4.1 Human Resource Management: procurement, development, utilization and maintenance

Human Resource Management: Procurement, Development, Utilization, and Maintenance

Human Resource Management (HRM)

Human Resource Management (HRM) is the managerial process of acquiring, developing, utilizing, and maintaining manpower to achieve an organization’s predetermined goals and objectives. It is also referred to as human capital management or manpower management. HRM encompasses all activities from pre-recruitment to post-retirement (Pre-R to Post-R).

Characteristics/Necessity/Importance

• It is both an art and a science of managing manpower.
• Applicable to all levels and categories of human resources.
• A continuous and adaptable process.
• Service-oriented function.
• Adheres to laws and regulations.
• An interrelated subject.
• Focuses on results.
• Related to human aspects and strengthens human relationships.
• An integrated concept.
• Aims to transform manpower to align with the organization’s context and environment.
• Ensures the provision of capable human resources to meet organizational needs.
• Properly manages financial, physical, and other resources to achieve organizational goals.
• Empowers and develops human resources.
• Motivates and boosts the morale of human resources.
• Makes the mobilization and management of human resources predictable.

Fundamental Aspects/Functions

(a) Procurement (Acquisition)

The process of fulfilling an organization’s manpower needs, covering activities from pre-recruitment to socialization.

1. Recruitment:

• Determining the required qualifications, age, experience, and number of personnel through demand forecasting and inviting applications from qualified individuals.
• Recruitment can follow an internal or open process.

2. Selection:

• The process of choosing the most suitable candidates from applicants through various tests and examinations.
• Methods include written exams, practical exams, behavioral/psychological tests, and interviews.

3. Appointment/Placement:

• Inducting selected candidates into the organization and assigning them to appropriate roles and responsibilities.

4. Socialization:

• The process through which new employees become familiar with the organization’s employees and work environment.
• It helps new employees understand and accept the organization’s values, norms, and beliefs.

(b) Development

The process of enhancing the knowledge, skills, abilities, and expertise of human resources by organizational needs and systems.

1. Training: Induction training, in-service training.
2. Visits, Studies, Observations: Opportunities for professional exposure and learning.
3. Skill Development: Technical skills, management skills, personality/leadership development.
4. Career Development Opportunities: Transfers, promotions, new responsibilities.

(c) Utilization

The process of deploying and mobilizing developed human resources in line with organizational goals.

1. Appropriate Placement: Right person in the right place at the right time, based on interests, skills, expertise, and experience.
2. Job Assignment with Job Description: Clear definition of duties, responsibilities, performance indicators, resources, and adequate staffing.
3. Job Enrichment: Improving work environment, work style, and processes, utilizing modern technology, and making roles prestigious.
4. Teamwork: Fostering camaraderie, knowledge/skill sharing, generating interest in work, and increasing productivity.
5. Participation: Meaningful stakeholder participation promotes transparency and effectiveness, providing employees opportunities to engage in organizational activities and enhance knowledge, skills, and experience.
6. Performance Evaluation: Assessing completed work, providing incentives, rewards, or penalties.
7. Management Contract: Incentives for meeting defined goals within a timeframe to enhance productivity.

(d) Maintenance

The process of enabling human resources to utilize their capabilities, remain committed to the organization, stay motivated, productive, and energized, and contribute more effectively.

1. Adequate Services and Facilities: Monetary and non-monetary benefits.
2. Conducive Work Environment: Free from scarcity, pressure, and undue influence.
3. Motivation and Morale: Encouraging enthusiasm and commitment.
4. Effective Communication and Coordination: Ensuring smooth interactions.
5. Clear Career Development System: Structured paths for growth.
6. Talent Management: Identifying and nurturing potential.
7. Rewards/Honors: Recognizing contributions.
8. Job Security: Providing stability and assurance.

Dimensions of Human Resource Management (CPECL)

• Competency: Ensuring employees have the necessary skills and abilities.
• Professionalism: Promoting professional standards and conduct.
• Ethics: Upholding ethical behavior and integrity.
• Career Management & Leadership Development: Supporting career growth and leadership skills.
• Labor Relations: Managing relationships with employees and unions.

Human Resource Management in Nepal

Strengths

Procurement

• Recruitment based on a meritocratic system.
• Open recruitment for lower levels, closed system and lateral entry for higher levels.
• Principle of attracting qualified candidates.
• Annual vacancy announcements for each position.
• Competitive exams and interviews for selection.
• Independent constitutional body (Public Service Commission).

Development

• Opportunities for domestic/international training, studies, and visits.
• Professional skill enhancement programs.
• Induction training for officers and in-service training.

Utilization

• Placement based on employees’ knowledge, experience, and interests.
• Implementation of job descriptions.
• Adoption of teamwork practices.
• Participatory systems in decision-making and performance.

Maintenance

• Periodic review of salaries and allowances.
• Introduction of performance-based pay.
• Collective bargaining and trade union rights.
• Provision for civil service awards.
• Medical expenses, insurance, and provident fund facilities.
• Career development opportunities.
• Retirement benefits and pensions.

Weaknesses

Procurement

• Delays in filling vacant positions.
• Lack of accurate vacancy data.
• Absence of a positive recruitment system (talent hunt).
• Lack of scientific and practical recruitment curricula.
• Political instability causing disruptions (e.g., vacant Public Service Commission posts, delayed vacancy data submission).

Development

• Uniform training despite varying job requirements.
• Induction training being theoretical rather than practical; in-service training being voluntary rather than mandatory.
• Lack of induction/in-service training for local service employees.
• Performance evaluation limited to procedural aspects.
• Inequity in study, visit, and observation opportunities, with favoritism prevailing.

Utilization

• Lack of implementation of the “right person in the right place” concept.
• Underutilization of human potential.
• Weak job enrichment practices.
• Lack of added human value.
• Absence of clear job division, descriptions, and responsibilities.

Maintenance

• Low service and facility benefits (monetary/non-monetary).
• Performance-based pay and incentives not universally applied or effective.
• Civil service awards based on discretion.
• Weak motivation and morale factors.