ERP Practicing in HR Management System in Bangladesh

For recent economic development and better education quality, Bangladesh has seen a positive and upward trend in human resource management. According to a recent report of The Daily Star on current HRM practice in Bangladesh, 66.66% of organizations arrange external and in-house training for the employees every year.

That is why now technical skills are being evaluated in the recruitment process. That report also says, the mechanism of employee emotion management is available in 75% of organizations, and 40% of organizations provide performance rewards.

Here, the worst part is that 95% of companies don't provide any long-term incentives. This is the current overview of HRM practice in Bangladesh.

Now let's discuss the major activities and use of human resource management software system in Bangladesh, which will give you a clear idea about HRM practice in Bangladesh.

Recruitment System

The recruitment system of an organization is dependent on the type of that organization. In the case of the private sector, most organizations have an informal recruitment process. Management can decide about the recruitment process where some specific requirements can be given which are never given anywhere.

They can focus on a specific qualification, skill, or any other things they want. Bangladesh has a significant impact on political parties on business organizations. In that case, companies need to consider some requests from them in the recruitment processes.

Here, the exception is private banks and financial organizations. These two types of organizations have to follow a strict rule in their recruitment process because the Banking Act regulates all of their activities in Bangladesh.

The recruitment process of all the public sectors is arranged by Bangladesh Public Service Commission (PSC). Generally, this type of recruitments is conducted for ministries, departments, or divisions of Bangladesh.

Political interference also affects the recruitment process of the public sector. Here, candidates can apply online in almost all sectors, which is very advantageous for rural applicants.

Read Also: Best ERP Software for Customer Relationship Management

Training Process

One of the essential parts of human resource management is training. In recent years, almost all the private organizations in Bangladesh keep a budget and allowance for the training of the employees.

But, as a less income country, the allowance for training programs may not be turned into an investment. Another thing is, sometimes the training programs may not succeed because of the lack of proper instructions and instructors.

In the public sector, PATC (public administration training center) conducts training programs for all the fresh employees of civil service. There are other centers for training in this sector. Still, PATC is the main authority of public sector training processes, which is liable to all the training activities in Bangladesh.

Here, the training courses, durations, syllabuses are authorized by the ministry of specific departments. However, in the case of non-civil jobs in the public sector, training is not effectively done because of corruption and nepotism.

Payroll Management

There is no specific or structured pay scale in the private organization. There have no obligations or legal regulations for the pay scales also.

Management of all private companies selects the salaries of the employees. That is why some companies can offer significantly fewer salaries which are not honorable all the time for the employees in Bangladesh.

On the contrary, there are some specific pay scales in the public sector for both civil and non-civil jobs regulated by the National Pay Commission or NPC. There are 20 graded pay scales which the National Pay Commission introduces.

The educational qualifications and experiences evaluate the grade of these jobs. After a specific time, government restructures the pay scales according to the economic development of Bangladesh. Besides, there have some legal obligations and regulations regarding the pay scales here.

Employee Benefits

For the employee benefits in the private sector in Bangladesh, there was a pension scheme in 2015 by which employees of private companies would gain pension after retirement. Here, the worst thing is no pension scheme is exercised nowadays.

However, financial institutions provide these benefits to their employees. But there is no law present in Bangladesh that says private companies have to give pension.

On the other hand, there is a strict law for pension for the employees of public sectors. They get this benefit according to the pay scale and the grade of their job after retirement.

Day by day, the pension scheme of these jobs is being developed government is trying to give more benefits. That is why the public sector is considered as the secured job sector in Bangladesh.

Features of an ERP for HR

Nowadays, technology has a significant impact on the human resource management of a company. ERP is software made for companies to manage different business areas, especially the human resource management department.

ERP or Enterprise Resource Planning is mainly designed for large companies that need a comprehensive management system. ERP has some modules that deal with specific areas of the company, including human resource management.

It automates the administrative tasks and enhances the speed of all the internal tasks. You can also use these tools for payroll, recruitment, management, evaluations, job offers, and so on. Anyways, now let's check out some features of an ERP for HR:

• The personal data of all the employees is stored and managed by basic employee database management of ERP.
• The attendance and in and out time are collected by the time and attendance management.
• Payroll and compensation management monitor the payroll and sometimes adjust when needed.
• This software carries out the recruitment process by conducting a selection process, publishing job offers, etc.
• ERP will help you also to design and develop internal training and development programs.
• Another significant feature of this software is generating KPI (Key Performance Index), which helps HR managers to make the perfect decision.
• These are mainly the features of ERP for HR. This module is totally cloud-based. That is why you can get access to any information you need from anywhere. You need a digital device with an internet connection.

Features of an HRMS

There are some tools nowadays making the task of the human resource management department easier. Human Resource Management System (HRMS) is another one. This tool is specially designed to computerize and automate the task of the human resource management department.

This is not comprehensive like ERP (Enterprise Resource Planning). Then again, it has some extraordinary features which are very beneficial to the HR department. These are as follows:

• HRMS conducts payroll management recording and monitoring and sends the needed information to the payroll manager if required.
• It also records the in and out the employees' time and attendance comply with the employment law. It can store this date for four years.
• There is a separate employee portal here where all the employees can access information like pay slips, holidays, etc., which are relevant to them.
• This tool automates some tasks that save a huge amount of time.
• HRMS manages and authorizes the leave and absence of the employees through a single channel.
• It designs an organizational structure to understand the internal flows better and do all the tasks without any complexity.
• It conducts the recruitment process by filtering CVs, collaborating communication, designing the interview process, and other needed activities.
• After a specific period of time, it runs a workplace survey for the betterment where some questions are automatically sent to the employees.
• It evaluates the performance of the employees and sends needed information of employee reviews to the authority.
• It makes important reports automatically for the HR departments.
• These are mainly the most significant features of HRMS (Human Resource Management System). Here, comparatively, HRMS is providing much more features than ERP.

How does an ERP System Assist in Human Resource Planning?

Human resource planning mainly identifies the current and future human resources according to the organization's need for fulfilling the organizational goal. ERP helps a lot in doing this. Now the question is, how ERP does this?

ERP system helps to do almost all the tasks of the human resource management department. One of its essential features is conducting the recruitment process. Here, ERP specifies the required skills for the specific jobs, monitors the training programs, records all the employee performance data.

Ultimately it helps to find out the best employee for the different departments, which is very important for fulfilling the organization's goals. This is how an ERP system assists in human resource planning.

Final Thoughts

The HRM practice in Bangladesh is improved day by day. All the companies now know the importance of human resource management. Most of those are fully practicing it. Still, there have a huge number of companies where employees are deprived of different types of benefits. Besides, many other activities of this department need to amend according to the worldwide HRM practice.

Anyways, in this article, we have deeply discussed HRM practice in Bangladesh. Besides, we have given all the essential information about ERP and HRMS. Hopefully, it will help you in developing your organization.