Effects of Globalization on HR practices in Square

Pharmaceuticals Limited
Effects of Globalization on HR practices in Square
Pharmaceuticals Limited
HRM 501 (01)

Prepared for
Ishraat Saira Wahid
PhD, Assistant Professor
Department of Business Administration
ULAB

Name ID Participation (%)

Tahmina Islam Liya 193051030 25%
Samiya Sarwar 163051001 25%
Ziaul Haque Zia 193051007 25%
Salman Ahmed 201051013 25%
Prepared By

20 September, 2020
Table of Contents
Executive Summary............................................................................................................1
1.0 Introduction.................................................................................................................2
1.1 Objective of the Study..................................................................................................2
1.2 Scope of the Study........................................................................................................2
1.3 Limitation of the Study.................................................................................................2
1.4 Methodology of the Study............................................................................................3
2.0 Literature Review.........................................................................................................4
3.1 Impact of globalization on Human Resource Management (HRM)................................5
3.2 Impact of globalization on Socio-Culture......................................................................5
3.3 Hofstede’s Six Dimensions of National Culture on Bangladesh for SPL..........................5
4.1 Recruitment & Selection Process of SPL........................................................................8
4.2 Effect of Culture on Recruitment & Selection................................................................8
4.3 Training & Development Process of SPL........................................................................9
4.4 Effect of Culture on Training & Development..............................................................10
5.0 Recommendation.......................................................................................................11
6.0 Conclusion..................................................................................................................11
References.......................................................................................................................13
Executive Summary

Globalization is changing the world toward a converging society. As societies are becoming
more global, many issues arise with globalization. People are becoming more global in one
hand and indigenous on the other hand at the same time.

This report highlights the effect of globalization on HR practices of a pharmaceuticals

company in Bangladesh, Square Pharmaceuticals Limited (SPL). The report reflects on the
high-low context of Bangladeshi culture and how it effects the HR practices.

Bangladesh is a country of high context culture. Hofstede’s cultural dimension theory has
been used on this study. This report will show Hofstede’s six cultural dimensions on
Bangladeshi culture and how it impacts the HR practices of SPL. The objective of the study
is based on secondary data. The secondary data has been collected from authentic source
from various websites, academic journals, annual reports and e-books.

Furthermore, the report elaborates on two methods for SPL- recruitment & selection process,
training and development. The findings suggested that SPL should not only concentrate on
picking up latest technology but also develop their own values. The convergence brought by
the globalization has to be balanced by development in divergence.

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1.0 Introduction
Square Pharmaceuticals Limited (SPL) was founded by Samson H Chowdhury in late
1950’s. SPL is the largest pharmaceutical company in Bangladesh. SPL is leading the
marketplace with 1st position in the pharmaceutical industry since 1985. There has been a
significant growth of SPL globally in the last two decades. Globalization has a great impact
on various cultures of different societies around the world. The HR practices varies from one
country to another between different organizations due to various culture in a globalized
world. This study shows the effect of globalization on the process of recruitment & selection
and training & development of SPL.

1.1 Objective of the Study

 To examine the impact of globalization on Bangladeshi culture.
 To find out the recruitment and selection process of SPL.
 To find out the training and development process of SPL.
 To know the blend of culture in the process of recruitment & selection and training &
development of SPL.
 To figure out the adaptation of SPL in their recruitment & selection and training and
development process (HR practices) for the effect of globalization.

1.2 Scope of the Study

This study will help SPL to focus on the changes of HR practices in different
organizations due to globalization. The ideal of this study is to make SPL’s two HR practices
more efficient and effective. This report will have a detailed view of recruitment & selection
process and training & development process of SPL. The effects of culture on these two HR
practices have also been examined.

1.3 Limitation of the Study

The study was conducted based on the secondary data. Due to this pandemic, study
faced difficulties to get access of insight information of SPL. This study was conducted based
on only one of the companies of Square group (SPL). So, ultimate findings will not portray
the HR practices of all the companies of Square group. Developing organizations are
adapting western culture and trends for globalization. So, it is difficult to justify findings
based on secondary data.

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1.4 Methodology of the Study
To address the objective of the study secondary data has been used. The secondary
data has been collected from authentic source from various websites, academic journals,
annual reports and e-books.

3
2.0 Literature Review
This study aims to examine the effect of globalization on HR practices in SPL.
Globalization is usually referred as making a competitive business environment by the free
flow of technology, HR, etc. across national boundaries. HRM is affected due to various
cultural societies and norms around the world (Česynienė, 2008). Globalization has played a
significant role for Bangladeshi organizations to adapt corporate culture, work ethics, training
program, process of recruiting employees, appraising and compensating employees etc. from
the western part of the world. Process of recruiting and selecting candidates is one of the
important HR practices for every organizations. Through efficient and effective recruiting
and selecting process ensures desirable candidate in the right place. Effective hiring can
reduce the cost of training and developing of an employee. Training is a procedure of
teaching or developing in others of any skills and knowledge that relate to specific useful
proficiency. These trainings of employees can simply have a good impact on the
organization. Training is a short process which helps to specialize the staffs of an
organization. Through effective training program the factors that decreases employee job
performances and satisfactions can be overcome.

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DISCUSSIONS
3.1 Impact of globalization on Human Resource Management (HRM)
In terms of globalization, multinational companies can attract many top talents from
developing nations at a lower cost or outsource their work to these nations. MNCs come with
advanced technology, advanced research & development program, advanced HR practices,
etc. in developing nations. These things have helped the industry of Bangladesh to be more
efficient in the last decades due to the establishment of MNCs in Bangladesh. Developed
nations as well as developing nations like Bangladesh will face shortage of skillful top talents
on hiring despite the current economic recession and unemployment due to the current
pandemic. The shortage of skillful talents will be across most of the industries in Bangladesh
(Kapoor, 2015).

3.2 Impact of globalization on Socio-Culture

Globalization has a great impact on various cultures of different societies around the
world. Globalization is usually referred as catalyst for the change in cultures of developing
countries like Bangladesh to be more like developed countries. For globalization developing
countries peoples are adapting the lifestyle, act, dress, food, language, communication,
management style, etc. from the developed countries (Jagdish, 2018).

3.3 Hofstede’s Six Dimensions of National Culture on Bangladesh for SPL

Social Orientation: Bangladesh is considered as a collectivistic society with a score of
80. Here people are focused more on team work rather than individual work. Make sure not
to allow workers to join labor union because it triggers them often to do strikes and protest
which hampers an organization. As employer and employee relation are closely integrated
with the system therefore, they have high dependance. So, it is important for SPL to respect
collective norms and values in Bangladesh. For example, as emphasis is on group it is
necessary to reward groups rather than individuals. Rewarding individual should not be done
as it might create conflict. To maximize performance SPL needs to adapt their management
style according to Bangladeshi culture.

Power Orientation: Power distance in Bangladesh is high with score 80 which means
people are more likely to accept inequality. SPL will have to hire managers who can show
their leadership qualities for operating in Bangladesh. Managers are expected to show their
position in the company understanding the degree to which power distance is accepted by all

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members. Managers of SPL needs to develop more direct style of message delivery as they
are expected to provide clear directions about what needs to get done.

Uncertainty Orientation: Bangladesh with score 60 is considered to have an

uncertainty avoidance culture. SPL is advised to provide clear directions regarding job
expectations to avoid fear in employees. They are more likely to take physical pressure on
jobs. To reduce stress at workplace, SPL needs to train employees and improve working
conditions and techniques in order to avoid negative consequences.

Goal Orientation: Bangladesh is considered to have masculine society with score 55.
Employees tend to work long hours and prefer good pay. They value social relationship and
quality of life. The peoples of Bangladesh are concerned for each other. SPL is advised to be
competitive, assertive and decisive.

Time Orientation: Bangladesh with score 47 on long term orientation doesn’t indicate
strong preferences on either direction. In business context employees switch jobs frequently,
so job description and job specification should be given in details. They also use past norms
or behaviors to focus on present behaviors. Workplace in Bangladesh is associated with
learning, discipline and employees striving for firm’s success also concerning about
individual achievement, rights, etc.

Indulgence-Restraint Orientation: Bangladesh is considered to have restraint society

with score 80. The leisure time is unimportant for the Bangladeshi peoples. They value social
norms in order to regulate the actions of the society. SPL must know the self-control is very
important for Bangladeshi peoples. Peoples of Bangladesh usually tend to be introvert. SPL
can create working environment in a way, employees interact with each other in order to get
optimum output from them (Hofstede, 2020).

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 Hofstede's Six Dimension on Bangladesh
90
80 80 80
80

70
60
60 55
50 47

40

30

20

10

0
Collectivism Power Distance Masculanity Uncertainity Long Term Restraint
Avoidance Orientation

Source: Hofstede Insights

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FINDINGS
4.1 Recruitment & Selection Process of SPL
The SPL’s recruitment and selecting procedures are generally driven with a desire to
be fair. Every year SPL hire more than 100 Medical Promotional Officer (MPO) for field
work in order to increase their market segment. The procedures of recruiting and selecting
these MPOs is very systematic in order to hire the top talents. The procedure of selecting and
recruiting employees in SPL has been discussed below:
 At the beginning of the year or when vacancy created, every department prepares a
budget for recruiting employees. Mentioning the number of employees, job
description, specifications and other requirements the departments give a requisition
to Human Resource Department (HRD).
 The requisition is verified, justified and confirmed through analysis by the HRD.
Through effective analysis HRD decides the requisition is logical or not. After that the
requisition is recommended to the top management. The requisition for new
employees in SPL is only approved by the top management.
 After the approval of requisition, advertisement is done through newspaper, job sites,
websites, etc. CVs are received for the advertisement of job vacancy from candidates.
 The selection of new candidates starts here by sorting out the desired candidates.
Written test is arranged for the sorted candidates. 50% of the candidates are selected
from the written test. The selected candidates get chance to appear for the Viva-voce.
 The selected candidates from the viva-voce gets approval from the authority. The
selected candidates go through a medical checkup.
 Finally, the jobs are offered with specified terms, conditions and salary to the selected
candidates. If both parties mutually agree to the term and conditions then the selected
candidates are appointed (Ferdous, 2014).

4.2 Effect of Culture on Recruitment & Selection

The process of recruiting and selecting varies widely from one country to another for
different cultural context. Sometimes, cultural context forces an organization for internal or
external recruitment. Bangladesh is considered as a high collectivistic society and
characterized to have an uncertainty avoidance culture. Employees in the Bangladeshi
organizations prefer their companies to hire new employees through internal recruitment.
Internal recruitment is done via internal advertisement and references (Abdullah, Boyle &
Joham, 2011). The practice of HPWS in an organization have a positive and direct impact on

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employees. MNCs in Bangladesh recruit well qualified candidates. The proficiency of foreign
language especially English is much appreciated by MNCs in Bangladesh. But the applicants
from middle class families have lack of proficiency in English due to their schooling in
general public schools. Candidates are conducted psychological tests based on western
culture in the recruitment process by MNCs. So, the education level of candidates plays a
significant role in performing more efficiently after hiring (Wahid & Ssekasi, 2018). The
recruitment processes of MNCs have been adapted by various national companies in
Bangladesh. SPL practices HPWS adapted from various MNCs. The adaptation of SPL has
been possible for globalization.

4.3 Training & Development Process of SPL

SPL not only focus on production but also on developing skilled labors in their
organization through efficient and effective training & development program. Three times
each year employees are appraised through highly effective Performance Management
System (PMS) by HRD in SPL. Through effective training employees boredom on jobs
decreases and employees become more productive in SPL. So, training is a strongest tool for
SPL to create specialty in an employee (Dewan, 2013). The steps for training cycle in SPL
have been discussed below:
 To determine and develop the training needs of an employee. The training needs
assessment are done via various methods like employee focus groups, survey &
questionnaires and observation. After assessment HRD figures out the specific
skills and knowledge required for a particular employee. Finally, employees who
needs to improve skills and knowledge are selected for training determined via
Training Needs Analysis (TNA) form.
 HRD ensures selected trainees have the motivation for training. The investment for
training will be a loss for SPL, if the trainees are demotivated for the training
program.
 The training program are conducted in a learning environment with less noise,
appropriate color and structure of the room, proper lighting in SPL.
 HR managers design a plan to transfer the knowledges of trainees from training
program to work competency in order to upgrade their productive level.
 HRD develops an evaluation plan to evaluate the trainees before and after the
training. HRD also develops evaluation plan to determine the cost benefit from the
training program.

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  After planning and designing all the plans, HRD select the appropriate training
method for the trainees and implement it.
 After the training program HR managers monitor and evaluate the trainees through
their job performances.

4.4 Effect of Culture on Training & Development

Effective training programs develops more skills and knowledges in an employee and
increase their market value. Training and development programs are very crucial for
organization in today’s competitive globalized world. The peoples of Bangladesh are
collectivist and low performance oriented. The MNCs provide adequate training to required
employees in order to equip them with more knowledge and skills to perform their
responsibilities efficiently in their assigned job. The employees of MNCs become more loyal
and committed to the organization for the perception that organization has done them a favor
by developing them (Abdullah, Boyle & Joham, 2011). Employees of MNCs doesn’t
experience favoritism or nepotism. These things reduce the motivation of employees towards
their work and performance. The MNCs of Bangladesh always try to build up a friendly
environment in the workplace by narrowing the power distance and improve communications
between employees (Wahid & Ssekasi, 2018). The organizational culture and HR practices of
SPL have been designed by adapting these things from MNCs.

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5.0 Recommendation
 SPL must narrow down the power distance between employees with improve
communication to create a friendly environment in the workplace in order to achieve
HPWS.
 SPL must adapt psychological tests based on western culture in their recruitment &
selection process to hire potential candidates.
 SPL must recruit candidates both externally and internally through advertisement and
references.
 The HR managers of SPL must not practice favoritism or nepotism, it reduces the
motivation of employees towards their performance. The selection of trainee mustn’t
be done by practicing favoritism or nepotism.
 The HR Managers of SPL needs to develop more direct style of message delivery to
their subordinates.

6.0 Conclusion
Globalization has a direct and significant impact on various cultures around the world.
Globalization has helped the peoples of developing nation to adapt the culture of developed
nations. Industries of Bangladesh have been upgraded with advanced R&D program and
advanced HR practices due to establishment of various MNCs in Bangladesh. SPL has
adapted various methods of recruitment & selection from MNCs. Advanced training
programs have been adapted in SPL to develop their employees from various MNCs.

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 List of Abbreviation
HPWS High Performance Work System
HR Human Resource
HRD Human Resource Department
HRM Human Resource Management
MNC Multi National Company
MPO Medical Promotional Officer
PMS Performance Management System
SPL Square Pharmaceuticals Limited
TNA Training Need Analysis

References
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from https://www.hofstede-insights.com/country/bangladesh/

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