Impact of Human Resource Management on the Organizational Efficiency of Kushtia Sugar Mills Ltd

ABSTRACT This research is conducted to study human resource management (HRM) practices in the public sector and investigate the association of HRM practices with the organizational efficiency. For this purpose, primary data has been collected through questionnaire from 62 employees working in a state owned entity (SOE) namely Kushtia Sugar Mills Ltd (KSML), which is operating under Bangladesh Sugar and Food Industries Corporation (BSFIC). Simple random sampling was used to select respondents from KSML. Correlation analysis, regression analysis and T-test were carried out through SPSS software to examine the relationship between the selected HRM practices and organizational efficiency of KSML. The analysis of the opinion and perception collected from the respondents revealed that, there is a positive relationship between effective HRM practices (especially recruitment and selection, performance appraisal, involvement and communication and employee relationship) and the organizational efficiency of KSML. Among all other HRM practices employee relationship has significant impact on the organizational efficiency of KSML. Copyright © 2015, Scholar Journals. All rights reserved.
Keyword: Human resource management (HRM), State owned entity (SOE), Organizational efficiency, Kushtia Sugar Mills Ltd (KSML), Bangladesh. JEL Classifications: M19, M51, M52, M53, M54, O15

1. INTRODUCTION There is sufficient supply of manpower for both of the public and private enterprises operating in Bangladesh. But, skilled human resources are yet to be available in SOEs compared to private entities. As a result, most of the SOEs especially sugar industries clearly failed to achieve desired efficiency. Many researchers found a positive relationship of HRM practices with the organizational efficiency of business enterprises. So, one of the major causes of the failure of KSML may be ineffective HRM practices. On the basis of this perception researcher tends to explore HRM practices and assess its’ impact on the organizational efficiency of KSML. * Corresponding author. PhD Fellow, IIUM, on study leave; Mob.:+60182893171; E-mail address:

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