CONFIDENTIAL

CASE-STUDY
FEBRUARY SEMESTER 2022

HUMAN RESOURCE MANAGEMENT

(TIME: 2 HOURS)

MATRIC NO. :
:
IC. / PASSPORT NO. :
LECTURER : KESHAV KHADKA

GENERAL INSTRUCTIONS

1. This question booklet consists of 5 printed pages including this page.

CONFIDENTIAL

Page 1 of 5
INSTRUCTIONS: TIME: 2 HOURS

CASE (20 Marks)

Growing Government Regulations in IRs in Nepall Since 2046 BS (1990) the Nepalese
Government has increased its regulation of the way employers treat employees. The Trade
Union Act 2074 permits workers to join unions, the Minimum Wages Regulations,
guarantees a minimum wage, the Industrial Enterprise Act ensures a safe and healthy
environment, the Labour Act 2074 offers compensation to injured workers, the Payment of
Wages Clause; checks fraudulent practices in the payment of wages to workers. The
regulatory framework covering factories, union-management relations, compensation issues,
dispute settlement, etc., is quite rigorous and elaborate. There are laws that prohibit
discrimination and restrict the freedom of employers to make HR decisions in other areas as
well.

As the guardian of the economy and as a regulator of employment relations, the Nepal
Government does not seem to loosen its grip in the near future. Experts believe that the trend
toward increased governmental intervention will continue. They base their arguments on the
current trends in developed countries in this area in the form of employer-sponsored health
insurance schemes, greater job security, improved treatment, etc.

Others, (especially private entrepreneurs), are not very optimistic about governments trying
to regulate the employer-employee relations closely. Competitive pressures, deregulation of
industry, rising wage bills, increasing number of older employees needing social security
protection, inflationary pressures, heavy taxes and a host of other factors having a significant
bearing on the profitability of a firm do not seem to support government's active intervention
in industry. These experts contend that if Nepalese firms have to remain competitive in
international markets, they should be freed from all types of control, especially those
imposed by the government.

Question 1 (5 Marks)

Which trend do you think will occur in Nepalese IRS scenario and why?

Question 2 (5 Marks)

If government regulation continues to increase, how will IR/HR departments be affected?

Question 3 (5 Marks)

What is your opinion regarding increased government regulations?

Will it benefit employers?

• Will it benefit employees?

• OR will it benefit both of them?

HRMT 5310/FEB2022 Page 2 of 5

Why government of Nepal is more positive towards employees than employers? Justify your
answer.

HRMT 5310/FEB2022 Page 3 of 5

AN OVERVIEW OF HUMAN RESOURCE MANAGEMENT

One way to manage human resources effectively is to treat each member of the organization
as the "member of the family deserving respect and recognition. There should be no class
system or social status differentiation among all the employees from the president down to
floor worker. The tendency of successful organizations is towards participative style of
management and workers' participation in making operational decisions. Nothing is more
motivational to workers than to know that there are no barriers between them and the
management and there are no 'ivory towers' where managers get special and superior
treatment than the workers. This style of management is especially prevalent in the Japanese
industries where there is open and free communication between management and workers.
This open interaction among all is highly encouraged by one Japanese company which has
established a reputation for quality, service and human relations in the whole world. That
company is SONY.

To break down barriers between management and staff, Sony has instituted common
cafeterias, known as on-site dining. On-site dining is perceived as more than merely a
pleasant dining experience. According to Sony's director of facilities management, "When
employees eat in, they tend to exchange work ideas. They walk the work at a different level."
On-site dining also saves time as well as abuses (misuse) of lunch hour time because workers
do not

Have to commute (go) to different restaurants for lunch. Morita, a one time highly successful
Chief Executive Officer (CEO) of Sony, once explained: "I have always made it a point to
know our employees, to visit every facility of our company and to try to meet, and know
every single employee." He himself socialized with the employees because he considered
them as a part of Sony Family. To him, it was not human resource management; it was
respect, for one's family.

The on-site dining facility helps to strengthen work-related relationships and thus increase
employee morale and productivity. It is a one-class cafeteria and there is no special place or
special food reserved for top management. All the employees eat in the same place under the
same environment. It. brings employees together in a more relaxed setting, outside the work
environment, so that they have the opportunity for social bondage. This, in turn, can create
work relationships and enhance productivity. Workers get to know each other on a first name
basis and then try to help each other in the work environment. This also helps in providing
easy access to management and this is a morale boosting element. This is due to the fact that
on site dining encourages intra-company networking by bringing together people at different
positions in the structural vertical as well as horizontal hierarchy from different departments.
Such networking can ultimately facilitate internal communication since people get to know
each other with respect and affection.

Such Japanese work ethic is being adopted by more and more American companies. They are
beginning to realize that human resource management is not moving the people to work, but
motivating the people to work and motivation comes with respect and recognition rather than
financial incentive or comfortable working conditions, alone.

HRMT 5310/FEB2022 Page 4 of 5

How can you describe human resource management at Sony, based on this one element of 'on
site dining for all the Sony employees?

Question 2 (5 Marks)

Do you believe that, too much familiarity at work place lowers discipline and hence
productivity?

Question 3 (5 Marks)

Do you think work place should be considered as a social place? Explain.

Question 4 (5 Marks)

Do you think that this concept of HRM can be successfully applied in Nepalese
organizations, too?

*** END OF QUESTIONS ***

HRMT 5310/FEB2022 Page 5 of 5