Impact of HR Policies on Organizational Performance of RMG Sector in Bangladesh: A Study on Winter Dress Ltd

Abstract

Impact of human resource management policies on organizational performance has been a widely researched area for years. But unfortunately, very insufficient number of studies have been conducted on this area in the context of Bangladesh and other developing countries. This study was undertaken to fill this obvious research gap. Five broad categories of HR Policies: Recruitment & Selection, Training & Development, Compensation Package & Benefits, Performance Appraisal and Rewards and Incentives have been taken as independent variables and their impact has been assessed on organizational performance as dependent variable. Data were collected from employees of Winter Dress Ltd through questionnaire based on a 5- point Likert Scale and analysed. HR policies have been found to be significantly and highly positively relationship with organizational performance. Out of HR practices, compensation and benefits as well as performance appraisal are found to have significant impact on organizational performance. There were some limitations at the time of doing this research. One of the major limitation was no one is to know and collect some internal HR policies which are currently. Besides, publication and articles are not enough to study and some information are unknown to managers and employees. Above all, I was able to manage and complete the research by overcoming limitations. The outcome of the study will provide useful guideline to the current RMG sector in Bangladesh by giving the answer of several questions of why employees performance are not increasing and the impact of HR policies on RMG industry. By following the outcomes an organization might be able to find the reason behind their lacking of organizational performance and will be able to overcome it by optimizing employee’s performance. By doing this research it shows that in Bangladesh, HR policies and practices have significant association with organizational performance. There is a high positive relationship between HR policy and organizational performance which is making huge impact on organizational performance. Keyword: HRM, HR Policies, RMG, Organizational Performance, Recruitment & Selection, Training, Performance Evaluation, Compensation and Benefits.