HRM REVIEW

Unit: 1
1.

HRM is a distinctive approach to employment management which seeks to achieve

competitive advantage
through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural
and personnel techniques. (Storey, 1995).

2.

HRM is a managerial perspective which argues the need to establish an integrated series of personnel policies to
support organizational strategy. Buchanan and Huczynski, 2004).

3.

HRM MODEL

4.

Nature of HRM
Broader Function
People Oriented
Action Oriented
Development Oriented
Continuous Function
Future Oriented
5. Changing Role of HRM in Nepalese Organization

HR and boosting productivity

HR and responsiveness
HR and services
HR and employee commitment
HR and corporate strategy

6. Human Resource Management from an International Perspective

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Cultural Diversity

Workforce Diversity

Language Diversity

Economic Diversity

6. Personnel and HRM difference

Dimension
Contract
Rules
Behavior norms
Managerial task with respect to
labor
Key relations
Speed of decision
Management role
Job design
Training & development
Conflict handling
Management action

PM
Written contracts
Strict with rules and regulation
Customs & practices
Monitoring

HRM
Beyond contracts
desire for change and excitement
Values / mission
Nurturing

Labor management
Slow
Transactional
Division of labor
Controlled access
Temporary solutions
Clear rules

Customer relations
Fast
Transformational
Teamwork
Learning organizations
Manage climate & culture
Need based

7. Ethical Issues in HR

8. Functions of HRM

Unit: 2

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1.

2.

HRM/HRD/HRIS

Succession planning is nothing more than having a systematic process where managers identify, assess and
develop their staff to make sure they are ready to assume key roles within the company. Having this process in
place is vital to the success of the organization because the individuals identified in the plan will eventually be
responsible for ensuring the company is able to tackle future challenges.
These "high potential" candidates must be carefully selected and then provided training and development that
gives them skills and competencies needed for tomorrow's business environment. Another reason its important is
because these high potentials will one day become the leaders of the Company. This is why their development
needs to incorporate a broad range of learning opportunities in your organization.

3. Difference between recruitment & selection

Recruitment precedes selection and it is only finding and developing the sources of prospective employees
and attracting them to apply for jobs in an organization.

Selection is the process of finding out the most suitable candidate to the job out of the candidates attracted
i.e. recruited.

Determining the number and kind of human resources required is the first step in employment process and
is known as HRP. The second step is recruitment and the third step is selection.

4.

Job Description and Job Specification

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5.

Process and importance of JA

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Selection Process

Types of Selection Tests

Aptitude Tests
Achievement Tests
Situational Tests
Interest Tests
Personality Tests
Multi dimensional Tests

Tools for Selection

Reference
Interview
Work History
Physical ability
Paper and pencil tests
Background and Information

Placement is the determination of the job to which an accepted candidate is to be assigned and his assignment to
that job. It is matching what the supervisor thinks he can do with the job demands and what he offers in the form of
pay roll, working environment etc.

TYPES OF JOBS AND CLASSIFICATION

Independent jobs
Sequential jobs
Pooled jobs
Assessment classification model
Collect details about the employee.
Construct his/her profile.
Which subgroup profile does the individual profile best fit?
Compare subgroup profile to job family profiles.
Which job family profile does sub group profile best fit?
Assign the individual to job family.
Assign the individual to specific job after further counseling and assessment.

Unit: 3
1.

Human Resource Development (HRD) is the integrated use of training, organizational development, and
career development efforts to improve individual, group, and organizational effectiveness. Human
resources are the assets, which do not find a place for mentioning in the balance sheet of company. But it is
one of the most important assets as human resources are a resource of production as well as they are
utilizing other resources of production like a material, machines, money etc.

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2.

Induction/ORIENTATION/SOCIALIZATION
Induction is the process of receiving and welcoming a new employee and gives the basic information to
settle down quickly and happily and start the work introducing the new employee to the job, job location,
other employees, organization, surroundings etc. Lack of information, lack of knowledge about the
requirements of the job, lack of knowledge about the new environment etc disturb new employees Gains
more significance as the turnover rate increases among new employees

3.

Stages of Socialization

4.

Mentoring is one-to-one interaction with the employee. Mentoring identifies strengths and areas of
improvement and eliminates or minimizes areas of improvement. Mentoring focuses on attitude more than
skill. Mentoring is done by an internal employee. Mentoring is conducted for management only.
Mentoring is a process of developing formal relationships between junior and senior members of the
organisation, in certain cases mentoring also takes place between peers. The process of mentoring works
both ways i.e. it benefits the parties, the mentor and the mentee.

5.

Management and Leadership Development Methods/ Training Method

On - Job Training
Coaching
Position Rotation
Special Projects and Task Forces
Experience
Understudy
Selective Readings
Committee Assignment
Multiple Management

6.

7.

Five Levels of Evaluation

Reaction
Learning
Job Behavior
Organization
Ultimate value

Test-retest method
Pre-post performance method
Experimental-control group method
Time series analysis method
Structured interview method

Off - the Job Training

Case Study
Brain Storming
Conference and Seminars
Special Course
Simulation
Role playing
In basket
Management Games

Methods of Training Evaluation

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Unit: 4
Performance appraisal is also known as performance evaluation or performance review. It is the most crucial phase
of the performance management process. Performance appraisal is a necessary management technique, wherein the
employee and their manager mutually discuss and evaluate the employees performance for the past year.
Performance appraisal helps to have written records of the employees performance to achieve more productivity
through goal setting. It is also an objective means of determining compensation. Thus, performance appraisal is a
systematic and objective way of judging the relative worth or ability of employees in performing their job.
Five steps of performance evaluation system
1.
2.
3.
4.
5.

Develop an evaluation form.

Identify performance measures.
Set guidelines for feedback.
Create disciplinary and termination procedures.
Set an evaluation schedule.

Appraisal process

Setting appraisal objectives

Setting the performance standards
Communicate the expectation
Making the appraisal
Comparing standard and actual performance
Discussion of appraisal with the employee
Corrective action.

Performance Appraisal Methods

Traditional Methods
Essay Performance Method
Straight Ranking Methods
Paired Comparison Methods
Critical Incidents Methods
Checklist Method
Graphical Rating scale
Field review Methods
Forced Distribution method

Modern Methods
MBO
360 Degree Appraisal
Assessment centre
BARS
HR Accounting

Career Planning & Development

Career pertains to all the jobs that are held during ones working life. A career is a sequence of separate but related
work activities that provides continuity, order & meaning in a persons life. A career is defined as an individually
perceived sequence of attitudes & behaviors associated with work related experiences and activities over the span of
a persons life. A career path is the sequential pattern of jobs that form a career. Career goals are the future positions
one strives for as a part of a career.
Career stages

Growth stage
Exploration stage
Establishment stage
Mid-career
Late career
Decline stage

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Advantages and Disadvantages of 360 degree appraisal

Unit: 5 COMPENSATION
The terms wage / salary / compensation are often used as synonyms. The term wage is usually associated with
contractual employee whose pay is calculated according to the number of hours worked/ units produced. The word
salary/compensation applies to the remuneration that is paid for a fixed period and does not depend upon the
number of hours worked. It is associated with the white collar worker. Certain theories were propounded for
determination of wages but these could not stand the test of time.
Compensation structure
A) Intrinsic rewards
B) Extrinsic rewards (TYPES)
Indirect compensation
Indirect compensation

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Direct Compensation
Basic Salary
Medical Reimbursement
Special Allowances
House rent Allowances
Bonus
Conveyance
Leave Travel Allowances

Indirect Compensation
Overtime Policy
Leave Policy
Flexible Timing
Holiday Homes
Retirement Benefits
Insurance
Hospitalization

Pay determination process (compensation program me)

Performing Job Analysis

Conducting pay
Analysis of organizational problems
Preparation of pay structure
Framing pay administration rules
Implementation of wages and salaries

Job evaluation methods

A) Non-analytical methods
Ranking method
Job classification (grading method)
B) Analytical methods
Point (rating)method
Factor comparison methods
Factors affecting wages or compensation in Nepal
1) Productivity of workers
2) Ability to pay
3) Government
4) Labor union
5) Cost of living
6) Demand and supply of labor
Minimum Wages
The minimum amount of compensation an employee must receive for performing labor. Minimum wages are
typically established by contract or legislation by the government. As such, it is illegal to pay an employee less than
the minimum wage.
Wage rate established by collective bargaining or by government regulation, specifying the lowest rate at which
workers may be employed. A legal minimum wage is one mandated by government for all workers in an economy,
with few exceptions. Privately negotiated minimum wages determined by collective bargaining apply to a specific
group of workers in the economy, usually in specific trades or industries. The modern minimum wage, combined
with compulsory arbitration of labour disputes, first appeared in Australia and New Zealand in the 1890s. In 1909
Britain established trade boards to set minimum wage rates in certain trades and industries. The first minimum wage
in the U.S. (which applied only to women) was enacted by Massachusetts in 1912. Minimum wage laws or
agreements now exist in most nations.
The smallest hourly wage that an employee may be paid as mandated by federal law. Inflation and other factors
necessitate periodic adjustments to the actual number.

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Types of incentives plan

Individual pay plan

Group pay plan
Organizational pay plan

Current trends in compensation

Competency and skills based pay
Broad banding: (collapsing into few level)
The New Pay: (both together)
Emerging issues in Compensation
The issues of comparable
The issue of secrecy
The issue of inflation and salary compression
The issue of pay reviews
The issue of employee participation

Pay practices in Nepal

Government organizations
Private sector organization
Private banks and financial institutions
Non- Government organizations

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Unit: 6 OHAS
Occupational health should aims at:
1.
2.
3.

The promotion and maintenance of the highest degree of physical, Mental and social well-being of workers
in all occupations,
The prevention amongst workers of departures from health caused by their working conditions,
Protection of workers in their employment from risks resulting from factors adverse to health,

OHAS Provision

Daily cleaning of enterprises with germicidal medicines.

Arrangement of supplying fresh air and light with good temperature for good working condition.
Arrangement for removal and disposal for solid wastages.
Arrangement for prevention of accumulation of dusts, fume, vapor and other impurity materials.
One should concerns with the spacing and height of working condition.
Plenty of water supply in case of hazards occurrence, extinguishing fire, washing and cleaning purpose.
Arrangement of separate toilets for male /female at convenience place.
Declaration of no smoking zone.
Compulsion for health check up for everyone.

Common Hazards

Industrial injuries
Industrial accidents
Mechanical and chemical hazards
Biological hazards
Psychosocial hazards etc.

Emerging issues in OHAS

Physical working conditions

Sick building syndrome
Ergonomics (work management)
Engineering of work equipments and materials
Cumulative trauma and repetitive stress ( disorder)
Accident rate and individuals

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Unit: 7 ER, Change and Communication

Effective communication
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Use simple, direct and explicit wording.

Speak clearly, slowly and use your voice to convey the tone of the communication.
Respond to the listener.
Ask the listener to repeat back the information that was just received.
Listen and pay attention when the other person speaks.
Be Precise and Concise
Be Generic
Be Assertive
Be Attentive
Encourage Two-Way Communication

Causes of Stress in an Organization

Organizational Change
Task Design
Management Style
Interpersonal Relationships
Work/Life Balance
Physical Conditions

Ways to minimize stress at work

Act Rather Than React

Take A Deep Breath
Eliminate Interruptions
Schedule Your Day For Energy And Focus
Eat Right And Sleep Well
Change Your Story
Cool Down Quickly
Identify Self-Imposed Stress
Prioritize Your Priorities
Reset The Panic Button
Influence Others
Be Your Own Best Critic

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Spirituality is the basic belief that there is a supreme power, a being, a force, whatever you
call it, that governs the entire universe. There is a purpose for everything and everyone. The
universe is not meaningless or devoid of purpose. There is a higher power that affects all
things. Everything is a part and an expression of this oneness. Everything is interconnected
with everything else. Everything affects and is affected by everything else.
Spirituality is the feeling of this interconnectedness and being in touch with it. Thus,
spirituality is giving expression to ones feelings. Spirituality is also the feeling that no
matter how bad things get, they will always work out somehow. There is a guiding plan that
governs all lives. As long as a person has others, such as family, to fall back on, there is
nothing to fear.

An employee handbook, sometimes also known as an employee manual or staff handbook, is a book given to
employees by an employer. Usually, the employee handbook contains information about company policies and
procedures. The employee handbook is an excellent place to bring together employment and job-related information
which employees need to know, such as holiday arrangements, company rules and disciplinary and grievance
procedures.
It can also provide useful source of information to new staff as part of the induction process. A written employee
handbook gives clear advice to employees and creates a culture where issues are dealt with fairly and consistently.
Unit: 8 Industrial Relations
Grievance Handling Procedure

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Collective Bargaining Process

Actors of Labor Relations

Disciplinary Procedures

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Current Situation of IR in Nepal

Mutual hostility and suspicion

Strikes and Lockouts as ultimate resolution of
dispute
Politicization of labors issues and multiplicity
of unions
Legalistic orientation of IR
Unacceptable labor practices
Tripartite interaction as the popular mode of
dispute resolution
Labor Disputes
Nepals Labor policy in uncomfortably
polished

Emerging Concept in IR

Change in definitions and concepts

Change in coverage and scope
Change in contents of IR
Change in functioning pattern
More focus towards functions rather than
routine functions of IR
Increase in participation and involvement
of workers
Increase in professional unions
Change in role of Government.

Spirituality is the basic belief that there is a supreme power, a being, a force, whatever you call it, that governs the
entire universe. There is a purpose for everything and everyone. The universe is not meaningless or devoid of
purpose. There is a higher power that affects all things. Everything is a part and an expression of this oneness.
Everything is interconnected with everything else. Everything affects and is affected by everything else.
Spirituality is the feeling of this interconnectedness and being in touch with it. Thus, spirituality is giving expression
to ones feelings. Spirituality is also the feeling that no matter how bad things get, they will always work out
somehow. There is a guiding plan that governs all lives. As long as a person has others, such as family, to fall back
on, there is nothing to fear.

An employee handbook, sometimes also known as an employee manual or staff handbook, is a book given to
employees by an employer. Usually, the employee handbook contains information about company policies and
procedures. The employee handbook is an excellent place to bring together employment and job-related information
which employees need to know, such as holiday arrangements, company rules and disciplinary and grievance
procedures.
It can also provide useful source of information to new staff as part of the induction process. A written employee
handbook gives clear advice to employees and creates a culture where issues are dealt with fairly and consistently.

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