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ntroduction to Human Resource Management: 10 Marks.

Concept, characteristics, objectives, functions of HRM.

HRM System, personnel and human resource management.
Human resource outcomes: Quality of work life productivity and readiness to
Human Resource Planning: 10 Marks.
Concept, characteristics of human resource planning.
Concept of human resource strategy, relationship between human resource
planning and strategic planning.
Human Resource Planning process: Assessing current human resources,
demand and supply, forecasting human resource inventory, human resource
information system, succession planning, and human resource planning in
Job design and analysis: 10 Marks.
Meaning of job. Task position and occupation.
Concept of benefit of job design
Concept and purposes of job analysis, collecting job description, job
specification and job evaluation.
Recruitment, selection and socialization: 10 Marks.
Meaning, sources and method of recruitment
Concept of selection difference between selection and recruitment.
The selection process, selection tests, interview and their types.
Reliability and validity of tests.
Concept and process of socialization.
Training and Development: 10 Marks.
Concept and process of learning.
Human resource development concept and importance.
Concept, objectives and benefits of training, determining training needs.
Training Methods.
Concept and techniques of management development.
Evaluating training effectiveness.
Training and Development in Nepal.
Performance Appraisal and Reward management: 10 Marks.
Concept and use of performance appraisal.
Methods of performance appraisal graphic rating scale alternative ranking,
paired comparison, forced distribution critical incident checklist method.
Concept of reward management, types and qualities of effective reward.
Compensation Management: 10 Marks.
Concept and determinance of compensation.

Method of establishing compensation.

Current trends in compensation.
Incentive plans, different forms of incentives.
Employee Discipline: 10 Marks.
Concept and types of disciplinary problems.
General guidelines in administrating discipline.
Disciplinary actions.
Labor Relation: 10 Marks.
Concept and purpose of labor relation.
The actors of industrial relation.
Employee grievances, causes and handling grievance.
Labor disputes: Prevention and settlement of disputes.


The concept of human resource management organizational effectiveness
largely depends up o the performance of people working in the organization.
People as human resource only when the acquired such as knowledge,
skills, attitudes, experience and potential growth. Human resource are some
people who are willing to contribute their skills, talents and attitude in orders
to achieve organizational goals.
HRM is concerned with the people element in the organization. It is
concerned with the effective management of available human resources in the
It involves the production utilization of people in order to achieve
organizational goals.
HRM in term increasing used to refer to the philosophy policies, procedures
and practices related to the effective management of people of the organization.
HRM can be a major contribution on the success of organization.
According to Robbins, Human resource management is a process of four
functions: acquisition, development, motivation and maintenance of human
According to French, Human resource management is the systematic
planning, development and control of network of interrelated process affecting
and involving all member of organization.

Nature/ Characteristics of Human Resource Management:

Human Focus:
HRM is concerned with the effective management of people possessing energy
and capabilities. It is individual oriented. It is specially focused on the human
oriented approach. The detailed investigation of human resource in
organization is made.
HRM is a pervasive function of management. It is performed in all levels of
management. The responsibility of human resource can not be delegated to
others. HRM is practically implemented in the organization at various levels
HRM is a continuous function of management. In other words, it is not a onetime process. It will continue till the organization exists. It is continuously
monitored at every step of organization existence.
HRM is not a static concept but a dynamic function. It is also affected by
internal environment like human resource policies, goals of the organization,
structure etc. it is also affected by external environment like PESTEL factors.
HRM is a system of input, processing and output. It utilizes the input, process
it and also provide output. Therefore, human resource management is the
combination of input, processing and output, which is considered as a system.

Objectives of Human Resource Management:

Human resource management is the important component of
management. It is the combination of four functions. The main objectives of
human resource management are as follows:
1. Goal Achievement:
Human resource management makes effective utilization of available human
resources by providing them training, and development. The goal of the
organization is achieved when there is proper utilization of potential human
2. Structure Maintenance:
Every organization has its organizational structure. The objectives of human
resource management is to maintain adequate organizational structure. It
helps to improve the relationship among the human resource in the
organizational setting.

3. Goal Harmony:
In an organization, there are individual and organizational goals, it brings
harmony in organizational goals and individual goals of employees. It recognize
and satisfies individual need in order to achieve overall organizational goals.
4. Productivity Improvement:
Human resource management is concentrated in providing different training
and other opportunities to the employees in order to increase skill and
productivity of individual employees. Better quality of human resources result
in improved productivity.
5. Efficiency:
Human resource management avoid wastage and promote efficiency of human
resources. It ensures cost-effective utilization of human resources. The higher
the productivity, higher is the efficiency of employees. In this way, the main
objective of human resource management (HRM) is also to increase the
efficiency of individual employee.

Functions / Areas of Human Resource Management:

1. Human Resource Planning:
The important function of human resource management is to prepare human
resource planning. 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.
2. Recruitment and Selection:
One of the important functions of human resource management is the
recruitment and selection. Recruitment is a process of making a pool or
qualified candidates. Selection is the process of accepting the best candidates
from many candidates. Recruitment function starts with the application
process. Information from job analysis and human resource information
system is used for selecting the best candidates.
3. Training and Development:
Training and development is also the another function of human resource
management and development is required to develop the skill, ability and
motivation of employees. Human resource department has to engage in
assessing training need. On-the-job training and off-the-job training can be
provided to the employees.
4. Performance Appraisal:

Performance appraisal is the process of evaluating performance of employees

regarding strength and weakness. It helps to assess hoe well the employees are
performing their job. Human resource manager have to design appraisal
technique to get feedback from employees.
5. Job Analysis:
It is the basic function of human resource management. It involves the
collection of job related 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, experience and skills
required to perform the job as mentioned in job description.
6. Compensation and Benefit:
Compensation reward people through pay incentives and benefits of the work
done. Benefit reward people with additional compensation. They are direct form
of compensation such as, health care, family related and other benefits.
Compensation and benefit are the major source of the motivating employees at
7. Health and Safety:
Providing healthy work environment is another important function of human
resource management. Every organization has to take care of its employees
health and safety. The working place are getting more and more and increase in
use of chemical and other harmful substance.
8. Employees Relation:
Another important function of human resource management is to maintain
good relation between employees and employer. In this process, the human
resource department helps to develop mechanism for developing understanding
between employees and employer. Human resource department help to develop
the mechanism to solve the conflict. It involves handling grievance, labor
management, handling conflict etc.


A system is a unified whole composed of interrelated and interacting part to

achieve common goals. Human resource management is an open system. It
consists of input, processing. Output and feedback component. It has both
internal and external environment.
1. Input:
It is a major component of human resource management system. It is the first
step in the system. It consists of the following components:Human energy and competency:
Energy is represented by physical strength. Competencies are represented by
skills, knowledge, experience, potential for growth etc.
Organizational Plan:
The human resource management system is guided by organizational plan.
These input components are very essential to support human resource
management system. Organizational plan consists of overall organizational
goals and targets.
Human Resource Plan:
Human resource plan is also the important input component. It is the process
of making plan of future human resources. It is also the process of marketing
future, human resource demand and supply.
Human Resource (management) Inventory:
Management inventory represent inventory of current human resources
available in the organization. Management inventory is an important
component of making human resource plan.
Job Analysis:
Job analysis specifies job requirement, qualification and skills for various jobs.
It mainly consists of job description and job specification.
Labor Market:
Labor market serves as the major source of supply for human resource. It may
be schools, colleges, universities, training institutions, manpower agents etc.
2. Processing:
The important processing component o human resource management systems
are as follows:Acquisition:
Acquisition ensures right number of people at right place and at the right time
in the organization. Acquisition mainly consists of recruitment (identifying
potential candidates), selection (selecting the best candidates and rejecting the
wrong one), socialization (adaptation of new employees in the organization.)

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.
Motivation ensures willingness of employees for doing job effectively. The
employees should be motivated toward their jobs in order to increase
productivity and efficiency. Motivation consists of need, satisfaction, job design,
performance appraisal and reward management.
Maintenance ensures retention of employees in the organization. Highly
qualified manpower should be retained (hold) in the organization. Maintenance
involves compensation management, employees discipline, grievances
(hopeless) handling and employees welfare.
3. Output:
The human resource management system also consists of certain output.
Output components of human resource management are as follows: Goal Achievement:
This refers to overall organizational goal achievement. The goal of societal wellbeing is also one of the goals of organization.

Outcomes of Human Resource Area / Human Resource




Human resource outcome is the output related to human resource

management. The main outcomes of human resources are as follows:Quality of Work Life:
The term quality of work life (QWL) refers to making job more interesting,
challenging and satisfying. Quality of work life concept has been developed to
satisfy employee important performance need for working and sharing their
experience in the organization.
The major component of QWL consists of the followings:It attempts to create a democratic organization where everyone has a voice in
deciding issues.
It tries to share the financial reward of the organization, so that every one
benefit from a greater co-operation.
QWL helps to create greater job security of an individual.
The concept of productivity refers to the ratio of output to input in order to
increase productivity, the rate of output should be higher than input. Human

resource manager and others line managers can contribute to productivity by

utilizing their workforce effectively and efficiently, productivity depends up on
different factors such as; investment, innovation, learning, motivation etc.
3. Readiness for Change:
The increasing challenges from environmental forces force everyone to cope
with this environment. In the present situation, managers, workers, and union
members should be ready to work with the change process. Everyone has to be
prepared for any sort of changes to meet the current and future challenges. In
other words, employees should be ready for any sort of changes.

Personnel Management Vs. Human Resource Management:

During 19th century personnel management has been used in different
management book in 1970 the term human resource management (HRM).
Nowadays the term human resource management is used widely in text book,
human resource management new version of personnel management. The
major difference between personnel and HRM are as follows:Basis of Difference
1. Time & Planning

2. Investment.

3. Main concerns

4. Information and

5. Aims

Personnel Management
Personnel management has shortterm focus & therefore react specific
personal problems by providing
immediate solution. Whenever there
is problem, it makes plan.
Personnel management regards
investment in people as a variable
The personnel function in unionizes
organization was mainly concerned
with negotiating & administering
collective bargaining. It focuses on
rules and regulations.
Personnel management specialist
used communication and
information mainly as a source of
power and controlling activities.
Personnel management aims at nonmanager specialist and professionals

Human Resource Managemen

HRM is proactive and make
systematic which study before
any problems or changes take
place. It follows long-term
approach to work on a
HRM regard investment as a
social capital capable of
HRM function concern with
the wider notion of workforce
governance in which
employees involvement and
participations are emphasized
Communication and
information is mainly used as
a source of developing trust
and commitment among the
organizations employees.
HRM is more concern with th
manager by developing

to increase skills of employees.

6. Outcome.

Personnel management is concerned

with job satisfaction of employees.

management team in the

HRM is concerned with the
development of the culture
and climate of organization.

Challenges of Human Resource Management:

In todays business environment, the job of managing people is getting more
difficult. Different factors directly affect human resource management.
Therefore any changes in the environment have challenges for human resource
management. Some of the challenges of HRM are as follows:-

1. Globalization:
Globalization is the process by which, transaction of business organization
have been globalized across the world. Globalization provide platform for selling
goods and services from one country to another country. Only those companies
can survive from these processes which are able to employ and retain qualified
people. The challenges for human resource department are to review current
HR policies in order to meet globalization.
2. Increasing concern for security and employment:
Security and employment is also the major concern for HRM. The increasing
worldwide terrorism is a major challenge not only for nation but also for the
organization all over the world. Therefore, national security provided to people
is equally important. The 9/11 terrorist attack in the USA (World Trade Centre
& Pentagon) was a great challenge for the world. Million of people and
thousands of business organizations were affected by this incident. Therefore,
the internal security problem and external challenges is a major threat for any
3. Work force Diversity:
The success of organization depends on how much it can respond to the
situation of workforce diversity, workforce from different countries with
different value, cultures, language, education, training background
representing different races and religions are participating in work place. The
role and responsibility of HRM is to handle diversity related problems.
4. Contingent Workforce:
Contingent workforce refers to the part time, temporary workers appointed for
short-term contract. Employers are now interested in appointing workers on

contingent basis to fulfill the demand of business. Employees of contingent

nature can maintain a balance between family and work. Moreover, they are
challenges for HRD. Since they are part timers, it is the role of HRD to use their
skills. It is very difficult for the organization to use their skills for a long time.
5. Decentralized work sites:
With the increasing use of information technology, work places are
decentralized. Due to the use of computers, e-mails and internet network,
todays employees are not required to sit in the office from 9 AM to 5 PM
instead they can work at home and report to the head office with the help of
computer linkage. However, challenges are there for HR department to monitor
and evaluate the performance of workforce. Human resource department have
to ensure the quality of work in decentralized work sites.
6. Employees Involvement:
The need for employees involvement at work place is increasing to make them
able to contribute to a given job. Similarly, when the organization is larger in
size, it is difficult for lower level management to work without responsibility
and resources. To enhance employees contribution, it is essential to delegate
authority. The challenges for HR manager are to make the people engaged and
use their maximum effort. To make the employees involved the best motivating
factors will be to provide opportunities to work in challenging job.

Human Resource Management in Nepal:

Nepalese organizations are in the age of personnel management. There is least

concern with developing and utilizing HR potentiality.
There is nepotism and favoritism in most of the Nepalese organizations.
Nepalese top managers spend a lot of time in hiring and transferring
There is over supply of human resources. Manpower planning is lacking in
HR development has remained an area of least priority in Nepalese
organization. Training is not regarded as an investment in human resources.
Nepalese organizations are not oriented towards productivity improvement.
There is no harmony between individual and organizational goals.
Private enterprises lack systematic performance appraisal systems. Public
enterprises have legally prescribed performance appraisal system, but in
practical they are not used.
It can be concluded that the output of HR quality of work life,
productivity and readiness to change has not been achieved.






There has been increasing competition in the market to provide quality and low
cost product and services. In this situation the human resource department in
the organization has to plan human resource activities in order to ensure
quality manpower, however many organization pay less attention to the proper
plan and utilization of human resources. HR/ employment/ manpower
planning/ human resource planning is the process of acquiring and utilizing
human resources in the organization. If the organization has right number of
employees at the right time, critical problems can easily be solved.
HR planning is prepared by human resource department in consultation
with line department by determining the right number of people the demand
and supply of manpower. The HR planning and supply of manpower. The HR
planning matches the demand and supply of human resources in order to meet
future activities.
According to Schuler, Personnel and HR planning involves forecasting human
resource needs for the organization planning the step necessary to meet those
According to Decenzo & Robbins, Employment planning is the process of
determining organizations human resources.
From the above definitions, the characteristics of human resource planning are
as follows:It is related with the planning of human resources based on strategic plan.
It estimates demand and supply of manpower.
It assures that sufficient numbers of skilled and motivated employees are
It helps to utilize human resources in a cost-effective manner.

Characteristics of Human Resource Planning:

1. Aspect of Acquisition Function:
Human resource planning function id related to acquisition function of human
resource management. In other words, the acquisition function of human
resource management starts with the proper human resource planning.
2. Future Oriented:






Every planning activity is related to future. HR planning is also future oriented.

The HR planning is made today and implemented in the future. HR planning
estimates the future human resources of the organization.
Estimation of Demand and Supply of Manpower:
HR planning estimate the future demand and supply of manpower for any
organization. HR planning helps to make necessary arrangement of surplus
and deficit of human resources in the organization.
Goal Oriented:
HR planning is made in order to achieve certain goals. The main objective of
HRP is to preplan the human resources for the future. HRP is made today for
the future in order to achieve short-term and long-term goals.
Quantitative and Qualitative Aspect:
In HRP, the human resources needed for the future is not only determined in
quantity but other aspect regarding human resources is also determined.
Quantitative aspect such as skill, attitude and ability of human resources is
also estimated.
Integral Part of Organizational Plan:
Any organization determines different types of corporate of organizational plan.
HRP is important part of corporate planning. HRP is important to make
organizational planning.
Time Horizon:
Human resource planning considers short-term and long-term goal of the
organization. It estimates these goals remaining within a fix period of time. In
other words, human resource planning considers time horizon.

Importance of Human Resource Planning:

1. Goal (Objective) Achievement:

Human resource planning focus on overall organizational goals. The human
resource planning ensures the optimum achievement of objectives. The forecast
of human resources are based on the objectives, strategies and plan of the
2. Minimize Future Risk and Uncertainty:
Human resource planning is made to minimize future risk and uncertainty by
forecasting the need of technical and other manpower. This will help to reduce
the chances of losses by making optimum utilization of human resources.
3. Effective Utilization Human Resource:
Human resource planning ensures that the organization acquire and retain the
quality human resource. Existing human resource can be deployed to ensure
their effective utilization.

4. Implement Business Strategy:

Without proper human resource planning, business strategy can not be
implemented. Human resources are the people who have to work in order to
implement the business strategy. It is only possible through human resource
5. Human Resource Development:
Human resource planning anticipate skill requirement for various level of
human resources. This provides adequate time for planning and development
programs. In other words, human resource planning uses the employees
6. Promote Awareness:
Human resource planning promotes awareness that human resource activities
are equally important at every level. Both line and staff managers directly and
indirectly have to be involved in human resource activities. In other words,
human resource planning promote awareness among human resources.

Human Resource Strategy:Meaning and Concept:HR strategy is an important tool to implement HRP in order to achieve business
objectives. HR strategies are generally linked vertically with business strategy
and horizontally with marketing, production and other strategy.
HR strategy is concerned with establishing relationship between longterm direction and business strategy. It is used to design the structure and
functions of an organization to improve the situation of co-ordination. To make
this clear, it is important to understand the concept of three order strategy. The
first order strategy is concerned with the long-term impact which affects
second order strategy. Second order strategy is related to organizational
structure and system of control. Finally, there is the third order strategy, which
is known as HR strategy. Without the third order strategy, other order strategy
can not be implemented.
>>According to Hall and Torrington, HR strategy involves a central philosophy of
the way that people are managed in an organization and transition of this in to
personnel policies and practices, and its interrelation with business strategy and
within itself.
>>According to Gary Dessler, HR strategy refers to the specific human resource
course of action the company plans to pursue to achieve its aims.
Features of Human Resource Strategy:-

1. Goal Oriented:HR strategy is always goal oriented. HR strategy is helpful to achieve the overall
organizational goals as well as the goal of HR department. In order to achieve
such goals, different courses of action related to HR strategy are important.
2. Environmental Consideration:HR strategy considers different environmental factors to implement it. Different
environmental factors such as, economic, social, cultural, political,
technological, trade organizations are considered before making human
resource strategy.
3. Long-term Perspective:HR strategy is made for short-term as well as long-term. However, many
strategic planning are made for long-term perspective. In the same way, HR
strategy is also made for long-term perspective. In other words, HR strategy has
long-term impact.
4. Integrated Approach:While designing HR strategy not only environmental factors are considered, but
also other factors of the organization like overall strategy, organizational
features, plans and policies are also considered. In this sense, HR strategy is
an integrated approach of many components.

Relationship between HR Planning & Strategic Planning

(Business Strategy):

1. Business Planning:Business planning is the plan made for achievement of business objectives. It
includes the following planning activities:a). Strategic Planning:It is prepared for a long period of time. The plan includes corporate philosophy,
environmental scanning, and constraints and the objectives goals of the
organization. Such plans are prepared with the involvement of the CEO.
b). Operational Planning:
Operational planning is made for a period of 3-5 years. It includes the middle
range operational activities of the business. It comprises plan programme,
organizational strategies and plan for the entry of new business. This plan
implements the strategic planning.

c). Annual Budget:

In order to reach strategic and operational planning at the bottom level, annual
budget is required. This planning activity consists of annual budget, fixing
performance goal programme, assignment, monitoring and evaluation.
2. Human Resource Planning:HRP is the estimation of demand and supply of human resources. It includes
the following activities:a). Issue Analysis:
This analysis is made to support the implementation of strategic planning
based on long-term strategic planning issue, business need, external
environment, internal resources, and other implications are identified.
b). Forecasting Human Resource Requirement:
Once the issues are identified, estimation of human resource for the future is
conducted. It includes decision relating to the staffing level, staffing mix, job
designing and finding requirement of human resource.
c). Action Plan:
Depending on human resource requirement, on action plan is prepared to
achieve organizational objectives. The action plan include staffing, authority
requirement, selection, transfer, promotion, trainings and development,
compensation management and labor reaction.

Approaches to Human Resource Planning:

Human Resource Approach (Traditional Approach):


Strategic Approach:

1. Traditional Approach:This approach considered Hard technique to forecast the demand and supply
of manpower for the organization. It also considers the quantitative aspect of
human resources. This method provides ways and agreed method as technique
to work out manpower planning. According to this approach, HRP comprises
the following: - (see fig. 1)
Forecasting future demand of human resource.
Analysis of current human resource.
Forecasting internal human resource supply.
Reconciliation of forecasts.
Decision and plans.
2. Strategic Approach:According to this approach, HRP is taken to be the result of interaction among
the environmental development. This approach assumes that, together with the
Hard prediction of HR requirement. It is also necessary to make the prediction
of Soft factors such as, employees creativity, innovation and flexibility
required. The Soft HRP is directed towards the following activities (see fig. 2): Defining where the organization wants to be in the future.
Defining where the organization is at the moment.
Analysis environmental influence.
Formulation of plans to affect the desired changes and to ease transition.

Human Resource Planning Process:-

HRP is the process of anticipating future business and environmental demand

on an organization and attempting to provide sufficient manpower. The
important phases of HRP are as follows:1. Environmental Analysis:Environmental analysis include an analysis of external (PESTEL) and the
internal environment (organizational objectives and plans). After an analysis of
the internal and external environment, it is possible for top managers and HR
manager to find out strength and weakness. On the other hand, it can analyze
opportunities and threats.

2. Determining HR Objectives and Policies:After an analysis of internal and external environment, it is important to
develop HR objectives and policies. These objectives and policies are important
to tap (use) the HR in business opportunities. The human resource information
system (HRIS) helps by providing related information in this course of action.
3. Human Resource Forecast:Once the information is analyzed regarding current human resources, the next
step is to make a human resource forecast in order to meet the future
requirement. It consists of demand and supply forecasting (internal and
external supply).
4. Action Plan:Action plan is known as implementation plan. It is the execution of HRP and
objectives. The major activities required for the implementation of HRP are
recruitment, selection, socialization, training, development, transfer, promotion
5. Control and Evaluation:Once HRP is executed, it is important to monitor and evaluate in order to know
how the HRP matches human resource objectives. The best way to monitor and
evaluate the effect of human resource planning (HRP) on human resource
manager is to develop certain indicators. The result of evaluation is feed-back
to the human resource managers.

Assessing Current Human Resources:1. Human Resource Inventory:It is also called skilled inventory. A human resource inventory consists of up to
date information about the qualification and experience of selected categories
of employees. The information available from the HR inventory includes
personal data, educational qualification, result of performance appraisal,
training and career goals. This information facilitates the assessment of
current skilled manpower, which is useful to determine the need of special type
of manpower in the organization. Such inventory is useful at the time of
promotion, management, planning and reporting, compensation planning,
career planning etc.
2. Human Resource Information System (HRIS):HRIS has been implemented to assist HR inventory. This is designed to provide
quick information about the employees working in the organization. HRIS
include information on all employees (local and across the border) currently on

the organization and provide computerized information about the position and
skill available. HRIS consists the following categories:-

Group : 1

Group : 2

Group : 3

Group : 4

Group : 5

Basic-Non-Confidential Information:
-Employees Name
-Organizations Name
-Work Location
-Work Phone Number
General Non-confidential Information:
-Information in the previous category.
-Social insurance / Security Number.
-Other organizational information.
-Position related informational (code, title, effective date).
General Information with Salary:
-Information in the previous categories.
-Current salary, effective date, amount of last change, reason of last change.
Confidential Information with Salary:
-Information in the previous categories.
-Position ranking.
-Gender or minority status if needed for tracking employment equity programs.
-Educational data.
Extended Confidential Information with Salary:
-Bonus Information.
-Projected salary increase information.
-Performance evaluation Information.

3. Succession Planning:-

Succession Planning.
Vacancy on Managerial Post.
Vacancy within one year.
Vacancy within 2-5 years.
Vacancy beyond 5 years
Make short-term planning
Make long-term planning
Ready Now.
to fulfill the vacancy.
fulfill the vacancy.
In the post, organizational success was defined in terms of market growth,
diversification and financial resources. HRP and succession of managers were
based on intuition. These have affected the timely supply of qualified manpower
and many organizations have ultimately become less competitive. In this
competition age, it is very important to determine the right number of people at
the right time, at the right place and position.
Widely known as succession planning or management succession, it
ensures that the organization has individual ready to move in to position of

higher responsibility. This is a special time of planning used to forecast

potential managers for future promotion in the higher management level.
Whereas a replacement chart shows the potential vacancy to be filled.
Succession planning ensures development of managers to take position as
required by the chart. Since many companies feel their internal vacancies from
within the organization. Such a selection is often made on the basis of
performance appraisal. However, promotion, transfer, training and development
are also the important part of succession planning.
4. Job Analysis:Job analysis is the process of defining a job in terms of task or behaviour and
specifying the education, training, and responsibilities needed to perform the
job effectively. The information gathered fro the job analysis has many uses.
The main HR areas were these information can be used are job description, job
specification, recruitment, selection, performance appraisal, career
development etc. for the purpose of manpower planning, the use of job analysis
is specially to prepare job description, specification and job evaluation.
Forecasting Demand and Supply of Human Resource:

Delphi Technique.
Normal Grouping Technique
Managerial Estimate.

Simple linear Regression

Multiple linear Regression
Time Series Analysis

The estimation of future manpower depends up on the strategies, plan

and future organizational activities of an organization. The selection of a
particular method of demand forecasting is largely determined by the time



frame and information gathered. The popular demand forecasting techniques

are as follows:Judgmental Forecast:
According to this technique, managerial level employees are consulted in order
to make HR demand. In this technique, managerial level employees as well as
HR manager are consulted before making estimation of HR demand. This
technique is very useful for the prediction of HR demand because, managerial
employees have more knowledge about the staff.
Delphi Technique(1940):This is the most frequently used to predict the demand for manpower in an
organization based on the possible future developed by the Rand Corporation
in the late 1940s, this technique is useful to accumulate expert advice on
future HR demand.
Using this technique to forecast manpower demand, experts work
independently and avoid face to face discussion. An intermediary establishes
contact with experts and takes their opinion. The main duty of the
intermediary is to analyze the information and provide feedback to them.
Normal Grouping Technique:This is a team decision making process where the members independently
write down their ideas described and clarify them to the group. After that, they
independently rank on them. The techniques generally use to identify
organizational problems and solution to the problems.
In order to forecast the HR demand, team members will sit large then
around a conference table and independently list their ideas about future
demand of human resources on a proper. After 10-20 minutes. They discuss in
the group and express their individual views. The final forecasting is made by
ranking or voting.
Managerial Estimation:According to this technique, managerial level employees are consulted in order
to make HR demand. In this technique, managerial level employees as well as
HR manager are consulted before making estimation of HR demand. This
technique is very useful for the prediction of HR demand because, managerial
employees have more knowledge about staffs.
Statistical Technique:
Statistical technique uses statistical tools like simple linear regression, multiple
linear regression, time series etc. in order to predict the future HR demand.
These techniques are as follows:Simple Linear Regression:

In this technique, two variables are considered for the estimation of future HR.
the factors may be age, salary, production level, investment etc. in this
technique instead of X & Y, other factors are considered.
Multiple Linear Regression:
The difference between simple and multiple linear regression is that multiple
linear regression considers many variables. In this technique, instead of two
variables, many variables related to employees like, age, salary, capital,
investment and others are considered for HR demand.
Time Series:
In this technique, time is considered for the prediction of HR. in this technique,
the statistical tool called time series is considered. It depends up on the
increasing and decreasing trend of employees in the organization. A time series
figure is used to estimate future number of employees.

Forecasting Human Resource Supply:

Once the number of manpower required for the future is estimated, the next
important task is to ensure the supply of manpower at the right time, at the
right place, and the right number. Supply forecasting helps in this purpose.
Internal supply of manpower and external supply of manpower is important for
the organization. The forecasting of HR supply are as follows:1. Judgmental Technique:
According to this technique, internal and external supply of manpower is based
on individual or group judgment. The popular techniques are as follows:
Replacement Planning:

Mr. A
Mr. B
Mr. C


Mr. D
Mr. E
Mr. F


Mr. G
Mr. H
Mr. I


Mr. *
Mr. K
Mr. L

Present Performance
Need Improvement


Promotional Potential
Ready Now
Need Further

Human Resource Planning in Nepal:

1. Poor Tradition of Human Resource Planning:
Nepal has a poor tradition of human resource planning. The Nepalese
managers trend to regard human resource planning as an area of low priority





because of this, Nepalese organization lacks right numbers and kinds of people
at the right place and at the right time.
2. Lack of Assessment of Current Human Resource:
Most Nepalese organizations lack up-to-date human resource inventory which
describes the skills current available. They also lack effective human resource
data base information.
3. Missing Demand Forecast:
Nepalese organization lack proper demand forecast in terms of number and
skills of people required. Business organizations relate revenue forecast which
serve as the basis for the forecast of human resource demand.
4. Missing Supply Forecast:
Nepalese organization lack proper supply forecast of human resource from
inside and outside sources. Promotion and transfer are not planned in advance.
Given the professionals and skilled technicians are suffering from
Mismatch of Demand and Supply:
Nepalese organizations do not proper attention to matching demand and supply
forecast to determine shortage and surplus. Succession planning is not done
by Nepalese manager.
Short-term Horizon:
Human resource planning in Nepal has generally one year horizon strategic
planning is very much lacking. Implementation of human resource planning is
not effective.
Over Staffing and Under Staffing:
Most government agencies and public enterprises in Nepal suffer from over
staffing. The number one priority of Nepalese politician is not done by Nepalese
Private Sector Performance:
The family owned and managed private sector organizations do not bother
about human resource planning. They prefer to hire relatives, friends and near
and dear


Meaning of Job:
According to McCormick, a job is a group of position which are identical with
respect to their major and significant task and sufficiently alike to justify their
being covered by a single analysis. There may be one or more person employed
in a job.

From the above definition, it is clear that job refers to the work content
performed by a group of people with similar work, such as title described by
the title section officer or police officer when the job of a section officer is
analyzed, it sufficiently represent job of many other section officer too.
Meaning of Task:
A task is the collection of activities that are directed towards the achievement
of specific objectives. It is considered as to be a describe unit of work performed
by an individual. For example, the task of a police officer is to talk with political
leaders to settle political disturbance in an area.
According to McCormick, A position consists of the tasks and duties for any
individual. A position exists, whether occupied or vacant.
It refers to a set of duties, tasks, activities and elements to be performed
by a single worker. It means each employed person has a position rather than a
job. For example, a position of a police officer is Ram Sharma, sub-inspector,
kaski district police officer.
According to McCormick, the term occupation refers to a job of general class,
an across the board basis, without organizational line.
Some examples of occupation categories are accountant, engineer, doctor
etc. This occupation also clearly indicate what a person expertise lies on him.
Concept of Job Design:
Job design specifies the content of job and the method of doing the job. It is the
process of determining specific task to be included in a job and the method of
performing those tasks.
Job design integrates job content and method of doing the job in a way
that meet the need of the employer and employees. The key to successful job
design lies in balancing the need of the organization and employees.
>>According to Decenzo and Robbins, Job design is the way in which, job tasks
are organized in to a unique of work.
Job design involves mainly three steps: Specification of individual task.
Combination of task in to jobs that can be assigned to individual or group.
Specification of method of performing each task.
Job design affects productivity, cost, quality and cost-effectiveness of the
organization. It also affects the motivation and job satisfaction of employees.
Labor relations are affected by job design