Environment of Human Resource Management in Nepal Fundamentals

Environment of Human Resource Management in Nepal Fundamentals of Human Resource Management, 10/e, De. Cenzo/Robbins November 19, 2014 Krishna Raj Lamichhane

Introduction ØHR was never seen as an important element in the past. ØStrategic Role of HR: has to become a strategic partner, an employee sponsor or advocate, and a change mentor. ØHR must be a business driven function.

HR can help deliver organizational excellence in the following four ways: ØHR should become a partner with Top Management. ØHR should become an expert. ØHR should become a champion for employees. ØHR should become an agent of continuous transformation and technology driven.

Reality of HRM: Nepalese Industry • Still in the phase of evolving through Personnel Department to HR Department in many organizations • Blend of administrative work and HR work • Growing from traditional record keeping/ Administrative work to Strategic Planning, Research and development and Reviewing • Considered HR as Human Capital but still in struggling phase • Experienced the remarkable improvements in its systems and practices

HRM Environment: 2 Perspective Internal Environment • Employee-Management Relation / Unions • Organizational Cultures • Organizational Conflicts • Policies External Environment • Political • Legal • Economical

HR DEVELOPMENT REALITY Vs THEORY

Theory • Allow employees to plan their careers, based on their interests as well as strengths and gaps in their personal competency inventory • Support employees in determining and implementing targeted learning and development programs in line with their interests and competency gaps • Increase engagement and a sense of empowerment, due to their ability to more effectively plan and manage their careers

REALITY • Not practiced in real term • More focused on work • Career path/ladder exists in the form of standard pattern of promotion • Some programs exist, which we can link to career development

HR Development programs in Nepalese Organizations Government Owned Organization ▫ Education & Training ▫ Job Rotation ▫ Promotion § Private Organization § Performance goal (Role Clarity) § Performance Review § Education and Training § Succession Planning § Promotion

HR Development programs in Government Owned Organization • Education and Training ▫ No training need assessment ▫ Job nature/Duties not considered ▫ Routine and irrational • Job Rotation ▫ Focused on generalization • Promotion ▫ Seniority counts ▫ Work performance is underestimated ▫ Government decisions influence (Automatic/ Special promotion)

HR Development programs in Private Sector • Performance Goal (Role Clarity) ▫ Challenging and visible assignments ▫ Mutually set (between staff & organization) ▫ Clear Deadlines • Performance Review ▫ Reviewing staff performance against performance goals ▫ Feedback to staff on their performance Contd. . .

HR Development programs in Private Sector • Education and Training ▫ Job related training ▫ Career focused education and training • Succession Planning ▫ Empowers staff to take higher responsibilities in the future ▫ Motivates staff to step up advancing their internal career • Promotion ▫ Encourages good performers ▫ Performance based promotion

Performance Management and Staff Development ▫ Better way to improve employee performance on a regular basis ▫ Integrated system and holistic approach ▫ Great challenge to implement because of its large network, work style and work culture

Present Context • Increasing number of competitors in any sector versus scarce of good employees • Retaining good performers is a real challenge • Staff Turnover rate is high • Good performer looks for career advancement • HR Development program has been taken as an important tool to attract good performers

Career Development • Career development of the employees should be prime consideration • Clear career path inspires employees to perform better • Career focused program reduces employees frustration at work • Retains good performers and ensures organizational profitability and sustainability

Employee Involvement It’s all about employee empowerment through involvement, which increases worker productivity and loyalty. Employee Involvement Concepts delegation • participative management work teams • goal setting • employer training

Future HR with Technology HRM information systems help to Ø facilitate HR plans Ø make decisions faster Ø clearly define jobs Ø evaluate performance Ø provide desirable, cost-effective benefits

HRM Challenges & Issues Intellectual Capital/Human Capital ØCapitalize human resources to accept present business challenges of globalization, technology advancement, product innovation and growth, rapid changes and knowledge-based market. ØAttract and retain competent human resources. ØIntroduce or revise staff services in terms of system and processes, remuneration, benefits and other facilities at market rate.

Challenges/ Issues Ø Size, network and diversity of Human Resources Ø Scarce of relevant and talents resource Ø Speed change in technology and system at work Staff Placement and Transfer Ø Staff unwilling to be placed in other Branches, outside major Cities Ø Impossible to consider the preference of every staff. Staff Motivation Ø Enthusiastic young employees Vs old generation cannot be compared on same scale of motivation. ØDifficult to motivate old generation for better performance due to age factor as well as more years in the same service. ØThey are less career oriented.

Can HR transform itself alone? ØTeamwork required among CEO, HR professionals and line Managers. §Line Managers have ultimate responsibility for the processes and outcomes of the organization. ØNo effort of HR shall be successful unless the cooperation and commitment from staff and line management is ensured. ØEffective Teamwork for better performance ØAttitude Change

We are here because NEPAL is here. “Be Positive and Optimistic” “We can achieve. . . . ”

Thank you.