Human Resource Management Practices in Nepal: An Empirical Study

on Foreign and Nepali Firms

Presented By:“Group C”

Nepal Commerce CampusTribhuvan University (TU)

MBM Program2nd SemesterSpring 2014

Group Members

• Bibek Poudel• Bishal Poudel• Lata Bhatta• Samjhana Shiwakoti• Shristy Shrestha• Sushant Poudel

Contents

1. Introduction2. Literature Review3. Research Questionnaire4. Research Methodology5. Findings6. Conclusions7. Limitations & Future studies

Introduction

This paper is about doing business in Nepal and depicts the overview of Nepali HRM and HR practices followed by foreign firms in Nepal along with managing to implement suitable practices in a distinctive cultural and national area.

Literature Review

Many Management scholars had said about various things regarding HR practices by foreign firms while doing business in Nepal. Localization and standardization Ethnocentric polycentric and geocentric Isomorphism Convergence and divergence theory

Cont…

What management scholars had said about HR practices in US, Japanese and Nepalese companies regarding: HR department Recruitment and selection Human resource Development Performance Appraisal Compensation Labor relations

Research Questionnaire

Based on the subject matter, the research aims to answer the following specific research questions:

Is the structure of the HR department of foreign companies operating in Nepal different from that of Nepali companies? Are the foreign companies transferring their structure?

How the recruitment and selection, training and development, compensation and benefit, performance appraisal and labor relation practices are different in foreign companies from those of Nepali companies? Are any of these practices being transferred?

Research Methodology

• Qualitative Approach• Exploratory Research – Based on interviews

with 16 companies.• Primary Method• Secondary Method

Findings

• HR Department of US companies – Localized• HR Department of Japanese companies – No HRD• Findings on Recruitment & Selection-– US Companies: More localized, more transferred– Japanese Companies: Hybrid

• Findings on Training & Development:– US Companies: Localized– Japanese Companies: Transferred

• Findings on Performance Appraisal:– US Companies: Transferred– Japanese Companies: Localized with improvements

Cont..

• Findings on Compensation:– US Companies: Transferred (Base for initial salary) & More localize

(Base for the increment) – Japanese Companies: Localized (Base for initial salary) & Hybrid

(Base for the increment) • Other Findings:

– Head quarter guidance.– Easy Aspects in working with Japanese Companies– Difficult Aspects in working with Japanese Companies– Easy and Difficult Aspects in Working with US companies– What Motivates Nepali Employees?

Conclusion

• HR Department is localized while recruitment and selection seems to be a mix of transferred and local practices.

• Training and development is transferred by US companies whilst Japanese companies are more localized.

• US companies have transferred their performance evaluation tools.

• Performance outcome in Japanese companies are more localized

• Maintaining the labor relation and dealing with trade unions are found to be the most complicated problem faced by all companies.

Limitations & Future studies

• The research did not focus a single industry• Selection of diverse companies might affect the

overall analysis & conclusion• The company size of Japanese, Nepalese & US

companies are different• Only one respondent from each company could lead

to bias • Future studies could be fruitful for FDI to Nepal• A study with more number of targets could be one of

the future research.

Thank You !!