Detail Syllabus

Unit 1: Introduction[LH 6]: Concept, characteristics, objectives, and components

of HRM. HRM and Personal management, HRM environment (globalization,
technological advances, nature of work, workforce diversity, and legal trends).
Contemporary HR issues, challenges and responsibilities of HR manager.
Unit 2: Human Resource Planning[LH 7]:Concept, characteristics, and
importance. HRP process. Major HRP activities: assessment of current HR (HR
inventory – management inventory and skills inventory, HR information system,
and succession planning), HR demand and supply forecasting. Techniques of HR
demand and supply forecasting.
Unit 3: Job Analysis and Design[LH 6]: Job analysis: concept and terminology
(task, job, position and occupation). Purpose and methods of collecting job
analysis information. Job analysis Technique. Job description and job
specification. Job design: concept, approaches and techniques (scientific
management, Hertzberg's model, job characteristics, socio-technical, and team).
• Unit 4: Employee Recruitment and Selection [LH 5]:Recruitment:
concept and sources. Selection: concept, and importance. Selection Process.
Selection tests and interviews: concept and types. Recruitment and selection
practices in Nepalese organization.
• Unit 5: Training and Development [LH 7]: Concept and needs of HR
training and development. Training needs assessment. HR training:
objectives and methods (on-the-job and off-the-job). Evaluation of training
program. Management development: concept, objectives, and methods (on-
the-job and off-the-job). Career planning and development, Mentoring and
counseling; Training and development practices in Nepalese organizations.
• Unit 6: Performance Appraisal[LH 5]: Concept, uses and methods
(simple ranking, alternative ranking, paired comparison, forced distribution,
critical incident, behaviorally anchored rating scale). Appraisal interview.
MBO approach to appraisal. Problems in performance appraisal.
• Unit 7: Rewards Management[LH 3]: Concept and types (intrinsic
and extrinsic, financial and non-financial). Qualities of effective
rewards, Types of employee benefits, practices of pay determination in
Nepal.
• Unit 8: Employee Grievances and Disciplines [LH 3]: Employee
grievances: concept and handling grievances. Employee discipline:
concept, causes, and process of managing discipline. grievances
handling practices in Nepalese organizations.
• Unit 9: Labor Relations and Labor Regulations in Nepal[LH 6]:
Labor relations: concept, objectives, and actors of labor relations.
Reasons for joining trade unions. Trade unionism: concept, functions
and types. Collective bargaining: concept and process, Labor disputes:
causes and settlement provisions. Features and provisions of Labour
Act.
 References
• Armstrong, M., A Handbook of Human Resource Management,
NewDelhi: Aditya Books.

• D.A. Decenzo and Robbins S.P., Human Resources Management, John

Wiley and sons (Asia) Pte. Ltd. Singapore.

• D.R. Adhikari, Fundamentals of Human Resource Management. Buddha

Academic Publishers and Distributors Pvt. Ltd.

• Cascio, W., Managing Human Resources, McGraw-Hill.

• Labor Act of Nepal.

Unit 1: Introduction
Human Resource Management(HRM)
Management =manage + men + t(tactfully)

Employees
Human Resource Man Power

HRM is actually art of managing people or human

resource tactfully for achieving organizational goal.
 Concept Of HRM
• Human resource are the people who are ready , able and willing to contribute
to the organization
• The set of activities regarding the human aspects of an organization
• It refers to the philosophy, policies, procedures, and practices concerned to
the employees
• The process of acquisition, development, utilization and maintenance of man
power in the organization for the long period
• A system approach to manage human energy and competencies in
organizational settings to improve the productive contribution of people
• Human Resource is very sensitive resource, other resources can’t be utilized
unless HR are effectively mobilized
 Characteristics Of HRM
• Component of management function; staffing function; closely related to all functions of
management
• Focus on Human Aspects; emphasizes on use of full potentiality of employees
• Dynamic activity; various aspects of HRM are modified as per changing environment to cope
with environment
• Pervasive function; Common function in all level of management and all type of organization
• Goal oriented; focuses on goal
• Continuous function; needs continuously up to the existence and functioning of the
organization to acquire, develop, use and maintain competent HR in the organization
• System Oriented; people are acquired as raw materials (i.e. inputs), they are processed
through training, development, motivation and maintenance and the outputs are received
as productivity, profit, efficiency, satisfaction, etc.
 Objective/Important of HRM
• Effective utilization of staff
• Utilization of other resources.
• Increase productivity ; optimum utilization of sources.
• Focus on goal achievement: training developments enhances the effective skills.
• Job satisfaction: placement of right person at right place.
• Adaptation of with change: introduction of new ideas, concepts, technologies
through training and development in HR.
• Self development of HR, providing opportunities and facilities to HR for their
personal development.
• Helps to solve problems: Expert and competent staff problems can understand
problems properly.
 Functions/components of HRM
1. Acquisition Function
Right number and kind of manpower at right time at right post
• Human Resource Planning(HRP); process of forecasting demand and supply of HR and
matching them
• Job Design and Job Analysis; JD-process of structuring job, specifying activities, and JA-
studying, collecting and analyzing job related information
• Recruitment; process of searching and encouraging people to apply for the vacant posts
• Selection; process of picking the most suitable candidate for a particular job
• Placement; process of providing appointment and assigning specific jobs to the selected
employees
• Socialization; process of introducing, adapting and adjusting the newly coming employees
to the organization’s new culture, rules and regulations
 Function/components contd..
2. Development Function
All the activities necessary for improvement of working efficiency of workers , managers
• Development need analysis; assessed by matching capabilities of existing employees
with job requirements
• Employee training; related to specific skills improvement of employee, i.e. a short
term skill development program intended to impart basic skills of work to middle and
lower level employees
• Career development; concerned to the activities necessary for development of career
of potential employees to fit their efficiency with job requirements
• Management development; concerned to the activities necessary for development of
managerial ability among the various level managers
 Function/components of HRM
3. Utilization Function
Mainly concerns with motivation and proper mobilization of HR for organizational
betterment
• Motivation; process of stimulating employees to perform their jobs with high level of
energy using various motivational tools to satisfy their needs
• Performance Appraisal; act of determining the value of the work done by worker in an
organization
• Reward and compensation management; activity of formulating and implementing
strategies and policies with an aim of rewarding and compensating employees in fairly,
consistently and equitably manner
• Employee benefits; besides regular remuneration, management needs to provide extra
benefits to employees as bonus, leave pay, insurance facility, etc.
 Function/components of HRM
4. Maintenance Function
Ensures retention of the employees in organization for long duration of time
involving the activities related to health, safety, and comfort of employees
• Employee relation; concerned with establishing harmonious relation between
employee and management and also among the employees helping to create and
maintain better cooperative working environment in the organization
• Employee discipline; force that prompts individual or groups to obey the rules,
regulations, and procedures and conduct themselves in accordance with
organizations system
• Employee welfare; involves various activities and programs that promote employee
welfare such as, safety, health, games and sports, insurance, recreation facility, etc.
 HRM and Personnel Management
HRM: is a modern and broad concept and it involves all the activities essential for acquiring,
developing, utilizing and maintaining effective manpower in the organization; it has taken employees
as important assets to be used for benefits of organization and society; it has taken expenses for
development of workers as investment; it focuses on development of mutuality of goals, respect,
rewards and responsibilities; it is developed form of personnel management and being integrated
with the overall strategic management of business; it is treated as strategic function
Personnel Management: is a traditional and narrow concepts and has limited scope; it has taken
employees as factors of production or tools hence can be replaced when it is not needed; it has
considered the employee development as economic burden to organization; it only focuses on hiring,
utilization and compensation of workers; it is treated as routine function; it does not consider
positively for the welfare of the employees such as job security, promotion, incentives, proper
division of work etc; it is never considered as a part of strategic management of business;
 HRM Environment
• Globalization: is the integration of economic, political, technological and cultural
systems across the globe; it ensures free flow of ideas, goods, services all over the
world and increases global connectivity and interdependence in different aspects:
there is growing attention in HRM because of close relationship between human
expertise and productivity; it is necessary to develop new human resource rules and
regulation to adapt with changing environment of the globe
• Technological Advances: is the method or process of converting inputs into outputs;
technology is ever changing and growing rapidly; the innovation of automation,
robotics and computerization has brought tremendous change in HRM system;
organization need to assign job to employees who have ability to work with new
technology
• Nature of Work: different businesses have to perform different jobs using different
process and methods; on the basis of nature of work it is necessary to evolve new
HRM policies and programs in the organization and assign jobs to the employees on
the basis of their skill, efficiency and knowledge
 HRM Environment(contd..)
• Workforce Diversity: is the involvement of heterogeneous types of manpower in
an organization in terms of age, gender, quality, ethnicity; diversity is increasing in
organization; it is necessary to develop emergent human resource policies and
programs to manage such diverse workforce
• Legal Trends: legal system of the state also affect HRM policies and programs;
businesses are bound by various laws, regulations, executive orders and rule
which influence every HR decision; HR manager must be expert in these laws and
regulations so that they can work with changing legal trend and can defend
allegations regarding violation of laws and system while doing business activities
 Contemporary HR issues/Challenges
• Globalization: converting the world into a global village to ensure free flow of ideas, goods,
services, capital, technology and other resources all over the world; HR managers need to
develop new HR rules and regulations to adapt new environment of the globe
• Outsourcing: is subcontracting some of jobs to other organizations to improve quality, to
minimize cost and gets benefits of specialization; needs to identify some specific areas that can
be outsourced
• Managing workforce diversity: involvement of heterogeneous types of employees within an
organization. They are of different age, gender, culture, believes; it is necessary to develop
emergent HR policies and program to manage diverse employees
• Knowledge Management: knowledge, as form of capital should be exchangeable among
people and must be able to grow continuously; Talent development is essential for higher
productivity; it essential to know how to create and use knowledge of HR
• Empowerment of employees: making employees empowered by delegating authority,
providing training and further education opportunities; today’s HR are more powerful due to
decentralized authority and labor unions affiliated with political parties and it becomes a
serious problem
 Contemporary HR Issues/Challenges
• Technological advancement: methods and process of converting inputs into
outputs; it emphasizes on new advanced machines equipment, transmission of
information, procedures, processes; this phenomenon has brought tremendous
challenges for HRM
• Change management: process of requesting, analyzing, approving, developing, and
implementing change within the organization that helps to reduce risk and
uncertainty; making employees ready for change is a challenge to HRM
• Work life balance: essential for good work life balance when both husband and
wife are employed as it can create stress, conflict and unbalance; provision of flex
work schedule, counselling, job sharing , child care center should be provided
• Work Stress: service business has been identified as the most stressful sector. Tight
requirement on timely delivery of services, unclear role in a customer dominated
environment, worse health status, seasonal staff turnover are stresses for HR
managers
 Responsibilities of HR Manager
• Developing organizational structure: have to develop organizational structure
• Handling recruitment process: attracting and capturing suitable people
• Build HR policies and implement them: preparing effective HR policies and
proper execution of them
• Managing development program: assessing development need and managing
training program
• Motivating employees: encouraging employees to create willingness for work
• Appraising performances: evaluating performances of employees
• Managing compensation and reward: after assessing value of work, providing
rewards and incentives to employees
• Maintaining discipline and employee relation: maintaining good human relations
and employee discipline in the organization
 Unit - Two

HUMAN RESOURCE PLANNING

(HRP)
 Concept Of HRP

• The process of determining requirement of right number and kind of

manpower at right place and time and ensuring the supply of them
• Initial function of HRM that ensures the right number and kind of
people at right place and right time
• Integral component of strategic planning and plays vital role to grasp
intelligent and talent people for the organization
• Process forecasting demand and supply of HR and matching them
properly
 Features Of HRP
• Component of corporate planning; it always follows the strategic plan of the
organization. It covers the planning of human resources in the organization
• Focus on goal; it is goal oriented activity so always directed towards goal
• Continuous process; regularly needs up to survival of the organization
• Dynamic process; brings changes or modifications in various aspects of the organization
• Future oriented; estimates the size and composition of future workforce for the
organization
• Component of acquisition; initial step of acquisition function and facilitates other
activities
• Time-bounded; based on time frame according to the short term or long term objective
of the organization
• Quantitative and Qualitative; times and numbers are quantity aspects while skills,
knowledge, efficiency are quality aspects of HRP
 Importance Of HRP
• To achieve organizational goal; a goal oriented activity always focuses on goal
achievement through applying systematic review process
• Reduce uncertainty; many environmental factors always create uncertainty and
risks. HRP reduces uncertainty by forecasting and matching demands and supply
of HR
• HR development; identifies need for development and facilitates to organize
programs to impart essential knowledge, skills and capabilities to HR
• HR utilization; ensures optimum utilization of HR through process of motivation,
performance appraisal, fair reward and punishment system
 Importance Of HRP
• HR maintenance; focuses on retaining productive and competent employees for
long time through good labor relations, better working environment and
retirement benefits
• Cost minimization; focuses on optimum utilization of all available resources that
ultimately helps to minimize the cost of organization
• Environmental adaptation; brings readiness to change among the employees
through preparing and implementing action plans to cope with environmental
changes
• Maximize productivity; competent, committed and loyal employees help to
minimize the wastage in resources, time and mistakes
 HRP Process
1. Assessing current HR situation:
Initial step which includes human resource information system(HRIS), job
analysis(JA), human resource inventory(HRI)
• HRI provides information regarding to quantity and quality aspects of HR
• HRIS provides readymade form of HR information needed by HR manager to take
prompt decision
• JA provides detailed information about various jobs and job requirements
2. Forecasting HR demand:
• Process of estimating the HR requirement for the future
• Determines the future need of HR in terms of quantity and quality
• Factors affecting HR forecasting are environment, organizational goals, plans etc.
 HRP Process Contd…
3. Forecasting HR Supply:
• Process of estimating future sources of HR that will be available internally and
externally
• Internal sources comprise of promotion, transfer, demotion etc.
• External sources consists of educational institutions, training centers, labor
markets etc.
4. Matching demand and supply forecast:
• Activity of bringing demand and supply forecasting in equilibrium position so that
shortage and overstaffing will be solved.
 HRP Process Contd…
5. Preparing action plans:
• Final step in this process
• The main focus is dealing with shortage and surplus of HR
• Facilitate to implement the plan in time.
6. Evaluation and control:
• A specific attention on implementation of action plan
• Performances and activities are carefully evaluated for the effective
implementation of plan
 Major HR Activities: Assessing Current HR
Current HR situation is assessed based on following HR function
• Human Resource Inventory(HRI);
a. Skills inventory of manpower currently performing jobs in different positions of
organizations.
b. Includes computerized information of HR such as age, education, experiences,
skills composition, ability, knowledge, capabilities, etc.
• Human Resource Information System(HRIS);
a. organized approach for tracking human resource inventory information.
b. Computerized system that facilitates the processing of human resource
information.
c. Systematic procedure of collecting, storing, recording, retrieving and validating
data needed by an organization about it’s man power.
 Assessing Current HR Contd…
d. Assists to keep important data related to HR in central and easily accessible
location.
• Succession Planning(SP);
a. Special type of plan that an organization makes to fill it’s middle and top level
managerial position internally with the help of succession plans.
b. It’s aim is to identify and prepare managers to replace current managers in key
positions for a variety of reasons such as, retirement, resignation, promotion
and so on.
c. Common techniques used are, managerial training and development, special
assignment, job rotation, understudy, etc.
 Human Resource Demand Forecasting

• Predicting HR requirement in future in terms of quantity and quality is an

important aspect of human resource planning.
• The quantitative aspects of HR involve forecasting right number HR at right time
whereas qualitative aspects involve estimating manpower having high
knowledge, skills and efficiency.
 Techniques Of HR Demand Forecasting
• Managerial judgment; guesswork or trial and error approach in which demand
forecasting is carried out based on experience of managers. Based on ‘top-down’,
‘bottom-up’ and ‘participative approach’.
• Survey method; survey to collect information about HR demand in future from line
managers through questionnaires, interview, etc.
• Delphi technique; pooling of opinions about HR forecast from a group of experts;
various rounds responses are solicited to get consensus about opinion
• Nominal group technique; group forecasting and decision making method that needs
each member of the group to make independent forecast prior to discussion
• Statistical method; mathematical method where, trend analysis, ratio analysis,
simulation method, regression analysis are used to forecast demand
• Financial statement analysis; managers need to collect and interpret financial data to
evaluate financial strengths and weakness of organization. Involves break even
analysis, ratio analysis, standard costing, budgeting, etc. as financial tools.
 Human Resource Supply Forecasting
• It is the process of estimating future sources of HR that are likely to be available
from outside and inside of the organization.
• Internal supply is based on the HRI maintained by human resource department.
• External supply based on human resource who are currently not involved in the
organization.
• It involves educational institutions, training centers, employment agencies,
labor markets of inside and outside the country.
 Techniques Of HR Supply Forecasting
• Managerial Judgement:
• Succession Planning:
• Markov Analysis: shows the percentage of employees who remain in each job
from one year to the next that facilitates to know the pattern of employees
movements through various jobs
• Statistical Methods:
• Replacement Chart: shows profile of jobholders and identify who can be used as
replacement whenever the need arise for the job; it is a technique to forecast
internal supply
• Skill Inventories: an assessment of the skills, abilities, experience, knowledge and
career desire of employees; it should be updated at the end of each fiscal year; it
helps HR manager to match forthcoming new jobs and profile of employees
 Unit-3

Job Analysis and Design

 Job Terminologies
• Task; It is a piece of work to be done to accomplish a specified objective
• Job; It is combined form of closely related tasks involving similar nature of tasks.
It is the source of employment and establishes the relation between person and
organization.
• Position; It is combined form of tasks, duties, responsibilities, skills, knowledge,
etc. It is a group of task assigned to an employee. There is a position for every
individual in an organization.
• Occupation; It is a group of similar types of jobs. In other words, works where
people involve for earning motive is known as an occupation. Needs special
knowledge, qualification, skill and experience.
 Concept Of Job Analysis
• Process of collecting, analyzing and recording the information related to the
specific job
• Involves compiling the detailed description of tasks, defining relationship of job to
technology and other jobs; and examining the knowledge, skills, and other job
requirements
• Systematic investigation of job content, working conditions and qualifications
needed to carry out job responsibilities
 Purpose/ Importance Of Job Analysis
• HR planning; provide detail information about job and job holder that facilitates HR
planning
• Recruitment and selection; help to determine qualifications, skills, experience and
knowledge required in HR
• Training and development; identifies proper training and development need, potential
trainees, and trainer to meet job requirements
• Job evaluation; facilitate to measure the relative worth of each job with the help of job
description and job specification
• Remuneration to employees; remuneration such as salary, wages, allowance and bonus
should be provided on the basis of information provided by JA
• Performance appraisal; JA facilitates to evaluate employees performance on the basis of
performance standard
• Job reengineering; JA provides information to HR manager for restructuring, modifying
and changing jobs
 Techniques Job Analysis
A. Job Focused Technique; emphases more on technical aspects such as tasks,
technology, procedures and efficiency of employees
• Functional Job Analysis; describes the nature of job in terms of data, people and
things(specified authority and responsibility of supervisor) to prepare job
description and job specification
• Management Position Description Questionnaire; a highly structured
questionnaire containing 208 job factors to analyze job of managerial position.
These factors involve managerial responsibility, restrictions, demands and so on
• Hay plan; less structured questionnaire than MPAQ method and also applicable to
analyze job of managerial position. Collects information related to objective,
dimension of job , nature and scope of position and accountability
 Techniques contd….

• Method analysis; a description about how to do a job more efficiently.

Concerned with analysis of non- managerial jobs especially repetitive
works, studies tiny physical movements of employees to find out
productive time and idle time through motion study
B. Person Focused Technique; emphases on the employees and their
behavior in workplace
• Position Analysis Questionnaire; involves194 job elements covering
employees and their job behaviors to analyses any type of job, these
elements are grouped into six categories such as information input,
mental processing, work output, relationships, job context and other job
characteristics
 Techniques contd…

• Physical Abilities Analysis; focuses on analyzing physical abilities of employees

and considers nine physical abilities consisting dynamic strength, trunk strength,
static strength, explosive strength, extent flexibility, dynamic flexibility, gross body
coordination, gross body equilibrium and stamina
• Critical Incident Technique; analyses job behavior in critical and undesirable
situation which can negatively affect the result, analyses employees behavior for
six months to one year in critical situation
• Guideline Oriented Job Analysis; uses some specified guidelines for job analysis
that facilitates job related selection procedures, performance appraisal and
training need analysis
 Methods of Collecting Job Analysis Information
• Observation Method: analysts carefully observe the activities of
jobholders to collect job related information; high chance of getting
more
• Interview Method: the job analyst directly interviews the job holder
through a structured interview form to elicit information about the job;
suitable particularly for jobs wherein direct observation is not feasible;
analyst may extract meaningful information from the job holder about
his/her job.
• Questionnaire Method: the employee is given structured questionnaire
to fill in, which are then returned to the supervisors; it enables the
analyst to cover a large number of job holders in the shortest possible
time.
 Methods of Collecting Job Analysis Information
• Checklist Method: it contains a few subjective questions in the form of
yes or no. The job holder is asked to tick the questions that are related
to his/her job. suitable in the large firms wherein a large number of
workers perform same job
• Technical Conference Method:  analyst obtains job information from
the discussion held among these supervisors; consumes less amount of
time; it lacks accuracy and authenticity as the actual job holders are not
involved in it
• Diary Method: the job holder is asked to maintain a diary recording in
detail the job-related activities each day; provides accurate and
comprehensive information about the job
 Job description Job specification
Difference between Job description and Job specification
1. A concise written statement explaining duties, 1. A statement explaining minimum eligible human
responsibilities and other requirements of a particular job qualifications required to perform a particular job

2. Involves job title, duties, tasks and responsibilities 2. Involves employees qualification, knowledge, skills and
associated with a job capabilities

3. Expresses what a prospective employee must do when s/ 3. Expresses what an applicant must possess for getting
he will get the placement selected

4. It comprises job methods to be used, job summary and 4. It Comprises academic qualifications, experiences, skills and
working condition capabilities

5. The main purpose is to collect job related information for 5. Main aim is to describe job in terms of employees
recruitment characteristics

6. It gives the worker, analysts and supervisor a clear vision of 6. Gives clear idea of candidates’ knowledge, ability, skills and
what to do to meet job requirement capabilities needed to handle the job

7. It determines the standard of performance for maintaining 7. Determines standard of employees to make perfect match
quality of job between job and job holder
 Concept Of Job Design

• Description of task, duties and responsibilities to be fulfilled by an individual

holding a position
• Process of structuring job and specifying activities to be performed by an
individual or group to attain predetermined objectives of the organization
• Specifies duties, responsibilities, authorities of the job holders, methods of doing
job and basis for allocating jobs to employees on the basis of their skills,
experience, knowledge and abilities
‘Job design is the process of structuring work and designating the specific work
activities of an individual or group to achieve certain organizational objectives’ -
Byars and Rue
 Approaches and Methods of Job Design
• Scientific Management Approach: is the application of scientific methods of
study and analysis to solve job related problems; each job should be divided into
small tasks focusing on specialization and simplification in job design; time and
motion study must be taken into consideration to save time and effort of workers;
proper division of work, maximum output, mental revolution, close cooperation
between management of employee, application of scientific methods are
principles
• Hertzberg's Model(Job Enrichment): is direct outgrowth of Herzberg’s two factor
theory of motivation; it refers to the empowerment of employees to assume
more responsibility and accountability; enriched jobs means adding a few more
motivators to a job to make it more rewarding and challenging and it gives the job
holders more power, autonomy and intrinsic rewards; direct feedback, client
relationship, new learning, scheduling own work, unique experience, control over
resources, direct communication authority, personal accountability