Academic journal article South Asian Journal of Management

Perceptions of Employee Relations Programs (ERPs) by Non-Managerial Employees (NMEs): A Study on the Pharmaceutical Industry in Bangladesh †

Academic journal article South Asian Journal of Management

Perceptions of Employee Relations Programs (ERPs) by Non-Managerial Employees (NMEs): A Study on the Pharmaceutical Industry in Bangladesh †

Article excerpt


Industry is the way in which man makes not just a bare living from nature, but an ever-better living, by combining material and human resources to provide goods and services which raise the material standards of life (Raza, 1963). A well-managed company always tries to make their employees loyal to their company and motivates them for expected productivity and performance. To be well-managed, organizations work, motivate and reward their people beyond legal requirement and make psychological contract between them (Raja, Johns and Ntalianis, 2004).

Now, the concept of 'psychological contract', according to CIPD (2008) has been accepted by employers of different organizations and it has been reflected in their employee relation policies and aspirations. It is mutual expectation of two parties (Guest, 2004) which includes various unique personal details (Rousseau, 1989). There is evidence that a positive psychological contract with employees leads to better economic performance (Emmott, 2003). When employees are treated fairly by organizations, they contribute more to the organization as they feel a sense of ownership with the organizations (see Note 1).

Traditionally, employee relations program ensures that employees' rights are protected and that local and state laws and regulations are compelled by the employers. And these laws give the right to every employee to form or join any union. But the Labor Law and union contracts are not as comprehensive as to address all the welfare issues of the employees and their family members. Consequently, employees expect response positively to any kind of employee relations program which the management may initiate beyond legal requirement.

In this research, ERPs are included/defined to those programs which are beyond legal requirement under labor law. The purpose of the employee relations programs is to make the employees feel that they together belong to a family or a society who owns the organization with common interests and mutual goals.


The main objective of this study is to assess the perception of Non-Managerial Employees (NMEs) about the ERPs as extended by the employers. The specific objectives are:

1. To examine the status of ERPs provided by the organization beyond legal requirements; and

2. To examine the perception of NMEs regarding ERPs extended by the employers voluntarily.


* Organization is defined to the rules and regulation, administration, and overall policy of an organization (see Note 2);

* Management or Employers means who is not part of employees (workers or non-managerial employees) and who, by virtue of their duties are related with managerial function (mainly decision making)(see Note 3); and

* Employees mean employees working within the organization not belonging to the management (see Note 4).


The study includes only the employees of industry engaged in core production and does not include sales personnel and support employees including security personnel. The study conducted on pharmaceutical industry of Bangladesh and the sample employees have been selected from pharmaceutical companies in Dhaka city proper and from outskirts of Dhaka city. For a country like Bangladesh, this research shall contribute to the development of human resources in the manufacturing sector, and this will eventually be a contribution to the business/economic and social sector of Bangladesh.


An industrial relations system, according to Dunlop (1958), comprises different actors, contexts, and an ideology that binds the industrial relations system together. A body of rules is created and implemented to oversee these actors at the place of work and its work community. Dunlop (1958) separates three main groups of actors as stakeholders who participate in the rule-making process:

1. All managers from top to bottom level of management who are related with management activities and decision making;

2. …

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