The Necessity of Dedicated Human

Resource Department in Bangladesh

Railway
The Necessity of Dedicated Human
Resource Department in Bangladesh
Railway

Submitted to:
Dr. Osman H. Chowdhury,
Faculty, School of Business
Independent University Bangladesh

Prepared By:

Mir Hossain Ekram Anayetul Islam

ID# 0030152 ID# 1028003
Kaisar Ahmed Majumder Seefat jahan
ID# 1028013 ID# 9630470

November 24, 2010

 November 24, 2010

Dr. Osman H Chowdhury,

Faculty, School of Business,
Independent University, Bangladesh.

Dear Sir,

Here is the report on The Necessity of Dedicated Human Resource

Department in Bangladesh Railway. As you read the report, you will be
surprised to see the present practices of Human Resource Management of
Bangladesh Railway. You will also find the relevant data and information
and analysis of this data from different points of view. Moreover, you
will find the core personnel activities and the importance of these
activities. Finally, you will get our recommendations to improve its
performance to sustain as a profit seeker value added service provider in
the long run based on this analysis.

We are grateful to you for giving us such valuable assignment. We will

be looking forward to get valuable suggestions from you if any correction
is required.

Sincerely Yours,

Kaisar Ahmed Majumder

on behalf of the team
 The Necessity of Dedicated Human Resource Department
in Bangladesh Railway

Abstract: Bangladesh Railway is a Government –owned and

Government –managed organization. It covers a length of 2,855
route kilometers employing a total of 34,168 regular employees.
As railway is a very important mode of inland transport, linking
the entire length and breadth of the country, its healthy grow
naturally contributes to the economic development of the
country. The study has been undertaken to identify the necessity of
dedicated Human Resource Department for Bangladesh Railway. Time
period of this study is from October 01, 2010 to November 15, 2010. The
study is based on secondary data sources. Secondary data has been
collected from company website, internet and newspapers. The authors
suggested that through launching separate Human Resource Department,
converting this HR team to functional HR team, decentralizing HR
activities and launching 360 degree performance appraisal system
Bangladesh Railway can improve its performance which will lead it to
profitable organization through providing better customer service.

Key words: Bangladesh Railway, Human Resource Department,

Customer Service.
 Table of Content

Contents Page
1.0 Introduction 1

1.1 Institutional Framework & Organization 3

1.2 Some Historical Events of Bangladesh Railway- at a Glance 4

1.3 Bangladesh Rail Way-Vision and Mission 7

1.4 Bangladesh Railway Management 8

1.5 Officers and Staff Welfare 8

2.0 Why Human Resource Management 11

2.1 The Activities of the Personnel Function 11

2.2 Process of HR Planning 14

2.3 Recruitment 17

2.4 Determining the vacancies 17

2.5 The Job advertisement 18

2.6 The Job advertisement 19

2.7 Performance Appraisal 23

2.8 The Need for Training 23

3.0 Conclusion and Policy Recommendations 25

1.0 Introduction:

Bangladesh Railway is a Government –owned and Government –managed organization.

It covers a length of 2,855 route kilometers employing a total of 34,168 regular employees. As
railway is a very important mode of inland transport, linking the entire length and breadth of the
country, its healthy grow naturally contributes to the economic development of the country.
Bangladesh Railways, primarily a passenger railway, handles approximately 10 percent of the
national passenger and freight traffic. It carries its maximum number of passengers
between Chittagong and Dhaka, the nation’s most important transport corridor.

Till June 2, 1982, the management and development of railway was vested with a
Railway Board, comprising of a Chairman and four members. But, for administrative
convenience and operational reason the Railway Board was abolished with effect from June 3,
1982 and the function of the Railway Board was vested with the Railway Division of the
Ministry of Communications with the Secretary of the Division working of as the Director
General of Bangladesh Railway. For the same purpose the Railway bifurcated into two zones,
East & West, under the administrative control of two general managers, who are responsible/
accountable to the Director General of Bangladesh Railway. Subsequently on August 12, 1995
the day to day of the Railway was separated from the Ministry and entrusted with director
general drawn from the Railway professionals. For policy guidance, a 9(nine) members &
Bangladesh Railway authority (BRA) was formed with the Honorable Advisor Ministry of
Communications as its Chairman. The Director General is assisted by his Additional Director
General and Joint Director General.

The General Managers of the two zones are assisted by various specialized departments
who are responsible for operation, maintenance and financial management. Each zone is again
divided into two divisions, which form the basic unit of operation. The division is headed by a
Divisional Railway Manager, who is assisted by Divisional Officers of various specialized
Departments such as Personnel Transportation, Commercial. Finance Mechanical, Way and
Works Signaling Electrical, Medical, Nirapatta Bahini etc. Besides there are two workshops
Divisions, one in each zone, located at Pahartoli and Syedpur, each being headed by a Divisional

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Superintendent .Further there is a locomotive workshop headed by Chief Executive at
Parbattipur for general overhauling of both BG&MG locomotives.

Railway Management has also got Railway Training Academy headed by a Rector, a
planning cell headed by a Chief Planning Officer, safety inspectorate, headed by a Government
Inspector of Railway. Store Department headed by a Chief Controller of Stores and Accounts
Department headed by an Additional Director General/Finance for coordinating the Accounting
and the financial management activities of the two zones.

The most important issue at present with regard to BR is the high level of direct and
indirect subsidies provided by the Government. BR’s deficit has shown a downward trend, for
the first time, in Fl 92 at Tk. 1.06 billion as compared to Tk. 1.5 billion in Fl 91, directly as a
result of management initiatives to control expenditures and better collection of revenues.

The Government of Bangladesh addressing the issue of redundancy of labor in BR as the

biggest contributor to the deficit, has taken a major decision in early 1992, to reduce the railway
labor force from the level of 55,400 to 40,000 employees by Fl 1995 through voluntary
separation of 10,000 staff in addition to natural attrition. Staff response has been positive, it is
expected that the target in question (40,000) will be achieved before the target date i.e. end
1994/95.

The dominant cause in BR’s financial and operational decline over years was in its
inability to perform effectively in an increasingly competitive transport market where privately
owned road and riverain services were being offered to customers, as viable alternatives to rail
movements. As a result, the share of domestic traffic moving by rail declined to 11%. Freight
loading on Railways has remained static around 2.50 million in Fl 91 and 92, but the net ton kms
have shown an increase from 651 million to 718 million during the same period. BR’s ability to
carry passengers has declined from 55.3 million in Fl 90 to 48.3 million in Fl 91 (—12.6%).
corresponding drop is seen in passenger kms from 5,069 million to 4,586 million (-9.5%). Fl 92
showed recovery when BR carried 52.3 million passengers (+8.2%), earning 5,347 million
passenger kms (÷16.59%).

Bangladesh Government’s Railway Recovery Program (RRP) launched in Fl 1992 and

planned to expire in Fl 1997, is geared to ensure that BR realizes break-even, fully recovering

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working expenses and depreciation by the end of Fl 1997. The mile-stone in Government policy
is the recognition of Public Service Obligation (PSO) and willingness to compensate for certain
services undertaken by BR which are commercially viable, but are considered to be in the public
interest. This will replace the prevailing open—ended system of Government subsidies.

BR does not have any separate Human Resource Department. So HR activities are done
partially here. So our objective of this study is to find out why and how BR can launch their
HRD to enhance its profitability through efficient manpower. For this purpose, we emphasis on
certain crucial personnel activities that are minimum requirements to set up a dedicated Human
Resource Department.

1.1 Institutional Framework & Organization

BR is wholly government owned and structured to function as part of the Government

administration. The Railway Division within the Ministry of Communications (MOCs) is headed
by the Director General who functions as the Secretary for the Ministry in policy making and
also as the Chief Executive of Bangladesh Railways. He is currently drawn from the civil service
and while involving himself in the day—to-day railway operations takes advice from his
additional General Managers who are professionals from the major departments of the Railways.
The present organizational structure is highly redundant, with senior management at the Ministry
level (Secretary/Director— General), at the level of two operating General Managers (line
organizations) , and at the level of General Manager (projects). Four parallel organizations exist
with a full complement of senior officers, support staff and facilities. Such a top—heavy
organization is unwieldy and out of proportion with respect to the size and output of railway
transporting less than 2.5 million tons of freight and 50 million passengers. Communication and
decision making is a cumbersome process when too many senior persons at different
organizational levels have to be necessarily get involved. Its cost, both in terms of its dispersion
and dimensions, as well as in terms of imposed inefficiencies are beyond what BR can afford.

One General Manager (a professional from Railways) endowed with adequate financial
and executive powers headquartered at Dhaka can efficiently manage the entire BR system. Such
a unified control provides much needed flexibility in taking decisions in commercially oriented

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transport market. Bangladesh Government has already started a Study in this regard with ADB
financing.

1.2 Some Historical Events of Bangladesh Railway- at a Glance

BANGLADESH RAILWAY, covering a length of 2855 route kilometres managed by

35,172 regular staff, is Government -owned and Government managed transportation agency of
the country.

Some Historical Events:

15 Nov.1862 : Construction of 53.11 Km. of Broad Gauge line between Darsana and
Jagati of Kushtia district by Eastern Bengal Railway.

1 Jan.1871 : Extension of Darsana - Jagati railway line upto Goalanda by Eastern Bengal
Railway.

1874-1879 : Construction of Metre Gauge railway line from Sara (near Paksey) to Chilahati,
Parbatipur to Dinajpur and Parbatipur to Kaunia and construction of Broad Gauge railway line
from Damukdia (Opposite to Sara) to Poradaha.

1882-84 : Bengal Central Railway Company constructed Benapole- Khulna Broad Gauge
railway line.

1 Jul.1884 : Government took over the management of Eastern Bengal Railway.

4 Jan.1885 : Railway Metre Gauge connection between Dhaka and Narayangonj, a distance of
14.98 km. by Dhaka State Railway, which was later on merged with Eastern Bengal State
Railway.

1885 : Construction of Dhaka - Mymensingh railway section by Dhaka State Railway.

1 Apr.1887 : Eastern Bengal Railway was merged with Northern Ben gal State Railway.

1891 : Construction of the Assam - Bengal Railway taken up with British Government assistance
but was later on taken over by Assam-Bengal Railway Company.

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1 Jul.1895 : Opening of 149.89 km. Metre Gauge lines between Chittagong and Comilla and
50.89 km. Metre Gauge lines between Laksam and Chandpur by Assam Bengal Railway.

3 Nov.1895 : Chittagong to Chittagong port line was constructed.

1896 : Construction of Metre Gauge line from Comilla to Akhaura and Akhaura to Karimgonj.

1897 : Single line section between Darsana and Poradaha conver- ted into double line section.

1898-99 : Mymensingh - Jagannathgonj Metre Gauge railway cons- tructred.

1899-1900 : Metre Gauge railway line constructed between Santahar Jn. to Fulchhari by
Brahmaputra-Sultanpur Railway Company.

1903 : Laksam - Noakhali section constructed by Noakhali (Bengal) Railway company.

1 April.1904 : Bengal Central Railway Company and Brahmaputra- Sultanpur Railway Company
taken over by Govt. managed Eastern Bengal Railway.

1905 : Opening of Kaunia-Bonarpara Metre Gauge section. Govt. and purchases the Noakhali
(Bengal) Railway Company.

1 Jan. 1906 : Noakhali (Bengal) Railway Company merged with Assam Bengal Railway.

1909 : Poradaha-Bhairamara single line converted into double line.

1910-1914 : Akhaura -Tongi section opened. Conversion of Shakole to Santahar Metre Gauge
section into Broad Gauge.

1912-1915 : Kulaura - Sylhet section opened.

1 Jan.1915 : Hardinge Railway Bridge was opened over the river Padma at Paksey.

1915-1916 : Sara - Sirajgonj line constructed by Sara - Sirajganj Railway Company.

1916 : Bhairamara-Raita Broad Gauge section opened.

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1912-1918 : Gouripur - Mymensingh - Netrokona and Shamgonj -Jharia- janjail sections
constructed by Mymensingh - Bhairab Bazar Railway Company.

1915-1932 : Bhairamara - Ishurdi - Abdulpur single line section conver- ted into double line.

10 Jun.1918 : Rupsha - Bagerhat Narrow Gauge section constructed by a Branch line Company.

Jul.1924 : Conversion of Santahar - Parbatipur Metre Gauge section into Broad Gauge.

Sep.1926 : Conversion of Parbatipur - Chilahati Metre Gauge section into Broad Gauge.

1928 : Opening of Shaistagonj-Habigonj section.

1928-29 : Tista - Kurigram Narrow Gauge section converted into Broad Gauge.

1929 : Shaistagonj-Balla and Chittagong-Hathazari sections opened.

1930 : Hathajari - Nazirhat Metre Gauge and Abdulpur - Amnura Broad Gauge sections opened.

1931 : Sholashahar-Dohazari section opened.

6 Dec.1937 : Opening of king VI George Bridge connecting Bhairab Bazar and Ashugonj over
the river Meghna.

1941 : Jamalpur-Bahadurabad Metre Gauge section opened.

1 Jan.1942 : Assam - Bengal Railway taken over by Government and amalgamated with the
Eastern Bengal Railway under the name '' Bengal and Assam Railway ''.

1 Oct.1944 : Government took over Sara-Sirajgonj Railway Company.

1947 : Bengal and Assam Railway was split up and the portion within the boundary of erstwhile
East Pakistan was named as '' Eastern Bengal Railway '' , the control remaining with Central
Government of Pakistan.

1948-1949 : Government takes over Mymensingh-Bhairab Bazar Rail way company and Rupsa-
Bagerhat Branch Line Company.

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21 Apr.1951 : Jessore-Darsana Railway line opened to traffic.

Oct.1954 : Sylhet to Chatak Bazar railway line opened to traffic.

1 Feb.1961 : Eastern Bengal Railway renamed as Pakistan Eastern Railway .

1962 : A Railway Board was formed & management of Railway was placed under the Provincial
Government.

1972 : Pakistan Eastern Railway renamed as Bangladesh Railway.

23 Jun.1998 : Broad Gauge railway line extended from Jamtail to Ibrahimabad via Jamuna
Multipurpose Bridge.

14 Aug. 2003 : Inauguration of direct Intercity Train Service from Rajshahi to Joydebpur
(Dhaka) via Jamuna Multipurpose Bridge.

1.3 Bangladesh Rail Way-Vision and Mission

Vision:

To provide safe, reliable, cost effective and time efficient rail transport service in the country
through modernizing, expanding & maintaining rail system in a manner which supports
government strategies for economic, social & environmental development.

Mission:
Develop & maintain railway tracks & station infrastructures throughout the country. Maintain &
upgrade locomotives, coaches & other rolling stocks. Maintain & modernize signaling &
interlocking system & Telecom system of Bangladesh Railway. Ensure safe, speedy & efficient
train operation. Implement Government transport policy in rail sector. Procure modern
technology related rolling stocks, Track materials & signaling systems suitable for Bangladesh
Railway. Manage land asset of Bangladesh Railway. Ensure optimum utilization of Development
Budget & Revenue Budget of Bangladesh Railway

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1.4 Bangladesh Railway Management

Built for the political, strategic and commercial considerations, the railways in Bengal were
under absolute British control as per specific terms and conditions of contracts with the
companies and government legislation passed from time to time. The government control over
railways was legislative, contractual, and executive. Company directors exercised detailed
control on overall working of the railways.

After the liberation of Bangladesh, the organizational structure needed fundamental changes.
Accordingly, on the basis of the reports of the Railway Commission of 1973, Martial Law
Ordinance no. XLI of 1976, M.L.O. no 21 of 1982 and Government Order of 1995, a series of
changes were made in the top administrative management. Bangladesh Railway continues to
operate as a state owned organization, financed and managed by the government and placed
under the Ministry of Communications. At present, a Directorate of Railway consisting of
specialized departments such as Infrastructure, Rolling Stock, Marketing and Corporate
Planning, Operation, and Finance is headed by a Director General. Railway finances are merged
with the general finances of the country, the Safety Control wing of the railway works directly
under the Secretary, Ministry of Communications and the Audit wing is under the Comptroller
and Auditor general. From the operational point of view, Bangladesh Railway has been divided
into two separate zones, East and West, on either side of the river Jamuna. Each zone is headed
by a general manager, who is assisted by specialists of respective disciplines.

1.5 Officers and Staff Welfare

Numbers :

As on date 30th June, 2005, there are 484 officers & 34,688 staff of different categories. The staffs
are graded/classified as Class-III and Class-IV staff. The ratio of officers and staff is about 1: 72.

Training :

Bangladesh Railway has got a built- in system of imparting training to Railway Officials and all
categories of nongazetted staff to enable them to improve their skills & ability. For safe and
efficient operation of the railway a well equipped & modern Railway Training Academy has been

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established in 1984 which is now located at Halishahar, Chittagong. Four workshop Training units
at Pahartali, Dhaka, Parbatipur and Ishurdi have been transferred under the control of
Rector/Railway Training Academy, Halishahar, Chittagong i.e. 03-01-04 for imparting Training in
Locomotive maintenance and operation staff of Mechanical department. In the year 2004-2005
total 757 persons of different categories were trained including 25 nos BCS Cadre Officers.

Festival Allowance :

The system of giving festival allowance to the employees was introduced in the year 1984. This is
not linked with productivity/profit. The festival allowance is given twice in a year. Each allowance
is equal to the one month’s basic salary of the employee concerned.

Medicare & family welfare :

Well equipped network of hospital and dispensaries have been working in the system to provide
proper medical care to the employees & their dependents. There are around 10 well equipped
hospitals with a total of 440 beds, one Modern Chest Disease Hospital at Chittagong with 50 beds,
and 31 dispensaries with qualified doctors. BR has also family welfare programme. At present
there are 21 maternity & child welfare centers in the system to look after the health of the
expectant mothers, postnatal cases, toddlers and infants.

Housing Facilities :

Nearly 70% of the staff is provided with residential accommodation. The government has been
pleased to approve a housing scheme under the caption '' Bangladesh Railway Employees Co-
operative Housing Society Limited'' at Chittagong for the employees for enabling them to become
owners of houses.

Kallyan Trust :

The Trust is doing various welfare activities for railway employees. An amount of Tk. 18.67
million from the Railway revenue was contributed to the Trust during the year under review. The
main activities of the Trust are to provide grant to employees undergoing medical treatment,
donation to the staff on distress and monthly educational allowance & monetary assistance to the

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children of low paid employees for education.

Benevolent Fund :

This fund is providing financial assistance to the families of deceased employees. About 4,283
such families were given grant to the extent of Tk. 20.96 million out of this fund during the year.

Group Insurance :

Group Insurance Scheme was introduced on 1st October, 1970 in order to ensure the lives of the
Railway employees. Premium for non-gazette staff are borne by the Railway. 209 nos. of claim for
death amounting to Tk.15.83 million has been finalized during the year.

Sports & Recreation :

42 Institutes & Recreation Clubs provided with requisite facilities for outdoor & indoor games
exist at different centers of BR. Under the supervision of Central Sports Association, there are
eight zonal sports club at different centers. Railway is also playing an important role in the
National Scouting.

Education :

Adequate facilities are provided by the Railway Administration for education of the children of
Railway employees. Ten High Schools are run by Railway at important centers and a sum of
Tk.13.61 million was spent on management of these Schools during the year 2004-2005. Besides,
138 privately managed Schools; Colleges & Madras has are functioning in Railway premises.

Trade Union :

There are eight registered trade unions in BR to maintain a healthy relation between the employees
and administration to pave the way for congenial working atmosphere on the system.

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2.0 Why Human Resource Management

This part sets out a systematic way of conducting the personnel function of management,
and shows the respective spheres of line and personnel mangers. As we have seen, specialized
personnel departments were frequently established by organizations responding to change, often
as a consequence of acquisitions and mergers, or due to the increased size and complexity of
their businesses.

Specialization in personnel management has contributed to the success of famous

companies, and through such companies has played a part in advancing the cause of civilization.
The improvement of working conditions, the creation of job satisfaction, the development and
training of employees, the maintenance of harmonious relationships and the fairness of rewards,
for example, exist in organizational life because managements have seen the importance of a
professional approach to personnel management. However, there is -evidence of failure in some
organizations. The problems of low productivity, unfair dismissals, absenteeism, accidents and
social abuses such as sexual and racial discrimination are still with us as we move from the
twentieth century into the twenty-first century.

As Bangladesh Railway is one of the largest government sectors aiming to serve the
citizens of Bangladesh in a better way, it is important to lunch proper human resource practices
within the organization to ensure quality services through efficient and well trained railway
associates.

2.1 The Activities of the Personnel Function

At the heart of all personnel activities is the Human Resource (HR) plan or strategy. This
is the centerpiece, where corporate manpower objectives are set out, in numbers of people within
each area of production, sales and administration, the skills required and the costs. The plan may
cover any period, but most typically it will be for the period of one to five years, and will be a
part of the company’s budgetary programme. Corporate planning is often undertaken on a five-
year rolling cycle, with each successive year being brought up-to-date as it comes closer to the
current year, and it would be usual for the HR plan to be part of this procedure. In the HR plan

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the organization’s demand for labour is set out, and this results in an examination by the
personnel manager of the internal labour supply. Where possible, posts are filled from within as
the most efficient source of labour, but it would be unusual for the right mix of skills and
experience to be available for every vacancy, and so recruitment into the organization is
necessary. The transfer of employees, their promotion and recruitment results in the
establishment of training schemes.

Training is also an adjunct to appraisal. Appraisal is an activity designed either formally or

informally to measure the performance of subordinates against the achievement of agreed
objectives. Welfare policies are available to help individuals who have personal problems which
inhibit their performance. Along with the activities of appraising and training, there is concurrent
attention to manpower control, by the application of reporting and discipline procedures.

Throughout all these actions there may be a requirement to consult and/or negotiate with the
appropriate trade unions. The stage at which negotiations take place will obviously vary with the
practice of the industry, but in view of the crucial importance of wage costs for determining
prices, and thus sales revenue and net profit, the earlier the negotiation the greater the certainty
that costs will be as predicted.

The essential message here is that each ‘personnel’ activity is linked to another and
therefore failures in any one part of this system may result in the breakdown of the whole. As a
system, there are links between corporate and individual objectives, joint agreement on the
approach to be taken between management and work people, a monitored and flexible manpower
plan which allows for the development of individuals who are apprised and rewarded in
accordance with their contribution to the organization’s objectives.

We mentioned earlier the importance attached to integrating the human resources plan
into the corporate or business plan. Taking our view of personnel policies, there should also be
integration between the policies, so that they are experienced as a coherent means to attaining
management’s objectives.

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 The activities we have outlined are not the exclusive province of the personnel manager,
but are activities which managers in all parts of the organization share. The HR plan must be
integrated with the corporate plan, and we would anticipate that all senior managers would make
an input to this planning activity, just as managers are originators of job descriptions, appraisers,
initiators of salary increases for their staff, and of action within the discipline procedure. In other
word, managers have the major role to play in the management of people, and the supporting role
is performed by the personnel department.

Without the advice and support of specialist staff, however, managers would find their
tasks difficult to achieve. It is worth remembering that when Great Britain faced its most difficult
struggles, in the First and. Second World Wars, the way to victory on the home front included
the expansion of specialist welfare and personnel management. In the list of managerial
contributions to the personnel function outlined in the paragraph above, we can note that the
appraisal systems, the salary administration policies, the discipline procedures and the policies
within which managers manage their subordinates are created and monitored by specialists in
personnel management. The responsibilities of management are shared, and in addition to their
central ‘resourcing’ role, of specializing in finding, deploying and developing employees,
personnel managers must co-ordinate and administer the whole range of personnel policies.

The ways in which personnel managers interlink their work with line managers is often a
source of difficulty, but conflict is not inevitable. The relationships between personnel and line
managers are crucial to the success of both parties.

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 Fig: Personnel Activities

2.2 Process of HR Planning

All management is about decision-making in an environment of risk and uncertainty.

Effective management aims to reduce the risk and uncertainty as far as this is possible in an
imperfect world by the acquisition of the best available information and the use of a system.

Human resource planning is an expression of this philosophical the most important area
of all, the effective employment of people. Whatever skepticism may remain, there are strong
indications that the impetus that human resource planning has now acquired will become
increasingly evident in managerial practice. The changes and pressures brought about by

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economic, technological and social factors compel organizations of all kinds to study the costs
and human aspects of labour much more seriously and carefully than ever before. For the same
reason, it is a subject to which central government will continue to attach great importance and in
which it will, of necessity, play a major influential role.

Fig: Human Resource and Business Planning Process

The effectiveness of the plan will depend on how soundly the organization has
considered and planned its corporate strategy and integrated the objectives of its component
departments. Once these fundamental details have been thoroughly examined and decided, the
senior directing staff of the organization can consider the implications in terms of human
resources.

Because of the constantly changing environment in which all work organizations operate,
whether they market a product or provide a service, the corporate strategy and objectives will
necessarily require continuous monitoring and revision from time to time. This will entail a
corresponding, regular review of the system.

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 Strategic planning requires the planners to assess the national/international political,
economic, social and technological trends (a ‘PEST’ analysis), and to look at how their own
organization is responding. The planners will also wish to assess the likely challenges and
opportunities available — perhaps through using a ‘SWOT’ analysis — looking at the
‘strengths’, ‘weaknesses’, ‘opportunities’ and ‘threats’ to the organization. Strengths and
weaknesses are usually internal, whilst threats and opportunities are external. Discussions of
human resources strategies are also often to the fore when a new ‘mission statement’, or a ‘value
statement’ (describing the underlying values to be adopted with regard to customers, employees
and suppliers), is created.

Fig: Summary of the main elements of a system of human resource planning

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2.3 Recruitment

Recruitment is the phase which immediately precedes selection. Its purpose is to pave the
way for the selection procedures by producing, ideally, the smallest number of candidates who
appear to be capable either of performing the required tasks of the job from the outset, or of
developing the ability to do so within a period of time acceptable to the employing organization.
The smallest number of potentially suitable candidates can in theory, of course, be any number.
The main point that needs to be made about the recruitment task is that the employing
organization should not waste time and money examining the credentials of people whose
qualifications do not match the requirements of the job. For purposes of studying the main details
and requirements of an efficient, systematic recruitment process the task may conveniently be
examined under the following headings:

1. Determining the vacancies.

2. Considering the sources.

3. Preparing and publishing information.

4. Processing and assessing applications.

5. Notifying applicants.

2.4 Determining the vacancies

The first stage in the procedure is concerned with the question of what resources are
needed, i.e. the demand. Determining vacancies to be filled will depend on the aim and
objectives of the organization and the needs for human resources which these engender. Details
of requirements will emerge from the compilation and regular revision of the human resource
plan. In practice, job vacancies may occur when an organization or work unit is set up ab initio,
when any re-organization takes place through changes of policy, technology or location or, most
commonly, when employees leave the organization and need to be replaced. Because of the
subtle changes which are continuously taking place in work organizations, the existence and
nature of job vacancies should not be accepted without question. Sound human resource planning
and job analysis, regularly and systematically reviewed, should ensure that this does not happen.

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2.5 The Job advertisement

Bangladesh Railway consider six broad areas while going for advertisement: namely:

1. The work organization: its main occupation and location.

2. The job: its title; main duties (location, if varying from main centre).

3. Qualifications and experience (both necessary and desirable): personal requirements;

specifically professional qualifications, experience, aptitudes, etc.

4. Rewards and opportunities: basic salary and other emoluments; any other benefits;
opportunities for personal development.

5. Conditions: any special factors and circumstances affecting the job.

6. Applications: form of application; closing date; address for forwarding.

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2.6 Administration of the recruitment process

The responsibility for administering and supervising the task of recruitment belongs to
the personnel staff. They act as the representatives or agents of their employers and are a link
between the managers of the organization who require staff, the external sources for finding
employees and the people who respond to the advertisements and apply for employment. The
main elements of the task are:

1. Acting as the focal point for coordinating the organization’s needs for staff: in this function
they use the data of the human resource plan and job analysis.

2. Providing specialist knowledge about factors affecting the availability of required staff, and of
current legislation affecting recruitment for employment: in this context they may also make
recommendations about recruitment policies that the organization should adopt.

3. Using specialist knowledge to decide what sources are likely to be most fruitful in the search
for suitable staff: here it is particularly important that the personnel staff establish and maintain
harmonious and profitable relationships with those agencies which are most likely to satisfy the
recruitment needs of the organization.

4. Formulating and administering the details of the recruitment procedures, related to the
publication of information, processing of applications and notifying applicants: personnel staff
need to liaise closely with line managers in the various stages of the recruitment process. The
phases of the recruitment procedure when consultation between personnel staff and line
management is most likely to occur are the publication of the advertisement of the job vacancy
and the processing of applications. Line managers may well be asked to verify that
advertisements accurately reflect requirements before they are finally released for publication.
They may often be consulted when a shortlist of candidates is being produced. There are some

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situations where consultation of this kind is essential, e.g. the appointment of
managerial/supervisory staff reporting directly to the line manager, a personal assistant, etc.

5. Maintaining records and data on the value in practice of the various recruitment sources used
by the organization: this is an important source of feedback to the system in order to ascertain
limitations in the supply of human resources and to ensure that the organization obtains the best
possible supply and quality of required employees.

Organizations need to take account of significant changes that have occurred in the labor
market in recent times in their approach to recruitment. Because of rapidly changing
technological, economic and social forces, present and future trends are, and will be, very
different from the relatively static situation that once existed. Increasingly, organizations need to
consider employing people with contracts that depart from convention, e.g. short-term, part-time,
job-sharing, working from home, etc. At the same time franchise operations and sub-contracting
arrangements provide opportunities for work to be carried out without the employer bearing the
costs and risks of traditional recruitment and employment methods. Thus, considering all factors,
BR developed the recruitment and selection process which is mentioned in the figure below:

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Fig: A summary of the recruitment process

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Fig: Summary of the main elements of recruitment & selection system of BR

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2.7 Performance Appraisal

The development of performance appraisal in practice

Historically, performance appraisal in this country originated mainly in the public sector
of employment — the armed forces and the Civil Service. Now, formal schemes of performance
appraisal are widely used in the majority of work organizations in both public and private
sectors. The details of these formal schemes vary considerably depending on the purposes and
preferences of individual work organizations. These differences are reflected in terms of the
format of reports, degrees of confidentiality and openness, the appraisers, the level of
participation by those being appraised, and the nature of appraisal discussions between those
appraising and those being appraised. Bangladesh Railway also developed Performance
Appraisal System. In this system they don’t include the bilateral communication system where
the appraiser and employee can share their views and feedback together. The system doesn’t
follow the 360-degree feedback process i.e. feedback from coworkers, colleagues, peers,
customers, seniors, subordinates etc. In this system promotion, demotion and transfer are
included, but no training and development recommendation option is present there.

2.8 The Need for Training

Because a system is only as good as the people who operate it, managerial staff of all
levels needs training in performance appraisal to make it effective in practice.

The objectives of training should be:

1. To standardize practice.

2. To explain the organization’s system and give opportunities for staff to discuss and
question.

3. To identify general requirements for effective practice.

4. To provide practice in the important skills, i.e. assessing and discussing performance,
as a basis for further individual development.

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 5. To make assessments of real, but unidentified, job holders, so that the discipline of the
appraiser’s approach may be analysed, i.e. defining criteria for effective performance,
making sound and fair conclusions.

6. To carry out role-play discussions, based on credible scripts, in order to practise the
general performance appraisal agenda described earlier and the necessary
communicational skills.

The learning opportunities provided by simulated role-play exercises will be significantly

enhanced by the use of CCTV recordings for purposes of analysis and discussion.

Fig: Summary of the main elements of a system of staff assessment

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However, Bangladesh Railway doesn’t follow the ideal training process. Their Training Need
Assessment Process is not clear and objective oriented. Employees are enlisted for training
without thorough analysis. The process should be started with the employees’ opinion regarding
training and their immediate supervisor’s recommendations. HRD then reassess this with the
departmental heads and finally submit this in the Head Office Training Department for
arrangement.

3.0 Conclusion and Policy Recommendations:

As Bangladesh Railway plays a vital role in the communication and transportation system in
Bangladesh, it is important to set ideal HR team to enhance the efficiency, capacity and
capabilities of the associates of BR. However, integrated business strategies should be
formulated to make this sector really profitable. For this purpose, some strategic leaders should
be appointed immediately. It is needed to restructure its business policy, reassess the people plan
along with their required experience, skills, education and capabilities. Updated HR policy
should be formulated which will comply with the local laws ideal HR practices around the world.

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