to lift themselves
out of poverty. It strives to display global leadership in ground-breaking development
initiatives.
Integrity: Aarong values integrity, as transparency and accountability are the most essential
elements of its work ethic. With clear policies and procedures, Aarong continues to display
the utmost level of honesty in financial dealings.
Inclusiveness: Aarong is committed to inclusiveness to ensure that it engages, supports and
recognizes the value of all members of society, regardless of race, religion, gender,
nationality, ethnicity, age, physical or mental ability, socioeconomic status and geography.
Effectiveness: Aarong value effectiveness in all of it works to constantly challenge itself to
perform better and to improve and deepen the impact of its interventions.
3.4 HRM Practice at Aarong
Human resource policies are established to support administrative functions, performance
management, employee relations and resource planning in an organization. These are among
the important tools that play significant and crucial role in job satisfaction as well as
motivation of the employees. HR policies must be effective and enforceable with approval
from both management and employees. Each organization develops its HR policies in
alignment with the organization's goals, mission, priorities and objectives.

ii
The Human Resource Department (HRD) of Aragon was established with a goal to maximize
job satisfaction, enhance transparency and ensure procedural justice for all employees. As the
business unit of BRAC one of the largest development organizations in the world, Aarong
has well developed HR policies. Aarong has a Human Resource department consisting of
qualified, potential and committed staff is committed to attain the organization’s goal and to
operate effectively. The purpose of Human Resource Division is to provide extensive effort
to ensure that the staffs are properly appraised and also to provide with due services and
entitlements in time. Moreover the aim of HRD is to ensure a working environment where the
staff are nurtured and considered as absolute resources. To this end, HRD is committed to
guarantee the assignment of right people in the right place at the right time, to flourish human
potentials and provide a decent work atmosphere.
This report has been prepared to focus on the Human Resource Policies and Procedure of
Aarong. However it will be highly difficult to cover all the side of the Human Resource
practice within the short purview of this thesis. For this reason this thesisfocuses on job
satisfaction, recruitment and selection process, employee motivation, performance appraisal,
training program and overall HR policy of Aarong.
3.4 Recruitment of Aarong
Aarong has its own in-house recruitment and selection team for carrying out whole
recruitment and selection process. Aarong has separate Training and Development
Department that also plays a crucial role in the selection process. The aim of the policy and
procedures is to support the recruitment and selection of employees having the necessary
abilities, skills, qualification and competencies to contribute effectively toAarong.
Aarong has huge number of employees all around the country. Based on the nature of the
jobs it selects different types of employees. Staff at Aarong is categorized into five types.
They are:
Regular
Part time
Temporary
Contractual
Project based
Recruitment and Selection team is responsible for recruiting all five types. There are two
kinds of candidate sources that Aarong uses for recruitment

iii
Internal Source
External Source
Internal source:
Aarong believes that existing employees are a major source of recruitment except for the
entry level positions. Whether for new post or for later job transfer the advantage of internal
candidates is that they are accustomed to the environment of the organization and have
detailed information about its formal policies and procedures. Promotions and transfer are
typically decided by responsible department with involvement by HR department.
External source:
Aarong also believes in innovative and inspiration so HR department recruits talented
personnel outside of the organization. Job advertisement on different media is a important
medium to get external candidates.
3.5 Recruitment process for staffs of Aarong
 Requisition is received from departments.
 Conducting HR planning and forecasting to estimates the number of personnel needs to
be recruited.
 Preparing advertisement & posting on appropriate source.
 Receiving CVs from the applicants, screening and sorting.
 Planning and determining date and type of examination. For the post of Sales Associates
only interview is conducted. Based on job requirements computer, practical and other
necessary test are conducted for regular and other stuffs.
 Contacting selected applicants for examination by email or telephone
 Finding out the requirements of invigilators and interview board members and contacting
concerned programs. Preparing invigilators & interview board members list.
 Preparing instruction sheet for written test, interview and pre service training.
Preparation questions and answer scripts.
 Preparing pre service training schedule for Sales Associates candidate selected from
interview and calculating anticipated number of primarily selected candidates for pre
service training.
 Deploying selected candidates for service.
 Probation period in Aarong 1 year for regular staff and 6 months for sales associates. The
employees are closely monitored by the manager or respective supervisor during

iv
probation period to keep record of their performance and provide feedback and score in
the Performance Appraisal in response to the performance indicators. The employee
fulfilling all the required criteria and obtaining minimum marks in the performance
evaluation are confirmed as the permanent employee of Aarong.
 Aarong ensures Equal Employment Opportunity (EEO) for employee during recruitment
of recruit employee. Aarong being the on the enterprise of world's largest BRAC does
not discriminate based on race, color, religion, sex or national origin stating it to be an
unlawful employment practice.
3.6 Compliance and Separation Management of Aarong
Human resources compliance is essential for an organization to be successful in today’s legal
environment. Aarong treat HR compliance a process for defining both individual and group
behaviors to ensure the laws and HR policies are followed appropriately. Core functions of
compliance management of Aarong are:
 Ensuring labor law and human resources policies and procedures apply equally to all
employees, and are applied fairly and consistently throughout organization.
 Designing and implementing an appropriate disciplinary program for employee
misconduct.
 Encouraging internal reporting and responses to complaints.
 Conducting investigation.
 Separation Management is one of the core units of Human Resources Division of
Aarong. Its main responsibilities are:
 Ensuring that an employee who quits the company is exited in a structured and
orderly manner.
 Reviewing and approving termination for failure to improve attendance, conduct or
performance or due to serious misconduct.
 Managing, reviewing and authorizing the process of employee separation and
dismissal due to resignation, retirement, and redundancy.
 Conducting exit interview
 Ensuring the final payment of Aarong staff, who resign, and are terminated, retired,
redundant and dismissed

v
3.7 Performance Appraisal of Aarong

Performance management is the continuous process that identify, measure and develop the
performance with the organizations goals rewards and recognition
The primary objective of performance appraisal is to evaluate the actual performance of the
employees compare to standard of performance. Every organization needs a system appraise
its employees performance. Good performance should be reinforced where corrective action
should be taken for undesirable performance.
The basic objectives of performance appraisal are:
 Identifying the right employees who have the potentiality to meet the expectations
 To reduce absurd compensation costs which incurred with the employees who never
meet the expectations.
 Identifying the training and development needs.
 Strategizing employees’ and organizations goals
 Enhancing employee’s effort so that their performances can strengthen
 Establishing a proper feedback process through communications between employees
and their subordinates
 Assessing employees’ performance with a view to obtaining organization’s strategic
goals
The reason for having the performance appraisal system is to evaluate them from different
aspects and find out employees' strengths and weakness and provide them the opportunity to
improve them in order to perform more effectively. The time period for performance
appraisal is one year which starts from the January and ends at December of that year. The
performance appraisal system contains different aspects of be the criteria of evaluation, it
includes different element according the job level, and the contents.Before appraising
performance managers are briefed by HR department to make them understand certain
concepts in performance management and appraisal. There are several basic techniques
managers use for apprising performance. In terms of specific techniques, the graphic rating
scale lists a number of traits and a range of performance for each. For many supervisors it can
be difficult to administrate performance appraisals and it is important to understand the
methods of dealing performance appraisal problems. The supervisors need to keep several
points in mind during the appraisal interview. Preparation is essential, manager shoulder be
careful so that objective works do not get personal, encouraging employees to talk and get
agreement on how thing will be improved.

vi
Chapter-04
Findings& Recommendations

vii
4.1 Findings & Analysis

The recruitment process is the integral part of Human Resource and for this Aarong need to
make sure about the various recruitment strategies which should match with the
organizational and the cultural goals. There is a strong relationship with the organizational
goals and objectives with the various recruitment processes. Aarong has to recruit types of
people who will adjust themselves with the environment and values of the company. In order
to fill up vacancies, Aarong HR department provides advertisements on its websites, various
job websites and posters. Due to technical problem sometimes CVs cannot be obtained or
posted properly on the websites. Beside it takes a considerable amount time to sort out large
amount of CVs received for Sales Associate post. HR department of Aarong inform the
interview time to the candidate over phone. Often many candidates lose the opportunity to get
job as the numbers mentions in the CVs cannot be reached and they are not informed about
the interview. Sometimes it is difficult to draw qualified pool of candidates as candidates lack
in qualification or due to negotiation problem for salary and benefits. Moreover, Aarong
needs more area based employees. Sales Associates who belong to nearest area to the outlets
are required It is, however, difficult to find out area based employees. Candidates are often
reluctant to work at the outlet nearest to their residents.While preparing appointment letters
there is often lack in the availability of information. Sometimes at the time of preparing
appointments for sales associates, necessary information from the CVs or other documents
cannot be found. Thus it delays the preparation of many confirmation letters. Again for
confirmation letters, performance evaluation reports during probation period come late and
evaluators sometimes mistake in rating.Aarong emphasize a lot on performance appraisal and
try to ensure fair procedure in the evaluation procedure. However the human resource
department of Aarong has to face lots of problem during evaluation the performance of staffs.
All the departments do not fill up the performance evaluation form within the time frame and
thus time management problem occurs. Sometimes the performances of staffs are not rated
properly, the ratings are not added and sometimes there are lacks of explanation. Again, the
performance evaluation forms are not filled up properly and are submitted without the sign of
the respective head of the department. For correcting these mistakes performance evaluation
forms are resend to the respective departments and consume a considerable amount of time.
Misinterpretation of appraisal procedures by line managers and supervisors also creates a
great problem. These factors often make the performance evaluation a costly and lengthy
procedure.

viii
4.2 Recommendations
Human Resource Department of Aarong aims to ensure world class HR practices in the
organization. From the observation of my internship role and responsibilities of HR
department of Aarong, scope for improvement have been identified. The recommendations
are given below:
 Aarong can advertise the recruitment of Sales Associates on newspaper, social media
and billboard near universities and colleges as most of the candidates for Sales
Associates are undergrad students.
 Aarong can develop online recruitment process for Sales Associates besides the
submission of hard copy of CVs. Here candidates will encouraged be to fill upon line
recruitment forms for their application. The information from this form will be stored
in a database and can be used as needed thus reducing large amount of paper work
and manual entry of information to the database.
 At the time of providing performance evaluation form to each department they can
provide elaborate instructions on how to fill up those forms and last submission date
in a printed paper with those forms.
 HR department of Aarong can arrange training for evaluators on evaluating the
performance of staffs and filling up those forms.
 The number of employees working in Human Resources should be as the number of
people working in HR is comparatively low to the number of total employees working
in different departments and retail outlets in different parts of Bangladesh. Aarong
should consider expanding the HR department by recruiting skilled and qualified HR
personnel.
 According to the current performance appraisal system employees get promotion or
increment on their performance. However rather than giving promotion or increment,
performance bonus or increment based on employee's performance would be more
profitable for the Aarong

ix
4.3 Conclusions
To fighting for upholding the dignity of the marginalized Aarong began as a humble project.
After its inception Aarong provided employment for a limited number of rural women
through silk production via and the art of nakshikantha in 1978. Today Aarong has extended
its support to rural artisans by investing in their handicrafts and created income generating
opportunities for thousands of artisans from communities. Aarong is not only a fashion house
anymore with times it has evolved itself as one of the most successful lifestyle retails in our
Bangladesh maintaining the tradition and the trends. Human Resource Department of Aarong
is working with all other department to support Aarong with thousands of employees to
continue its successful journey to become a prestigious brand that will represent Bangladesh
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM xl

4.4 References
(n.d.). Retrieved 2016, from http://www.aarong.com/
Tanjila, M. (2010). The practice of human resource management in Aarong & AAF (Rep.).
Dhaka, Bangladesh: BRAC University.
Jahan, N. (2011). Performance appraisal system of Aarong (Rep.). Dhaka, Bangladesh:

BRAC University.
Munna, M. H. (2013). The recruitment and selection procedure of Aarong (Rep.). Dhaka,
Bangladesh: BRAC University.
Bibliography
Online Source: (11th November, 2019)
 https://www.assignmentpoint.com/business/human-resource-management/hrm-
practice-in-bangladesh.html
 http://www.scribd.com
 http://www.cottonbangladesh.com
 http://www.bdeducationonline.com
Provided By: - Jubier Hosen Sanu, RMBA Major in HRM xli

Human Resource Management Practices of A Study On Aarong Company Ltd. in Bangladesh

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Thesis Topics: HUMAN RESOURCE MANAGEMENT PRACTICES IN AARONG

Thesis Paper On:

Human Resource Management Practices of a study on Aarong

Faculty of Business Administration

Cox’s Bazar International University

Provided By: - Jubier Hosen Sanu, RMBA Major in HRM i

Cox’s Bazar International University

Post-Graduation Degree of RMBA Program

Date of Submission: 16th November, 2019

Provided By: - Jubier Hosen Sanu, RMBA Major in HRM ii

Provided By: - Jubier Hosen Sanu, RMBA Major in HRM iii

Subject: Submission of the Thesis paper

Provided By: - Jubier Hosen Sanu, RMBA Major in HRM iv

To Allah Be the Glory.

Provided By: - Jubier Hosen Sanu, RMBA Major in HRM v

ID No. 180072000045, 7thBatch & Major in Human Resource Management, Faculty of

Administration (RMBA) post-graduation degree.

I wish him all the success.

Provided By: - Jubier Hosen Sanu, RMBA Major in HRM vi

The work I have presented does not breach any copyright.

Provided By: - Jubier Hosen Sanu, RMBA Major in HRM vii

Administration (RMBA)student has been designed to acquire practical knowledge. It is

in responsibility as an executive through this program. I can gather practical knowledge on

the systems, procedures and techniques used in performing different job.

Provided By: - Jubier Hosen Sanu, RMBA Major in HRM viii

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1.2 Objectives of the Study

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1.3 Statement of the Problem

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1.4Methodology of the Study

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1.5 Scope of the Study

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1.6 Suggestions of the Study

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1.7 Limitation of the Study

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2.5 Benefits of motivation to the organization

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2.7 Herzberg’s motivational theory

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3.1 About of Aarong

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3.2 Mission & Vision

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3.7 Performance Appraisal of Aarong