Human Resource Management Problems

in
Iceberg Technology Pvt. Limited

Submitted By:
Group 5
Sanjaya Ghimire
Sangita Ghimire
Sujata Paudel
Sushil Shrestha
Sumin Ratna Kansakar
Youjan Katuwal

Submitted To:
Mr. Dipankar Sherpa

Apex College
Kathmandu, Nepal
June 2021

1
Table of Contents

CHAPTER I...........................................................3
INTRODUCTION.................................................3
1.1 Introduction....................................................3
1.2 Mission Vision & Objectives.........................3
1.3 Organizational Structure................................4
CHAPTER II..........................................................5
METHODOLOGY................................................5
2.1 Methological framework................................5
2.2 Secondary data collection..............................5
2.3 Tools of data collection..................................5
2.4 Limitation of the study...................................5
CHAPTER III........................................................6
PROBLEMS/CHALLENGES IN HR
PRACTICES & THEIR SOLUTIONS..................6
CHAPTER IV........................................................8
HR ACTION PLAN..............................................8
REFERENCES....................................................10
APPENDIX..........................................................11

2
 CHAPTER I

INTRODUCTION

1.1 Introduction
Iceberg Technology is an IT based company of Nepal established in 2017 A.D. The company
is established by the four colleagues with the intention to make some experiment in the IT
field. Now the company has the different mission, vision and objectives than that of
establishment period. The company is located in the Chandol, Kathmandu of Nepal.
Iceberg Technology is an IT Service company providing full and fractional IT services to
small and mid-sized businesses. Our core service offerings are designed to help businesses
improve their IT infrastructure and increase service quality. Our customized plans are built to
align our motivations and incentives with our customers to reach the ultimate goal, up-time
and efficiency. We do this by using our technical experience along with the latest
technologies available to help prevent, maintain and support our customers.

1.2 Mission Vision & Objectives

i. Mission:

● Global extension of the company with collaboration.

● Make the highest number of customers.
● Customer Satisfaction
● Make the software/application with our copyright and patent
● Continuous growth and development with successful profit rate.

ii. Vision:

To become a benchmark company of IT Company by providing different platforms to satisfy

customers through continuous improvement driven by integrity, teamwork and creativity.

To become an IT Partner for millions of companies that support them grow and innovate the
working flow of their company.

3
 iii. Objectives:

• Profit Maximization
• Corporate level Problem Solving
• Grab IT outsource projects
• Make people’s lifestyle better with use of software/application innovatively.

1.3 Organizational Structure

Shreesesh Sainju
CEO

Prajjwal Sharma Suraj Luitel Zenisha Shrestha Youjan Katwal

MD/Marketing Manager CTO/Financial Manager HR Manager Project Manager

Team A Team B Team C Freelancer Helper

BIshesh Pokhrel Pravash Luitel Susan Kutu Bikash maharjan Pratik Khadka
Sr. Designer Developer Graphic Designer/ Designer Developer
Video

4
 CHAPTER II

METHODOLOGY

2.1 Methological framework:

The main approach of study is to study the problems faced in Iceberg Technology related to
HR practices. Questionnaires were created for the participatory approach from top to bottom
level of employees. Questionnaires were created for top level managers by our team members
and through this we collected information on what are the major challenges they are facing in
HR practices and also how the staffs are compensated for their work and the environment of
fair treatment in the organization and different benefits the organization provides. The study
started with the desk study where basic background of the Iceberg Technology is studied with
the help of secondary data collection.

2.2 Secondary data collection:

It refers to the data collected by someone other than the user i.e. the data is already available
and analyzed by someone else. The secondary data were mostly collected from various online
resources mostly the official website of Iceberg Technology which is
www.icebergtechnepal.com The study was mostly about HR practices problems and the
criteria for rewards and promotion. The eligibility, impact and the benefits by the problems
was focused during the study for the analysis purpose such that the significant
recommendation and suggestions can be given to the company.

2.3 Tools of data collection:

Questionnaire was provided to the employee with the help of one of the group members who
is also working in Iceberg Technology. Questionnaire were provided via mail to be filled up
by the employees. A different set of question were also provided to the HR Manager of
Iceberg Technology. Though we could not conduct a direct interview with any of the
managers or employees due to the COVID-19 situation, we were able to gather data through
indirect interview via phone calls, video calls.

2.4 Limitation of the study:

The present study is carried out for academic purpose, so sample size is restricted. the study
is restricted to an organization under study, so it cannot be generalized for all employees in
other organization. The study has attempted to study most appropriate factors of problems
related to HR practices but chances cannot be ruled out that some areas may have been
untouched or not adequately touched.
 CHAPTER III

PROBLEMS/CHALLENGES IN HR PRACTICES & THEIR

SOLUTIONS

Managing Compensation: The main focus of our research is on difficulty on managing

compensation and ensuring fair treatment in Iceberg Technology. A good compensation is a
must for every business organization, as it gives an employee a reason to stick to the
company.
An organization gains from a structured compensation management in the following ways −
 It tries to give proper refund to the employees for their contributions to the
organization.
 It discovers a positive control on the efficiency of employees and motivates them to
perform better and achieve the specific standards.
 It creates a base for happiness and satisfaction of the workforce that limits the labor
turnover and confers a stable organization.
 It enhances the job evaluation process, which in return helps in setting up more
realistic and achievable standards.
 It is designed to abide with the various labor acts and thus does not result in conflicts
between the employee union and the management. This creates a peaceful
relationship between the employer and the employees.
 It excites an environment of morale, efficiency and cooperation among the workers
and ensures satisfaction to the workers.
In short, we can say that compensation management is required as it encourages the
employees to perform better and show their excellence as well as provides growth and
development options to the deserving employees.
Managing compensation is one of the most difficult aspects of being an HR professional,
irrespective of the size of the company. Compensation professionals in the HR department
face issues in determining the right pay and relevant perks that recognize and reward
employees for the contributions they make to the company.
Some of the challenges that Iceberg Technolgy faced when managing compensation are as
follows:

i. Total rewards

Though salary is one of the most important drivers of employee attraction and retention, a
company’s ability to attract and retain the best employees depends to a large extent on other
pay components in the total rewards package. This is especially true as the cost of major
benefits such as healthcare have increased, even as salary increases have stalled in recent
years. For employers, getting total rewards right comes down to understanding what
employees really want from their jobs. In addition to base pay and incentive pay, health
benefits, retirement plans, paid time off, and parental leave, other areas of a total rewards
package include more intangible things like a company’s management style, mission, and
culture. Iceberg Technology only seems to provide a few forms of these compensation. Such
as base pay. Encouraging work-life balance and fostering career and personal development is
also important. Given the lack of growth in salary budgets, these more intangible areas
included within a comprehensive total rewards package can have a tremendous impact on a
company’s ability to attract and engage employees.

ii. External competition: There are many software company as similar as Iceberg
Technology. So it has been difficult to manage compensation for Iceberg Technology
due to its competition. In order to attract and retain talent, your company must
establish a compensation package that’s on par with other companies in the same
industry and location. 

iii. Gaps in employee expectations: There’s always a conflicting disparity between what
the employee expects to be paid and what the organization wants to pay. And, the HR
is stuck in between. Also, employees usually don’t take into account the entirety of
their compensation package. They only consider the net pay. You can bridge this gap
by providing total compensation statements to clearly communicate the value of their
compensation in its entirety.

We also found these problems in Iceberg Technology related to other HR practices:

 Fatigue Employee
 Lack of Training for the updated technology and system
 High Staff turnover
 Impractical Employee
 Difficult to Work collaboratively

To solve these problems, we came up with these solutions. Retaining great employees is
easier than recruiting new ones to fill empty seats, so be proactive with your culture. Instead
of simply emphasizing a “work hard” culture, encourage a top-down “work smart” culture to
establish a better work-life balance. You can do this by training and motivating the executive
team to focus on tasks that bring the biggest long-term impact. Executives can then train their
employees on how to approach their work more effectively.
This training might involve:
• Discovering what employees are most passionate about and finding ways to invest
more energy and time into those efforts.
• Identifying work that should be delegated or outsourced. AI can potentially take care
of these tasks so staff members can have more time to work on their most essential
projects.

Keep in mind that work-life balance can include several different elements.
 CHAPTER IV

HR ACTION PLAN

Your compensation strategy should be connected to business goals and financial data so you
can get a complete picture of its effectiveness. When wrongly handled, it can cause a rift
between employees and management. Though these challenges may seem daunting, proper
planning and diligent efforts can help you overcome them. The right tools will help you move
beyond manual work and transactions and focus on what’s important–motivating your
employees and building a great culture. So to increase efficiency in managing compensation
and in Iceberg Technology, we came up with the following action plan.

While there is no quick or easy solution, pay compensation problems can be resolved over
time with proper planning and review. Organizations ultimately determine what is fair and
equitable within their defined pay guidelines and legal considerations. The goal is to improve
the fairness of pay for employees. Strategies to remedy or minimize equity problems include:
 Maintain the compensation plan aligned with market.
 Administer pay procedures consistently and adhere to plan control points.
 Review pay differences between employees in the same or similar jobs for equity
regularly.
 Ensure the compensation plan provides appropriate pay differentials between job
levels.
 Pay employees with more job-related experience higher in the range than those with
less.
 Carve out money in the budget for equity adjustments to fix pay inequities. 
 Conduct full compensation plan reviews every 3 to 5 years.
Correcting pay inequity is challenging and costly but ignoring the issues can lead to low
employee morale, turnover, and potential legal claims. 

There is no room for doubt about your managerial practices when dealing with your team
members. Treating people with respect and dealing with everyone in a fair and open matter
are just two of many essential requirements for managerial success.To promote fair treatment
in Iceberg Technology, we came up with following action plan:

i. Establish Common Rules: One of the first things you can do to ensure fair treatment
of all your employees is to establish a set of common rules and clearly explain them to
each worker. These “rules,” which can be outlined in company-provided seminars and
documents, should address:

 Disciplinary action

 Criteria for performance reviews

 Promotions, raises, and bonuses

 Qualification for certain benefits

  This alone can help create a notable sense

ii. Give Workers Due Credit: Another essential way of ensuring fair treatment in your
organization is to give workers credit for their ideas. If an employee is recognized for
his/her contribution to a project, he/she will likely have greater motivation to remain
engaged in his/her work. If workers are never acknowledged for their actions or if
another employee takes credit, they may have second thoughts about staying with the
company long-term. It should not always be up to your employees’ colleagues to give
each other credit. You, as a boss, should also regularly praise your employees for
high-quality work.

iii. Care About your Employees Well-being: A crucial aspect of fair treatment in the
workplace involves having a genuine concern for your employees’ mental and
physical health. If a worker appears to be gravely ill or severely emotionally
distressed, allow them to take the day off. Additionally, you should ensure that every
employee has a safe workspace and has a healthy work-life balance. Remember:
fairness isn’t simply about paying employees the same wages for equal work or
providing all workers with the same training opportunities and chances to receive
promotions and benefits. It’s about ensuring that no worker is ever given preferential
treatment for any reason, except in a few specific cases. For example, an employee
who is in a wheelchair (or who has any other type of disability) may likely need
certain accommodations offered to him/her in order to perform his/her duties. Fair
treatment can have a greater impact on employee turnover than you may imagine.

iv. Give Every Employee A Voice: The fairest organizations allow every employee
regardless of characteristics such as rank, race, or gender to speak up and voice their
concerns (or simply share their ideas). If an employee’s (or group of workers’)
grievances are consistently ignored, this can easily lead to resentment and distrust of
upper management. Strong companies have systems in place to give workers the
opportunity to be heard. These include surveys and meetings with human resources
representatives.
 REFERENCES
(https://www.icebergtechnepal.com/, n.d.)
(https://www.upcounsel.com/lectl-rights-in-the-workplace#:~:text=Fair%20treatment%20of%20employees
%20includes,to%20successfully%20meet%20job%20requirements.&text=The%20right%20to%20prohibit
%20release,organizations%20without%20the%20employee's%20consent., n.d.)
 APPENDIX
Questionnaire was provided to the employee with the help of one of the group members who
is also working in Iceberg Technology. The below questionnaire were provided via mail to be
filled up by the employees.
Questionnaire

This questionnaire is associated with the research entitled HR problems related to manging
compensation and fair treatment. The basic purpose of this study questionnaire is to obtain the
information about HR problems in Iceberg Technology. The questionnaire is designed to collect
information based on experience, opinion and perception. To fill up this questionnaire, it takes
approximately 10 minutes to complete. You are requested to read the statements carefully give your
views and opinions. The information provided will be kept confidential and used only for academic
purpose on………………………………………… in HR Planning.

Gender: Male Female Age: Address:

S.N. Opinion Statement Strongly Disagree Somewhat Somewhat Agree Strongly

Disagree Disagree Agree Agree
1 Management of the organization is supportive to me.

2 We receive right amount of support and guidance from my

direct supervisor.
3 We are provided with all the training’s that are necessary to
perform our job/works.
4 I have learned many new job skills from this position.

5 I feel encouraged when my supervisor provides suggestions

and improvement opinions.
6 The management makes changes based on my suggestions
and feedbacks.
7 I am appropriately recognized when I perform well at my
regular work.
8 The compensation fulfills my needs as well as my family
needs
9 I am satisfied with my chance of getting a promotion.

10 I have adequate opportunities to develop my professional

skills in the organization.
11 I am satisfied with my salary.

12 The amount of work I am expected to finish each week is

reasonable and realistic.
13 My work assignments are always clearly explained to me.

14 My work is evaluated based on a fair system of

performance standards.
15 My departments provide me all the equipment’s, supplies
 and resources necessary for me to perform my duties.
16 The buildings, grounds and layouts provided to me are
adequate to perform my duties.
17 My co-workers and I work well together in the organization.
18 I feel I can easily communicate with members from all levels
of this organization.
19 I feel I can easily communicate with members from all levels
of this organization.
20 I would recommend this organiazation to other workers as a
good work place to work.

Questionnaire for HR Manager:

Due to the COVID-19 situation, simple top-down questionnaire were asked to be filled by
HR manager of Iceberg technology via mail. The questionnaires that were asked to HR
manager of Iceberg Technology were:
1.Organization Preference of Employees?
Experienced Employees
Fresh Employees

2. How do this organization determine the need of motivation?

Performance Evaluation
Personal Behavior and direct observation
Interview

3.Which type of motivation will work best in Nepalese Context?

Extrinsic Motivation
Intrinsic Motivation
Depend upon employees

4.Which motivational theory best fit in this organization?

Maslow’s Need Hierarchy
Herzberg’s Theory
Expectancy Theory
Equity Theory

5. Do employees are involved in decision making process?

 Yes, they are involved in short decision making
No

6.Which compensation theory best fit in this organization?

Behavioral Reinforcement Theory
Equity Theory
Agency Theory

7. Non monetary facilities provided by this organization to its employees?

Transportation facilities
Health and safety insurance
Lunch Facilities
None of above

8. How do this organization provide advancement opportunities to its employees?

Promotion within the organization
Further education and development programme
Depend upon employee