Strategies to Develop Human Capital in Bangladesh in Light of 4th Industrial Revolution


Term Paper, 2018
28 Pages, Grade: 4.0

Excerpt

Table of Contents

1. Introduction

2. Background

3. Objectives
3.1 Specific Objective
3.2 Broad Objectives

4. Human Capital Development in Bangladesh

5. Risks

6. Human capital development: Facing Industrialization
6.1 Impact on the flow of work (instructional design vs learning design)
6.2 Bangladesh’s stand on the Map of fourth Industrial Revolution

7. Human Capital Development Strategies
7.1 Early Childhood Phase
7.2 A Focus on the Right Kind of Education
7.3 Training Development Activities

8. Branding Human Capital

9. Conclusion

Bibliography

Table of Figures

Figure 1 Sector Specific Skillset Requirement: Primary, Secondary and Tertiary Sectors

Figure 2 Sector Specific Skillset Requirement: Quaternary and Quinary Sectors

Figure 3 Risk on the spectrum of Time and Impact predictability

Figure 4 A quote by Professor Klaus Schwab

Figure 5 Industrial Revolution 4.0: The Forces of Change

Figure 6 The image on the left show the automation potential industrial sector wise in the Asia Pacific region

Figure 7 Percentage of Unemployed Degree Holders in Bangladesh, India and Sri Lanka

Figure 8 Fourth Industrial Revolution Impact in RMG and Healthcare

Figure 9 Fourth Industrial Revolution Impact in Agriculture, Banking and Financials and Insurance

Figure 10 Percentage of children under 5 who are stunted

Figure 11 Employment Distribution by Sectors of Bangladesh 2016-17 (BBS SURVEY)

Figure 12 Unemployment Rate among Adult Citizens

Executive Summary

The shape of Human Capital is going to take a drastic turn with the emergence of the fourth industrial revolution. Ministry of Labor and Employment is responsible for ensuring development in this sector. A lot of employment opportunities has opened as a direct result of overseas migration. Dispersed in 162 countries of the world, at present 1.3 crore Bangladeshis are employed directly or indirectly. But despite Bangladesh's long experience with international migration, academic interests in the prospects of labor migration from Bangladesh has been quite limited to its potential.

As the fourth industrial revolution blurs the physical and digital divide, its impact shall be perceived upon all levels of socio-economic, industrial, governmental and individual dimensions. In the context of ASEAN countries, the greatest threat to employment comes in the form of automation that will make the human resource redundant and replaceable particularly in China and Bangladesh: two of the leading manufacturing countries in the world. If we look at the current scenario, it can be obvious for us to deduce that Bangladesh is not taking much of an initiative towards the fourth industrial revolution. But there are plenty of ways the fourth industrial revolution can be utilized to develop human capital.

Human capital development starts from as early as the childhood phase of the people as it represents skills, knowledge, and health that people accumulate over their lives. Encouraging livestock production will be helpful for child growth due to the increase in dairy production. Rather than a siloed approach, multisectoral coordination while taking initiatives, in nutrition interventions is effective. Family planning programs that enable birth spacing reduce demands on the low maternal nutrient stores in developing countries. We also should focus to collaborate with programs such as Jhilmili, Proshikkha, Brac Development Programs, UNICEF.

While taking a look at the actual situation regarding education and unemployment, one finds a rather paradoxical relationship. Higher levels of education are associated with lower levels of unemployment in developed countries, but not so in developing countries. By introducing automation technologies, the yield of agriculture sector can be increased, this will ensure two things together, it will attract the technologically proficient people and make the sector lucrative enough towards being able to compete with lucrative jobs. We should also look to introduce vocational and technical education early in junior secondary school to encourage attaining dual qualification.

For training development activities certification of skill or Apprenticeship (Dual Training System) has to be promoted). Besides, Branding strategies should be deviced specifically catered to the Labor Capital with campaigns like "We don't build beams; we build dreams."

1. Introduction

A mega transition is on the brink of arrival as the Fourth Industrial Revolution begins to emerge. Investment in human potential will be paramount to tackle the political, economic, societal challenge that is yet to emerge. Human Capital Management by reducing skill-gap has to be sped up. But there is an ever growing need to keep an eye out for the future generation. And that’s why Human Capital Development has a very crucial role to play. Through this strategic paper, we would research on how skills can be acquired or deployed through the working life as well as the formative years. The education system and other factors crucial to development have to be fostered to develop a strong future workforce.

2. Background

One of the government ministries of Bangladesh is the Ministry of Labor and Employment, responsible for ensuring employment, protecting and safeguarding the worker's interest and to assist in human resource development. [1] The ministry has to revamp in the coming future as they have a very role to play for Human Capital Management and Development.

A lot of employment opportunities has opened as a direct result of overseas migration. Dispersed in 162 countries of the world, at present 1.3 crore Bangladeshis are employed directly or indirectly. They contribute to an annual remittance over US$ 15 billion to Bangladesh. [2] Signs are promising for the increasing number of Bangladeshi migrant workers with plenty of future job prospects in the queue. The positive trend of Migrant outflow in the recent time is a seemingly important factor to validate the positive perception revealed about the future of migration. From 2014, overall migration level has been consistently increasing, it was 409,253 in 2013, and by 2016 it ascended to 757,731, and reaching around 1.3 crores by 2017 – which is the highest outflow of migrants reached in a year. [2] [3]

Human Capital Development is another aspect which has a dire need of addressing. The skill gap is an ever-present obstacle among the Bangladesh workers resulted due to the divergence between the required experience and education from the point of view of an employer. Education Vs Unemployment paradox, stunting among children, lack of entrepreneurship development have been barriers to the growth of Human Capital.

3. Objectives

3.1 Specific Objective

1. Finding and exploring demanding job sectors in the international market
2. Identifying specific countries where the manpower of Bangladesh could be utilized
3. Determining the professional skill trade attributes required in designing or strengthening the prevalent training programs
4. Identify room for improvement of Human Capital Development from the formative years

3.2 Broad Objectives

1. Analyze the comparative advantages of the labor supplying countries
2. Find sector-specific skill set requirement
3. Explore the advent of the Fourth Industrial Revolution and the impact that it will create to change the total landscape of Human Capital Management
4. Identifying the effects of stunting in the early years and effective ways to address the concerning situation
5. Promoting Entrepreneurial development
6. Branding migrant workers based on specific trades
7. Suggesting changes in government policies and framework to operate overseas labor market effectively

4. Human Capital Development in Bangladesh

Despite Bangladesh's long experience with international migration, academic interests in the prospects of labor migration from Bangladesh has been quite limited to its potential, particularly when it comes to focusing specifically on the prospects of labor migration, highlighting major underlying factors, and projecting the future level and trend of migration.

Task-specific human capital: This concept emphasizes the development of human capital specific to the nature of the task (or, skills required for the task), and the human capital accumulated for a task is valuable to a firm as they require the transferable skills. This concept can be applied to job-assignment, wage dynamics, tournament, promotion dynamics inside firms, etc. In the next point, we have divided skillset requirement in 5 defining sectors

Abbildung in dieser Leseprobe nicht enthalten

Figure 1 Secto r Specifi c Skillset Requirement: Primary,Secondary and Tertiary Sectors

Abbildung in dieser Leseprobe nicht enthalten

Figure 2 Sector Specific Skillset Requirement: Quaternary and Quinary Sectors

5. Risks

Human Capital Development bears some known and unknown risks based on timing and its impact. Automation is a big example of such an event as we know this will bring change, but we don’t exactly know when it will take place (however its occurrence is not really far away now). It will significantly lessen the value of labor power. It is also possible to turn automation to an advantage. Other events like an election or cultural events can lessen or increase the type and quantity of human capital needed in a country. These events fall under the category where we know when it will take place, but we don’t know what the change it will bring. Events like economy change or factor change (e.g. Namibia is currently driven by mining and if suddenly their economy shifts towards fishing or agriculture then the whole human capital need will shift towards a different type of labor power.) also fall under one of these two categories. All of these events have to be analyzed before they take place and the possible consequences of these events have to be addressed. For this, the bigger picture for each economy has to be provided. An example would be focusing on the economy of the country and finding out what secondary skill they are looking for, or looking into their trade and finding out which export goods have an increasing demand so that if they shift their focus towards that good, we can send trained labor for that sector. Whatever the event is we always have to find out the characteristics of it in order to adapt. Adaptability will be able to decrease the threat of change by quite a bit.

Now if we consider “black swan”, we have to look at the events that we don’t know the characteristics of and when they will take place. For human capital events like disasters are the most common. Events like destruction and death happen from time to time and if they happen for the capital that we sent our competitors are sure to take advantage of that. Another type

Abbildung in dieser Leseprobe nicht enthalten

Figure 3 Risk on the spectrum of Time and Impact predictability

of event which can be classified as the black swan is the shift in the economy. This can go both ways and the nature of that change is fairly unpredictable.

The precautions we can take to counter “black swan” events:

- Having simple but effective work diagrams: Making the sector our labor force will work in simple and centering our skillset if we focus on the construction or RMG sector of middle east we can do that accordingly.
- Holistic thinking: Having a blueprint which touches every factor connected with the one that we are dealing with, for example with this divided focus any change in economy or society will lead to us being ready for any unpredictable events, giving us an edge over the competitors.
- Mastering the field: To do this sending skilled labor through a filter is one way. As this will ensure the labors having knowledge themselves on how to avoid the unpredictable events. Just we having the knowledge isn’t always enough, examples can be in mining which is very prone to disasters has to be done by labor with mastery, disasters can be avoided in this way.

It should be noted that even after all these tasks “black swan” can always take place. To make sure that these events don’t give others a competitive advantage, we need to ‘expect always’. Being ready for everything can be the best task to counter black swan in the long run.

6. Human capital development: Facing Industrialization 4.0

The advent of the fourth industrial revolution shall bring about extensive changes through all industries which will mutate consumption, production, transportation and delivery systems

Abbildung in dieser Leseprobe nicht enthalten

Figure 4 A quote by Professor Klaus Schwab

along with many other factors. Concurrently, the essence of work is changing: some of it can be attributed to new technologies and their impact on business models, and some to new platforms that allow talent to connect and collaborate holistically in markets in contemporary methods.

It is imperative that visionary leaders from a wide range of skills emerge to guide these changes for optimal outcome. Unless we develop relevant skills to adapt to the rapidly emerging VUCA world, we shall not only miss out on the opportunities presented by the revolution but also experience its disruptions as bystanders. As emerging technologies rattle the labor markets, this presents the potential to alter the way we learn throughout our lifetimes, how we re-train those who are facing declining returns to their skills and how we educate the next generation. Apart from bringing forth robust new data, they are also providing metrics that allow us to understand the alterations taking place and help manage them better.

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Details

Title
Strategies to Develop Human Capital in Bangladesh in Light of 4th Industrial Revolution
College
University of Dhaka  (Institute of Business Administration)
Course
International Business Environment
Grade
4.0
Author
Year
2018
Pages
28
Catalog Number
V469584
ISBN (eBook)
9783668931725
ISBN (Book)
9783668931732
Language
English
Tags
Human Capital, Strategies, Development, Industrialization 4.0, Job loss, Nutrition, bangladesh, Underemployed
Quote paper
Zaif Ahon (Author), 2018, Strategies to Develop Human Capital in Bangladesh in Light of 4th Industrial Revolution, Munich, GRIN Verlag, https://www.grin.com/document/469584

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