Abstract
Garment industry can be considered as the sprinter of the economy in Bangladesh for its significant contribution to the economy. Demand for Bangladeshi garments products are increasing so are the competitions. The garment industry, to keep pace with the increasing competition, needs to adopt Information System (IS) in business functions that help ensure cost management effectively in the labor-intensive garments factory. However, very few garments factories have adopted IS in their operations. This paper tried to identify the factors inhibiting the adoption of HRIS in the garments industry of Bangladesh through a semi-structured questionnaire survey of 150 samples from 25 garment factories in Bangladesh. We have used Exploratory Factor Analysis (EFA) method to identify the factors impeding to adopt HRIS in garments sector of Bangladesh. From the study, we have identified three broad inhibiting factors termed as Financial, Management related, and Organizational; specifically, High investment, Costly maintenance, Long-term benefit, Organizational Structure, Culture of the Organization, Top management support, lack of experts and user, are found as major barriers in this regard. The findings may be useful to both the academicians to explore the factors in their respective countries and the HRIS practitioners in garment sector to emphasize on these areas so that organizations can ensure better HRIS implementation.
Highlights
Organizations have the pressure to reduce operational cost and to be responsive to the demand of customers
This paper aims at finding out those barriers in Human Resource Information System (HRIS) adoption in Bangladeshi garment sector and provide suggestions how the barriers can be overcome to make the successful HRIS adoption that will lead to higher HR performance
Of the respondents have more than five years of employment experience, and 35.33% of the respondents have less than five years of employment experience in Readymade Garments (RMG)
Summary
Organizations have the pressure to reduce operational cost and to be responsive to the demand of customers. It is more intense for production-oriented and labor-intensive organizations especially garment sector than others. (Beadles et al 2005) Mentioned that the use of HRIS generates valuable outcomes for the firms since it helps to reduce cost and time as well as improves communication to perform HR related activities. In comparison with the traditional business environment, companies with the integrated information system are more competitive because integrated information systems enable companies to reduce cost and increase productivity which has a positive impact on the company’s Return on Investment (ROI) and Growth. This paper aims at finding out those barriers in HRIS adoption in Bangladeshi garment sector and provide suggestions how the barriers can be overcome to make the successful HRIS adoption that will lead to higher HR performance
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