By Abdulla A. B.
Co-Founder, MegaBot Business Consultancy
June 2025

Abstract

While Bangladesh has seen impressive industrial growth, especially in sectors like garments, IT, and construction, its corporate culture remains heavily hierarchical – similar to that of Japan. However, unlike Japanese firms, most Bangladeshi companies lack the strong internal systems, structured training, and formal HR practices that make hierarchy function effectively. This article explores the challenges of this “incomplete adoption” and recommends a path toward sustainable corporate transformation.

Introduction: A Nation is Transition

Bangladesh is moving fast toward becoming a middle-income economy. Exports are rising, digital adoption is growing, and a new generation of professionals is emerging. However, beneath this economic progress lies an outdated corporate culture that slows innovation, limits employee engagement, and hinders productivity.

Hierarchy in Bangladesh: A Deep-Rooted Norm

Bangladesh companies, especially family-owned businesses and factories, still operate under rigid hierarchical structures where authority is connected at the top. This results in:

• Employees who fear speaking up
• Centralized decision-making
• Limited collaboration across teams
• Lack of ownership among mid-level managers

Respect for age and seniority dominates, and leadership is often seen as a position of control, not coaching.

The Japanese Model: Hierarchy With Structure

It is important to note that Japan also embraces hierarchy – but with critical supporting systems:

Practice	Japan
Training	Structured on-the-job training (OJT)
Career Path	Planned and monitored career progression
Employee Development	Rotation across departments for skill-building
Performance Culture	Kaizen, 5S, and team-based improvements
Long-Term Thinking	Loyalty, mentoring, and corporate sustainability

The Japanese system balances hierarchy with systems, enabling employee growth and innovation.

Bangladesh’s Gap: Structure Without Substance

In Bangladesh, hierarchy exists without the internal foundations that make it sustainable:

Weakness	Impact
No SOPs	Inconsistent operations and decisions
Informal HR	Promotions based on favoritism, not merit
Limited Training	No formal onboarding or continuous development
Owner-Centric Leadership	Business depends too heavily on one or two individuals
No Succession Planning	Risk to business continuity in family-owned firms

These weaknesses create inefficiencies, demotivate staff, and limit Bangladesh’s ability to compete globally.

Real-World Case: A Garments Factory in Gazipur

A well-known garments factory employs over 3,000 workers. While it exports to Europe and the U.S., internal systems are lacking:

• There are no written job descriptions
• Training is non-existent
• Supervisors rely on verbal instructions
• HR is limited to attendance and salary processing
• All key decisions-hiring, firing, production goals – are made by the owner or one or two senior executives

Result:

• High worker turnover
• Poor middle management capability
• Lack of innovation on the production floor
• Weak succession planning
• Decline in quality compliance with international buyers

Global Risks of Maintaining the Status Quo

Risk	Consequence
Productivity Stagnation	No process improvements = flat output per worker
Loss of Talent	Skilled employees leave for better-managed firms
Reputational Damage	Global clients demand standards
Compliance Failures	Safety, labor, and audit risks
Innovation Blockage	Employees do not feel empowered to contribute ideas

Recommendations for Cultural Reform

1. Formalize HR Systems

• Develop SOPs for hiring, evaluation, and promotion
• Implement ERP or HRMS systems for transparency

2. Build Internal Training Departments

• Train trainers, create onboarding modules, and offer leadership bootcamps
• Partner with technical institutions and business schools

3. Adopt Kaizen & Lean Thinking

• Apply Japanese continuous improvement methods
• Launch monthly “Improvement Suggestion Days”

4. Empower Mid-Level Leaders

• Offer autonomy for operational decisions
• Use 360-degree feedback and coaching systems

5. Create a Succession Pipeline

• Prepare second-tier leadership in family businesses
• Create governance boards with external experts

Conclusion

Bangladesh has embraced the hierarchical structure of Japan—but has not yet invested in the systems and training that make that structure effective. To become globally competitive, especially in export-heavy sectors like garments and IT, Bangladesh must build a performance-oriented, system-driven, and innovation-friendly corporate culture.

The future depends not just on more factories or code, but on better leaders, better systems, and better people practices.

About the Author

Abdulla A. B. is a Bangladeshi HR specialist, strategist, researcher, and Co-Founder of MegaBot Business Consultancy. He focuses on developing performance-driven systems, strategy and performance, manufacturing and management, talent pipelines, and HR-tech solutions for industrial growth in Bangladesh.