Abstract

Orientation: The role of leadership and human resources (HRM) at the managerial level in the economic zones to implement organisational change have been well described in developing countries although they are often not well documented.Research purpose: The purpose of this article is to investigate the relationship between leadership, organisational behaviour and HRM in Dhaka export processing zone (DEPZ) enterprises.Motivation for the study: This study has given a direction for implementing organisational change in DEPZ organisations, where leadership, organisational behaviour and HRM have significant effects on organisational change.Research design, approach and method: The author completed a survey using a structured questionnaire on 53 enterprises in the DEPZ. The sample size was 216. The author tested the research hypotheses by using statistical tools like step-wise multiple regression analysis. The author also used Pearson correlations, a t-test, an ANOVA and a radar diagram in this study.Main findings: The results provide evidence that leadership behaviour, organisational behaviour factors and HRM practices have direct relationships with organisational change. In short, it requires high level of leadership ability, employee motivation and commitment, recruitment, performance appraisal and reward to bring about effective organisational change.Practical/managerial implications: The results show that organisational learning, transformational and transactional leadership, compensation and unionisation practices reinforce organisational change at DEPZ enterprises.Contribution/value-add: The results of this study show that organisational change requires integration with leadership ability, organisational behaviour and HRM practices, which are useful for developing companies, industries and the national economy.

Highlights

  • Background to the studyCustomer and consumer demands and preferences have changed rapidly

  • The author computed Pearson correlations to determine the relationships between all the variables in Dhaka export-processing zone (DEPZ) enterprises and the strengths of their relationships for organisational change

  • The results provide an understanding of direct relationships between employee motivation, organisational learning, organisational culture, transactional leadership, transformational leadership, recruitment and selection, performance appraisal, unionisation, compensation or reward and organisational change

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Summary

Introduction

Customer and consumer demands and preferences have changed rapidly. This has made businesses more competitive in the global market (Abrahamson, 2004; Rodrik, 1997). The Dhaka export-processing zone (DEPZ) is one of the largest economic zones in terms of its export allotment, employment generation and volume of investment, especially foreign direct investment. To meet customer demands and to compete globally, the DEPZ needs to exploit its human and material resources. The DEPZ has an influence with its foreign direct investment and employment generation. The role of human resources management (HRM) is very important for linking employees’ capabilities with DEPZ performance because it is a requirement of good business

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