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Executive Summary
The Readymade Garment sector (RMG) of Bangladesh has been the key revenue generating
sector for the last couple of years. At present, the RMG sector generates about $9.35 billion
worth of revenue each year by exporting garments product and plays a crucial role in the well
being of the economy of our country.
Managing the human resources of this enormous sector effectively has become a crucial factor
to business success. Intense global competition for better quality products with cheaper price has
altered all the earlier calculations regarding Human Resource utilization technique. Human
resource management in the RMG sector has received keen attention because of its recognition
that better output could be gained by using information systems for managing the vast number of
human capital employed in this sector effectively.
Human Resource Information Systems (HRIS) is now used extensively in most readymade
garment company irrespective of its size, tenure of establishment, complexities of operations etc.
This study deals with the uses of HRIS in the RMG sector of Bangladesh that would provide new
knowledge in the human resource management practices of Bangladesh.
The whole study is conducted through data analysis (both primary and secondary), collected
from respondents and various sources and provides a thorough overview of the use HRIS in the
RMG sector of Bangladesh.
1.0. Introduction
The Ready Made Garments (RMG) industry has played a pioneering role in the development of
industrial sector of Bangladesh. Though it took a rather late start i.e., in 1976 but it soon
established its reputation in the world market within a short span of time.
RMG industry gives employment to millions of people. In order to recruit skilled workforce in
textile sector, proper training programs would thus facilitate in supply of well qualified
workforce. Thus the role of Human Resource (HR) department has gained momentum in terms
of employing manpower that satisfies the professional requirements of this sector and that is well
skilled. Thus many collaboration among many multinational companies and educational
institutions is been observed.
A Management Information System (MIS) provides information needed to manage organizations
efficiently and effectively. MIS involve three primary resources: people, technology, and
information. Management information systems are distinct from other information system in that
they are used to analyze operational activities in the organization.
Over the years, Human Resources' role has expanded far beyond mere hiring and firing. A wellequipped HR department now trims costs, enhances efficiencies, delivers high value employee
services and guides any business through a dizzying array of regulations.
A big part of being well-equipped means implementing an Human Resource Information
Systems (HRIS) solution that automates business processes and streamlines interdepartmental
procedures, allowing the business to accurately reconcile bills and eliminate over-payments,
reduce the need for additional employees, and improve recruiting and employee-retention among
other key tasks.
Understanding the importance of using information system to streamline HR functions in RMG
sector of Bangladesh, This paper lays particular emphasis on Human Resource Information
Systems (HRIS) used in the sector to assist HR professionals in performing functional business
processes.
1.1 Objectives
1.1.1 Broad Objective
The broad objective of this study will be to present the current status of HRIS and its usage in the
RMG Sector of Bangladesh.
1.1.2. Specific Objectives
In order to understand the broad objectives, the study will also cover the following specific
objectives:
Various HRIS softwares used in RMG sector of Bangladesh, their benefits and quality
evaluation.
1.2. Scope
The scope of our study is limited to the use of HRIS in the ready-made garments sector of
Bangladesh. It is assumed that the analysis performed in this paper will be able to provide an
overview of the use of different HRIS software in RMG sector of Bangladesh. However, this paper is
limited in providing only a descriptive overview of the Human Resource Information System
organization and does not contain any criticism of the systems or recommendations.
1.3. Methodology
1.3.1. Research design
The study is descriptive in nature, as it tries to present the current standard of HRIS and its
practices prevalent in the RMG sector of Bangladesh.
1.3.2. Sample Design
The sampling technique followed in this study is convenience style sampling as we tried to find
the RMG companies that were willing to provide us with the necessary information.
Secondary Data: Secondary data were collected from various sources such as journals, reports,
websites and articles published online related to RMG sector of Bangladesh, Human Resource
management and MIS.
1.4. Limitations
A small limitation faced on our part was the collection of data, which presented a problem during
the initial stages. The companies were either unwilling or indifferent while sending the data of
their HRIS system. The problem was later resolved by further contacting with concerned
officials.
Moreover, the companies were unwilling to divulge any financial information due to
confidentiality reasons especially regarding the costs involved in the implementation of HRIS
modules in their companies.
The RMG industry is the only multi-billion-dollar manufacturing and export industry in
Bangladesh. Whereas the industry contributed only 0.001 per cent to the countrys total export
earnings in 1976, its share increased to about 75 per cent of those earnings in 2005. Bangladesh
exported garments worth the equivalent of $6.9 billion in 2005, which was about 2.5 per cent of
the global total value ($276 billion) of garment exports. The countrys RMG industry has been
growing by more than 15% per annum on average during the last 15 years.
Thus it is understandable that the Readymade Garments Sector plays a vital part in the well being
of the economy of Bangladesh. So it has become imperative that we understand the underlying
human resource functions governing this sector.
data
which
traditionally
includes
personal
histories,
skills,
capabilities,
Performance appraisal
The use of information systems improves the efficiency of these HR functions and contributes
towards achieving an organizations strategic development. As organizations become more
complex and their information management needs increase, the need for relevant information
systems also increases dramatically. Realizing these facts the RMG sector has moved towards
implementing HRIS to automate the various HR roles performed in the industry.
Employee Database
Payroll
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Benefits Administration
Performance Management
Employee Training
Employee Self-Service
HR Analytics
It is to be noted that organizations while implementing HRIS may modify the system according
to their individual needs, thus excluding some of the components mentioned above or adding
additional components. Some of the most commonly used HRIS modules are described below:
5.2.1. Employee Database
Employee database or employee information storage is the one of common feature in HRIS. The
employee database will generally contain fields for most of the information in an employee file.
However, with that data being contained within a database, organizations have the ability to
report, manipulate, and maintain the data.
5.2.2. Payroll
Many of todays HR applications offer payroll as an option. The largest benefit of this option is
that all of both the HR and Payroll data is contained in a single system. Therefore, double input
or the transfer of data does not exist. The software packages that dont offer payroll usually
provide the capability of importing or exporting data to a third party payroll option.
The payroll module of HRIS automates the pay process by gathering data on employee time and
attendance, calculating various deductions and taxes, and generating periodic pay cheques and
employee tax reports. This module can encompass all employee-related transactions as well as
integrate with existing financial management systems.
Many RMG factories in Bangladesh use this module separately instead of a complete HRIS.
5.2.3. Time and Attendance
The time and attendance module gathers standardized time and work related efforts. Attendance
management with a manual process is a wasteful, and time consuming process. The ability to
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automate overtime fees calculation is one of the advantages that can be derived from time and
attendance that is integrated with biometric devices like fingerprint scanners. Other functions
that can be used to save time is the easy generation (one single click method) of the attendance
report.
5.2.4. Absence and Leave Management
Absence and leave management module provides an automated way to allocate, book, approve,
track and monitor any absence from the workplace, whether for holidays/vacations,
compassionate reasons, illness or parental leave. Request and approval processes are streamlined
and the outcomes are incorporated with other departments so that replacements are readily
available for any scheduled absence.
5.2.5. Benefits Administration
The benefits administration module provides a system for organizations to administer and track
employee participation in benefits programs. These typically encompass insurance,
compensation, profit sharing and retirement provident funds.
Sometimes, the benefits administration might overlap with the payroll module and fall under the
payroll banner.
5.2.6. Recruitment and Selection
Online recruiting has become one of the primary methods employed by HR departments to
garner potential candidates for available positions within an organization. Talent management
systems typically encompass: analyzing personnel usage within an organization; identifying
potential applicants; recruiting through company-facing listings; recruiting through online
recruiting sites like BDJobs.com that market to both recruiters and applicants.
5.2.7. Performance Management
The performance management module automates the employee appraisal process by recording
and tracking objectives and targets set for employees. This module generally incorporates
employee competence framework, job standards and/or other relevant systems.
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Masco Group
Palmal Group
Envoy Group
Robintex Ltd.
Sharmin Group
Ltd.
Standard Group
Hameem Group
Kenpark BD Ltd.
Viyellatex Ltd.
Mondol Group)
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Balancedcomp
Bdstudio HR Management
Master Management
Cake HR
Namely
Continental Systems
Payroll Management
Crystal Systems
S.O. Management
Smaster
Genesis HRIS
Weknit ERP
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When asked to identify the major benefits of using HRIS, 100% of the companies responded that
HRIS has enabled efficient time management in their companies. 93.9% attributed reduced HR
costs to HRIS. 87.9% companies stated that HRIS use have enabled reduced workforce in the
HR department and 72.7% companies suggested that HRIS have increase co-ordination among
the different departments of the companies.
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From the results it is observable that only one company: Radif Composite Ltd. rated their system
somewhat negatively. But in this case it is also to be noted that among the 35 companies
surveyed only Radif Composites HR functions such as payroll, attendance and analytics are
outsourced, whereas all the other companies maintain in house HR departments.
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7.0. Conclusion
In this age of globalization where changes are quick and unpredictable and HR has a much
shorter timescale to respond, use of Human Resource Information System is essential for any
good organization to ensure effective people management and to get a competitive edge in the
corporate world. This is especially true for the readymade garment sector in Bangladesh due to
the large number of workforce employed in this sector. Thus HRIS is gradually getting
popularity and acceptability in this sector. The RMG owners and management are considering it
as an investment rather than costs as HRIS helps management to make effective and better
decisions for the wellbeing of the organizations.
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References
Ahmed, N. HR Policies at Zeal Knitwear Limited. Brac University.
Gupta, B. (2013). Human Resource Information System (HRIS): Important Element of Current
Scenario. IOSR Journal Of Business And Management (IOSR-JBM), 13(6), 41-46.
K. C. Laudon and J. P. Laudon, Management Information Systems: Managing the Digital Firm,
(11th Global edn.), Upper Saddle River: Pearson Education, 2009, ch. 1, pp. 44-47.
McKinsey & Company, Inc.,. (2011). Bangladesh's ready-made garments landscape: The
Challenge of Growth (pp. 3-9). Frankfurt.
Miah, M. & Hossain, M. (2014). A Comparative Study of HRM Practices between Foreign and
Local Garment Companies in Bangladesh. South Asian Journal Of Human Resources
Management, 1(1), 67-89.
Weeks, K. (2013). An Analysis of Human Resource Information Systems impact on
Employees. Journal Of Management Policy And Practice, 14(3), 35-43.
Zhi Wei Chen, Zhi Feng Chen, Yan Xu, 2010, Integration Technology and Application Research
on Management Information System in Textile Industries. Advanced Materials Research, Vol.
136, p. 236-241
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Appendix
Appendix 1: Questionnaire
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industrial complex in Bangladesh. Which was started its journey in 1979. Its garments
manufacturing units located in Mirzanagar Savar, Dhaka just 30KM away from the city. East
West Group has wide range of buyers from around the world.
RAYMOND, CK etc.
Envoy Group
Envoy Group, a diversified conglomerate with primary focus on ready-made garments and
textile manufacturing was established in 1984. Its factory located at Khilgaon, Chowdhurypara,
Dhaka-1219.
Epyllion Knitwear Ltd.
Epyllion Knitwears Limited (EKWL) is a part of Epyllion Group started its journey as a house of
Readymade Garments (RMG) engaged in manufacturing and exporting of Knit Apparels in
1994. It is an important garments manufacturer for a number of renowned brand apparels of
Europe, USA, Asia & Africa.
Fakir Fashion Ltd.
Fakir Fashion Ltd is one of the major manufacturer and export of Bangladesh which started its
journey in 2009. Its factory is located in Baliapara, P. Rupgonj, Dist. Narayan gonj. Some of its
clients are H &M, US Polo, Mango, Espirit, Zara, Maxx etc.
FCI (BD) Ltd.
FCI (BD) ltd. is a part of FCI Group that was incorporated in the Dhaka Export Processing Zone
in Bangladesh in 1997. It clients are the many of the world's top brands, including M&S, Zara,
Nike and Alexon.
Fountain Garments Manufacturing Ltd.
Fountain Garments Manufacturing Ltd. (FGML) is an established company in the Ready Made
Garments sector which specializes in manufacturing and marketing textiles products to global
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markets mainly in USA and Europe. The factory located in Savar, Bangladesh, was inaugurated
in February 2011.
Hameem Group
Ha-Meem Group, a Bangladeshi clothing manufacturer, is leading supplier of readymade
garments and denim fabric in the world. Ha-Meem Group has earned name and fame both at
home and abroad as one of the top clothing companies in Bangladesh. Ha-Meem today is
working with some of the biggest fashion brands of the world.
Kenpark BD Ltd.
Established in 2000, Kenpark is located in the two Export Processing Zones in Chittagong.
Kenpark is proud to work in partnership with leading global brands in the apparel industry e.g.
Timberland, Coluimbia, Addidas, River Island etc.
Knit and knitex BD Ltd.
Knit and Knitex Limited is a 100% export oriented composite knit textile unit, established in the
year of 2003.
Knit Asia Ltd. (New asia group)
Knit Asia Limited (KAL) was established in 2000. Its RMG Unit-1s located at East
Narashinghapur, Ashuila, Savar, Dhaka, Bangladesh. And its Knitting & Dyeing Unit, RMG
Unit-2 is located at Shafipur, Kaliakoir, Gazipur, Bangladesh.
Masco Group
MASCO GROUP of Industries Limited is a pioneer in introducing European technology in knit
fabric manufacturing in Bangladesh started its journey at December 09, 1999. Its factory location
is just 30 minutes drive from Hazrat Shahjalal Airport.
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Buyers including Walmart, JCPenney, Sears, Marks & Spencer, ZARA, Carrefour and
PRIMARK.
Suprov Composite knit Ltd.
Founded in 2004 for 100% Export Mission, Suprov Composite knit as a aprt of AnonTex Group
is a multi-unit, multi-interest business group with a wide range of industrial activities. Its major
clients are P&C, TESCO, WILSON, ZARA, Indigo etc.
Universal Manswear Ltd.
Universal Menswear Ltd is a joint venture with Romania & Bangladesh having factory located in
Narayanganj EPZ.
Vintage Denim Studio Ltd. (IEPZ)
Vintage Denim Ltd is a 100% export oriented a well recognized trouser manufacturing industry.
Major customers are C & A, Charles Vogels, Pimkie, Promod, Terrenova, Deven Ham.
Viyellatex Ltd.
VIYELLATEX group is a rapidly growing multi dimensional organization in Bangladesh. It all
started as a small family business of knit apparel manufacturing in 1996. Its major clients are
PUMA, Olymp, NEXT, Calvin Klein, DKNY, Tommy Hilfiger etc.
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