The impact of cultural factors on HRM practices in Bangladesh: A comparative study on Islamic vs conventional bank PLC

Abstract

This study examines the impact of cultural factors on Human Resource Management (HRM) practices in Bangladesh, focusing on a comparative analysis of Islami Bank Bangladesh PLC and United Commercial Bank PLC. The research employs qualitative methods, including interviews, document analysis, and observations, to identify how cultural influences shape HRM practices in these two distinct banking contexts. The findings reveal that Islami Bank’s HRM practices are deeply rooted in Islamic values, emphasizing ethical behavior, community engagement, and a holistic approach to performance management. In contrast, United Commercial Bank adopts a meritocratic and competitive framework, prioritizing individual achievements and technical skills in its HR practices. Both banks exhibit a commitment to employee development and maintaining positive workplace relationships, highlighting the importance of cultural alignment in HRM strategies. The study contributes to the understanding of how cultural factors influence HRM practices in the banking sector, providing valuable insights for HR professionals and policymakers.