Navigating HR Dynamics in Bangladesh

Mohammed J. Sarwar
Brooklyn College, CUNY
International Human Resource Management
Spring 2024
 Introduction

◉ HRM and Organizational Success

◉ Informed HRM Decision-Making

Structure of
presentation
Structure Of
Presentation
Politico-legal
environment

◉ International Expansion Challenges

Economic
◉
Labor market Culture
environment
Bangladesh as a Unique Case

◉ Components for Analysis in Bangladesh, see the

Labor relations
and employment
diagram. laws

◉ Comprehensive Guide for HR in Bangladesh.

 Politico-legal Environment

1. Parliamentary Democracy in Bangladesh:

o Executive Structure: Headed by Prime Minister (CIA
Organization, 2023).
Political
o Influence on HR: Shapes labor laws, regulations, and system

policies.
2. Political Ideology and Multi-Party System:
o Diverse Landscape: Reflects in a multi-party system (CIA
Politico-lega
Organization, 2023). l
Environment
o HR Alignment: Requires awareness for policy compliance
3. Political Stability Challenges in Bangladesh:
o Weaker Stability: Risks public discontent and unrest(CIA Government
stability
Dominant
ideology

Organization, 2023).
o HR Vigilance: Monitors impact on morale and operations.
 Politico-legal Environment (Cont.)

Childhood Determinants

Legal System - Civil • Upholds Individual Rights.

Justice in
Bangladesh: • Guides HR in dispute resolution.

Property Rights • Constitutional Guarantees.

Protection in
Bangladesh: • Crucial for HR in compensation design.
 Economic Environment
National Wealth:
Economic System:
• GDP Growth: 10.55%
increase in 2022 signifies
economic robustness.
• Mixed Economy: Blending
• GDP per Capita: Expected
private-public sectors,
to be 1874.00 USD by
agriculture reliance.
2024.
• Government Role:
• Wealth Distribution:
Established EPZs to boost
Disparities: 133rd in HDI,
exports, key to the
21% bottom 40, 27% top
economy (CIA
10 (CIA Organization,
Organization, 2023).
2023).
Macroeconomic
Fundamentals:
• Inflation: 9.02% implies
HR compensation strategy
considerations.
• Interest Rates and
Exchange Rate: Rates:
6.63% (May 2023), Cash:
7.75%, Exchange: 0.0092
per dollar.
• Unemployment Rate:
Decreased to 4.70% in
2022, highlighting
competitiveness economy
(CIA Organization, 2023).
 Economic Environment(Cont.)

Top Exports: Knitted

Agriculture or crocheted
Dominance: 70%+ apparel
population

Industrial International
Structure: Trade: Top Imports: Rice,
crucial for food;
Cotton
Principal Industries: Foreign Investment:
Textiles, Received $3.44
Pharmaceuticals, billion in FDI in FY
Electronics, (CIA 2021-2022, (CIA
Organization, Organization, 2023).
2023).
 Cultural Environment

Cultural Social
Religion: Language(s):
Characteristics: Structure:

• Objective Culture: Tangible
aspects like food,
costumes, and names;
influences daily practices.
• Subjective Culture: Ideas
about material culture,
guiding behavior and daily
life.
• Ethnic Composition: 98%
ethnic Bengali, Sunni
Muslims majority;
minorities in Chittagong Hill
Tracts.
• Social Classes: Range from
peasantry to capitalist
farmers, forming rural
society.
• Number of Religions: 42 • Number of Spoken
languages, 36 ethnic Languages: 42.
minority, 6 non-ethnic • Dominant Language:
minority. Bangla (Bengali), 98.8%.
• Dominant Religion: Muslim,
88.4%.
 Cultural Environment (Cont.)

Work-Related Values (G.H. Hofstede)

◉ Power distance: high

◉ Uncertainty avoidance: high

◉ Individualism versus collectivism: individualism

◉ Masculinity versus femininity: intermediate

Figure. 1. Hofstede’s cultural dimension
◉ Long-term orientation: restrained (Culture Factor Group, of Bangladesh. Source: Culture Factor
Group. (n.d.).
n.d.).
 Labor Market
4.1 Labor Force:
Total Population (2023 est.): 167,184,465
(8th globally)
• Age Distribution (2023 est.):
• 0-14 years: 25.38% (male
21,587,699/female 20,846,378)
• 15-64 years: 67.09% (male
54,560,958/female 57,599,478)
• 65 years and over: 7.53% (male
5,871,022/female 6,718,930)
Ethnically Homogeneous:
• Predominantly Bengali (99%) (Global
Edge, n.d-B).
4.2 Employment and
Unemployment:
• Employment by Sector (2021):
• Agriculture: 37.09%
• Services: 41.2%
• Others: 27.21%
• Educational Attainment (1990-2016):
• Gross secondary school enrollment rates
increased, achieving gender parity.
• Unemployment Rate (2022):
• Overall: 3.7%
• Gender: Women (3.4%), Men (4.0%)
• Ethnicity: Bangladeshi (20%), Black (19%)
• Youth (15-24): 12.93% (0.84% decline from
2021) (Global Edge, n.d-B).
 Labor Market (Cont.)
Minimum Wage:
• Revised to 12,500 takas ($113)
in Nov. 2023, disappointing for
workers' rights (Global Edge
n.d-B).
Hourly Wages:
• Average is 150 BDT (1.42 USD)
as of April 21, 2023 (Global
Edge n.d-B).
Wage Distribution
(2024):
• Earning less than $3.65/day:
41.51%.
• Earning less than $6.85/day:
82.73%.
• Highlighting challenges in labor
standards, necessitating
strategic policy considerations
(Global Edge n.d-B). .
 Labor Relations and Employment Laws

Employee
Union Labor Anti-discrimina
Labor Laws: Separation
Membership: Disputes: tion Laws:
Laws:

• Compliance ensures a • Act allows unions for • Due process • Act promotes • Navigate termination
fair work collective bargaining. adherence in workplace equality regulations for legal
environment. • Recognize unions for termination. indirectly. compliance.
• Align policies with fair negotiations (Bipo • Transparent • Implement policies to • Align termination
Bangladesh Labor Act Times, 2022). communication prevent discrimination decisions with legal
(Bipo Times, 2022). mitigates disputes (Bipo Times, 2022). requirements and
(Bipo Times, 2022). consider financial
implications (Bipo
Times, 2022).
 Conclusion

◉ Understand diverse aspects for HR in Bangladesh.

◉ Align decisions for inclusive workplaces, address challenges, comply with laws.

◉ Consider ideologies, indicators, cultural nuances, and legal frameworks in HR.

◉ HR vital in managing diversity, cultural sensitivity, legal compliance in growth.

◉ Comprehensive guide for HR in Bangladesh's unique context.

 References

◉ Bipo Times. (2022). Bangladesh Labour Law & Employment Regulations.

https://www.biposervice.com/wp-content/uploads/2022/10/BIPO-Times-Sep-2022-en.pdf
◉ De Mooij, M. (2010). The hofstede model. International Journal of advertising, 29(1), 85-110.
◉ Culture Factor Group. (n.d.). Country Comparison Tool. Retrieved from
https://www.hofstede-insights.com/country-comparison-tool?countries=bangladesh.
◉ Taylor, S., Beechler, S., & Napier, N. (1996). Toward an integrative model of strategic international
human resource management. Academy of Management review, 21(4), 959-985.
◉ CIA Organization. (2023, December 19). The world fact book: Bangladesh. Retrieved from :
https://www.cia.gov/the-world-factbook/countries/bangladesh/
 References

◉ Mendenhall, M., & Oddou, G. (1986). Acculturation profiles of expatriate managers: Implications
for cross-cultural training programs. Columbia journal of world business, 21(4), 73-79.
◉ Global Edge. (n.d-B). Bangladesh: economy. Retrieved on 8 January 2023 from:
https://globaledge.msu.edu/countries/bangladesh/economy \
◉ Collings, D. G., & Isichei, M. (2018). The shifting boundaries of global staffing: Integrating
global talent management, alternative forms of international assignments and non-employees
into the discussion. The International Journal of Human Resource Management, 29(1), 165-187.
◉ Global Edge. (n.d). Bangladesh: Culture. Retrieved on 8 January 2023 from:
https://globaledge.msu.edu/countr