Human Resource Management Practices in Nepal

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1 Human Resource Management Practices in Nepal YUBA RAJ BHUSAL AUGUST 06, 2015

2 Contents 1. Goal of Human Life 2. Means to achieve the Goal: The State and its Organs 3. Administration- the Civil Service 4. Nepal's Civil Service 5. HRM in the Nepal s Civil Service 6. Problems in HRM 7. Way Forward

3 1. Goal of Human Life 1.1 General view PEACE, PROSPERITY AND HAPPINESS! Peace: a state of harmony & reconciliation; no tension, no violence, no conflict, no fear at individual, household, community, sub-national, national or international levels. a) Hinduism: 'Shanti mantra' from the Vedas are recited at the beginning and end of all religious rituals and discourses. Let peace be maintained everywhere (sky, universe, vast ethereal space, earth, water, herbs, trees, creepers, supreme being Brahma, and to all beings) and all of us work for keeping peace in the universe;

4 b) Buddhism: peace can be attained once all sufferings (dukkha) end. The four noble truths of sufferings are: the truth of suffering, the truth of the cause of suffering, the truth of the end of suffering, and the truth of the path that leads to the end of suffering. To get rid of the sufferings, one needs to get rid of greed, desire, and fears, from where they stem; c) Jesus Christ called as the "prince of peace" and a messiah (savior or deliverer). Persons, societies and all creation are to be healed of evil; d) Islam calls for total rejection of violence along with a personal attitude and alignment towards peace.

5 Contd Happiness: mental/emotional, physical; a state of well-being; Prosperity: Wealth+happiness+health. The state of flourishing, thriving, good fortune, and successful social status.

6 Dharma (duty): 1.2 Oriental view Hinduism- rights, duties, conduct, virtues, laws to be indoctrinated during Brahmacharya (celibacy) Ashram (till the age of 25); Buddhism-cosmic law and order; Jainism- purification and moral transformation; Sikhism-path of righteousness. Artha (wordly status): purpose, cause, motive, meaning, notion, wealth, economy/gain. It is a noble goal (achieve widespread fame, garnering wealth and having an elevated social standing).

7 Kama: mental/ intellectual fulfillment in accordance to dharma; aesthetic enjoyment of life (desire, wish, passion, pleasure of the senses, love, affection). Moksha (salvation/liberation): from the cycle of death and rebirth; liberation from ignorance to a state of enlightenment and self-realization. "Let everyone be happy, prosper, and in peace"

8 ç 2. The State and its Organs Legislature c a xd p lji0f' d dx]zj/ Media THE STATE Executive GOD Generator Operator Destroyer to Evil-doers Judiciary The State Generator= Legislature Operator = Executive Destroyer = Judiciary

9 2.1 The State: origin & function: a) Western: - voluntaristic and coercive (social contract) theories (of T. Hobbes, J. Locke and J.J. Rousseau); Max Weber: "state as a compulsory political organization with a centralized government that maintains a monopoly of the legitimate use of force within a certain territory. b) Oriental: Saptang theory of Kautilya (Swami, Amatya, Durga, Danda, Janapad, Kosh, Mitra).

10 2.2 Government: "a particular group of people that controls the state apparatus at a given time." Government is permanently run by permanent administration of non-elected officials. To Weber, bureaucracy constitutes the most efficient and rational way in which human activities can be organized to maintain order, maximize efficiency and eliminate favoritism. O. G. Stahl: "no government can be better than its civil service permits it to be."

11 3. Administration- The Civil Service 3.1 Civil service: a branch of government- the executive- in which individuals are employed on the basis of professional merit as proven by competitive examinations. 3.2 A civil servant/ public servant is a person employed in the public sector. Imperial China during the rule of Emperor Wu of Han ( BC) had first established a meritocratic civil service with imperial examinations. In response to the economic changes and growth of British empire, modern civil service has grown up. East India Company College was established in 1806 in London to train and examine its administrators. Examinations of 'Indian civil service' introduced in 1829.

12 4. Nepal's Civil Service 4.1 Early Initiatives: Kirant, Lichhavi and Malla Administration have administrative apparatus, however not the civil service as termed today. 4.2 Rana administration is termed as 'semi-feudal centralized agrarian bureaucracy' (M.C. Regmi, 1975). Several administrative offices were opened during the Rana rule ( ). Jung Bahadur Rana (JBR) established Muluki Kitab Khana in 1848; Civil Code enacted in 1854; Goshwara, Garhi and Gaunda headed by Badahakims/ Hakims were established;

13 JBR was authorized to hire and fire all employees with a provision of annual renewal system (pajani) based on their performance, which was merely meant to appease the 'rulers'; Daudaha (inspection visit) was also in practice for measuring performance at the fields'; Civil administration began only after 1951 though some civil offices existed before. In essence, Ranas maintained a pseudo-civil administration, which didn't have any governing philosophy other than the Rana autocracy;

14 4.3 Civil service in Nepal came into practice mainly after the enactment of the Civil Service Bill as recommended by the ARPC After the Royal takeover of 1960, the civil service was attempted to comply with the party-less Panchayat regime. Police reports were stronger to restrict the entry of 'undesirable elements' in the civil service during Panchayat. Though selected after a competitive examinations fairly conducted by Public Service Commission, the civil service was not 'neutral' and 'fair enough' during the Panchayat.

15 Only the 'conformists' were groomed and thus elevated to higher echelons/positions. Guided performance was evaluated to judge one's career progression. The Civil Service Act 1956 with periodic adjustments governed Nepal's civil service till 1991 which was fully revised in 1991 to accommodate the changes in socio-political philosophy of governance.

16 5. HRM in Nepal: Ground realities HRM is a function in organizations designed to optimize employee performance. It is primarily concerned with the management of people within organizations, focusing on the stipulated policies and systems. a) Pre-recruitment: eligibility test, fairness; b) Recruitment: competency based exam (merit with inclusion-both social and geographical); c) Basic Administration Training: merit-based placements; d) Placement/ transfer for minimum two years with some exceptions; e) Compensation package: salary and emoluments low; fringe benefits gradually expanded;

17 f) Developing skills/capacity: depends by organization/entity! g) Job security: Extra-security after 2049; h) Reduced status between managers and sub-ordinates; i) Information sharing/ hiding; j) Motivation/incentives; k) Provision of rewards (best employee award, civil service awards, medals/decorations); l) Contingent rewards (pay for performance);

18 m) Transformational leadership; n) Emphasis on high quality leadership; o) Performance appraisal: transparent but subjective and not real; p) Promotion: formula based and still dominated by subjective evaluation; q) Late career dealings: no transfer to the districts without one s consent after 50 years of age; r) Retirement facilities: very low; s) Post/retirement: predictable, opportunities;

19 6. Problems in HRM: a) Posting/Placement/Transfer: not fair; b) Compensation package not attractive; c) Career growth/development opportunities: not so fair, accessible and easily available; d) Absence of clear job description; e) Performance evaluation dominated by subjectivity; f) The employees' 'Trade Unions' affiliated to different (political) ideologies have given general impression to have a deep look in it and adjust! g) Opportunities not fairly distributed; h) Provision of reserve pool ; i) Favoritism, nepotism still persisting; j) Low number of service providing officials at the field.

20 7. Way Forward a) HRM' is merely to justify one s presence in a given responsibility in an organization; b) Be empathetic with full integrity and ethical values; c) Maintain ever positive attitude; d) Try to solve the problem, don't create it; e) Think beyond for the good of the country and people; f) Be observant of the policies, laws, and rationale in your performance; g) Try to become an out-performer; h) Maintain good rapport in your constituency; i) Do your job honestly, sincerely and on time. j) Better not try to respond every barking dogs at the street.

21 Be empathetic to our Masters, for whom we are supposed to serve! Serve ever, Hurt never!

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