COURSE NAME

Human Resource Management

COURSE CODE: MBA 509

Report On

A platform business

SECTION: 01

DEPARTMENT: Master of Business Administration (MBA)

SUBMITTED TO

Dr.Nazmul Amin Majumdar

SUBMITTED BY

Mohammed Riajul Islam

ID: 1910721

DATE: 17/09/2020
 Executive Summary

With a rapid growth of technology, e-commerce is booming to gain more productivity,

efficiency and effectiveness from the business. People always want to save their time and
money and ecommerce offers a platform where both the most important things can be saved.

Moreover, online is now considered as a marketplace where people can buy and sell their
products rather than visiting physical marketplace. For any organization employee
satisfaction is a crucial factor to build a positive image in that particular industry. The main
reason is rising day by day to a high level because of assigning the right people at the right
place. However, Daraz- Bangladesh also holds a strong position in the industry by providing
a shopping experience that is incomparable in Bangladesh As there is an intense rivalry
among the competitors so to survive and compete in the industry.

This report covers the HRM problems and Issues, HRM Approaches and HRM challenges in
the 21st Century on Daraz. Though e-commerce sector is booming and yet a very new
industry, people are getting more and more dependent on it. But the online business
organizations are not performing up to the mark. It is high time for Daraz to improve their
services to sustain in the long run and to hold its position as the market leader. The
recommendations are also given based on the drawbacks that they have and if they could
apply those in real life it could be helpful for them in the long run. Being a leading e-
commerce company of Bangladesh, it has a potential future and we will see different sides
and aspects of this company in this report.

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 Table of content
SL No. Content Page No.
Chapter One: Introduction
1. Introduction 4
1.1 History of E-Commerce Business In Bangladesh 4
1.2 Present position of E-Commerce Business: 4
1.3 History Of Daraz: 4
1.4 Current Position Of Daraz: 5

1.5 Product & Services of Daraz: 5

1.6 Market Position of Daraz: 7

1.7 Market Share of Daraz: 8

Chapter Two: Body Of The Report

2.1 What are the HRM problems and issues DARAZ is facing? 11
2.2 What sort of HRM approaches do you think need to be taken to ensure 13
ongoing strategic competitive advantage?
2.3 What HRM challenges Daraz face in the 21st century? Critically discuss. 18

Chapter Three
3.1 Conclusion 24

3.2 Recommendation 24
3.3 Explanation 25
3.4 Reference 27

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 Chapter One:
INTRODUCTION

3
1.Introduction:

1.1 History of E-Commerce Business In Bangladesh

E-commerce business is booming in Bangladesh recently. With better access, inclusion and a
consistently developing web population, the prospect for e-Commerce is splendidly growing
for the last couple of years.

The story of e-commerce is older than you thought. Basically, our country saw a limited
version of ecommerce in late 90s with the idea to serve NRBs who were looking for options to
send gifts to their beloved ones in Dhaka. Slowly and steadily ecommerce started to grow
from 2000 and in between 2008. But the major issues were payment gateway, delivery system
and customer education against its rapid growth.

Situation started to change when the first payment aggregator SSL COMMERZ launched their
business in 2010. And with the inclusion of WiMAX, internet speed got a bump as well during
the same time which gave a boost to the online business too. Beside this improvement, we saw
some major investments during this period, companies like ajkerdeal, rokomari, akhoni [now
bagdoom] etc. started their operation as well.

The concept of online marketplace was introduced in 2012/13 by akhoni and ajkerdeal. From
2015 onwards Kaymu and Daraz is disrupting the market by investing a huge amount of
money in marketing for quick sales, which eventually is proven a wrong step and ultimately
kaymu merged with Daraz in 2017.

1.2 Present position of E-Commerce Business:

Though we came a long way, unfortunately market is still premature. Only 22% of total
internet users are using online channel to purchase and the market size in amount is below
BDT 150 crore [we have seen various data from various sources, this is what I think is the
approximate value of total ecom market]. Not more than 1.5 million people are using e-
commerce which is mainly dhaka based.But opportunities are there and nation is expecting a
growth of around 72% over the next couple of years. Companies like Rocket Internet
invested $50 million already in less than 3 years and obviously hasn’t finished investing.

Let’s compare the market in China and India now. E Commerce industry contributed more
than 4% in overall GDP of China [thanks to Alibaba]. Indian e-commerce market is
expecting to grow more than $14 bill and China is $527 bill in 2017. Bangladesh is just
passing the phase what India has passed 5/6 years back.

1.3 History Of Daraz:

Daraz is the leading online marketplace in South Asia, empowering tens of thousands of
sellers to connect with millions of customers. Daraz provides immediate and easy access to
10 million products in more than 100+ categories and delivers more than 2 million packages
every month to all corners of its countries. Daraz is a mall, a marketplace and a community

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for its customers. It is also a university for entrepreneurs, and every month it educates more
than 5,000 new sellers on e-commerce operations. To overcome the logistics challenge in its
markets, Daraz has built its own logistics company specifically designed for e-commerce
operations - Daraz Express (known as DEX) - to raise the standards for the industry. Daraz is
also helping existing and new logistics providers digitize. In 2018, Daraz was acquired by
Alibaba Group, and is proud to carry its part of the mission to 'make it easy to do business
anywhere in the era of the digital economy'. As part of the Alibaba ecosystem, Daraz is
leveraging Alibaba’s global leadership and experience in technology, online commerce,
mobile payments and logistics to drive growth in its markets.

1.4 Current Position Of Daraz:

Fortunately, in Bangladesh we are observing the same trend. Our middle class is growing and
they are also hungry for new opportunities and options which can be catered by ecommerce
industry. As per my research & experience with this industry, I have seen the majority of the
ecom buyers are young executives or students. This influential group will be enriched with
buying power very soon. Another important thing is, our economy is spreading not only in
Dhaka or Chittagong, but also in villages, small cities with proper internet connectivity.
Therefore, a humongous population is ready to spend their extra disposable income for online
purchase more than ever. As a result, it is safe to say we are on the verge of getting that
critical mass for ensuring ecom industry growth.

Daraz is trying to acquire the entire purchaser base and this is the mission of Daraz. Daraz
provides so many good offerings frequently to accomplish this mission. Daraz also provides
products in the lowest possible price so that customers can buy something happily and that is
why that tagline of Daraz is “Happy Shopping”. Daraz wants to capture the whole consumer
base in the online sector.

1.5 Product & Services of Daraz:

Daraz Bangladesh Ltd generates basically no products at all. It is an online market place
selling their products by distinct kinds of vendors. Customers can buy the products they want
from Daraz. They can find it in various categories like Men's Fashion, Women's Fashion,
Phones & Tablets, TVs, Audio & Cameras, Computing & Gaming, Appliances, Home &
Living, Sports & Travel, Beauty & Health, Baby, Kids & Toys, Grocer's shop, Other
Categories. In a column in the website, customers can discover all these categories mentioned
above. They can search in a search box on the website for their required products. Daraz sells
all these products from various vendors by charging the vendors with separate commission
rates

There are eleven wide categories of accessible at Daraz now.

The categories are-

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• Fashion products

• Phones & Tablets

• Sports & Travel

• TV, Audio & Camera

• Computing and Gaming

• Home & Living

• Baby, children and Toys

• Beauty & Health

• Grocery shop

Figure: Daraz Customer Portal

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1.6 Market Position of Daraz:

Market Positioning refers to the ability to influence consumer perception regarding a brand or
product relative to competitors. The objective of market positioning is to establish the image
or identity of a brand or product so that consumers perceive it in a certain way.

For example:

• A handbag maker may position itself as a luxury status symbol

• A TV maker may position its TV as the most innovative and cutting-edge

• A fast-food restaurant chain may position itself as the provider of cheap meals

Positioning is all about creating a brand image in the mind of customers. Daraz has tried to
position itself as an online shopping site that offers premium and branded products at best
prices. This helps to differentiate itself from its competitors and to achieve market leadership.
Repositioning a brand or product means altering its place in the minds of the consumer.
Daraz has rebranded itself from Kaymu to Daraz trying to change the consumers’ perception
of a brand. This rebranding is done to position itself as a premium brand. However, this
rebranding has created confusion among customers in the target market. To avoid this
confusion, Daraz is involving in various activities such as “Mobile week”, case study in
educational institution, Daraz Ten i.e. offering 10% discount in every item purchased etc.

Daraz online shopping in bangladesh – daraz.com.bd is bangladesh`s no. 1 online Shopping

store featuring 3+ million products at low prices with cash on delivery in Dhaka, Chittagong,
Khulna, sylhet and across country.

Traffic Overview of daraz.com.bd vs bikroy.com

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1.7 Market Share of Daraz:

The buyers and sellers both have much power nowadays as a result of the massive utilization
of ground-breaking technologies just as the internet. A large portion of the business at present
is working under the e-commerce criteria over digital networks. The web connects the
general population with companies. The E-commerce market in Bangladesh, made a quantum
jump in 2017; developing at an incredible 70% from 2016. In 2017, the B2C E-commerce
business market measure adds up to USD 110-115 million (around BDT 900 crore) against
the 133,571 crores total retail market. On the contrary, the measure of the Indian mega e-
commerce business market remains at USD 17 billion. As indicated by the specialists,
Bangladesh E-commerce business is at a phase where the Indian market was most likely 5-7
years prior. The extent of the E-commerce business market crossed the Tk 17.0 billion-stamp
in 2017 from Tk 4.0 billion in 2016, as indicated by the information accessible with the e-
Commerce Association of Bangladesh (e-CAB). The market measure is relied upon to reach
Tk 70 billion (Tk 7,000 crore) by 2021.
E-commerce business in the Asia-Pacific overall is blasting with 71 percent of APAC buyers
making an online buy. Bangladesh is a noteworthy player in this region. Starting in 2016, a
sum of $50 million was invested in this sector. Of the total, $10 million came as Foreign
Direct Investment. Be that as it may, the sum would be a lot higher as Chinese e-commerce
giant Alibaba had recently acquired leading online marketplace Daraz. The Retail E-
commerce is developing at 72 percent a month in Bangladesh. Currently, 35,000
individuals and 25,000 little and medium enterprises (SMEs) are included with this division.
The quantities of e-commerce business sites and E-commerce pages are 2,500 and
150,000 respectively. The quantity of delivery is assessed at 15,000 to 20,000 at the retail
level every day.

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 E-commerce platforms of Bangladesh

Of them, the market share of Daraz is estimated to be 40 percent.

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 Chapter Two

BODY OF THE REPORT

10
2.1 What are the HRM problems and issues DARAZ is facing ?

Objective:

• To identify what kinds of HRM problem daraz is facing.

• To assess manpower requirements and ensure placement of the right man on the right
job.
• To employ the skills and abilities of the workforce efficiently.
• To provide the organization with well-trained and motivated employees.
• To communicate HR policies to all employees.
• To increase to the fullest the employees’ job-satisfaction and self-actualisation.

Answer: Humans have always been complex and having to manage people has always
been tricky. Now, the digital age has added even more complexity to human resource
management, like the transparency of social media, the persistence of software updates, and
the remoteness of international teams.
This makes human resources a difficult job that’s faced by many Problems. It also means that
identifying and overcoming human resource challenges is time, money and effort well spent,
since the greatest asset a business can boast are its employees.

Human resource management (HRM) is adopted by many companies because of its benefits.
But at the same time, various problems and issues may emerge in front of managers of human
resource department while performing their duties. Now I highlights some major problems
and issue daraz is facing:

1.Find the right talent within budget (and on time).

A company is only as good as its people, but finding good people can be costly and time-
consuming.Your company can expect to spend as much as $7,645 — and search up to 52
days — for each new hire. On top of that, the cost per hire can balloon to as much as 60% of
a former employee’s annual salary, if you’re replacing someone.

You might be tempted to chalk these numbers up to "the cost of doing business," but there's
no reason why your company can't save time and money on hiring top talent.

2.Employee training and safety

Once employees are hired, having HR resources can be a great asset during training to
prevent costly errors and even injuries from occurring. However, many small businesses
simply don’t have the time to properly train new hires, which could affect workplace safety.
According to the National Safety Council, a worker is injured on the job every 7 seconds,
with 25 percent of these injuries caused by contact with objects and equipment. Proper

11
training can help prevent workplace injuries like sprains, strains, cuts, lacerations, and
punctures as well as promote morale and retention.
3.Recruiting Talented Employees

Attracting talent is a huge investment of time and money. It’s difficult for entrepreneurs to
balance between keeping a business running, and hiring the right people at the right time. In
addition, it’s impossible to know whether a candidate will actually be a good fit until they’ve
worked for you for a period of time.

4. Navigate laws and regulations.

As your company grows, so do the employment regulations you have to follow. And if
they’re not growing, they’re usually changing.

Complying with these regulations is a challenge, especially for small to mid-sized companies.
While big companies can afford large HR and legal teams, small businesses run the risk of
fines and legal action for violations they often didn’t even know they were making.

5. Time tracking

Depending on where you live, you’ll need to comply with local, state, and federal laws
regarding vacation, paid leave, breaks, and overtime for your employees. Without a solid
time tracking system in place, it can be difficult to ensure your employees are being paid
fairly. Utilizing an online platform can help save time and energy for both small business
owners and their employees.

6.Retain employees.
Finding quality employees is often a challenge. So is keeping them.

Losing quality employees is not only a drag on your company’s talent pool and time, it can
also be a drag on your company’s finances. The average cost of losing an employee can be
anywhere from one-third to 400% of the employee’s annual salary!

7. Managing Remote work

Most remote work can be conducted with little more than a computer, internet access, a
phone and a headset.

Whether digital tools are provided through a shared drive accessed by a secure VPN, or via
Dropbox folders, should be determined by your company’s needs and security standards.

Depending on the work being produced at home, you may want to provide a small printer.
Alternatively, you may decide to set up an account at a local copy shop or mail services
center, all with clearly communicated spending limits.

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Consider carefully whether remote employees are provided company laptops or can use their
personal laptops. Cyber security and data safety are important, obviously, when considering
hardware, software and where employees may access central servers.

You may also need to verify bandwidth and the reliability of internet connections, and
whether the person works from home or from a co-working space.

literature review:

Human resource management is a strategic approach to managing employment relation which

emphasizes that leveraging people capabilities is critical to gain sustainable competitive
advantage, this being achieved via a distinctive set of integrated employment policies,
programs and practices .The actual capital of the organization is the human abilities to utilize
the human being as a capital. Each organization has too much cash to commence the business
but have not professional bodies to use them at the right pace and at the right time. And HR is
strategic partner of the business which runs with the business and takes the business towards
the success.

Findings:

The journey of this research has been challenging but equally fulfilling for the researcher.
This inquiry has helped the researcher to gain knowledge what kinds of HRM Problems
facing Daraz. The primary exercises of human asset the board is to design sagaciously,
create, and directed terms or arrangements and projects intended to make speedy utilization
of an association's HR. It is a piece of the board which is worried about the general
population at work and with their relationship inside an undertaking. Viable use of HR
obtaining objectives at minimum time, desirable working relationships among all members of
the organization and maximum individual development are the core objective of Human
Resource management. The core functional areas in human resource management are
planning, recruiting, employees development and employee compensation with welfare and
so on.

2.2 What sort of HRM approaches do you think need to be taken to ensure ongoing
strategic competitive advantage?

Objective:

• Understand the nature of a firm's human resource management practices.

• Understand the roles played by line managers and human resource professionals in
the human resource management process.
• Understand what competitive advantage is and how companies can achieve it.
• Understand how a firm's human resource management practices can help it gain a
competitive advantage.
• Understand why competitive advantage gained from human resource management
practices is likely to be sustained over time.

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Answer: Competitive advantage means positioning your company ahead of other companies
in order to achieve superiority in quality, low cost, value or innovation. Regardless of what it
means to a company, it may be the single factor to attaining success and business
sustainability. There are many strategies that contribute to achieving a competitive advantage,
but maximizing your human capital is a major contributor to achieving a competitive edge in
the marketplace.

Each company has different business objectives that contribute to developing a competitive
advantage.

I) Business Growth-
If you are planning to expand your business, you most likely will need additional employees
therefore establishing a workforce plan is necessary to ensure you are able to hire the right
employees in the time in which you need them. Developing a workforce plan involves
forecasting how long it will take to hire the employee, where you will source your applicants
and when you need to begin the recruiting process. Failure to implement this strategy could
interfere with your ability to scale your business according to your plan and most likely the
quality of your services and products will suffer.

II ) Maximizing and Optimizing Operations-

Whether your goal is to achieve quality, quantity, or efficiency, ensuring you have the right
people in the right positions is critical for achieving business operations goals that are linked
to profitability. In addition, a workforce plan can accomplish this objective. Workforce
planning also includes conducting an inventory of your current talent and identifying gaps in
technical skills that relate to the areas of importance. Once these gaps have been identified,
then creating a plan to either develop employees within your organization or hire from the
outside to minimize the gaps.

In addition to the technical aspects of human capital, developing a competitive edge means
selecting and retaining employees with specific traits and behaviors that support competitive
strategies. Some of these traits are listed below:

Creativity and Innovation Flexibility Independence

Adaptability Risk Taking High job involvement

Results Oriented Responsible Accountable

When recruiting and selecting employees, these traits should be evaluated on applicants as
part of your selection process. For existing employees, these traits can be developed in a
company culture where management supports intrepreneurship and innovation.

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 III) Developing innovation as a competitive edge

Developing innovation is fostered in a company culture that provides opportunities that

support intrepreneurship. Intrepreneurship is the concept that your employees have the
resources and abilities to solve the company problems that lead to increased productivity and
profitability within your company.

One way to develop a company culture that fosters intrepreneurship is to allow employees
from all levels of the organization to solve problems in either a group setting or individually.
As part of this initiative, managers must understand that failure is part of the process.
Managers that allow employees to fail and look at failure as opportunities for growth will
yield better results.

Developing opportunities that encourage creativity can serve as a platform for managers to
engage with their employees in this environment. A work environment that fosters
intrapreneurship and innovation typically has a high level of employee engagement. High
employee engagement will lead to high employee retention and increased productivity which
leads to profitability.

iv) THE IMPORTANCE OF HUMAN CAPITAL

Effectively and efficiently managing your human capital – moreover, successfully leveraging
your human capital to achieve your firm’s strategic business objectives, can help you achieve
considerable success in the marketplace. Conversely, failing to do so, through a lack of
planning or poor implementation, can result in reduced productivity and profits, and even a
poor brand reputation.

Many fledgling entrepreneurs often overlook human resources planning in the early stages of
their firm’s creation. Many think that human resources begins when a firm grows large
enough to have a formal human resource department – an office, a director, a dedicated
budget line, and other hallmarks of a large firm.

V) HUMAN RESOURCES AS A SOURCE OF COMPETITIVE ADVANTAGE

Let’s explore the ways human resources can help you enhance your competitive advantage,
or even help you create a new one:

• You may choose to compete by offering the lowest prices on the market. To do so, you must
ensure that your operating expenses are as low as possible to maximize profit. By deriving
your human capital from a pool independent contractors and/or offshore, for example, you
may be able to minimize HR expenses, which, when combined with other methods of
reducing business expenses, may help you achieve significant profits. While many Fortune
500 firms have received significant criticism for the use of offshore vendors, they have
leveraged this strategy to achieve tremendous profits.

• A variety of perspectives can yield lucrative ideas about how to differentiate your product or
service, or even create new ones. These ideas can come from anywhere, but equity partners,
advisory board members, and full- or part-time employees are often the richest source of
innovation. 3M’s internal culture is renowned for nurturing employee innovation, by
allowing employees a certain amount of time each week to work on projects in which they

15
 are interested, even if there is no immediate application. Often, these kinds of projects have
led to some of 3M’s most popular products, such as the Post-It note.

• Highly skilled employees may allow you to offer a superior product for which you can charge
a premium. Such is the case with luxury products/services, as well as most firms that are
competing based on the quality of their products/services. While it may cost you more to
recruit and/or train and retain highly skilled employees who can add value to your offerings,
that cost can be passed to the consumer in the form of premium pricing.

VI) BUILDING YOUR TEAM

You’ve committed to starting your business, but you may not want to do it alone. You may
not have the expertise to develop your vision, but you have no capital. Or maybe you already
have an equity partner with whom you are working, but need another one or two folks with
the right talents to take your idea and make it a reality. However, you do have no prototype or
product, or revenue, with which to compensate them.

Online networking sites, such as Founder2Be, match entrepreneurs with fledgling enterprises.
College campuses are another great place to look. You may consider auditing a class in a
particular area to shore up your expertise; why not take advantage of the campuses business
networking groups while you are there?

VII) SUBCONTRACTING
Your time is finite and valuable. Chances are you may be burning the candle at both ends
trying to produce a certain type and number of products/services, in the early stages. But
what happens when a client comes to you with a lucrative order for a related product/service
that you don’t have the time, or possibly the expertise, to offer?

One solution is subcontracting the work to a third-party firm. This can be lucrative: by
increasing capacity, you may be able to meet increased demand, and/or offer new
products/services. But be careful. A subcontractor’s performance or lack thereof reflects on
your brand, not theirs. You are ultimately responsible –and liable- for meeting the client’s
demand, which makes subcontractor selection a crucial decision.

Some things to consider:

• Do: Develop relationships with multiple subcontractors. Life happens and even the most
reliable subcontractor may be unable to meet a deadline for reasons beyond their control.
Having a second, and even, third go-to person, can ensure that you meet client expectations.

• Don’t: Automatically select the lowest bidder. While you may be competing on cost, the
phrase, “You get what you pay for” often applies in business. An inexpensive firm may not
be able to meet your need for reliability and flexibility.

• Do: Your research. Take stock of your existing professional relationships, online freelance
sites, such as Elance, and professional networking associations for referrals. But do not stop
there. Make sure you check references. Start with small projects and assess the results. There
are hundreds of thousands of firms in the U.S. alone that offer B2B services, so if one
subcontractor does not work out, there are plenty of others from which to choose.

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• Don’t: Over-rely on subcontractors. There will come a time, hopefully early on, when you
have enough capital to take on an employee, even if for a part-time position. This should be
welcomed, rather than considered as an additional cost. Hiring employees allows you to
exercise greater control over your product/service and its production and delivery process. It
allows you to develop in-house expertise, and it builds or heightens your
nascent organizational culture.

Literature review:

Due to rising importance of the human resource management and total quality management
practices to develop a competitive advantage and raise the ability to compete in the market
place, organizations must understand how to attract, retain, and motivate the skilled human
resource. Also, organization should be good at implementing total quality management soft
dimensions, in order to create competitive advantage over time. This purpose of this paper is
to review the literatures that have examined the effect of human resource management
practices, total quality management practices on competitive advantage.

Findings:

It is the function of HRM to train employees on how to deal with customers and to initiate
technology adoption activities so as organizations are able to maintain a competitive edge
over other players within the sector.

In the case of service organizations, it has been discussed how HRM should be used to
stimulate and reinforce the behaviours of employees through orientation programs and on-
the-job training if organizations are to implement successful customer-oriented strategies.

If employees are empowered to respond to customers’ needs through training, it means that
the customers will be willing to spend more on such organizations, thus the linkage between
HRM, economic viability and the achievement of competitive advantage.

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2.3 What HRM challenges Daraz face in the 21st century? Critically discuss.

Objective:

• To identify what kinds of HRM challenges daraz is facing.

• To assess manpower requirements and ensure placement of the right man on the right
job.
• To employ the skills and abilities of the workforce efficiently.
• To provide the organization with well-trained and motivated employees.
• To communicate HR policies to all employees.
• To increase to the fullest the employees’ job-satisfaction and self-actualisation.

Answer: HRM includes conducting job analyses, planning personnel needs, recruiting the
right people for the job, orienting and training, managing wages and salaries, providing
benefits and incentives, evaluating performance, resolving disputes, and communicating with
all employees at all levels. Examples of core qualities of HR management are extensive
knowledge of the industry, leadership, and effective negotiation skills, formerly called
personnel management.

The challenging HR situation can be addressed best by planning. Some of the most common
challenges HR managers or businesses face are related to employee morale, attrition,
teamwork and workplace conflicts. If the managers can successfully address these issues, it
can lead to higher productivity and lower HR costs.

❖ How to address the issue of employee morale?

Low employee morale can happen due to several reasons and this is a common yet
important problem that affects productivity of individual employees. Even the biggest
companies feel challenged by it and apart from financial incentives, try other benefits too
which can boost their employees’ morale and help retain them for longer. Employee
morale is an important issue because low staff morale means low conversion ratio. The
employees’ affected by low morale will work more but still produce less. Those whose
morale is high will make better decisions and will be able to produce more while doing
less. Moreover, investing in employee morale has proved to bring superior results.
Investing in employee morale is just as productive as investing in other resources because
your human capital is worth more than any other resource you employ.

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 ❖ How to control the attrition rate?

High churn rate or attrition rate is also a common HR problem that poses as a tough
challenge for companies and HR managers. It does not just drive the recruitment costs higher
but a lot of time is also wasted dealing with hiring. Companies must not focus only on hiring
the best talent but also on their retention. Otherwise, one would continue dealing with
inappropriate costs and remain busy throughout the year with hiring. There can be several
reasons behind a high churn rate. Poor training and retention strategies and a poor
environment can make staff lose interest easily and that can translate into a very high churn
rate. Inside the technology companies, the churn rate can be especially high.

Low employee morale can also result in higher rates of attrition. If the staff cannot love the
environment inside your organisation, it would be difficult to retain them for long. This is a
difficulty that boggles every HR manager’s head that how to retain his staff for long. Apart
from great salaries, retention and training programs, a great culture and environment are
equally important to control the attrition rate inside your organisation. While work pressure
and job complexity can also be a reason behind the high churn rate as is the case with most
technological firms, you can still control the churn rate using appropriate HR policies. You
can still focus on employee satisfaction and retain its level high by keeping employees
engaged and interested.

❖ How to establish an environment of teamwork?

This is also an important question that leaders and HR managers face. Without teamwork,
productivity will remain low and if you desire to create a high energy, highly
productive environment then this is an important thing to focus upon. However, differences
still arise and when they arise they hinder teamwork and progress. The various functions
inside your organisation cannot work in different directions. It will make the execution of
strategy difficult and achievement of objectives impossible. So, if you had to channel the
entire energy inside your organization in the same direction then you must keep your entire
team working together in sync.
It is not easy to establish an environment of teamwork and bring unity. The differences
among the various line managers and functions become too obvious in organizations without
a strong culture. However, if you are trying to bring an organisation wide change or initiate
major programs, then you need people to work as a team. This is a problem that can be
addressed only with support from the leadership.

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 ❖ How to resolve conflicts and discrimination?

Both conflicts and cases of discrimination happen regularly inside offices. They affect
employee morale and become hurdles to performance. The employees being discriminated
against lose job satisfaction and experience low morale. Conflicts also happen regularly and
many times the reason behind them are personal differences. Differences are bound to happen
because people from different backgrounds come to the office and many of them may have
difficulty working with each other. While you cannot resolve all these issues at once or
completely, you can still address them to a large extent using appropriate policies. The focus
must be on creating the right environment and culture so that people can collaborate. An
environment of collaboration fosters innovation and lets people have opportunities of
learning and growing their skills. To address discrimination, managers must focus on both
policy making and encouraging diversity. You can also focus on training your employees to
be more flexible. Increasingly businesses are adopting diversity practices to make the
composition of their workforce richer.

❖ How to Address Training and Development Related Issues?

Training and development are also important concerns for HR managers because every
company wants its employees to perform at their best. However, it often becomes difficult
because while managers keep trying to extract performance from their employees, they never
see the issue of performance gap from the HR angle. HR also keeps its mind occupied wth
the other top priorities rather than focusing on designing effective training and development
programs. Grooming employees is important because it helps them learn faster and keeps
their morale high.

You cannot create a high performance environment and culture without having effective
training and development programs in place. Nevertheless, when it comes to designing such
programs, HR managers either lack the support to make a start in the right direction or there
is always a communication gap between HR and line managers. HR managers need to consult
the line managers to understand the needs of the jobs and the employees. They also need to
keep the industry norms in mind and research what their competitors are using to know what
will suit their employees the most. Moreover, HR needs to be more persuasive in its
techniques. It will need to persuade both the leadership and the line managers so as to gain
their support. Unless it can persuade them to understand the criticality of such programs,
neither leadership nor the line managers would consider it compulsory. HR can create the
right environment for such programs by creating the excitement required to persuade the
leadership.

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 ❖ How to design the best salary and benefits programs?

Often designing the right salary and benefits programs becomes difficult for the HR
managers. Without the right salary and benefits retaining the best talent is difficult. It is an
area that requires special attention because salary and benefits are critical to employee
motivation. To keep your employees motivated, just a fat salary would not be enough, you
also need to design good benefits programs that satisfy them. Since employee satisfaction is
critical, HR managers can try different combinations to see which one suits their needs best.
However, the hurdles can be limited to financial resources or lack of support from the
leadership or other crucial functions. HR managers must recommend the top executives what
suits their company’s needs best. The best point to start can be checking what the competitors
are doing. While plainly imitating others’ practices is never good, still researching others
gives an opportunity to understand the industry best practices. HR managers can use their
own creativity and imagination to design the programs that cater to the needs of the company
and employees better.
These are some of the main HRM challenges faced by Daraz in the 21st century. However,
several other challenges also exist. Technology is giving rise to new needs and HR function
itself needs to remain up to date in this area. Not just this, the HR function also needs to
regularly review its practices and policies to update them and keep them on par with their
competitors. HR’s role in this regard is crucial and while HR managers would themselves
have to take initiative in some areas, in others the leadership must be ready to offer all the
support needed.

Literature review:

Human Resource Management discipline extracted its roots from organizational psychology
discipline and proved to be an important practice for managing organizations. The role of this
practice has emerged to be strategic with due course of time. In an organization, HR has
become an important strategic partner and the management of the same has become a
challenging task for HR managers. Now a day, the role of human resource management
departments has become indispensable for 21st century modern businesses. This article
particularly focuses on changing role of human resource management practices in 21st
century. This theoretical paper aims to highlight the importance of human resource managers,
HR practices and its influencing factors. In addition to that, this article also elaborates the
upcoming challenges which are being faced by 21st century HR managers. The literature
analysis has been conducted to present emerging issues, challenges and practices of human
resource management discipline in context of 21st century.

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Findings:
In the light of above discussed challenges, it is proposed that HR managers should keep in
mind that they are required to adopt proactive rather than reactive approach. It is the
requirement of time that HR managers must be responsive to the flexible environment facing
organizations. It is not a good idea to stick to traditional methods to fulfill unique needs
instead new processes must be adopted to achieve effective and efficient outcomes. They
need to be fully equipped with specific expertise to support their role as HR manager. In
order to respond to 21st century challenges, the HR managers have to become the pioneer of
change by showing the attitude of a change agent of the business who counsel employees to
enhance their capabilities and reshape their expectations regarding the role of HR and what it
delivers for organization. They should be involved in effective talent acquisition by investing
in modern ways to attract and retain the best people as this will incur them a competitive edge
over others. The HR managers should be able to anticipate that how certain changes are going
to influence business.

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Chapter Three

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3.1

CONCLUSION

Human resources play a very important role in the success of the organization. Human
resources are the people that staff and operate an organization. Human resource management
is an organizational function that deals with the people and issues related to people such as
compensation, hiring,performance management, and training. Hence human resource
management is vital to the organisation. Efficient management of the finances and markets
depend upon human resources. Hence there is the need for effective management of human
resources irrespective of the size and nature of
the organization. Human resource management aims at obtaining capable people for
achieving the objectives of the organization and for ensuring effective utilization of their
services. As the success of any organization largely depends on the quality of its human
resources and the extent to which they are motivated, human resource management acquires
special significance in an organisation. Human resource policy, practices and procedures
constitute human resource management. Goal directed policy, well accepted practices and
well designed procedures contribute to the successful execution of the vital and critical
human resource function. Of them human resource practices play a significant role in
shaping, influencing and enhancing the morale, motivation, capability, commitment and
ultimately performance of the employees.

In short human resource management relates to the total set of knowledge, skills and attitudes
that firms need to compete. It involves concern for and action taken in the management of
people. It deals with issues like recruitment and selection, training and development, wage
and salary administration, performance appraisal etc. Such actions may be bound together by
the creation of an HRM philosophy.

3.2

RECOMMENDATION

From the viewpoint of 21st century HRM emergence, the globalization has many
implications for the firms that may entail the diversity of cultures. The HRM in today’s era
has to mount the expertise, mind set and capabilities that are needed to gain competitive edge
on global scale. It is recommended that organizations must put efforts to align their HR
processes efficiently with organizational goal on broader perspective. Last but not the least,
HR must be on a continuous look out for creativity and innovation as it is known to be the
key to success. It depends highly on HR to face the challenges of globalization posed by 21st
century which has given an entirely new look to organizations. The organizations have grown
savvier in using technology hence it is important to adopt all changes. The role of HR has
been shifted towards becoming strategic partners of organization which in turn forces HR to
coordinate with all the function and provide support in various activities like attracting and

24
retaining the best talent, developing organizational structure, train and retrain employees. As
companies grow by acquisition and merger, they make multiple HR groups. One approach is
that the HR groups in various parts of the organization may develop their competencies in a
specific domain and can meet the demands of the larger organization in that domain. HR
groups that operate in this manner find each other as helpful resources rather than rivals
which will help to gain high level competencies in numerous areas. In 21st century, the HR
has the handle many challenges like; change management, conflict management, managing
multi generational workforce, managing 5R’s, workforce diversity, globalization, striking
work life balance, succession planning etc. It is the responsibility of HR to increase
organizational efficiency and effectiveness by adding value and gaining competitive edge
over competitors for a long term survival in complex and highly uncertain market place. It is
clearly the time for a quantum leap in the field of human resource. HR professional can
contribute in this transition by taking some serious steps to meet the challenges of
organizational change; they can serve to find out ways to measure HR value for the company.
Last but not the least; they can conduct significant research related to human resource and
their performance in future organizations.

3.3

Explanation:

In spite of the fact that the HR exercises of Daraz Bangladesh are completing a not too bad
employment at the present, however there is extension to upgrade advancement both inside
and remotely. To streamline and reinforce the general exercises of the organization the
accompanying territories have been recognized:

❖ Recruiting more HR personnel

Presently the organization have many separate HR dept. Administrator dept. additionally
functions as HR dept. As in this organization there is a tremendous need of HR, at that point
there ought to be more HR faculty contracted so as to make the HR group progressively more
grounded thus that the representatives can be dealt with for easily and every one of the
activities in the organization capacities legitimately.

❖ Providing more facilities to increase job satisfaction

More offices ought to be given to the representatives so as to expand the activity fulfillment
in the organization. If the representatives are upbeat then they will feel increasingly roused
towards work and in this way increment the efficiency over the long haul. Numerous offices
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can be given to the representatives, for example, medical advantages, infrequent courses of
action amid celebrations, cooling, medicinal services and all the more vitally day care places
for the female workers who have kids. The Reporting Officers must be progressively helpful,
warm and amicable to HR office.

❖ Introduce service employee career development

At first, the workers' necessities and requirements ought to be satisfied and afterward they
can end up mindful of their client's needs. We gain from this that it will decrease worker
turnover and can add to expanded consumer loyalty. This fragment likewise discusses the
strengthening of the representatives. It is critical in light of the fact that it builds
representatives 'inspiration in playing out their every day undertakings including taking care
of client issues and taking care of administration disappointments, and it is identified with
expanded bleeding edge administration worker execution also.

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3.4 Reference

1. http://www.daraz.com.bd/about-us/
2. https://www.facebook.com/DarazBangladesh/info
3. http://www.daraz.com.bd
4. http://www.thedailystar.net/daraz-com-bd-officially-starts-operation- 63854
5. DESSLER, G. (2010) Human Resource Management. 11th edition, New Jersey:
Prentice Hall.
6. Alibaba.com official site
7. Daraz offers discounts on Friday sales. (2015, December 04). Retrieved January 02,
2016, from http://www.thedailystar.net/business/daraz-offers-discounts-friday-sales-
182029
8. Valarie A Zeithaml, Mary Jo Bitner, Dwayne D Gremler, Ajay Pandith, Service
Marketing, 5th Edition,New Delhi, Tata McGraw Hill Education Private Limited
9. http://www.thedailystar.net/daraz-com-bd-officially-starts-operation63854

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