Assessment of HRM Function

in
Nepal Electricity Authority
Bhupesh Shrestha
Jugal Sainju
Sadikshya Maskey
Sheetal Rana
 Outlines

1. Introduction- Vision & Mission

2. Objectives of Organization
3. Objectives of Assessment
4. Methodology
5. Scope & Limitation
6. 6 components of Assessment Instruments
7. Strength & Weaknesses
8. Linkage between HRM & organizational performance
variables.
9. Conclusion & Recommendation
 Introduction

1. August 16, 1985

• Department of Electricity (Ministry of Water Resources)
• Nepal Electricity Corporation
• Several Boards in the power sector
2. Electricity Authority Act 1984 (The Act)
3. Government of Nepal (GoN)
 Vision Statement

To become an efficient
modern utility that provides
reliable, quality and
affordable electricity to its
customers while being
responsive to Government
imperatives and creating
value for its shareholders.
 Mission

Develop infrastructure to provide

electricity for all by
constructing, maintaining,
trading and operating a safe,
optimally engineered
generation, transmission and
distribution power system and
build a strong relationship with
customers by balancing service
quality, reliability and costs.
 Corporate Development Plan
• The primary objective of the Corporate Development Plan is
to transform NEA into a modern and efficient utility and
make electricity safe, reliable and available.
• The Corporate Development
Plan captures NEA’s strategic
vision and priorities along three
themes.
• The strategic priorities will be
achieved through 17 Goals.
 Three Themes

1. National Priorities
2. Capable, Modern and Smart
Utility
3. Improve Customer Care
 17 Goals

1. Expand & upgrade system capacity to generate,

transmit & distribute 5000MW power by FY
2022/23.
2. Increase per capita Electricity Consumption to
700k Wh
3. Electricity for All
4. Improve Nepal’s Energy Security
 17 Goals

5. Reduce aggregate technical and commercial loss to

less than 15%
6. Demand side management and energy efficiency
7. Detailed recording and accounting transaction
8. Use of modern IT system
9. Increase non-tariff income
10.Improve employee benefits, productivity and HR
planning
 17 Goals

11. Rebranding NEA as modern corporate utility

12. Preparedness for regulatory requirements
13. Operationalize a competent power trading
company
14. Improve contact and project management
15. Establish and operationalize a well resourced
business development directorate.
 17 Goals

16. Supply reliable, affordable, high quality and safe

electricity
17. Use of information communication technology to
improve customer experience
Functions of HRD in NEA
Managerial Functions
 Operative Functions

Recruitment and Selection

Job Analysis and Design
Performance Management
Learning and Development
Compensation Management
Developing Policies
Employee Welfare
Human Resource Management System (HRMS)
 Advisory Functions

Top Management
Department Head
 Research Objectives

1. To examine Human Resources Management

practices of NEA
2. To examine the critical issues and challenges faced
by HR department of NEA
3. To recommend on Strategic Human Resource
practices
 Methodology

1. Primary Data: face to face interview

2. Secondary Data: Policies and documents of NEA,
journal articles, websites
 Scope & Limitations

Assess the work of HR Department of NEA via a

given instrument.
Assess how the HR Department has contributed to
the organization as a whole.
Limited face to face interview with HR manager
To maintain confidentiality, all the informations are
not disclosed.
Findings purely for our academic purpose and may
not be relevant for other purposes.
 MAJOR COMPONENT OF
ASSESSMENT INSTRUMENT
1. HRM Capacity
2. HRM Climate
3. HRM Information
4. HRM Strategy and Policy
5. HRM Mechanism and Method
6. HRM Outcome
 HRM Capacity

1.A separate human resources department under the

administration directorate
2.HR staff actively participate in long-range planning.
3.Budget for HRM programs are annually reviewed and
allocated.
4.Physical facilities and resources for HRM are available.
5.Some competency exist within the organization to plan
and deliver a limited range of HRM programs.
 HRM Climate
1.Human resource are given importance and it starts right from
recruitment process.
2.Human resources are selected via fair competition through
Public Service Commission
3.There are different departments and managers at different level
4.Involvement of team members in decision making generally
depends upon the nature and management style of the managers
5.Practices of confronting and challenging issues are sometimes
tolerated but not promoted
 HRM INFORMATION

1. There is a separate office called 'Abhilekh' where a

comprehensive and computerized human resource
information system is in place
2. Information about category and level of staffs are
used for transfer, etc
3. Unfortunately the database are not fully utilized for
policy formulation and program decisions.
 HRM STRATEGY AND
POLICY
1. A comprehensive document - NEA Employee By
Laws, 2075 is available which is updated regularly on
the basis of changing government policies, global
trends in corporate governance, etc.
2. Corporate Development Plan (CDP) is prepared on
regular basis.
3. There is a superficial linkage between HRM policies,
strategies and practices and the HRM function.
 HRM MECHANISM AND
METHOD
1. HRD program planning design and implementation follows
a set of standard procedures and norms.
2. NEA has a separate department for training the employees -
NEA TC
3. Development needs of employee are assessed, mostly in an
informal way.
4. The trainings are not conducted to the extent as required to
achieve the organizational goal.
5. There is a provision of both paid and unpaid education leave
 HRM MECHANISM AND
METHOD
1. The reflection and analysis of key organizational
effectiveness and development issues is a
continuous process at the top level.
2. Employee performance evaluation is carried
annually and are used for the purpose of
performance based promotion.
3. NEA has adopted 'base pay with incentive'
 HRM OUTCOME

1. HRM activities in the past have resulted in very little

improvement in performance capacities of the employee.
2. Employees qualitative change are due to their individual
effort irrespective of HRM act.
3. As compared to few years back, where country was facing
up to 18 hours of load shedding now the general customer
seems to be satisfied with the service provided by NEA.
4. Introduction of smart meter, apps, digital payment have
made remarkable positive changes in customer satisfaction.
 Strengths

1. Data management is very effective and regularly updated.

2. Employee bylaws are strictly followed.
3. Regardless of huge numbers of employee, NEA has successfully managed
its human resources.
4. Recruitment & selection process are impartial.
5. Committed to employee welfare.
6. Employee compensation is relatively better than the other similar
government organization.
7. Existence of employee trade unions.
8. Job nature of employee is permanent which makes them more loyal and
committee to the organization.
 Weaknesses
1. Inconsistency in everything
2. Politicized trade unions
3. Biased HR
4. Performance evaluation is not proper and not confidential
5. Insufficient employee development programs
6. Trainings are not given on the basis of need
7. HR activities are not strategically aligned with the NEA's long term goals
8. Job description is not clear and consisted
9. Not proper utilization and mobilization of employee, rather vital and
consulting jobs are referred to outsiders.
HRM AND ORGANIZATIONAL
PERFORMANCE
1.Effectiveness variables used by NEA to measure the
attainment of organizational goals are:
• Productivity
• Profitability
• Growth
• Goal consensus
• Commitment
• Ethical values
• Quality of good and services
 Conclusion

HRM Capacity: A separate HRM unit does exist. Budget for HR

Department is allocated and revised annually. HR Personnel
are equipped with latest softwares and trainings related to them.

HRM Climate: Selection & recruitment is fair. Experiments &

initiations are expected but rarely encouraged or supported.

HRM Information: Separate department is there that keeps the

comprehensive record of employees that are used during the
transfer and mobilisation of staff.
 Conclusion

HRM Strategy & Policy: NEA has its own Employee

by law-2075. NEA prepares Corporate Development
Plan every 5 year.
HRM Mechanisms and Method: Development needs of
employees are assessed but is not consistent
throughout the organization. Has a separate unit, NEA-
TC which handles trainings, induction for newcomers,
development programs etc however not done on the
basis of need of employees.
 Conclusion

HRM Outcome: Changes in a few job-related

behaviors like result conscious, quality focus,
promptness have been observed.
Increased number of satisfied customers is also one
of the indicators of employees performing well.
 Recommendations

1. Employee bylaws- to be strictly followed and not violated for personal benefits.
2. Placement & mobilisation of the employee on the basis of his interest and skill.
3. NEA should maintain confidentiality whenever required and also should be able to
communicate if needed.
4. Need basis trainings and development programs to be given.
5. With changing trends of HRM, NEA should also adopt the participatory culture of
HR management.
6. NEA-HR Department should be capable of handling employee issues related to HR
itself. That's when the employee might not feel the need for trade unions.
7. Politicized trade unions should be merged into one- ‘Trade Union for Employee’.