Various Aspects of Personnel Management
Personnel Management
Personnel management involves acquiring, developing, utilizing, and maintaining skilled human resources to achieve organizational goals dynamically. It encompasses all activities from pre-recruitment to post-retirement, also referred to as employee administration, human resource management (HRM), or manpower management. It is a critical component of public management, focusing on employee socialization, integration, discipline, code of conduct, and welfare.
Characteristics
- Human-centric activity
- Crucial managerial function
- Connected to all organizational units
- Dynamic organizational process
- Expected to be neutral and non-discriminatory
- Guardian of merit-based systems
- Advisory role in government manpower issues
- Organizational success depends on effective HRM
Importance of Personnel Management
- Ensures planned and effective recruitment, development, utilization, maintenance, and retirement of employees
- Aligns employee and organizational interests
- Guarantees timely availability of required manpower
- Develops employees based on organizational needs
- Maximizes employee utilization
- Motivates and retains competent employees
- Manages resources like capital, technology, and information through skilled personnel
- Prepares employees for environmental changes and challenges
- Enhances organizational frugality, efficiency, and effectiveness
- Maintains discipline and integrity
- Improves overall service quality
- Fosters responsibility and accountability
- Attracts talent and ensures employee loyalty
Functions of Personnel Management
a) Managerial Functions (POSDCORB)
- Policy formulation, planning, organizing, directing, coordinating, and controlling
b) Operational Functions
- Recruitment, development, utilization, maintenance, compensation, integrity, discipline, motivation, career development, placement, promotion, performance appraisal, and retirement
Importance of Manpower in Public Management
- Possesses head (mental power), heart (emotional power), and hand (physical power)
- Expertise and specialization
- Consciousness and coordination skills (man, money, method, machine, material)
- Living memory of the organization
- Acts as commander, controller, coordinator, and director
- Exercises judgment to distinguish right from wrong
- Understands human emotions, desires, and sensitivities
- Addresses public grievances and meets expectations
Manpower Management Process
1. Manpower Planning- Job analysis and organizational management (O&M)
- Manpower analysis and projection
- Planning for all HR functions
- Recruitment, selection, appointment, placement, and socialization
- Career development (training, study, visits, transfers, promotions) and organizational development
- Defining responsibilities and accountability
- Providing resources and authority
- Directing and controlling
- Providing motivation
- Managing performance
- Monitoring and evaluation
- Services and facilities
- Equal treatment
- Incentives
- Career development
- Retirement processes
- Post-retirement utilization
- Social security
Strengths and Weaknesses of Personnel Management in Nepal’s Civil Service
Strengths
- Merit-based system
- Emphasis on inclusivity
- Job and service condition security through laws
- Trade union rights, grievance redressal, and collective bargaining
- Central Personnel Agency (Ministry of Federal Affairs and General Administration)
- Decentralized operations from center to local levels
- Technology-friendly HR management (Personnel Information System)
- Implementation of Civil Service Act, 1993, and Regulations, 1994
- Independent constitutional body (Public Service Commission) for employee selection
- Provincial Public Service Commissions for provincial and local service recruitment
Weaknesses
- Lack of long-term HR policy
- Absence of Federal Civil Service Act aligned with federal structure
- Lack of systematic manpower planning and ineffective O&M
- Insufficient focus on motivation
- Weak employee relations (among employees and with political leaders)
- Failure to adopt positive recruitment systems
- Demotivation due to forced employee adjustments, leading to frustration
- Promotions, transfers, and placements influenced by politics rather than merit
- Conflicts at local levels among new recruits, existing local employees, adjusted civil servants, contract staff, and elected representatives
- Incomplete decentralization of administrative powers
- Lack of employee development programs, especially for local-level staff
- Uncertainty in service conditions, transfers, and promotions due to lack of laws
Classification of Civil Service
Per Nepal’s Constitution:
- Article 285: The Government of Nepal may establish federal civil services and other governmental services, governed by federal laws.
- Article 243: Civil service positions include all government positions except those in the military, police, or other services specified by law.
Classification involves grouping similar positions based on duties, responsibilities, and authority.
Need for Classification
- Establish specialization
- Facilitate manpower planning
- Simplify hierarchical structuring
- Determine salary, rewards, and benefits
- Streamline training management
- Simplify recruitment, selection, and placement
Types of Classification
1. Position-Based Classification- Rank-in-Man (Grade-based)
- Rank-in-Job (Task-based)
3. Level and Grade Classification
4. Gazetted and Non-Gazetted
Rank-in-Man (Grade-Based) Civil Service
Determines duties, responsibilities, and benefits based on rank, emphasizing seniority and experience over performance.
Characteristics
- Recruitment, placement, and other processes based on rank
- Age limits for entry
- Job specification not mandatory
- Generalists prioritized over specialists
- Closed career system with more opportunities for internal career development
Advantages
- Develops manpower per organizational needs
- More career development opportunities
- Multiple roles for one individual
- Maintains organizational confidentiality
- Reduces conflicts
- Facilitates teamwork
- Simplifies recruitment
- Values experience and seniority
- Strong employee retention
Disadvantages
- Emphasizes seniority over merit
- Less focus on specialization and professionalism
- Discrimination despite equal performance
- Same benefits for varying performance
- Performance-based pay not feasible
- Difficult to evaluate performance
Rank-in-Job (Task-Based) Civil Service
Classifies positions based on tasks performed.
Characteristics
- Appointments, transfers, and promotions based on task performance
- Performance prioritized over rank
- No age limits generally
- Mandatory job specifications
- Adheres to merit-based systems
- Emphasizes open career systems
Advantages
- Performance-based appointments, placements, and promotions
- Open career system allows talent entry
- No age restrictions
- High value on merit
- No discrimination for equal performance
Disadvantages
- Difficult to measure performance for policymaking roles
- Not suitable for all roles requiring experience
- Retention issues due to changing roles and benefits
- Challenges in maintaining confidentiality and teamwork
- Limited internal career development
Classification in Nepal’s Civil Service
Nepal’s civil service predominantly follows a grade-based system with task-based elements:
Grade-Based Features
- Rank-based designations (e.g., Section Officer, Under Secretary, Joint Secretary)
- Service conditions and benefits based on rank
- Promotions emphasize seniority
- Age limits for entry
- Limited open entry for higher positions
- Generalists have more authority than specialists
Task-Based Features
- Job specifications and performance appraisal systems
- External specialist recruitment and contract services
- Task-based designations in some offices (e.g., Chief Secretary, Chief Administrative Officer, CEO)
- Performance contracts since 2019
- Performance-based incentives and lateral entry provisions
- Integrated civil service system
Application by Management Level
- Top-Level Management: Grade-based system due to need for policy knowledge, experience, and organizational history.
- Mid-Level Management: Mixed model for specialization, coordination, and policy implementation.
- Lower-Level Management: Task-based system for technical expertise and professionalism.
Functional Specialization (10 Services)
Per Civil Service Act, 1993, Section 3, civil service is divided into 10 groups:
- Nepal Economic Planning and Statistics Service
- Nepal Engineering Service
- Nepal Agriculture Service
- Nepal Forest Service
- Nepal Miscellaneous Service
- Nepal Administration Service
- Nepal Foreign Service
- Nepal Audit Service
- Nepal Justice Service
- Nepal Education Service
Health and Parliament Services operate under separate laws. Gazetted positions are classified into Special, First, Second, and Third Classes, while Non-Gazetted positions include First to Fifth Classes and Classless. Health, provincial, and local services use a level-based system.
Recruitment
Recruitment involves identifying manpower needs, qualifications, and levels, forecasting demand, and inviting applications. The Public Service Commission (PSC) handles recruitment based on organizational demands.
Types of Recruitment
1. Positive Recruitment: Actively seeking qualified candidates, often seen in banks and financial institutions.2. Negative Recruitment: Advertising vacancies and selecting from applications through competitive exams.
Sources of Recruitment
Internal Recruitment
Filling vacancies with existing employees, common in grade-based systems.
Advantages
- Aligns employees with organizational needs
- Cost-effective
- Preserves training investments
- Maintains confidentiality and security
Disadvantages
- Limits equal opportunity
- Excludes external talent
- Risks organizational rigidity
Open Recruitment
Filling vacancies through open applications, providing equal opportunities.
Advantages
- Ensures equality in access
- Attracts new talent
- Promotes dynamism and adaptability
- Leverages external expertise
- Prioritizes performance over seniority
Disadvantages
- Expensive process
- Not suitable for all roles
- Risks confidentiality and teamwork
- Retention challenges
PSC Recruitment Process
- Publish annual schedule
- Determine and revise syllabus
- Collect vacancy demands
- Determine recruitment percentages
- Publish advertisements
- Collect and scrutinize applications
- Prepare and revise question papers
- Conduct exams
- Evaluate answer sheets
- Publish written results
- Conduct interviews
- Publish merit list
- Recommend for appointment
- Appointment and placement by relevant authority
Selection
Selection involves choosing qualified candidates through criteria-based exams (written, practical, interviews, psychological, or behavioral tests).
Recruitment and Selection Process
- Prepare job descriptions and job analysis
- Identify vacancies
- Project total demand
- Submit demand to recruiting agency
- Agency advertises with qualifications and exam schedule
- Select through appropriate methods
Strengths
- Merit-based system
- PSC oversight
- Reservation policies
- Open and lateral entry
- Internal promotion opportunities
Weaknesses
- Negative recruitment approach
- Ineffective job analysis and specifications
- Lack of institutional merit in contract services
- Elite capture in reservations
- Impractical syllabus
Appointment and Placement
Appointment is the formal written designation of an individual as an organizational member based on PSC recommendations. Placement involves assigning responsibilities with job descriptions.
Provisions in Nepal’s Civil Service
- Appointments only on PSC recommendations
- No daily wage or contract appointments
- Gazetted appointments by Government of Nepal; Non-Gazetted by department or office heads
- 35-day appointment notice period
- Health certificate required
- Oath of office and confidentiality
- Placement based on education, training, and experience
- Job description and responsibilities assigned within 7 days
- Performance contracts mandated
- Probation: 1 year for male, 6 months for female employees
- Department head appointments with Ministry approval
Issues
- Negative recruitment
- Failure to attract talent
- Lengthy selection process
- Lack of "right person, right place"
- Placements not based on employee interest or expertise
- Political influence in placements
- Lack of job descriptions and responsibilities
- Frequent transfers within two years of initial placement
Promotion
Promotion is the advancement of employees to higher grades or positions based on procedures, experience, qualifications, and performance. It is a motivational tool, an effective recruitment method, and integral to career development.
Types of Promotion in Nepal’s Civil Service
Minimum service period: 3 years for Non-Gazetted, 5 years for Gazetted.
Principles
- Seniority-based
- Merit-based
- Mixed approach
- Special promotion
1. Seniority and Performance-Based Promotion
Promotions based on seniority among candidates with an average performance score of 95% or higher, prioritizing those with experience in designated geographical areas.
2. Performance-Based Promotion
| Basis | Marks |
|---|---|
| Seniority | 30 |
| Performance Appraisal | 40 |
| Educational Qualification | 12 |
| Training | 2 |
| Geographical Area Service | 16 |
| Total | 100 |
Performance Appraisal Scoring
- Supervisor: 25 marks
- Reviewer: 10 marks
- Review Committee: 5 marks
- Total: 40 marks
Seniority Scoring
- Non-Gazetted: 3 marks per year
- Gazetted (Second/Third Class): 2.5 marks per year
3. Internal Competitive Exam Promotion
20% of positions for Kharidar, Under Secretary, and Joint Secretary are reserved for internal competitive exams for employees meeting minimum service periods.
4. Special Promotion
- Employees serving 15 years in the same position are promoted one month before retirement.
- Previous provision for automatic promotion after specific service periods (removed in 2007 amendment).
Promotion Provisions
| Position/Class | Open Competition | Promotion | ||
|---|---|---|---|---|
| Performance Evaluation | Internal Competitive Exam | Seniority & Performance | ||
| Classless/Non-Gazetted Fifth | 100% | - | - | - |
| Non-Gazetted Second (Kharidar) | 70% | - | 20% | 10% |
| Non-Gazetted First (Nayab Subba) | 40% | 20% | - | 40% |
| Gazetted Third (Section Officer) | 70% | - | - | 30% |
| Gazetted Second (Under Secretary) & First (Joint Secretary) | 10% | 35% | 20% | 35% |
Reservation Provisions (Section 7(7))
45% of open competition positions are reserved, treated as 100% for separate competitions:
- Women: 33%
- Indigenous/Janajati: 27%
- Madhesi: 22%
- Dalit: 9%
- Disabled: 5%
- Backward Areas (9 districts): 4%
Issues in Promotion
- Unpredictable promotion system
- Non-scientific measurement of performance indicators
- Uniform scoring despite varying performance
- Subjective scoring leading to discrimination
- Frequent revisions of promotion criteria benefiting specific groups
- Focus on exam preparation over work
- Unequal promotion opportunities across service groups
- Inconsistent vacancy calculations
- Non-objective criteria for senior promotions
- Long promotion delays reducing motivation
Compensation
Compensation is the remuneration for an employee’s knowledge, skills, effort, and time. It is the value of labor for employees and an investment in human resources for organizations.
Principles of Compensation
- Subsistence Principle: Sufficient for basic living (David Ricardo)
- Wage Fund Principle: Depends on available funds
- Wage Savings Principle: Linked to production and savings
- Bargaining Principle: Based on employer-employee agreement
- Competitive Labor Market Principle
- Capacity to Pay Principle
- Performance-Based Pay Principle
- Marginal Productivity Principle
- Motivation Principle
- Efficiency Appreciation Principle
Strengths in Nepal
- Monthly salary payments
- Salary review committee for periodic adjustments
- Alignment with consumer price index
- Performance incentive fund concept
- Increasing focus on performance-based pay
- Employee provident fund contributions
- Triennial salary and benefit reviews
- Annual dearness allowance based on CPI
- Salary reviews based on revenue growth and CPI
- Festival allowance equivalent to one month’s salary
- Salary from appointment date
- Half salary during suspension, full recovery post-clearance
- Annual grade increments
Issues
- Salary not aligned with market prices or inflation
- Lack of job-specific compensation
- Non-implementation of performance-based pay
- Incentive allowances favor influential offices
- Insufficient for subsistence
- Non-formation of salary review commissions
- Non-implementation of past commission recommendations
Solutions
- Base salaries on CPI and comparative principles
- Implement performance-based pay
- Automate salary increment systems
- Align salaries with job nature and responsibilities
- Establish permanent salary review mechanisms
- Enhance fringe benefits (education, health, housing)
Balancing Factors
- Market prices and salaries
- High and low-grade salaries
- Salary and productivity
- State revenue and salaries
- Public and private sector salaries
- Neighboring countries’ government salaries
Motivation
Motivation drives employees to maximize their skills, effort, and creativity to achieve organizational goals.
Types
- Monetary: Salary, allowances, insurance, provident fund
- Non-Monetary: Job security, training, work environment, responsibilities
Motivation Theories
1. Hierarchy of Needs (Maslow): Employees are motivated by fulfilling needs sequentially (physiological, safety, social, esteem, self-actualization).2. Two-Factor Theory (Herzberg):
- Hygiene Factors: Salary, policies, administration, job security, relations, work conditions, personal life, social status (prevent dissatisfaction).
- Motivational Factors: Challenging tasks, achievement, recognition, responsibility, advancement, growth (increase satisfaction).
- X Theory: Employees are lazy, avoid work, and require control and punishment.
- Y Theory: Employees are self-motivated, committed, and creative.
5. ERG Theory: Simplifies Maslow’s needs into Existence, Relatedness, and Growth.
Motivational Incentives
| Monetary Incentives | Non-Monetary Incentives |
|---|---|
|
|
Career Development
Career development is the progression of an employee’s professional journey through knowledge, skills, experience, transfers, promotions, and personal growth.
Open vs. Closed Career Systems
Open Career System
Filling vacancies through competitive selection of qualified candidates from within or outside the organization.
Advantages
- Attracts talent
- Promotes diversity and cultural integration
- Enhances professionalism
- Boosts enthusiasm and energy
- Adapts to change
Disadvantages
- Uncertainty and risk
- High recruitment and training costs
- Potential demotivation of experienced employees
- Possible conflicts
Closed Career System
Developing employees internally through training and promotions to higher levels.
Advantages
- Higher output aligned with organizational goals
- Efficient skill transfer
- Lower recruitment and training costs
- High morale and favorable work environment
- Reduced uncertainty
- Promotes professional development
Disadvantages
- Limited talent attraction
- Challenges in change management
- Lack of innovation
- Weak external relations
Need for Career Development
For Individuals
- Develop and express inherent abilities
- Self-satisfaction
- Economic and lifestyle improvement
- Social recognition
- Leadership development
For Organizations
- Achieve goals through skilled employees
- Ensure timely availability of suitable personnel
- Implement manpower planning
- Maintain competitiveness
- Integrate new talent and technology
- Manage conflicts and diversity
Career Development Opportunities in Nepal’s Civil Service
- Salary, allowances, gratuity, pension
- Promotions, transfers, study visits
- Training and study programs
- Rewards and disciplinary measures
- Insurance, provident fund, medical allowances
- Seniority and performance-based promotions
- Grievance redressal
- Salary protection
- Skill and professional development
- Stability
- Trade union and collective bargaining rights
Performance Appraisal
Performance appraisal evaluates employee performance based on predetermined indicators to identify areas for improvement. It serves as a basis for compensation, rewards, discipline, and career development.
Characteristics
- Regular process
- Measures work effectiveness
- Assesses job-related skills, knowledge, and abilities
- Ensures fair evaluation
- Predicts future potential
- Identifies training needs
- Facilitates improvement
- Supports HRD, rewards, and career planning
Performance Appraisal in Nepal’s Civil Service
- 40 out of 100 performance evaluation marks allocated for appraisal
- Supervisor: 25 marks, Reviewer: 10 marks, Review Committee: 5 marks
- Semi-annual for Gazetted, annual for Non-Gazetted
- Submission within 7 days of period end
- Supervisor evaluation by Shrawan end, Reviewer by Bhadra 15, Committee by Bhadra end
- Three copies required
- Justification needed for scores below 75% or above 95%
- Linked to promotions, awards, foreign training, and incentives
Issues
1. Employee Issues- Lack of trust in supervisors
- Weak work culture
- Uniform evaluation criteria despite diverse roles
- Failure to use strengths for responsibilities or promotions
- Not linked to compensation or incentives
- Inconsistent supervision
- Lack of supervisor capacity building
- Potential bias in evaluations
- Directive rather than collaborative feedback
- Evaluations by reviewers not directly observing work
- Equal scores for varying performance
- No client involvement in evaluations
- Uneven workload distribution
- Lack of centralized database
- Non-submission of appraisal forms until promotion time
Solutions
- Objective and results-based indicators
- Clear targets and specific indicators
- Implement detailed job analysis and specifications
- Transparent appraisal process
- Establish feedback mechanisms
- Differentiated evaluation criteria by role
- Standardize supervisor evaluations
- Error-free appraisal procedures
- Include workload in evaluations
- Enhance supervisor capacity
- Link appraisals to compensation, training, and rewards
- Involve peers, clients, subordinates, and self (540° feedback)
- Align with organizational outcomes
- Promote transparency and trust
- Adopt IT-friendly systems
Retirement
Retirement is the formal separation of an employee from an organization’s duties and responsibilities. In Nepal’s civil service, employees retire at age 58, with certain post-retirement obligations.
Types of Retirement
- Mandatory: Age limit (58 years) or tenure-based (e.g., 30 years for police)
- Voluntary: Employee-initiated
- Disability: Due to physical or mental incapacity
- Golden Handshake: Special benefits for workforce reduction
- Disciplinary: Due to moral turpitude or corruption convictions
- Death
Retirement Provisions
- Age-Based: Automatic retirement at 58
- Tenure-Based: Chief Secretary (3 years), Secretary (5 years)
- Disability: Up to 7 years additional service for incapacitated employees
- Resignation: Gratuity for 5-20 years, pension post-20 years
- Disciplinary: Automatic dismissal for criminal or corruption convictions
- Voluntary: Available for employees aged 50 with pension eligibility
Post-Retirement Benefits
- Gratuity for less than 20 years of service
- Pension for 20+ years of service
- Government legal defense for work-related cases
- Eligibility for political appointments
- Re-employment in organizations
- Pension for dependent family
- Pension increase at two-thirds of active employee salary increments
- Immediate Benefits: Accumulated leave, medical expenses, insurance, gratuity if pension ineligible
- Lifetime Benefits: Pension, civil hospital facilities, festival allowances
Importance of Retirement
- Introduces new talent
- Brings new technology and work culture
- Enables workforce right-sizing
- Provides career advancement for subordinates
- Removes undisciplined or incapable employees
- Motivates employees through retirement schemes
- Enables retirees to engage in social life and rest