Title
Asian Business Review, Volume 1, Issue 1, September 2012
ISSN 2304-2613
Human Resource Management Practices and Firms Performance in Bangladesh: An Empirical Study on Pharmaceutical Industry
Serena Aktar1, Md. Shoriful Islam2, Sayed Mohibul Hossen3
1 Department 2 Department
of Business Administration, Northern University Bangladesh of Business Administration, Northern University Bangladesh 3 Department of Business Administration, Northern University Bangladesh
ABSTRACT
This research work has been conducted in the field of human resource management (HRM), more specifically on firm performance. The aim of the study is to show the relationship between HRM practices and firms performance of pharmaceutical industry in Bangladesh. It is assumed that HRM practices could positively influence profitability and growth and depressingly bias employee turnover. The primary data were collected using structured questionnaire sent to employees of different departments having different job status of some pharmaceutical companies in Bangladesh. Secondary data were collected from annual reports of the selected companies for measuring and finding out their performance. The paper has tried to elucidate the role of HRM practices and to test the relationship among the variables indicating that HRD has a relationship with performance like inventory turnover, total assets turnover, net profit margin, gross profit margin etc. It is found that HRM practices enhance performance of the pharmaceutical firms in Bangladesh. Keywords: HRM Practice, Firm’s Performance, Pharmaceutical Industry JEL Classification Code: M120
1 INTRODUCTION
T
HE concept of HRM became popular in the early 1980s; since then there has been increasing interest in the academic concept as well as in the research area. Early models of HRM were largely conceptual and not based on substantial empirical evidence for their validity (Beer, Spector, Lawrence, Miles & Walton,1984; For burn, Tichy &
ISSN 2304-2613
Human Resource Management Practices and Firms Performance in Bangladesh: An Empirical Study on Pharmaceutical Industry
Serena Aktar1, Md. Shoriful Islam2, Sayed Mohibul Hossen3
1 Department 2 Department
of Business Administration, Northern University Bangladesh of Business Administration, Northern University Bangladesh 3 Department of Business Administration, Northern University Bangladesh
ABSTRACT
This research work has been conducted in the field of human resource management (HRM), more specifically on firm performance. The aim of the study is to show the relationship between HRM practices and firms performance of pharmaceutical industry in Bangladesh. It is assumed that HRM practices could positively influence profitability and growth and depressingly bias employee turnover. The primary data were collected using structured questionnaire sent to employees of different departments having different job status of some pharmaceutical companies in Bangladesh. Secondary data were collected from annual reports of the selected companies for measuring and finding out their performance. The paper has tried to elucidate the role of HRM practices and to test the relationship among the variables indicating that HRD has a relationship with performance like inventory turnover, total assets turnover, net profit margin, gross profit margin etc. It is found that HRM practices enhance performance of the pharmaceutical firms in Bangladesh. Keywords: HRM Practice, Firm’s Performance, Pharmaceutical Industry JEL Classification Code: M120
1 INTRODUCTION
T
HE concept of HRM became popular in the early 1980s; since then there has been increasing interest in the academic concept as well as in the research area. Early models of HRM were largely conceptual and not based on substantial empirical evidence for their validity (Beer, Spector, Lawrence, Miles & Walton,1984; For burn, Tichy &
References: [1] Ahmad, Iqbal & Khalil Md. Ibrahim (2007) “Human Resource Planning in the Banking Sector of Bangladesh: A Comparative Study Between Public and Private Bank”, Journal of Business and Administration, Oct.33. Boselie, P., Dietz, G., and Boon, C.(2005). Commonalities and contradiction in HRM and performance research. Human Resource Management Journal, 15(3):67-94 [2] Copyright © 2012, Asian Business Consortium | ABR Page 125