Research Topic

Managerial Skills Development in Service Oriented

Organizations of Bangladesh

(Government & Private)

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 School Of Business

“Final Project Copy”

Company Names: Government and Private Service oriented organizations

Submitted To:

M. Khasro Miah, Ph.D.

Course Instructor: HRM 370 (Human Resource Planning)

Section: 2

Submitted By:

Name ID

Tanzir Ahmed Choudhuri 073 430 030

M Ruhul Quddus 072 335 030

Md. Rahat khan 0920341030

Date of submission: 27/12/2010

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ACKNOWLEDGEMENT

We take this opportunity to show our gratitude to all those who have aided us in completing this
project.

Firstly, we would take this opportunity to thank M. Khasro Miah, our teacher for the course of
HRM-370 of the North South University, for his valuable support and encouragement which he
has offered. His words of wisdom will always be remembered, and we are convinced that the
knowledge of Managerial Skills Development that he has imparted would go a long way through
our professional career.

Secondly, we are also obliged to Corporate HR Executives and other employees of our
respective survey companies for their valuable time and providing us with the important
information. They also shared with us necessary organization structural facts.

This report is successfully completed by our entire group member’s extreme effort. It was
not possible for a single person to make the project successful. Moreover we would like to
disclose our deepest esteem and gratefulness for our faculty M. Khasro Miah, for his extended
helping hand and mentorship.

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TABLE OF CONTENT

Content Page No.

INTRODUCTION 5-7

THEORETICAL FRAMEWORK 8-12

SCOPE AND OBJECTIVE OF THE 12-13

STUDY

COMPANY PROFILE AND HISTROY 16-18

LIMITATIONS OF THE STUDY 19

FINDINGS AND ANALYSIS 20-39

CONCLUSION AND IMPLICATION 28

REFERENCE 29

APPENDIX

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ABSTRACT

This study attempts to explore differences and similarities of managerial skill developments in
government and privately owned organizations in Bangladesh. Managerial samples were taken
from five government and five private companies. In each company ten managers were randomly
selected as respondents, providing the total number of usable ample N=90.Data were analyzed to
explore the relationship between team effectiveness building skills, business innovation skills,
People management skills, result producing skills to company performance. We conducted the
research and formed four different hypotheses in regards with the variables. In the hypothesis
part we determined the company performance as the dependent variable where as other variables
(team effectiveness building skills, business innovation skills, people management skills, result
producing skills) are considered as the independent variable. From the hypothesis we proved
hypothesis II, III and IV and failed to prove the hypothesis I. The organizations are
recommended to improve their managerial skills to get the best output from their organization.
The service sector in Bangladesh is growing rapidly in regards with the global sense so they
should improve their service quality and to do so they need to improve their managerial skills.

Topic

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 Management skills development in service oriented organizations
in Bangladesh: A case study between Public Company and Private
Company.

Introduction
From the perspective of the home-base country, there are differences in language, culture,
nationality, and professional management disciplines among organizations. Due to differences in
local management philosophy, business/technology planning responsibilities are often
fragmented rather than focused in one budgetary area. Business/technology planning,
monitoring, and control and coordination functions are often difficult and require unique
management skills (keen, 1988). Also, although the disparity between developed and developing
countries was glaring and increasing even before the globalization process began, it has been
increasing faster in the wake of globalization. In the developing countries, also, socio-economic
disparity has been increasing in the wake of globalization, with poverty remaining entrenched at
high levels. Obviously, the poorer countries and the poor people in those countries have
remained excluded from the ongoing globalization (Ahmad, 2007).

The culture of Bangladesh is composite and over centuries has assimilated influences of
Hinduism, Jainism, Buddhism, Islam, and Christianity. It is manifested in various forms,
including music, dance and drama; art and craft; folklore and folktales; languages and literature,
philosophy and religion, festivals and celebrations, as also in a distinct cuisine and culinary
tradition.

Bangladesh is a small south Asian country with very few natural resources but an abundant
supply of unskilled labor. Currently the service sector in Bangladesh is suffering from several
major problems; service quality is not standardized, management leadership is insufficient,
cultural forces discouraging creativity, less emphasis on customers need etc. Frequently political
activities disrupt proper service delivery. Law enforcement is weak and legal procedures are
lengthy. Discrimination against women and minority is acute. All these are adversely affecting
the healthy growth of the service sector. The marked economy, increased globalization
multinational companies have created obstacles as well as opportunities for the service sector to

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change those old habits. The local firms are increasingly facing challenges from foreign
companies. Multinational companies are providing better quality service than the local private
companies. As a result local private companies are beginning to adopt strategies of global
companies to compete. While public companies are also facing threats and starting to change to
cope with the demand. (Miah, Tomita, Wakabayashi, 2001).

Traditionally public sector in Bangladesh has remained autocratic, high-distance, low emphasis
on creativity. On the other hand local private companies are enhancing their capability and
integrating new techniques in the business. They are highly profitable and more innovative than
the public companies; because private companies are facing strict competition from
multinational firms. But because of backwardness and stiffness in the public sector they are still
suffering the red-tape phenomenon. Political involvement and lobby groups are always
threatening the improvement in public sector even though government is trying their best to
improve. So the public and local private sector is in a complex situation of competition where
co-operation is also necessary to fight global brands.

This comparative study of HRM skills with respect to company performance takes into
consideration the managerial skills development in the two types of company’s namely public
sector and local private sector service oriented organization. In reality local private sector in
Bangladesh is more vibrant and innovative than the public sector. As a result company
performance is also influenced by these factors. For this reason the present study tries to explore
how we can improve managerial skill development in Bangladesh and how public sector can
become more profitable and gain competitive strategies of private sector. Bangladesh needs to
improve its managers’ skills in both the sectors to achieve its long-term goals as a nation. To
explore these problems and how to overcome and improve it, this study uses four instruments
namely team building effectiveness, people management, result producing skills, business
innovation skills with the fifth instrument company performance.

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Theoretical Framework

• Team Effectiveness Building Skills:

The new concept of working has shifted to team work from individual work. Now a days
working as a team player is more emphasized than working alone. This has gained a high
popularity among all the companies, and the working condition and effectiveness has also
increased. One of the most popular intervention techniques in organization development (OD) is
team building. (Forrester, Drexler, 1999). Team building and teamwork skills are critical for
effectiveness as a manager or entrepreneur. Even if one is not in a leadership role yet, better
understanding of teamwork can make the person a more effective employee and give an extra
edge in the office. Team building success is when the team can accomplish something bigger and
work more effectively than a group of the same individuals working on their own. They have a
strong synergy of individual contributions. But there are two critical factors in building a high
performance team.

The first critical factor of a teamwork success is that all the team efforts are directed
towards the same clear goals, the team goals. This relies heavily on good communication in the
team and the harmony in member relationships.

The other important element is the diversity of skills and personalities. When people use
their strengths in full, but can compensate for each other's weaknesses. When different
personality types balance and complement each other. In a meeting Dhaka Chamber of
Commerce and Industry (DCCI) Director Rafiqul Islam Khan laid emphasis on proper
knowledge about 'leadership and management' to face the challenges of globalization.

The above information leads us to the development of the following hypothesis:

# 1 Hypothesis: Team effectiveness building skills are more positively related to company
performance private companies than public companies in Bangladesh.

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• People Management skills:

A manager's most important, and most difficult, job is to manage people. You must lead,
motivate, inspire, and encourage them. Usually, the relationship between the employee
and the organization is made by contracts, in which the employee commits himself to use
his knowledge, learning and skills for the benefit of the company In return; the
organization provides a reasonable compensation. The context of a contract relationship
is dynamic: market developments, social changes and personal growth can disrupt the
fragile status quo. In this turbulent environment employer and employee continually have
to reposition themselves. They both have to find a balance between the principles of
agency and communion and together create a win-win position in being employee and
employer (van Marrewijk, 2003). A lasting and productive relationship bet. The very and
most part of a service oriented organization is their people. To get the best people for the
organization is a challenge for the managers and also making the existing employees
happy with their job and the working environment is also another important task for the
mangers. In order to retain the best people, organizational values need to meet the needs
of existing employees so that they feel fully aligned with the organization's vision,
mission and values and feel they are able to bring their whole selves to work (Barrett,
2000). It is people who are the most valuable assets for service organizations, because it
is the people who are always facing the customers, dealing with them and providing them
with the service that the organization offers. Not only in the service sector but also in the
other sectors people are the most valuable assets or resources for the organization. If the
people are managed in an effective manner the organization can achieve a competitive
edge over their rivals and do well in their respective sectors.

So for a manager having the skills to manage people is highly needed. Managing the people
can be compared to managing a very valuable resource. Getting the best from your people is
vital if one wants to make the best progress in business or organization. Much comes from
the way one interacts personally with others.

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By building rapport, one can develop ongoing, productive relationships with all of the people,
which will give an enormous return on the efforts that has been put in.

The above information leads us to the development of the following hypothesis :

# 2 Hypotheses: People management skills are more positively related with company
performance for public companies than private companies.

• Business Innovation Skills:

Business innovation involves a wide spectrum of original concepts, including development

of new ways of doing business, new business models, business application of technology and
communications, new management techniques, environmental efficiency, new forms of
stakeholder participation, telecommunication, transport and finance.

Research on organizational innovation opens new perspectives on a number of interesting

issues that have surfaced recently, including the issues of societal evolution and institutional
change, the dynamics of knowledge societies (Bell 1973, Hage & Powers 1992), and the
integration of macro and micro levels of analysis. Beyond sociology, organizational innovations
can make important contributions to several important arenas of new re-search in economics.
The most obvious one is research on national systems of innovation (Lundvall 1992, Nelson
1993), but it is equally relevant to endogenous theories of economic growth (Romer 1986, 1990,
Solow 1992) more generally.

Organizations in countries with a high un- certainty avoidance index generally show
characteristics such as resistance to innovations, highly formalized management and the
constraining of innovations by rules (Hofstede, 2001). Developing the skill to innovate is closely
related to a person’s creativity. In service sector innovating new ways and techniques can help to
get competitive advantage. So managers need to have an open mind to adopt with the changing
condition and the ability to change and improve the situation and overall strategy of an

10
organization. The innovation of an organization opens up new scopes for the organization and
also helps to use the resources properly and in a very effective way.

The above information leads us to the development of the following hypothesis :

# 3 Hypotheses: Business innovation skills have more positive relationship with company
performance of public companies than private companies.

• Result producing skills:

Cran (1994, p. 36) defines customer service orientation as a "set of basic individual
predispositions and an inclination to provide service, to be courteous and helpful in
dealing with customers and associates." It is suggested that the selection of customer
service oriented employees is a key factor in establishing customer service potential
source of sustained competitive advantage. As such, organizations that rely on customer
service are beginning to recognize the importance of having employees with a customer
service orientation. Yet, the measurement of customer service orientation has created
more confusion those definitive answers. The difficult in measuring customer service is a
key factor manager need to address. According to Hossain (2010) today's bank
employees need to keep themselves updated with a new set of skills and knowledge.
Hence, the banking industry in our country should not lag behind rather equip themselves
to cope with the changing situation in order to reap the benefits of global development. In
Bangladesh, though some service organizations are using TQM through Kaizen method
unknowingly, we are not using this method properly for solving various management
problems for achieving better results specifically for service sectors. In fact, solving
problems in several areas of any service sector to maintain and improve quality (Q),
reduce costs (C), observe deadline and production volumes delivery(D), secure safety (S),

11
 improve motivation and morale (M) and protect the environment (E) are the essence of
Total Quality Management (Khan,2009)

The above information leads us to the development of the following hypothesis :

# 4 Hypotheses: Result producing skills has stronger relationship with company performance
for private companies than public companies.

• Company performance:

Market orientation describes a firm's orientation toward the promotion and support for
the collection, dissemination, and responsiveness to market intelligence to serve customer
needs (Kohli and Jaworski 1990). In contrast, Miller (1983) describes an entrepreneurship
orientation as one that emphasizes aggressive product-market innovation, risky projects, and
a proclivity to pioneer innovations that preempt the competition. Unlike market orientation,
entrepreneurship orientation is distinguished by three characteristics: a high degree of
innovativeness, risk-taking, and proactiveness (Covin and Slevin 1989). Organizational
orientations are social learning and selection mechanisms that aim to maintain coherence
between management's strategic intent and operational activities. They shape the way
organizational members process information and react to the environment through the nature
of control systems and rewards they engender. They create internal environments in which
desired behaviors are encouraged and supported.

It follows that both market and entrepreneurship orientations lead to congruent behaviors at
the new product development team level because they determine the type and nature of
strategic initiatives pursued by employees at operational levels. Market orientation

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 In particular, the bundle of managerial experiences executives possess can mirror their skills
and knowledge as well as the competence of the top management team (Carpenter, Fredrickson,
2001)

Model of the Research

13
Significance of the study

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 Bangladesh is developing in rapid pace. After the independence our country has
come a long way to build its image as a standard business favorable country. But because of
uncertain global business environment and other factors this situation is changing rapidly. Basic
knowledge in management is needed at initial stage of running an enterprise and also later during
the development stage. At the beginning most of the management of the private enterprise in our
country is carried out by the sole founder/owner, who performs all the actions needed with doing
the business. Crises occur when the enterprise is successfully expanding and the entrepreneur
(usually still the founder and owner) is not capable of running it. While public organizations
have a long and strong management history it barely improved its management skills over the
last few decades. Public organizations are believed to be still in the same position as it was
decades ago. Civil service of Bangladesh is inheriting the structure and model of the British civil
service with little modifications. It has been blamed for inefficiency and ineffectiveness since the
independence and has to go through many ups and downs during the last 39 year. Various
measures have been taken regarding governance related issues but the civil service did not
observe significant reform. Civil service around the developed as well as in the developing world
has become more technology based and modern. With the passage of time the human resources
management mechanism needs to be adjusted as per international standard. But over the years
lack of commitment along with fear of change reduces the pace of reform in the civil service.
Human Resources Management in Bangladesh civil service is run by certain laws, rules and
policies. In some areas there exist no clearly defined policies. The operational activities are
mainly regulated by circulars and notifications. Posting and placement of the officers are
important issues under the wide purview of the Human Resources Management .While private
organizations are thriving both economically and structurally. Challenging environment created
by the multi national companies are forcing the private companies owned by Bangladeshis to
innovate and rapidly modify their business models. This challenge is helping our companies a
lot. But government organizations are far away from all these. Because of their restrictive
business practices and the assurance of finance from government funds they are not worried

about market challenges. These facts are creating two different types of management practices in
Bangladesh. For a country like us to develop both our private and public sector should flourish at
the same time. Now private companies are far ahead of public companies regarding management

15
skill development. In today’s globalized world, for any country to attain and ensure good
governance in support of enhanced development, the issues of efficiency, effectiveness, capacity
and quality of public administration system is of utmost value.

To better understand the situation we have decided to carry out this research.
Because through this we will be able to find how variable (independent) are related with the
variable (dependent). We may also get to know what can be done to equip both the sectors to
face the challenges of the twenty first century.

Research Methodology

1. Qualitative method:

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 Background Information of sample companies

Company Teletalk PeoplesTel BRTC Silk Regency Parjatan Janata One S.A.
Name Paribhan
Line Bank Bank

Industry type Telecomm Telecommu Transp Tran Hotel Hotel Banki Banki Courier
unication nication ort sport ng ng

Interview Mid level Entry level Mid Top Mid Mid Mid,Top Mid,Top Mid,Entry

level level Level Level Level Level Level

Main Sim card Sim card Bus Bus Conference Restaurant Deposit Deposit Parcel
Banqueting Courier
Service Conference Loan Loan
products Internet Service Cash
Restaurant
Cards Cards Transfer
Comfee
Remittance
Lounge

Year of 2004 2008 1971 1999 2007 1974 1971 1999 1982
establishment

Number of __ __ 2060 1000 __ __ 17738 __ __

employees (app
roxi
mate
ly)

Total assets Tk.20,000, __ Taka.1 __ __ __ Tk. TK.52,0 __

64,514,4
000,000 000.00 282423 06
million million

Market share __ __ __ __ __ __ __ __ __
growth in last

5years

Sales growth __ __ __ __ __ __ __ __ __

Turnover of __ __ __ __ __ __ __ __ __
employees

Output __ __ __ __ __ __ __ __ __

turnaround
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This table includes all the qualitative information we have gathered by the survey questionnaires
form all the nine companies. Most of these are well established in their field of business. All
most all the private companies have a short history of business while public companies have
been doing business from the birth of this country. All of them are service oriented organizations
due to the nature of our research. The financial strength of the public companies is far better than
the private companies. This is because privatization has started only one or two decades ago in
Bangladesh. The public companies employ a huge number of people compared to private
organizations. Most of the private companies do niche business whereas public companies serve
almost the entire population of Bangladesh. Due to the unavailability of certain figures some of
our intended data was not collected. This is one of the major constraints we have faced in the
data collection stage. Also because of competition some companies were not interested to
provide the required information for the research. Still all the data shown in the table gives us a
snapshot of the all the companies.

2. Quantitative Method:

Many researchers view quantitative research design as the best approach to

scientific research because it offers precise measurement and analysis. In quantitative research
design the researcher will count and classify, and build statistical models to then explain what is
observed. Data collected using this research approach is in the form of numbers and statistics
(Jenkins, 2009).The objective of quantitative research is to develop and employ mathematical
models, theories and/or hypotheses pertaining to phenomena. The process of measurement is
central to quantitative research because it provides the fundamental connection between
empirical observation and mathematical expression of quantitative relationships . In the survey
we used total nine companies for collecting our primary data. Four of them were public and five

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of them were private companies of Bangladesh. Together we used nine components for our
research which was determined by our honorable research instructor. Total 37 questions were
designed from these instruments. During November and December of 2010 we did our survey by
visiting the offices of those companies. From top level to entry level all types of employees were
given those questionnaires to fill. Total ninety questionnaires were collected for this survey.
Later with the help of SPSS software we came to our analysis.

Research results

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 Factor Analysis: (Results on Companies TEBS, BIS, RPS, PMS and CP) (N = 90)

Table 1

Company Performance:

1.Do you think your services are superior than your competitors 3.28 1.11 0.744 0.5

2.Your org. is keen to constantly develop new products and services 3.46 1.18 0.860 0.7
3

3.Do you think your org. can properly satisfy your customer and clients 3.56 1.16 0.874 0.7
6

4.Do you think your company’s image can effectively attract essential employees 3.53 1.11 0.858 0.7
3

5.Is your company trying to diversify its services for greater market share 3.51 1.22 0.865 0.7
4

6.Do managers in your org. prioritize growth in sales than anything else 3.64 1.07 0.885 0.7
8

7. Do you think profitability in your org. is absolutely dependent on the employees 3.62 1.17 0.893 0.7
9

8. Do you think you should continuously increase your company’s market share 3.66 1.19 0.785 0.6
1

For the purpose of identifying basic dimensions of company performance with the team
effectiveness building skills, business innovation skills, result producing skills and people
management skills derived from the service oriented company of Bangladesh. The factor test is
done for both private and public organizations; as the questions were common. The first factor
has the title of Team Effectiveness Building Skills and under that there are 8 items. All the items
has a positive factor value and it’s above .50 the next thing that comes on the list is the Business
Innovation Skills; under this factor there are 5 items and here also all the value of F > .50. Then
comes the Result Producing Skills which has also 5 items in it and it also gives us the F value
more than .50 for all their items as its lowest item’s F value is .54. Next comes the factor People
Management Skills with 4 items in it and it with a very good F value. At the end the dependent
variable Company performance with 8 items gives F value minimum of .5 and maximum .79. All
these values indicate that the 5 factors including all their items are eligible for the next steps test.

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The Cronbach’s alpha values of all these factors are stated below:

1. Team effectiveness Building Skills: α = . 929

2. Business Innovation Skills: α = . 911

3. Result Producing Skills: α = . 900

4. People Management Skills: α = . 864

5. Company Performance: α = . 943

From all the α values that we have got give us the result which is more than .40; which means
that all these data are reliable and with all these data further tests can be done. And from these
reliability test results (α values) we can conclude that these instruments are good to use for the
comparison of the company’s performance and the other variables relationship between private
organizations and government organizations of the service industry in Bangladesh.

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 Table 2

Factor Analysis of all the variables

KMO test results

2
Variables KMO χ df Sig.
1. Team Effectiveness 550.93
Building Skills 0.877 6 28 0
2. Business Innovation 323.82
Skills 0.854 5 10 0
266.11
3. Result Producing Skills 0.885 6 10 0
4. People Management 170.44
Skills 0.815 6 6 0
650.25
5. Company Performance 0.879 5 28 0

Interpretation of the KMO as characterized by Kaiser, Meyer, and Olkin … (Table 3)

Table 3

1. Team Effectiveness Building Skills:

KMO Degree of Common
Value Variance The degree of common variance for team
0.90 to Marvelous effectiveness building skills is “Meritorious” and
1.00
moving towards “Marvelous”
0.80 to Meritorious
0.89 If a factor analysis is conducted, the factors extracted
0.70 to Middling will account for substantial amount of variance.
0.79

0.60 to Mediocre 2. Business Innovation Skills:

0.69
The degree of common variance for team
0.50 to Miserable
0.59 effectiveness building skills is “Meritorious”.
0.00 to Don't Factor
0.49
If a factor analysis is conducted, the factors
extracted will account for a better variance
amount.

3. Result Producing Skills:

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 It has the KMO result of .885 which falls under the “Meritorious” degree of variance and
it is bordering on “Marvelous”.

The factor analysis conducted form this factor will give a significant amount of variance.

4. People Management Skills:

The KMO of Result producing skills is just above the border of “Middling” and it is .815 which
is considered to be very good.

The factors extracted from the analysis should give a nice amount of variance.

5. Company Performance:

The dependent variable is the Company Performance which is giving us the degree of variance
bordering in between “Meritorious” and “Marvelous”.

If a factor analysis is conducted, the factors extracted will account for substantial amount of
variance.

Correlates of the Company Performance:

The overall correlation that is found from the research and stated in the table 4 shows that the
company performance has significant and a very good relationship with the independent
variables (e.g. team effectiveness building skills, business innovation skills, result producing
skills and people management skills) The result indicated that company performance is relying
on these factor for its own improvement. The different types of organization did show different
significant level for their corresponding company’s performance.

The private organizations have more effect of team effectiveness building on their company
performance rather than government organizations. Here we find out that the relationship
between TEBS in private organizations is less effecting their CP (r = .064) where on the other
hand government organization gives us (r = .384, p < .05) which is higher than the private
organization. So, in this case we reject the Null Hypothesis and accept the alternative hypothesis
that is team effectiveness building is more important for government organizations than private.

23
The second hypothesis was to check that business innovation is affecting the company
performance for government organization than the private ones. The result reflects that it is the
case. The government organizations have this (r = .410, p > .01) which indicates that the
government organizations has a real positive and strong relationship with the business innovation
and company performance. On the other hand the private organizations also gives us (r = .302, p
> .05) this result also indicates that private organizations also has a positive and quite strong
relationship with business innovation and company performance. In such circumstance we can’t
totally say that our hypothesis is 100% correct but we also can’t say that it is wrong. A dilemma
arouses in such case but at the end we can accept the null hypothesis and reject the alternative
one. The private organizations are more result oriented to check their company performance
whereas the government organizations put less emphasis on result producing in taking company
performance into account. From the correlation test we get our result for the private
organizations (r = .335, p > .05) which indicates that private organizations put the emphasis on
their result producing skills to measure their company performance and it has a significant value
of positive correlation. The government sectors here on this give less emphasis on the result
producing skills to measure their company performance. This means that government
organizations are not result oriented in regards with their company’s performance. Government
organizations are more people oriented in processing their company performance and the private
organizations are less people oriented. From table 4 we get the correlation result for government
organizations (r = .565, p > .01). This is really a very high score and proves that government
organizations positively related with people management and company performance. By this
score it can be easily conclude that government organizations who are operating in the service
sector are more people oriented. The correlation result of private organizations operating in
service sector found from the table 6 shows that (r = .467, p > .01). This is also very high score
and it also indicates that private service organizations are also people oriented in terms of their
company performance. There is a positive and strong relationship between the company’s
performance and people management. Though this results show that private organizations still
lacks in people orientation than the government organizations. So, in such circumstance we can
say that we can reject the alternative hypothesis and accept the null hypothesis; which is
government organizations are more people oriented.

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 TABLE: 4
CORRELATION COEFFICIENTS AMONG ALL VARIABLES USED FOR THE PRESENT STUDY:
ALL THE RESPONDENTS (N = 90)
Variables 1 2 3 4 5 6 7 8 9
1. Company Performance 1 . .705* .661* . - - - 0.03
659* 741* 0.12 0.01 0.16 6
* * 2 6 5
2. Team Effective Building . 1 . . . 0.08 0.16 0.07 0.05
Skills 659* 816* 710* 651* 4 4 7 6
* * * *
3. Business Innovation . . 1 . . 0.03 0.13 - 0.00
Skills 705* 816* 781* 720* 2 5 0.01 9
* * * * 7
4. Result Producing Skills . . . 1 . - 0.05 - 0.02
661* 710* 781* 821* 0.03 2 0.06 8
* * * * 5 2
5. People Management . . . . 1 0.02 0.15 0.06 0.04
Skills 741* 651* 720* 821* 2 2 6
* * * *
6. Age of Employee - 0.08 0.03 - 0.02 1 . . .
0.12 4 2 0.03 2 825* 687* 558*
2 5 * * *
7. Level o Employment - 0.16 0.13 0.05 0.15 . 1 . .
0.01 4 5 2 2 825* 720* 569*
6 * * *
8. Educational Level - 0.07 - - 0.06 . . 1 .
0.16 7 0.01 0.06 687* 720* 437*
5 7 2 * * *
9. Work Experience 0.03 0.05 0.00 0.02 0.04 . . . 1
6 6 9 8 6 558* 569* 437*
* * *

TABLE: 5
CORRELATION COEFFICIENTS AMONG ALL VARIABLES USED FOR THE PRESENT STUDY:
ALL THE RESPONDENTS (N = 90) AND R ESPONDENTS FROM GOVERNMENT O RGANIZATIONS (N =
40)
Variables 1 2 3 4 5 6 7 8 9
1. Company Performance 1 . . 0.233 . - - - 0.03
384* 410* 565* 0.20 0.18 0.21 9
* 1 7 8
2. Team Effective Building . 1 . 0.234 . 0.24 0.24 0.19 0.07
Skills 384* 689* 351* 3 8 9 6
*
3. Business Innovation Skills . . 1 .319* . 0.23 . 0.20 0.08
410* 689* 485* 1 316* 7 3
* * *
4. Result Producing Skills 0.23 0.23 . 1 . -0.2 - - 0.06
3 4 319* 509* 0.17 0.18 3
* 5 1
5. People Mangement Skills . . . 0.509 1 0.09 0.19 0.11 0.03
565* 351* 485* ** 7 5 5

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 * *
6. Age of Employee - 0.24 0.23 -0.2 0.09 1 . . .
0.20 3 1 7 819* 652* 548*
1 * * *
7. Level o Employeement - 0.24 . - 0.19 . 1 . 0.48
0.18 8 316* 0.175 5 819* 665* 2
Variables 1 2 3 4 5 6 7 8 9
7 * *
8. Educational
1. Level
Company Performance - 1 0.19
0.06 0.20 -
.302* .335* 0.11. .0.06 . 0.17 1 - 0.290.14
0.21 94 7 0.181 5467* 652*4 665*1 0.06 2 7
8 * * * 2
9. Work
2. TeamExperience
Effective Building 0.03
0.06 0.071 0.08
0.27 0.063
.308* 0.03
0.07 .0.16 . 0.22 0.29 0.24 1 0.18
Skills 94 6 3 5 3 548*8 482*6 2 1 6
3. Business Innovation .302* 0.27 1 . 0.21 *0.01 * 0.06 - 0.02
Skills 5 522* 6 9 6 0.08
* 9
4. Result Producing Skills .335* . . 1 . 0.22 0.21 0.13 0.10
308* 522* 600* 5 6 9 4
* *
5. People Management . 0.07 0.21 . 1 0.11 0.20 0.22 0.14
Skills 467* 3 6 600* 9 9 2 6
* *
6. Age of Employee 0.06 0.16 0.01 0.22 0.11 1 . . .
4 8 9 5 9 844* 718* 571*
* * *
7. Level o Employment 0.17 0.22 0.06 0.21 0.20 . 1 . .
1 6 6 6 9 844* 772* 633*
* * *
8. Educational Level - 0.24 - 0.13 0.22 . . 1 .
0.06 1 0.08 9 2 718* 772* 552*
2 9 * * *
9. Work Experience 0.14 0.18 0.02 0.10 0.14 . . . 1
7 6 4 6 571* 633* 552*
* * *

TABLE: 6
CORRELATION COEFFICIENTS AMONG ALL VARIABLES USED FOR THE PRESENT STUDY:
ALL THE RESPONDENTS (N = 90) AND RESPONDENTS FROM PRIVATE ORGANIZATIONS (N = 50)
Note: *p<.05, **p<.01 (two-tailed).

26
Regression Analysis:

Table 6:

Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .827a .684 .653 .57542

a. Predictors: (Constant), Work Experience, BIS, Educational Level,

PMS, Age of Employee, TEBS, Level of employment, RPS

Table 7:

27
 Coefficientsa

Unstandardized
Coefficients Standardized Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) .990 .339 2.922 .005

TEBS .241 .114 .236 2.110 .038

BIS .242 .123 .252 1.969 .052

RPS -.210 .134 -.203 -1.566 .121

PMS .594 .117 .584 5.058 .000

Age of Employee -.103 .143 -.084 -.719 .474

Level of -.055 .198 -.035 -.276 .783

employment

Educational Level -.299 .134 -.213 -2.239 .028

Work Experience .302 .148 .159 2.042 .044

a. Dependent Variable: CP

From the above table 6, the value of R Square is 0.684, this is good value, and it means the
relationship between the dependent variable and the rest of independent variables are connected
in a good manner. In other words, 68.4% of the Critical Decision is explained along the
regression line. The adjusted R square indicates how many variables are being adjusted or
controlled. In other words, it measures the association between two variables after controlling or
adjusting it. Here, again the association between the dependent variable and the independent
variables are moderately good (0.653 or 65.3%), as the closer the figure is to 1.0 or 100%, the
stronger is the relationships amongst them, Validity is explained by adjusted R-square.
Therefore, the goodness of fit value, adjusted R-square is better than moderate.

We know, Y = a + b1x1 +b2x2 + b3x3 + b4x4

Here, “Y” is the critical decision (dependent variable), x1 to x8 are the seven independent
variables mentioned in the project (i.e. Age of employee, Level of Employment, Educational
Level, Work Experience etc.), b1 to b4 are the value of “B”, and the “a” is the constant.

28
The overall result shows that only result producing skills has negative impact over company
performance. Which means if result producing increases company performance will decrease and
if result producing skills decrease then opposite will happen to company performance.

Table 8

Model Summary

Type of Organization Model R R Square Adjusted R Square Std. Error of the Estimate

Government 1 .809a .654 .565 .62073

Private 1 .610b .372 .250 .40531

a. Predictors: (Constant), Work Experience, PMS, Educational Level, TEBS, RPS, BIS, Level of employment, Age of Employee

b. Predictors: (Constant), Work Experience, BIS, PMS, TEBS, Age of Employee, RPS, Educational Level, Level of employment

The R square value after splitting the data shows that government organization has the value of .
654 (65.4%), which is a good value indeed and this value indicates that for government
organizations relationship between company performance (dependent variable) with the other
independent variables (team effectiveness building skills, business innovation skills, result
producing skills & people management skills) has good relationship, and 65.4% of the critical
decision can be explained through the regression line. On the other hand, for the private
organizations the result is very poor and it is .372 which means 37.2% of the critical decision can
be explained through the regression line, and moreover the relationship between the dependent
and independent variables are poor. The adjusted R square value for government organizations is
.565; which means that these organizations have a moderate association of their dependent and
independent variables. And for private organizations the goodness of fit value, adjusted R square
is .250; which is really poor. So there is less/poor association between the dependent and
independent variables for the private organization.

Table 9

29
 Coefficientsa

Unstandardized

Type of Coefficients Standardized Coefficients

Organization Model B Std. Error Beta t Sig.

Government 1 (Constant) 1.260 .696 1.810 .080

TEBS .294 .178 .244 1.651 .109

BIS .281 .200 .226 1.403 .171

RPS -.755 .250 -.422 -3.025 .005

PMS 1.102 .220 .696 5.019 .000

Age of Employee -.247 .224 -.226 -1.101 .279

Level of -.664 .317 -.428 -2.092 .045

employment

Educational Level -.195 .195 -.148 -1.002 .324

Work Experience .712 .251 .381 2.843 .008

Private 1 (Constant) 2.381 .651 3.656 .001

TEBS .021 .138 .021 .149 .882

BIS .133 .138 .148 .964 .341

RPS -.050 .152 -.063 -.328 .744

PMS .326 .112 .484 2.904 .006

Age of Employee -.030 .154 -.048 -.195 .846

Level of .319 .198 .441 1.612 .115

employment

Educational Level -.357 .145 -.521 -2.456 .018

Work Experience .099 .144 .112 .689 .495

a. Dependent Variable: CP

If TEBS increases by one and all other variable remains constant, then company performance
increases by 0.294 units for government organizations and .021 units for private organizations. If
BIS increases by one then company performance for government and private organizations will
increases by .281 and .133 respectively. The single increase of RPS will result company
performance to be decreased by .755 for government organizations and .050 for private
organizations. If PMS rise by one single unit then the company performance will increase at a
1.102 rate for government organizations and increase rate for private organizations will be .326.

30
A single year increase of age will affect the company performance for government organization
will be -.247 and for private organizations it’ll be -.030. If the level of employment rise by one
then the company performance of government organization will decrease by -.664 units and it’ll
increase in private organization by .319 units. The one unit increase in educational level will
make a decrease of company performance by .195 units in government organization and .357
unit of decrease for private organizations. As the increase of work experience by one unit will
affect the government organizations’ company performance by .712 units and .099 units for
private organizations’ company performance.

Independent Sample t-test:

Table 7

31
 Independent Samples Test

Levene's Test for

Equality of
Variances t-test for Equality of Means

95% Confidence
Interval of the
Difference

Sig. (2- Mean Std. Error

F Sig. t df tailed) Difference Difference Lower Upper

CP Equal 10.976 .001 -8.785 88 .000 -1.33675 .15216 -1.63913 -1.03437

variances
assumed

Equal -8.208 54.265 .000 -1.33675 .16286 -1.66323 -1.01027

variances not
assumed

TEBS Equal 6.925 .010 - 88 .000 -1.45375 .13334 -1.71873 -1.18877

variances 10.903
assumed

Equal - 60.897 .000 -1.45375 .14053 -1.73476 -1.17274

variances not 10.345
assumed

BIS Equal 3.358 .070 - 88 .000 -1.60100 .13496 -1.86920 -1.33280

variances 11.863
assumed

Equal - 66.272 .000 -1.60100 .14058 -1.88165 -1.32035

variances not 11.389
assumed

RPS Equal 1.136 .289 - 88 .000 -1.52300 .11936 -1.76020 -1.28580

variances 12.760
assumed

Equal - 86.956 .000 -1.52300 .11782 -1.75717 -1.28883

variances not 12.927
assumed

PMS Equal .352 .555 - 88 .000 -1.42000 .13844 -1.69512 -1.14488

variances 10.257
assumed

Equal - 87.590 .000 -1.42000 .13604 -1.69036 -1.14964

variances not 10.438

32
From table 7 we get the independent sample t-test for our research. In this table we can see that
the first part of the table says Levene's Test for Equality of Variances. Here are two columns
underneath this tittle (F column and Sig.). And on the left hand’s column there are two cases
(Equal variances assumed and equal variances not assumed). At beginning we should consider
the Sig. value of the Levene’s Test. If the value is greater than .05 then we read from the 1st row
which is Equal variances assumed and if the value is below .05 we read from the 2nd row that is
Equal variances not assumed. In our case for CP we find the Sig. value less than .05; so, we read
the 2nd row and find out that our Sig. (2- tailed) value is less than .05 and it is .000 which means
that there is significant difference among the data. For TEBS we find our Sig. value is .010
which is less than .05 and as a result we see the 2nd row and get the Sig. (2-tailed) value is .000
that indicates that there are significant differences among the data. BIS gives us a Sig. value of .
070 which is greater than .05 so we see 1st row and get the Sig. (2-tailed) value which is less than
.05 indicating that the data have significant amount of difference among them. The Sig. value of
RPS is .289 which is greater than .05 and as a result we follow the 1st row and gets the Sig. (2-
tailed) value of .000 meaning difference exists between the cases. Sig. value for PMS is showing
that value is .352 which is greater than the value .05 and as per rule we follow the 1st row and get
the Sig. (2-tailed) value gives a value which is below .05 and it indicates that significant
difference exists between the cases’ data.

Discussion
The things that came up with the research is that Bangladeshi service oriented companies are
now trying hard to match the market’s competition with the multinational companies and other
foreign franchise. The government sector in this case is not a high performing company but still

33
they are trying to match with the market through emphasizing on the managerial skills building.
The government organizations are putting more effort to build a community, a work group or
identity of themselves. For the reason they are trying hard to match their team effectiveness with
their company performance. The private organizations shows that they have putted less
emphasize on their team’s effectiveness in regards with their company’s performance. Though it
was really hard to believe that private organizations would show such result. The private
organizations were thought to be the one who are doing their jobs in a group or team. The teams
work seems to get a less importance for private organizations. This is maybe a result due to
individualism of the employees. It is hard to sustain in the private organizations as these
organizations face intense competition. Moreover there are lots of unemployed person available
in the market so it is really easy to find another employee. For such reason employees who are
working in the organizations have to prove their individual performance. This can be a cause of
their negligence in team effectiveness building.

The next thing that was found is that government organizations put are more into innovating new
business/service in their organization. It is the government organizations who have easy access to
bring in new machines or new process of giving service. As government is the head of these
organizations so there is flexibility thing working for this organizations. Regardless about the
case that how effectively they are using this skill to capture the market share but still, they are
innovating more. There is a misconception of people that the private organizations are highly
innovative in regards of business. The private organizations are more into selling their service in
new ways but they are actually not inventing new things. The thing the private organization is
doing is presenting the old things in a new way, improving their marketing & promotions,
offering high CSR activities towards the people. This gives them the edge over government
organization and people misunderstand their new look with innovation.

Result or outcome is the thing that comes first in mind when some inputs have been put into the
process. The government organizations here show lack of efficiency in result producing. They
give less importance on result producing on company performance. They are very ignorant about
result producing. They don’t measure company performance by results. The private
organizations on the other hand show better response in regards with the result producing skills.
The private organizations measure their performance through their result producing. Outcomes

34
are more important for a private organization rather than any government organization. The
private organizations have a need for better results and outcomes. The result producing skills
give them the opportunity for betterment and improvement. Thus they can match themselves
with the intense competition of market and make the company’s performance to go up and up.

The people are much more important in service organizations rather than manufacturing firms.
The people here are the main who provides service to the direct customer. Now people
management is very much encouraged in both the government organization and also in the
private organization. But there is a significant difference between the government and private
organization. The government organizations are much more people oriented as they treat
themselves as a team or family so there is a linked bondage between the employees and that is
helping the company performance to enhance. On the other hand people of private organizations
they treat each other as their own competitor in their way of success. But it is not right that the
private organizations are not people oriented it the private organization who put more emphasize
on their people to motivate and provide a world class service. The government organization has
this untold policy of not firing any people that’s why their people last long in the company so the
experience gets counted and as from the experience the outcome that comes is also good. On the
other hand the employees of private organizations are also people oriented but in a lesser amount
(Vinton, 1992). They treat their people to provide the world class service but at the end there is a
lack of job security for these companies.

35
Conclusion:
From the research we can see that there are some sectors in which both of these companies can
improve themselves to deliver a service of class. The recommendations for the government
organization are given below:

Utilize the Business Innovation Skills: The government organizations are more into innovating
new things in their business but the problem is they are not well aware of on how to use this
invented idea. They are not properly using their full potential.

Put more emphasize on Result Producing: The organizations must put more emphasize on their
result producing skills. By putting more emphasize on result producing skills they can improve
their company performance.

For the private organizations the recommendations are:

Improve the team performance: The private organizations should have such HR policy that
motivates their employees and help increase their team works. For this the company performance
is not getting to its proper place (Dyer, 1977).

Emphasize more on People Management: Private organizations are more into people oriented
business but they put a less emphasize on their own employees. This is hampering the quality as
well as the performance of the organization. So the private organizations should engage their HR
to motivate the people and bring the best out of them.

In conclusion the factors that can be discussed are the fact that both types of the organizations
are not doing the work according to their potential. There are some lacks in their skills and
management style. The managers and the employees are not well concerned on how to use their
full potential to get the best outcome. The organizations are also not very caring on this side. All
they need is to get the profit. But they can do better that they don’t understand. The fact that is
concerned with this is that the organization is unaware of the actual role of HR and manager. The
thing they are doing is making the managers act as a supervisor of the employees. By doing so
the performance of the company is not growing and as a result the organizations fail to compete
in the market where the competitors come from across the globe.

36
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