Inclusive governance for promoting employee well-being: the case of readymade garment industry in Bangladesh
Creators: name: TARAFDER, Tasmiha
Publisher: name: RMIT University
Year: 2024
Subjects: classificationCode: 350799
subject: Strategy, management and organisational behaviour not elsewhere classified

description: Employee wellbeing (EWB) is considered a significant issue affecting the level of employee health and its effectiveness in the workforce. However, the provision of EWB across industries globally is often considered inadequate by some organisations - such as the ILO in its Decent Work Agenda. The Rana Plaza building collapse, the Tanzeen factory fire and the ongoing worker strike suggest poor employee wellbeing in the RMG sector in Bangladesh (Rubel, Kee &amp; Rimi 2017). Mental health problems such as depression, anxiety, suicide attempts have been regular problems in the RMGs in Bangladesh. There has been systematic negligence in the working environment of RMG employees through evading workplace health and safety regulations and ignoring employee rights. The poor wellbeing of employees in the RMGs are the result of poor supporting institutional and governance conditions, such as lack of bargaining power, corruption, and the absence of labour unions to provide employee voice. The study investigates the practice of employee well-being in terms of maintaining health and safety conducts at the RMGs, satisfaction at work as an RMG employee and how life satisfaction impacts their work life.

There is an absence of examination on the link between inclusive governance and employee well-being dimensions/constructs. Studies have argued that the absence of coordination and communication between stakeholders impedes achievement of organisational goals (Alamgir 2014; Nuruzzaman 2013; Zheng et al. 2015). As Zheng et al. (2015) identified, employee wellbeing is affected by work-related elements such as compensation and benefits, labour protection, logistic service, management style and work arrangements, which collectively protect workers¿ rights and create a better workplace. This study researches the relationship between inclusive governance and employee wellbeing in the context of the RMG industry in Bangladesh. The research questions of the study are: What are the impediments to ensuring inclusive governance and employee wellbeing in the Bangladeshi RMGs? What are the possible mechanisms to enhance the inclusive governance and employee wellbeing in Bangladeshi RMGs? What elements of inclusive governance effective in supporting EWB?

Since the Rana Plaza incident, many measures have been introduced by the government of Bangladesh, domestic and international organisations, including foreign governments and NGOs, to improve the health and wellbeing of employees in the sector. However, to date, there have been few studies on employee wellbeing in the RMG industry of Bangladesh. Governance can establish and sustain functional relations between individuals and institutional actors for promoting collective goals for the institution, the community and the nation (Chazan 1992). An effective governance system promotes and includes employee decision making (Ahmed, Greenleaf &amp; Sacks 2014). Research suggests that EWB should be viewed as encompassing work-related and non-work-related psychological experiences and health status (Page &amp; Vella-Brodrick 2009). Measurement of EWB should consider not only work and health but also family relations and life satisfaction (Siegrist &amp; Rödel 2006).

Employee wellbeing (EWB) is considered a significant issue affecting the level of employee health and its effectiveness in the workforce. However, the provision of EWB across industries globally is often considered inadequate by some organisations - such as the ILO in its Decent Work Agenda. It is argued that the adoption of an inclusive governance model could help improve that situation. Relying on evidence from the readymade garment (RMG) industry of Bangladesh, this study examines the role of inclusive governance and EWB. The thesis also identifies the impediments and mechanisms to enhance inclusive governance and employee wellbeing in the RMG sector in Bangladesh. 

The study employs a sequential mixed methods research approach for collecting the data that incorporates both qualitative and quantitative techniques. For the qualitative phase, semi-structured interviews were conducted with managers, including HR managers and compliance managers of a select number of RMGs, using convenience sampling techniques. NVivo has been used for analysing the qualitative data. The causal relationship between inclusive governance and employee wellbeing is validated, and a significant relationship is established. 

The qualitative findings found several positive aspects at work in the RMGs; however, wages and employee conditions were relatively low compared to other public sectors. The quantitative findings indicate that transparency and creating a dialogue between employee and employer ensures an inclusive community in the RMGs for better wellbeing. Interestingly, however, the respondents (14 managers and factory owners) of the qualitative study downplay the role of unionisation in Bangladesh, calling it `unsafe' and `against the interest' of the RMG sector. However, they do highlight the importance of reducing the gap between the employee and the employer through maintaining effective communication channels. They further suggest that inclusive governance is not needed in the context of RMG firms because this could have negative repercussion for the industry. 
There are limitations include employees were not interviewed due to ethical considerations; therefore, the in-depth experiences of life and work at their level were not captured. Other key stakeholders not included were government officials, NGOs that are active in the sector, and international garment buyers.

This research makes a theoretical contribution by deepening the understanding of EWB from a developing country perspective. It highlights the importance of sharing concerns and voice by both employees and employers, while also identifying remedies for the existing shortcomings of the EWB processes in the RMG sector in Bangladesh. The study has implications for the various stakeholders of the RMG industries in Bangladesh, including managers, owners, employees, and the government. Future research could incorporate the views of a wider range of stakeholders to provide a comprehensive assessment of governance and employee wellbeing in the sector.