Can a combined strategy to improve working conditions in the Bangladesh Ready-made Garment sector?

• Author: Ferdous Ahamed

Methodologies

The research issues are verified and analysed according to the research questionnaires through a literature review, study of related journals, periodicals and reports, single case studies and some general case studies. The chapter develops a research model based on theories and principles from Human Resource Management, Industrial Relations, Stakeholder Theory, Socio-Political HRM Practices, Legitimacy Theory, Trade Union Concepts, Natural Rights Concepts, Citizen Right Concepts and the ILO Monitoring Approach. It is then used to develop an effective monitoring and surveillance system (EMSS) to address Social compliance to remove labour unrest from the RMG sector.

Strategy

People are critical to any organization; without them, daily functions such as managing cash flow, production of goods, making business transactions, communicating through all forms of media, and dealing with customers could not be possible (Huang, 2006: Zhang and Gong, 2009). People and the potential they possess drive an organization. To maximize organizational effectiveness, human potential-individuals’ capabilities, time, and talents - must be managed (Wright, 2003; Cherrington and David, 1995). In the RMG sector, a work supervisor always controls workers. He is the highest authority in the factory reporting to the factory owner. However, work supervisors often have no training in leadership, human resource policies, law and legislation, and health and safety policies. Most of the garments factories also have no well-defined HR department, but where present, human resource managers play an important role in the industry. Their main goal is to maximize the organization’s potential through its human resources. Without the activities they supervise, companies could not function successfully or fulfill their goals. Physical and monetary resources by themselves cannot improve efficiency or contribute to an increased rate of return on investment (Zhang, 2008). Thus the combined and intensive efforts of human resources, along with financial and material resources, contribute to achieving organizational goals. Human resource management works to ensure that employees are able to meet the organization’s goals (Cherrington and David, 1995). Human resource management is responsible for employees, and how they are treated in the organization. It is also responsible for recruitment and training, compensating workers for their labour and resolving labour disputes (Cherrington, 1995, p. 5).

Working conditions in the RMG sector are poor and the factories often do not have PM or HRM units. As a result workers’ rights are minimal. The Human Resources Management (HRM) function includes a range of activities such as recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and employee benefits and compensation, employee records and ensuring personnel, and management practices conform to various regulations and personnel policies (Wiley, Carolyn 1992; Carter McNamara, 2009). Usually HR operates scheduling vacations, managing sick leave, and development bereavement policies that apply to all employees. It also monitors performance improvement that leads to employee satisfaction and solving problems.

HR functions operate through human resources departments. HR departments are better organised, and play an important role in staffing, training and assisting management to achieve maximum performance and work satisfaction (Stone, 2002). These departments also serve as an intermediary in conflicts between management and trade unions (Cherrington, 1995).

The HR department recruit qualified applicants through job postings or other forms of advertising, but it also assists in screening candidates’ resumes and bringing those with the proper qualifications in for an interview (Guest D.E, 1990). Once a qualified individual appointed into an organization, another function of HRM comes into play creating an environment that will motivate and reward exemplary performance (Guest D.E., 1987). Performance appraisals not only assist in determining compensation and benefits, but they are also instrumental in identifying ways to help individuals improve their current positions and prepare for future opportunities (Mondy and Noe, 1996).

Most of the RMG factories have automatic machinery. Coupled with workers lack of education, skills and technical knowledge, this can lead to accidents causing death or injury (Beguma A., 2005). As there is no HR or PM unit, the RMG authorities do not practice HR and IR issues. As a result, RMG workers never receive training. HRM department ensure employees have proper training; there are groups of employees organized as unions to address and resolve employment-related issues. Because training focuses on learning the skills, knowledge, and attitudes required to initially perform a job or task or to improve upon the performance of a current job or task, while development activities are not job related, but concentrate on broadening the employee’s horizons (Nadler and Wiggs, 1986, p. 5). The absence of HR function in the RMG sector creates difficulties with workers.

The working environment in the RMG sector is deficient in a number of ways including health and safety and the work environment. As a result, workers often suffer disease and are injured or even killed. The HRM department ensure that not only must an organization see to it that employees’ rights are not violated, but also it must provide a safe and healthy working environment (Guest,D.E, 1990). Mondy and Noe define safety as protecting employees from injuries caused by work- related accidents and health as keeping employees free from physical or emotional illness. The Occupational Safety and Health Administration (OSHA) was formed in 1970 for prevent injury or illness. OSHA seeks to improve safety and health and to reduce accidents through workplace inspections, citations and penalties, and on-site consultations that lead to increase productivity and reduce operating costs (Cherrington, 1995). In the RMG sector, injury and fatality are common due to faulty building design and in additions workers suffer various diseases owing to the of absence of OSH practices. The research suggests improving OSH issues through HR and IR practice through a HR or PM unit.

Generally, HR professional’s regular duties and responsibilities include compensation and benefits, performance management, employee relations, talent acquisition, organizational structure, employee development, and compliance (Guest D.E, 1990). They are involved in strategic aspects of the business as well as the legal and operational aspects of managing an organization’s most valuable resource, the human resource (Stone, 2002, pp., 13-14). Within this environment, the HR professional, fostering effective methods of goal setting, communication and empowerment through responsibility, builds employee ownership of the organization.

The HR manager is the key recruitment and employment for line managers. The HR manager develops policies and procedures and is a catalyst and energizer of the relationship between line managers, supervisors and employees at different levels within the organization. Moreover the HR manager involves discusses employee relations and policies with managers of other departments, and coordinates and motivates employees (Susan, 1995).

The HR manager plays an integral role in organizational success via his knowledge about and advocacy of people. He or she provides employee development opportunities, employee assistance programs, gain sharing and profit sharing strategies, organization development interventions, problem solving and regularly scheduled communication opportunities (Susan, 2000). HR managers frequently initiate internal changes as a result of the external changes and government regulations (Heller, 1993). The absence of any HR function in the RMG sector is a factor in serious labour unrest.

In any factory, regardless of size, the HR unit has crucial role. Generally, in small organizations- those with fewer than a hundred employees-there may not be an HR department, so a line manager is responsible for the functions of HRM. In other cases, a Personnel Management Department is responsible for the day-to-day functions. The HR Department, may be called the Personnel Management Department (Cherrington, 1995, p. 5; Stone, 2002). Human Resource Management (HRM) is a planned approach to managing people effectively for performance. It aims to establish a more open, flexible and caring management style so that staff will be motivated, developed and managed in a way that they can give of their best to support departmental missions (Michael, 1995). Huang (2000) was critical. He claimed that poor HRM practices influence employees’ intention to leave, levels of job satisfaction, and organizational commitment, while good HRM practices are instrumental in helping achieve departmental objectives and enhanced productivity (Huang, 2000). A good human resources section can be one of the most valued and respected departments in an organization; their job is people, and people are the company’s most important asset. In the RMG sector, the establishment of HR departments or PM units has the potential to facilitate productivity.

Industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union, which is legitimate representatives of employees; conflict is resolved by collective bargaining and, if managed correctly...