Unit -1 Introduction To Human Resource Management (HRM) SSE ST A. Concept of Human Resource Management Every organization is set up with a mission of its own. Such a mission is expressed through its objectives or goals. Our organizations employ people to work to achieve these objectives and goals. People voi in organizations are human resource, also referred as ‘the most valuable resource’ because of their talents and energies which can contribute to the creation and achievement of the organization's mission, vision, strategy and goals. People are the focus of human resource management. Organizations need people and people need organizations. The phrase Human Resource Management is the composite of two words: Human Resource and Management. Human resource is the people, working in ‘an organization, with required energy and skills. Management is concemed with ensuring optimum utilization of available resources. Thus HRM is concerned with optimum utilization of people’s energy and skills for the purpose of attaining organizational goals. Human resource management is the science of managing workforce in.an organization. It determines right kinds and number of employees to fill various positions of the organization. Thus, it is concemed with the “people” dimension management. Various authors and ‘scholars have defined human resource management variously. Among them the main are as under: According to DeCenzo and Robbins, “Human resource management” is a process consisting of the acquisition, development, motivation and maintenance of human resource.” In less academic terms, we might describe these four functions as getting people, preparing them for the» required jobs, activating them and keeping them in an organization to accomplish the organizational goal in desired way and level. In a nutshell, HRM is concemed with effective and efficient uilzationéf human knowledge, skills & energy by integrating with other resources to accomplish the organizational goal in desired way and level. It is the process essentially concerned with mobilization of Employees ftom pre- R (recruitment) to post-R (retirement) in such a way that organizational growth is always ensured in dynamic environment. According to K. Aswathapa, “Human resource management refers to set of programmes, functions and activities designed and carried otf in order to maximize both -employees as well as organizational effectiveness,” According to Gary Dessler, "Human resource management "ais to the policies and practices involved in carrying out the people or human, Fesource aspects of a management position, including recruiting, sereening, training, rewarding and appraising” =~, -B. Characteristics of HRM Human resource management is a single subject but it is related to all area of management and every aspect of any organization. It has its own characteristics, which can be mentioned as below: 1 People Dimension: HRM is people-centereck It is related with human beings. It gives focus on human resource and manages their qualification, experience, energy and competencies to attain organizational objectives. It considers needs and feelings of employees. Thus, it is concerned with the “people dimension” in management. Dynamic Process: HRM is @ dynamic function. It adopts the changing environment, which is very important for the success of organization. It generally adapts to the changing political- legal, economic, socio-cultural and technological forces. It ensures environment adaption. Continuous Process: HRM is never ending function. It is not a ‘one shot’ function. It is concerned not only with present but also with future. It consists of recruitment, selection, placement, transfer, promotion, development, motivation and maintenance. [All these are continuous process under HRM. So, HRM is a continuous process. : Human resource management is a system. It consists ion, development, utilization and maintenance A Syste of acqui " functions. It inputs human energy and competencies, organizational plans, labour market and processes it with - acquisition, development, utilization and maintenance, after processing it gives outputs as goals achievement, productivity, profits, commitment, and cost-effectiveness. Thus, it is called as {- a system. 5. Universally Applied: Human resource management is applied universally. Each and every type of organizations needs HRM whether it is big or small, political or non-political, government or non-government, business or service organization. 6. Achievement of Goals: HRM provides effective tools and techniques of managing people in the organization for achieving organizational goals. The achievement of organizational goals largely depends upon the quality of its people and the way it is utilize in the organization, C. Objectives o0F HRM The primary objective of any organization is to maximize profits and wealth acknowledgment to the owners of the firm. Objectives are predetermined goals to which individual or group activity in an organization is directed. The main objectives of human resource ‘management are to manage the workers and employees in an enterprise in the best manner. It ensures competent and committed workforce to achieve organizational goals. The main objective of HRM includes:Achieve high Productivity Increase quality of work life Management of Increase workforce commitment Providing, supportive environment for employees’ Establish harmonious relations between Arrange effective communication with emnlovees Fig: Objective of HRM 1. Achieve High Productivity: Every organization's goal is to get more and more output from less input. HRM continuously develops employees. Effective management of HR is the key to increase organizational productivity. The extent to which an organization is able to get productivity goal achieved, depends largely on how effectively it uses its human resources. 2. Increase Quality of Work Life: Another important objective of HRM is responding needs of the employees. Quality of work life refers to the quality of relationships between employees and the total working environment of the organization. Many organizations are providing better quality work life by giving them adequate responsibility, opportunities, participation and communication, Employee leads to give higher productivity if they are getting quality of work life i. through autonomy in work, belongingness, recognition of the job done and reward system. Increase Workforce Commitment: Human resource management focus on managing people and making healthy relation between employer-employee. It makes the employees loyal towards the organization and in the same regards the workforce become more committed towards the company jobs. Increasing level of commitment means people are interested to be involved in work mentally and physically in order to achieve organizational objectives. The workforce commitment can only increase through adopting desirable HR practices. Establish Harmonious Relations Between Labour And Capital: The objective of HRM is to establish harmonious and friendly relations between labour and capital in the enterpaise. The philosophy of modern management is that the contribution of labour is not less important that of the capital. “Managers realize that they cannot make the best of capital without co- operation of the labour, Therefore, it stresses upon the development of trust and faith between employees and employers. Arrange Effective Communication With Employees: Another, very important objective of HRM is to maintain effective communication with employees so that the orders and directionsof management may be passed to the employees and the problem and grievances of workers may also be communicated to the HR mangers. 6. Providing Supportive for Employees’ Creativity: Another main objective of HRM js to provide favourable environmental context so that people working in an organizations can work creatively. Therefore, HRM focuses on team work, management by objectives, and total quality management. It is useful to make organization more energetic and thus there will be more chances of creative contributions of the employees. in this competitive 7. Management of Organizational Cultur age one of the main objectives of HRM is to manage culture in an organization. Every organization has its own culture. Organizational culture guides the behavior of people working in an organization. It promotes mutuality of interest between management and employees. HRM policies and practices can be implemented only in that organization where there are certain norms of valuing people and widely held belief system that people can contribute the success of the organization, D. HRM Functions/ Practices/ Components HRM is a management function that helps managers to recruit, select, train and develop members for the organization. The major functions of HRM are: a) Acquisition: This is the ‘getting’ phase of HRM. It includes estimating both the future demand and supply for human resources and integrating these resources into a total human resource strategy. In other words, the objectives and future directions of the organization must be known before any reliable forecasts of people needs can be made. Acquisition ensures right number of people at right place and at the right time in the organization, The acquiring function recruiting, selection and the socialization or induction of new employees. includes i) Human Resource Planning: The important function of human resource management is to prepare human resource planning. . It is a process of determining manpower requirements of the organization, It involves forecasting manpower needs, identifying the manpower gap and finally formulating manpower program. It involves demand and supply of employees. While making human resource planning, the human resource department has to review the organizational goals. A human resource information system provides detailed information about the current employees, which helps for making good plan. i) Job Analysis management. It involves the collection of job related It is the basic function of human resource information to prepare job description and job specification. Job description includes information about what a person has to do. In job specification, it indicates the qualification, ©) iv) experience and skills required to perform the job as mentioned in job description. Recruitment: One of the important functions of human Tesource management is the recruitment, Recruitment is a process of making a pool or qualified candidates. Recruitment function starts with the application process. It is the process of identifying the appropriate sources of human resources, encouraging them to apply for jobs and making necessary efforts to register their applications. It may be from either internal sources or external sources or both. Selection: One of the important functions of human resource management is the recruitment and selection. Selection is the process of accepting the best candidates from many candidates. Information * from job analysis ané human resource information system is used for selecting the best candidates. It is the process of choosing qualified and competent people from among the applicants. It generally involves scrutinization of bio-data and/or application forms, written test, group discussion, interview, medical examination, etc. Socializatio newly appointed employees into organizational culture. Socialization attempt to adopt the new employees how things Socialization is a process of adoption of are done. It is the process of making new employees familiar with the organization; its culture and provi ing complete description of his/her job, rules, policies, procedures, authority and responsibilities. He/she is also informed or made familiar with his/her subordinates and superiors. The idea is to make them feel ‘at home’ in the new environment. b) Development: Development ensures. competencies of, employees to handle job. It is also the process of training and developing the employees. It mainly consists of training, ‘management development, career development and interpersonal development. Development function includes Analyzing the needs, Employee Training, and Management Development. i) Analyzing The Needs: It involves the analysis of current and future needs of people skills and competencies for an organization, Without analyzing the needs of development task, we can’t able to provide them accurate level of training & development. ii) Employee Training: The challenges associated with’the changing nature of work and the workplace environments are as real for the company’s or firms. Rapid change requires a skilled, knowledgeable workforce with employees who are adaptive, flexible, and focused on the future. These developments of employees can be done with proper Training at right time to equip with new machine. iii) Management Development: Management Development is” best described as the process from which managers learn and improve their skills not only to benefit themselves but also°) a) their employing organizations. In Organization development, the effectiveness of management is recognized as one of the determinants of _ organizational Therefore, investment in management development can have a direct success. economic benefit to the organization. Utilization: This fun ion ensures willingness of employees for increasing for increasing productivity. This function includes: Motivation, Performance Appraisal, and Compensation Management. i) Motivation: It is the process of stimulating people, through differc capabilities. ft techniques, to perform the jobs best of their Performance Appraisal: It is the systematic evaluation of employee performance. It is done by immediate and other superiors mainly for the purpose of promotion, transfer, identifying training needs, fixing wages, etc. ) Compensation Management: It deals with the designing, implementing and maintaining pay systems such as salary, wages, fringe benefits which help to improve organizational performance. Maintenance: As the name implies it maintains employees’ commitment and loyalty to the organization. It includes: Labour Relation, Employee Grievance Handling, and Employees Welfare. i) Labor Relations: it is a system concerned with managing the interrelationships among 3 major actors of industrialization, namely the employee, employer and the society represented by the government. Employee Discipline and Grievance Employee discipline looks after and confirms the obedience of rules and regulations by the employees of an organization where as grievance handling is concerned with handling of ion or feeling of personal injustice Handling: employee's dissatisfat relating to his/her employment relationship that is brought to the attention of management. iii) Employee Welfare: It consists of vai protect and promote employee welfare, such as safely, health, recreation facilities ete. us activities that E. Importance of Human Resource Management Human resource management is important due to the following reasons: 1. Getting Results: Getting results is the main concen of management. Results can be achieved through people. Hiring right people for the right jobs and developing and motivation them is important for getting results, Better quality people improve productivity and efficiency. 2. Mistake Avoidance: Management can avoid the following mistakes through effective human resource management. + Hiring wrong person and maintaining him till retirement.© Incurring heavy cost of recruitment, selection, socializati training and development. * Experience high turnover of competent employees * Avoid unfair labour practices and disputes. Ensure employee safety. Environmental Adaptation: HRM helps to plan and manage change in the organization. It reduces resistance to change and promotes readiness to change among employees. Organizations can easily adapt to changing forces in the environment 4. Improved Quality of Work life: HRM improves quality of relationship between employees and th ir total working environment. It takes care of their physical and psychological well-being. Thi mproves employee creativity. Commitment: HRM improves employee commitment through increased loyalty. It achieves harmony between the employee and the goals of organization. als of F. Human Resource Management System HRM is concerned with people. It is an open social system. It consists of input-processing-output and feedback components. It ternal environment. operates within internal and e9 HRM system provides a framework for integrating the various components within the HRM system. It links HRM with the larger organizational system. It takes an integrated approach to managing human resources. External Environment =p PROCESSING OUTPUTS ‘© Human energy and ‘competencies * Organization plan = Hum: resource plan + Human resource inventory + Job analysis, * Labour market Acquistion Organization Related: *# Development * Goals achievement + Utilization + Quality of work life + Maintenance + Productivity + Profits Readiness for change Employee Relates ‘Commitment, © Competence, ‘+ Congruence, # Cost-effectiveness Internal Environment | Feedback }¢Human Resource Management System Inputs of HRM System Inputs component of HRM system consists of: * Human energy and competenci Energy is represented by Physical strength. Competencies are represtnted by knowledge, skills, attitudes, experiences and potential for growth. They are possessed by people. © Organizational plan: This state’s overall organization goals, strategy and targets within which HRM functions. Human resource plan: matches future human resource demand with supply. It indicates HR requirements. ¢ Human Resource inventory: This represents inventory of human resources currently available in the organization. Job analysis: specifies job requirements plus qualifications and skills for various jobs. © Labour market: This is the source of external supply for human resources. Processing of HRM System Processing component of HRM system consists of: a) Acquisition: This ensures entry of the right number of people at the right place at the right time in the organization. It consists of following activities: * Recruitment: It consists of identifying prospective candidates and stimulating them to apply for the job. © Selection: it consists of choosing the right persons from among the prospective candidates. © Socializ: jon: it is the process of adaptation of new employees to ofganization culture. b) Development: This ensures proper competencies of employees to handle jobs. it consists of: ¢ Analyzing HRM needs: it consists of formulating human resource development plan for employees. © Employee trai ing: it consists of skills development of employees to cope with the job. It can be on-the-job and off- the-job. © Management development: it consists of programmes to enhance abilities of managers to develop- their future potential. © Career Development: It is assisting employees in their personal improvement efforts. ©) Utilization: This ensures willingness of employees to increase productivity. It consists of: © Moti satisfaction and increased efforts. fion: It consists of assessment of employee needIt consists of assessment of through Performance appraisal employee performance on the job. effectiveness in achieving goals Compensation management: It consists of design of the lowest cost pay structure that is perceived as fair by employees. It includes money, fringe benefits and incentives. * d) Maintenance: This ensures retention of competent employees in the organization. It consists of : Labour Relations: It consists of employer — employee relations and employee discipline. It ensures adherence by employees to rules and standards of acceptable behavior. Grievance handling is done to address employee discontent. It includes unionization and collective bargaining. Employee welfare: It consists of various activities and programmes that promote employee welfare, such as safety, health, social security. Sports, recreation, canteen facilities etc. Outputs of HRM System Outputs of HRM system consist of: Goals achievement: HRM aids overall organizational goals achievement. They can be profit, service, and leadership. b) © Quality of work life (QWL): HRM improves the quality of relationship between employees and their total working environment. Employees feel physically and mentally well © Productivity: It is the efficiency relationship between input and output. HRM system brings about productivity improvements. © Profits: it is the financial output of HRM. HRM facilitates increased profits. It can be target profit or percent of sales. © Readiness for change: HRM system reduces resistance to change. Employees view change as necessary for change. Change can be planned and managed. Employee-related Outputs They consist of (4Cs) © Commitment: High commitment is achieved through better communication, mutual trust, mutual understanding, and employee loyalty to the organization, © Competence: High competence is achieved for higher level jobs. Potential of managers increases to assume new roles. © Congruence: High degree of harmony between the goals of individual and the goal of organization is achieved. They both work together to achieve goals.© Cost effectiveness: High cost-effectiveness is achieved in utilization of human resources. People are productively utilized. Human assets are created, Feedback of HRM System This component provides information to yedesign HRM inputs and processing. It is based on output effectiveness. It helps to take corrective actions, Internal Environment of HRM System Forces in the intemal environment provide strengths and weaknesses. They are controllable by HRM. They are: * Organizational goals: They are desired outcomes which provide frame of reference for conducting HRM. They are end resilts. © Policies: They provide guidelines for HRM decisions and actions. hey follow from organizational goals. © Structure: It is the design of jobs and relationships. It limits HRM activities. it provides a boundary to HRM. It divides HRM activities and coordinates HRM efforts. © Reward system: It ensures attraction and retention of quality human resources. It can be monetary and non-monetary. Organization Culture: It promotes or hinders mutuality of interests between management and employees. It encompasses shared norms, values, beliefs and customs that guide organizational behavior. © Stakeholder They consist of employees, competitors, government and pressure groups. They have interest in the performance of HRM. customers, labour unions, External Environment of HRM System (Environmental Interface) Dynamic forces in the external environment provide opportunities and pose threats. They are uncontrollable by HRM. They are: (PEST): © Politics/Laws: Political forces affect the environment of HRM. Laws restrain or encourage HRM activities, Labour unions also affect them. . * Economic forces: They consist of economic systems, policies and conditions. They affect job market and reward system of employees. © Socio-cultural forces: Social forces are related to human relationships. They provide status to jobs. Cultural forces affect the practice and ways of doing jobs. * Technology: It consists of skills, methods, systems and equipment. Level of technology and speed of technological change greatly impact HRM.G. Organization Of Hr Departments/ Organization Of HRM Function Organizing s the process of creating structure. Structure refers to networks of jobs, relationships and coordination mechanisms. Departments are established. Specific tasks are assigned to subordinates. Authority is delegated. Channels of communication are established. The work of subordinates are coordinated. The place of Human Resource function in the organization structure reflects the importance attached to it. The organization of HRM function has evolved through the following stages. 1, HRMas a Staff Function This structure regards human resource function as a staff function. Its role is to provide advice to line departments on personnel matters. patter, General Manager Other ‘Administration Departments Department Personnel Section HRM as a Staff Function ih 2. HRM as a Part of Administration Function This structure is generally found in small-sized organizations. HRM function is performed by the Administration Department. This jons of Nepal. structure is prevalent in small orga ‘ General Manager : a Oia Depae | ‘Administration Department oS} [cemaismvies] [Pence Fig. HRM as a Part of Administration Functon 3. HRM as a Line Department A separate personnel Department is established. It is concerned with routine functions of personnel administration and labour relations. This structure is prevalent in most of the large-sized organizations of Nepal. General Manager Other Departments [reson Drew tS Tar Rn | Personnel Administration Fig.: HRM as a Separate Department4. HRM as a Major Function | HRM is treated as a major function of organization. It headed by a director. All activities related to HRM are integrated under the HRM Department. HRM director reports to Deputy General Manager. General Manager : called Personnel Management to manage people) of what was popularly ; le), Emerged in before 1970 (ie. traditional approach to manage peop! the decade of 1900, Personnel Management was used to refer the managerial wing to acquire, develop and mobilize human resources in igh there are some similarities, there are some the organization. Thou; Some of the main differences too betwen these two concepts. differences are presented in the table below. [Bepaty ow aR c I Deputy GM Other Functions Human Resource ‘Management Result oriented Personnel ‘Management Process oriented SIN, | Basis of difference T_| Nature | Acquisition ][ Development] [Utitization | [Maintenance H.Human Resource Management Vs __ Personnel Management At the decade of 1990, there was a big debate concerning the differences between HRM and Personnel Management. Some people hold the view that HRM is merely a new name for personnel management whilst some other scholars consider it to be a new & different view of the way HR are managed by the enterprise. David Guest writes that there are probably 3 popular approaches to defining HRM. The first is merely a re-titling of personnel Management, the second approach emphasizes the strategic aspects of managing human resources and third approach suggests that HRM is distinctively different from personnel management. In fact what we called Human Resource Management today is the new version (i.¢., modern approach Means (eg. rules, | Ends Ge, optimum regulations, procedures etc.) Productivity, Labor 2,_| Emphasis utilization of human capital for attaining goals) ‘Quality of Work Life 3. _| Outcomes relations ete (QWL), Productivity, Readiness for change,Labor relations etc | Assumption People as inputin the | People as valuable resource production process —_| in organizational system [S| Scone | Limited Hiring, | Broad Beyond hiring and | disciplining, disciplining; such as regulatory watchdog | determining organization ete architecture by definingjredefining organization structure, process, reward systems etc, 6_| Funetion Routine Strategie Job design Division of labor ‘Teamwork Tnverest Organization's Fiarmony of organizatvonal[ interest is ad dvd Tierets superordinated 9. | Manageria Task | Monitoring and | Nurturing Controlling 10, | Rey Relations Tabor relations intemal as wellasexiemal customers TT. | Pay and Benefits} Tob Evaluation (ixed | Performance based arades) 13. | Communication | Scalar chain Free low deat) (indirect) 13._| Speed of decision | Slow Fast Ta Approach Reactive and Shor’ | Proactive and Long term term I. Role of Human Resource Manager Human Resource Management is a part of every manager's job. In a dynamic working environment, the boundaries of any role cannot be clearly defined; therefore, the following should be considered only a broad outline. The specialist role of the Human resource manager takes a number of forms: @ The Service Provider: Managers need information to make decisions on various employee related issues like deployment of personnel. A Human Resource specialist can help by providing information on market statistics of personnel availability, pay rates etc. HR specialists can also interpret the complex labour laws and legislations that are applicable in day-to-day work. Gi) Ww) This categorization of the work of a Human Resource specialist is not definite, There will often be an overlap between the different roles the HR professional must assume. For example, in the era of advice on legislations concerning employment, there is often little distinction between ‘service” and ‘consultancy". ‘The Executive: Though Human Resource Management is a part of every manager’s job, yet Human Resource specialists typically carry out certain Human Resources activities like recruitment, compensation ete. The Facilitator: A large number of organizational activities require a Human Resource professional to play the role of a facilitator. For example, Human Resource manager acts as a facilitator when training and development activities are planned and conducted and performance appraisals are done. One of the responsibilities of an Human Resource specialist is to ensure that other managers who undertake such activities are well equipped to do so. The Consultant: Managers face many problems while supervising employees. These problems may be due to lack of motivation lack of training, a job misfit or grievances related to pay. Managers seek the advice of HR specialists to resolve such problems smoothly. Thus, the Human Resources professional plays the role of an intemal management consultant in this area,(¥) The Auditor: Human Resource specialists are responsible for ensuring that all members of the management perform their respective roles concerned with the effective use of human resources. J Qualities of Human Resource Manager Manager plays very important role in any organization. He is basically a link creator between the management or the upper level and the lower level or workers. All the things which are managed depend upon the manager. The success and failure of a manager depends on the personnel qualities and the situation in which the manager works. All the good qualities should be supported by the organization also. Various managerial qualities that the manager should have are as follows: (i) Intelligent: He should be intelligent so that he can understand the situation more easily and prepare himself accordingly. (i) Motivation: Manager should have the quality of motivating other people so that performance level can be increased. Thus it must understand his people in a better way so that he can resolve the problems and can motivate them. Emotional Stability: A manager should have a high level of emotional stability. He should be free from basic etc. he should be confident enough and believe that he can meet more (ii) situations successfully. 14 (iv) Objectivity: Manager should see the things objectively and . understand them from other point of view as an important aspect for the success of human resource. Communication Skill: Manager should have the quality of + having proper communication so that proper information and feedback can be given’in the right direction to achieve the = goals. (vi) Technical Knowledge: Human resource manager should have the disciplines management of human resources so that what he says, he does that with some kind of authority of knowledge. Therefore he should have a proper technical knowledge and skills. technical knowledge of relevant for K. Responsibilities of HR Manager HRM is concerned with managing the energy and competencies of people in organizations. Human resource manager discharges the following responsibilities: ) Managerial responsibilities b) Operative responsibilities a) Managerial Responsibilities of HR Manager Managerial responsi ies of HR manager are concemed with planning, organizing, staffing, directing and controlling of HRM activities.Planning: it is the process of predetermining HRM needs and choosing courses of actions to satisfy those needs, HRM needs represent a gap between requirements and supply. + Human resource planning is deciding in advance about what HR activities to do, how to do them, when to do them and Who is to do them, Organizing: it is establishing a structure. It defines relationships among HRM activities. It involves: * Defining activities required to achieve HRM goals, © Grouping of activities in departments/sections. * Designing a structure. Assigning group of activities to position and people. * Establishing authority and responsibility relationships for each position. © Coordinating activities to achieve harmony in efforts. iii) Staffing: it is filling and keeping filled positions in the structure. The positions are matched with various skills. It is, concemed with human re3source acquisition function. iv) Directing: it is leading, communicating and motivating people to perform activities effectively. © Leading is guiding and influencing the work of people to willingly and enthusiastically achieve goals. * Communication involves flow of information. 15 © Motivation is the act of energizing people to achieve higher productivity. It is inducement toward goal achievement. v) Controlling: it is the measurement and correction of performance to achieve targets. It involves: Establishing standards of performance. © Measuring actual performance. Finding and analyzing deviations in performance. Taking corrective actions to correct deviations. b) Operative Responsibilities of HR Manager The operative responsibilities of HR manager are concerned with various activities of HRM. They are: i) Acquisition: Job analysis, socialization activities. recruitment, selection and ii) Development: Training and management development, career development activities. i) Utilizati performance compensation management activities. Motivation, appraisal and iv) Maintenance: Discipline, labour relations and welfare activities. L. Ethical Issues In HRM. Ethics is an individual’s personal belief tegarding right and Wrong or good and bad. It is doing the right things. HRM ethics refers tothe standards of behavior that guide HR manager's conduct at work. moral issues. Ethical behavior is shaped by ethical standards of HR managers. actions of peers and top management, organizational culture. 6. organizational environment and societal forces. The key ethical issues in HRM are: ity: HRM managers should give careful leration to social good in their decisions and actions, Employee Treatment: HRM managers should treat employees fairly in Social Responsib con hiring, firing, rewards, inary performance evaluation and working conditions. actions, mployee privacy should be respected. Transpareney should be maintained in human resource matters. Employee Behavior: Employees should treat the organization ethically. They should avoid conflict of interest, dishonesty and leakage of secrecy. Stakeholder Treatment: Organization and its employees should be ethical ics in customer relations, fair business practices in dealing with stakeholders. They should maintain et competitors and fairness in dealing with labour unions. Ethics Training: HRM should make ethics training mandatory for all employees and managers. Two-way Communication: HRM should facilitate two-way communication. This helps employees to express their feelings about ethical matters. 16 M.HRM Concept In Nepalese Organizations 1 Industrial revolution in Nepal started with the setting-up of Biratnager Jute Mill in 1936. The pace of industrialization has been slow. The establishment of public sector manufacturing enterprises did accelerate this pace to some extent. However, HRM remained mainly confined to personnel administration and labour relations functions. HRM has personnel management- orientation in Nepal. It is very much: © Discipline, control and direction-oriented © Concerned with routine personnel administration functions. © Rules, regulation,, labour relations-oriented © Regarded as a concem of personnel department. . HRM in Nepal is mainly concemed with utilizing human energies. It is least concerned with developing competencies and potential of employees achieving orga human Its focus is on izational goals. People are not considered as important assets. ‘The key barriers to the development of HRM in Nepal are: + HRM is not given a strategic partner role, © The attitudes of top management are not favourable towards HRM. Human resources are viewed as cost rather than assets by management. The status of HRM manager is low in the organizational hierarchy,HRM is considered a firefighting job to deal with labour grievances and indiscipline. Line managers do not feel ownership for HRM. Multiplicity of unions, union rivalries, and politicization of unions and negative attitude of management toward labour unions has ‘constrained the development of HRM. Labour relations lack harmony. HRM aspects are not considered in policy and plan formulation, Human resource development has remained an area of low priority. This has retarded professionalism in HRM. Performance-based HRM practices are lacking. Legal framework has remained weak and largely welfare oriented. 5. The advent of global organizations and information technology revolution has facilitated innovative approaches to HRM. Intemational NGO's have been practicising innovative HRM concepts. The future seems bright for HRM. Changing attitudes of managers and changing profile of worker is likely to make HRM an important function. N. HRM Environment in Nepalese Context In Nepal, political-legal environment is seen as the strongest environmental factor influencing HRM functions of enterprises. It has substantial impact over different HRM functions such as recruitment and selection’ (due to reservation system in government or public 7 services), compensation management and labor relations (due to declaration of minimum wage rate for workers). It has influenced the degree of autonomy in exercising HRM functions. economic factors like lack of employment opportunities has compelled many skilled and dynamic people to go abroad, which has influenced the supply of labor and skilled people. Rapid technological change has also compelled Nepalese organizations to spend more on training and development programs to update the knowledge and skills of their Likewise, some employees and managers. However, social factors are gradually going in favor of better HRM practices. Supply of women workers in the workplace is increasing; people are getting better education; and the language (particularly the English language) in, at least, modern organizations in no more a barrier. In order to facilitate the HRM functions (particularly the personnel admi stration and labor relations), government has enacted different acts at different times. Some of the important include Labor Act 1992, Trade Union Act, 1993 and Child Labor Act 2000. Despite these provisions, there are a number of internal as well as external barriers for better HRM practices in Nepal. Some of the main barriers are: Lack of mutual trust between employee, employer and the Government © Politicization of trade unions * No strategic thinking Materialistic attitudes of entrepreneurs Line managers do not feel ownership for HRM HRM js considered as regulatory watchdog rather than a change agent