Before 1990, HRM practice in Nepal was not satisfactory.

After 1990, when multiparty democracy restored there was gradual change in HRM practices in Nepal. Since 1990, Nepalese organizations move from traditional HRM practices to modern practices.

Size of organization is one of the determining factors to have or not to have HR department. 69% of the organizations have HR departments whereas 19% of organizations do not have. 97% organization have a male employee to look after the HR division and only 3% are female to take such responsibilities.

Main sector of business(%)

particular Commercial bank 100 Manual & processing 92 Insurance company 67 Finance company 48 Developmen t bank 75 other Total

Existence of HR department( N=105)

64

67

Every organization runs with a special mission strategy, personal strategy and corporate value statement. 12% of Nepalese enterprise have written statement and 13% had an unwritten statement. 56% had a written business strategy & 49% had a personnel strategy.
TABLE

Policy determination of a larger groups company/(% of organization)

Internation al HQ

National HQ

Subsidiary/Dept/di vision

Site/establis hment

Pay and benefit Recruitment and selection Training and development Industrial relations

1 1 3 1

32 31 27 24

2 2 4 3

5 5 6 7

Workforce expansion/reduction
Management development

1
2

29
30

2
4

7
7

The decisions about the level of pay and benefits, recruitments and selection, training & development etc are taken in the national head office. The percentage of Nepalese organization shows an overall pictures of centralization of HR policies and strategies. Objectives and strategies of an organization can be achieved only with the right selection of HR strategies. In the development of business strategy in Nepal only 15% organizations involved HR department. In 24% of the organization the HR department is involved in the implementation of business strategy. In some cases, 4% organization from the HR department are not even consulted at that stage. This situation clearly states the degree of integration of business strategy and HRM activities of the organizational level.

Different organizations follow their own way to predict manpower need for year to come. In public sector organizations such prediction is made on an annual basis, in private organizations the manpower requirement is based on the expansion of their activities. From the recent Cranet survey it appears that head office or national headquaters are involved in major HR/policy decisions including workforce expansion/reduction. There has been an increasing use of computerised human resource information system in many countries to record HRrelated information. In Nepalese organization, 34% organization have HRIS system whereas 62% organization do not have such system.

yes
Individual personal records Payroll Benefits Time-registration & attendance Recruitment & selection Training & development Performance management Career planning/Succession planning Work scheduling

no 4 1 4 13 14 11 13 14 7

28 30 26 14 14 19 13 10 20

The recruitment processes include attracting collecting and short-listing of candidates. As per the rules of the total vacancies in the officer and non-officer level posts,50% are filled by open competition and the remaining 50 by an internal promotion system. The selection decision of a fresh candidate is largely based on written examination and interview whereas for internal promotion job experience and the results of job evaluation play dominant role.
TABLE

Selection methods used for each staff category( of organization)

Professional/ management Interview panel One-to-one interview Application form References Other, please specify Technical Clerical Manual

35 54 50 25 9

30 57 56 24 9

26 46 55 22 5

15 32 31 34 7

From the recent survey in Nepal it is found that recruitment policy decisions are made differently in different organization. In 29% organization it is done by line management in 17% organization it is done by HR department in consultation with line management. In 21% organization it is done by line management in consultation with HR departments. In 10% of organization it is done by HR department alone. Role of line management is increasing in making policy decisions regarding recruitment and selection.