human resource management_report_-_based

A Contextual Study of Human Resource Management

Based on Varun Beverages (Nepal) Pvt. Ltd.

7 March, 2012

Report By Team Unanimous

B.B.A. 2nd Semester

Submitted To Ms. Aastha J.D. Karki

Instructor, Human Resource ManagementNepal Commerce Campus

TRIBHUVAN UNIVERSITY NEPAL COMMERCE CAMPUS PAGE �1

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ABOUT TEAM UNANIMOUS

The “TEAM UNANIMOUS” constitutes dynamic yet determined, different yet decisive

2nd Semester’s bachelor level students of Nepal Commerce Campus under the trademark of

Tribhuvan University. We are yet to achieve our professional approach but we believe in

perseverance and team work that will surely pay off in our near future. The team comprises

following members:

Mr. Aashish Rai (Team Leader)

Ms. Robika Shrestha

Mr. Shreeniwash Paudel

Ms. Reena Shrestha

Mr. Bickey Awale

Ms. Rajani Prajapati

The team was hastily assembled when the project’s topic and deadline was provided.

However, we managed to tie up our hooks in the subject matter and find the critical works

to be done. The four week period (2069-3-22 to 2069-4-21) was just enough to complete the

project at our amateur level. The team effort was superb!, and team spirit was as high as

always. Every one responsibly did their tasks and aided in each and every step of the project

success. The credit of project’s success goes to all.

We, TEAM UNANIMOUS, are looking forward for positive response of the project

results.

Mr. Aashish Rai

Leader, Team Unanimous


ACKNOWLEDGEMENT

In every walks of our project we are aided by different people and organization. Had we not

been aided, our project would have been merely a guess work. However, here we are, with our

work of which we are proud of. So, we are bound to honorably acknowledge the individuals and

associations who had stood distinctly in our aid for preparing the report as you hold. As of it, the

first and foremost gratitude is secured by our HRM mentor Miss. AASTHA KARKI and the entire BBA

Program Management team of NCC for providing us with an opportunity to testify our abilities in

terms of practical application. We, thereof bow our heads in appreciation of individuals and associations

mentioned below:

1. Miss. Aastha Karki; NCC.

2. BBA Department; NCC.

3. Mr. Dipendra Neupane; Deputy Director, NCC.

4. Library Department; NCC.

5. Mr. Sagar Shrestha; Asst. HR Manager, Varun Beverages Pvt. Ltd.

Special Thanks to:

1. Mr. Mittu Shrestha.

2. Varun Beverages Pvt. Ltd.

We would also like to thank our friends and families for their cordial support and friendly environment,

in absence of which the project might not be as good as it currently is. God Bless You! Thank you!

Team Unanimous

August 4, 2012


FOREWORDS

The Curriculum prescribed by Tribhuvan University regarding the “Human Resource

Management” discipline for Bachelors in Business Administration (BBA) program, has

the aim of developing student’s understanding of basic concept, systems, and approaches of

human resource management1. When this project came in hand, it was an opportunity to

testify the validity and authenticity of the module we were following so diligently.

The field visit of “Pepsi Cola—Varun Beverages Pvt. Ltd.” situated at Pepsi Cola,

Bhaktapur was one of the great experiences in our learning career. Maybe because it was

our first of the field projects, we were clueless at the beginning. There was a dilemma—if

our choice was right? However, when we actually reached the organization, we were happy

to find that Varun Beverages Pvt. Ltd. was one of the highly populated organizations with a

very effective HR Management practices.

The strategy of TEAM UNANIMOUS was not to focus merely on the contemporary

problems of the HR Management System in Nepal, but also to find out how the successful

and densely populated organizations like the Varun Beverages, perform their HR functions.

The HR functions and systems moulded by the Varun Beverages in the way it fits the

Nepalese environment is what an internationally renowned organization was expected to

show.

The later part of this project will reveal different phases on our project preparation, the facts

and figures we were able to generate from the field visit and different sources. Apart from

being a very necessary step to complete the semester, projects as such are really fruitful for

the interpersonal growth of the students. The benefits are genuinely substantial to the

students. We are proud to be associated with it.

August 4, 2012


ACRONYMS

HR : Human ResourceHRD : Human Resource Department HRM : Human Resource Management VBNPL : Varun Beverages Nepal Pvt. Ltd. SKU : Stock Keeping UnitRGB : Red Green Blue HRIS : Human Resource Information System NCC : Nepal Commerce Campus T.U. : Tribhuvan University B.B.A. : Bachelors in Business Administration


ContentsABOUT TEAM UNANIMOUS 3

ACKNOWLEDGEMENT 4

FOREWORDS 5

ACRONYMS 6

1. OBJECTIVES OF STUDY 9

2. PLANNING 11

3. METHODS OF STUDY 13

4. ABOUT THE ORGANIZATION 16 4.1 | GENERAL BACKGROUND 16

4.2 | MISSION AND OBJECTIVES 16

4.3 | LEVELS OF MANAGEMENT 16

4.4 | DEPARTMENTS OF VBNPL 18

1. Production Department 19

2. Marketing Department 20

3. Sales Department 20

4. Finance Department 21

5. Human Resource Department 21

6. Store Department 21

7. Shipping Department 21

8. Transport Department 22

9. Quality Control Department 22

5. HR ASSESSMENT 23 5.1 | HIERARCHY UNDER HR DEPARTMENT 23

5.2 | HR INFORMATION 24

5.3 | GRAPHICAL REPRESENTATION 24

6. FINDINGS 26 6.1 | HRD (HUMAN RESOURCE DEPARTMENT) 26

1. HR Acquisition: 26


2. HR Training and Development: 28

3. HR Motivation: 29

4. HR Maintenance: 30

5. Subtleties: 31

7. CONCLUSION 32

Appendix I 33 1. Bottom-Up Questionnaire 33

2. Top-down Questionnaire 38

3. Organizational Analysis 41

Appendix II 43 List of Figures 43

List of Tables 43

References 44


1. OBJECTIVES OF STUDY

The project “A Contextual Study of Human Resource Management” has been

accomplished with some guiding objectives. The first phase of the project was to ascertain

the goals for the project. Team Unanimous unanimously prepared the objectives and every

part of the project conforms to those objectives.

Objectives of the project:1. To measure, compare, and verify the authenticity of Human Resource

Management discipline in Nepalese context.

2. To develop a guideline and minimum of concepts of Human Resource Management

in real life organizational scenario for empowering learning pedagogy in practical

terms.

3. To develop a concept of managing men tactfully from the middle level manager’s

perspective.

Objective 1:

The BBA program is a professional academic program that puts the traditional and

conventional methods of teaching-learning aside. However, the curriculum prepared by T.U

in 22nd October, 2008, i.e. nearly 4 years old, is still in practice, neglecting the fact that

rapid changes are occurring in the managerial concepts these days. Team Unanimous had

focused their study to enlighten themselves with the truth through this project.

Objective 2:

The objective of NCC—BBA program is to develop student’s skill in objective oriented

business management and making them capable of understanding and solving. Team

Unanimous had seriously acknowledged the objective of being a BBA’s students and

followed up with the University scheme.


Objective 3:

BBA program focuses on preparing students to be fit for middle-level managers3. At our

current level, we can initiate the course of learning the pros and cons of being a middle-

level manager. Team Unanimous had comprehended the nature and objective of our course

and tried to empathize with currently active middle-level managers.

From an amateur’s project report to a professional’s thesis, a motive and objectivity is the

soul of study. Team Unanimous had tried to accomplish the above objectives as minutely

and objectively as possible. However, being a novice still has adversities; which we will

overcome through perseverance!


2. PLANNING

Prior to starting the project work, TEAM UNANIMOUS has planned a course of action and

performance chart for conducting the series of critical works that needs to be done in order

to complete the project successfully. Following table presents the performance plan of the

TEAM UNANIMOUS:

To fulfil the purpose and objectives of the project work, TEAM UNANIMOUS has devoted

itself to following procedure:

1. Understanding the basic concepts of Human Resource Management through study of

basic guidelines provided as per the curriculum prepared by T.U under BBA

program.

Table: Critical Activities Schedule

Action Period (Month-Day)

Major Activity

Description

03-24 : 03-29 Planning Selection of organization, preparing questionnaires, preparing models to process information, and action planning;

03-30 : 04-12 Performing Executing action plans, field trips, collecting and processing immediate data;

04-13 : 04-17 Analysis Processing information, cross-checking data, creating reports and presentation

04-18 : 04-19 Aftermath Practicing presentation, avoiding blunders, team analysis of performance, self-improvement;

04-20 : 04-21 Self-realization

Self realization, self-motivation, analyzing competitor's reports;

04-22 Presentation Presentation of the report;


2. Analyzing and verifying the probably applicable theories of HRM through group

discussion.

3. Preparation of questionnaire; for workers and managers as per the viability of the

theoretical knowledge into practical application.

4. Direct observation and interviews with the managers and the worker as per the

guidelines provided by the curriculum, and investigation of the organization from

secondary sources.

5. Analyzing the results, verifying and cross checking the data, converting data into

information.

6. Report writing.


3. METHODS OF STUDY

Figure: Triangulated Mechanism

TEAM UNANIMOUS believes in authenticity of the report. For the purpose, the data

collection process was triangulated to ensure unbiased and authentic collection of the data.

To collect the right quantum of accurate data economically research design is very

important. This study is based primarily on primary data. The data are collected by

consulting 25 employees and 3 managerial level personnel on the basis of criteria suggested

as per the Human resource management curriculum of TU. TEAM UNANIMOUS has

applied three different measures to collect and cross check the data. These methods are

discussed below:

1. Direct Observation

In field, our team directly observed the workplace and rated the HR efficiency on different

headings. The headings constitute;

1. Physical Environment of the organization.


DIRECTOBSERVATION

DIRECTINTERVIEW

AUTHENTIC DATA

TEAMANALYSIS

2. Social Environment of the organization.

3. Political Environment of the organization.

4. Acquisition Policy of the organization.

5. Training and Development activities of the organization.

6. Applied Motivational tools and practices.

7. Performance appraisal system.

8. Communication, and

9. Adaptation of the organization in Nepal.

2. Direct Interviewing

In the field, 25 employees representing different categories and 1 middle level manager and

2 supervisors were interviewed directly by TEAM UNANIMOUS. Different people have

different ways of seeing a same scenario. The psyche depends upon what level of

organization one is assigned to and what are the legitimate authorities and accepted

responsibilities of the individual. On the basis of this, the interview and observation

criterion has been divided into two categories (Top-down questionnaire for managers and

Bottom-up questionnaire for general employees). The rational of categorizing the basis of

interview is obtain proper and exact information on human resource behavior at different

levels so to gather necessary knowledge for ascertaining the needs of qualities one student

should develop to manage men effectively and efficiently.

1. Top down questionnaire:

The top down questionnaire focuses on the vision of managerial level personnel in

terms of the human resource management activities. The top down questionnaire is

developed to interview the managerial personnel in terms of HR planning, HR

development and HRM functioning. It holds less focus towards the motivational and

maintenance activities. The objective of this questionnaire is to ascertain an idea of

how difficult and important is the need of managing men in the organization.

Appendix I include the Top-down questionnaire used in the interview process.

2. Bottom up questionnaire: The bottom up questionnaire focuses on the view of operational level employees

towards the organization and their supervisors. It is developed to interview the

employees in terms of HR motivation and HR maintenance. The objective of this


questionnaire is to ascertain an idea of how employee acts, interacts and reacts on

different decisions of the supervisors. Appendix I include the bottom up

questionnaire used in the interview process.

3. Team Analysis

Apart from the direct approach to the human resource of the organization, different

secondary sources were considered for investigating the organizational profile on HR

management. The secondary sources include internet sites, magazines, organizational

circulars and newspapers. The detail information of the secondary source is presented in

Appendix I. Group discussion had concluded the follow up of the information gathered

from the secondary sources.


4. ABOUT THE ORGANIZATION

4.1 | GENERAL BACKGROUND

Name: Varun Beverages Nepal Pvt. Ltd. Investment Type: Foreign Direct Investment

Industry Type: Food and Beverages

Promoter: A.K. Jaypuriya

Address: Pepsicola, Kathmandu, Nepal

Market: All development regions of Nepal

Annual Turnover: 60 million crates of beverages

2012's Target: 65 million crate beverages

Logo:

4.2 | MISSION AND OBJECTIVES

Mission Statement: "To be the best cola producer at Nepali Market."

Objectives of Organization:

1. Capturing maximum market share;

2. Reducing cost of production;

3. Quality enhancement;

4. Maximum utilization of human resources.

4.3 | LEVELS OF MANAGEMENT

VBNPL follows the conventional pattern of level of management. It has three broad

division of management; Top Level Management, Middle Level Management, and Lower

Level Management. These levels are portrayed by following figures:


1. Top Level Management

Figure: Top Level Management

2. Middle Level Management

Figure: Middle Level Management

3. Lower Level Management

Figure: Manager's Level Figure: Supervisor's Level


4.4 | DEPARTMENTS OF VBNPL

The direct interview and records of Varun Beverages Nepal Pvt. Ltd. showed that there are

nine different departments with defined functions and importance in the operation of

VBNPL. The departmental division follows contemporary flat hierarchy. Following figure

portrays these departmental divisions:

Figure: Departments of VBNPL


Following part contains the description of different departments on VBNPL:

1. Production Department

The production Department is mainly responsible for the production of the finished good.

The needed raw materials are sugar, syrup, water, bottles, packaging and crowns. They are

imported from Nepal (sugar), India (syrup, RGB bottles, crowns), Thailand and Saudi (PET

bottles) and finally are packaged in Nepal. All the plants are automated and some parts are

only manual. The production house is large enough for production process also there safety

measures for any type of risk .Its daily average production is 30,000 cases (30,000*24) in

RGB bottles. Its production capacity is about 250 BPM.

The process of production is described in brief as below:

1. Uncasing and blow moulding In the first phase all the used RGB bottles from market are brought for reuse. While in

case of PET bottles small sized bottles are brought and are bowed to appropriate size

using a blow moulding machine. These bottles are imported from Pakistan.

2. Bottle Washer and Rinse After the bottle is uncased they are washed using the cleanings materials and are

inspected for any damages also any worm check are done too. If so are removed. In case

of PET the moulded bottles are rinsed for purity.

3. Filling Now the syrup is ready to be filled with syrup brought from carpooler. Slice syrup is hot

while other CSD are cold.

4. Crowning and Coping Here the filled bottles are crowned and caped with appropriate machine at appropriate

timing.

5. Titler and Warming and Labeling The slice bottles are tilted. In case of PET bottles they are warmed to expand and get

strong and are labeled with their wrapper.

6. Coding Now automatically all the bottles are coded with a machine. The sensor machines are

kept updated to keep dates.


7. Final Line Case Packer and Palliating Now a final inspection is done to check quality and is put in carat or cartoon.

8. Warehousing Also quality check can be done at any stages at the lab. NowthesePepsi is ready to be

kept in the warehouse of the Pepsi called as shipping.

2. Marketing Department

For the purpose of distribution of the products VBNPL uses the retailers who get their

goods from the distributors. VBNPL has altogether five major areas of Sales and they are as

follows:

- Eastern region

- Central+Pokhara region

- Western region

- Far western region and

- Kathmandu region.

A territory manager looks at a particular region and they have a fixed territory for their

Sales. VBNPL has two type of distribution and they are PSR and RS .PSR system uses its

Salesperson to take orders before the delivery while in case of RS they directly use their

vehicles to deliver their goods. There are 37 depots in Kathmandu area while 80 depots

outside the Kathmandu area. Altogether there are 70,000 outlets all over the country. Push

strategy is the major strategy adopted by the Marketing department through retailer

promotion. Also it has adopted the competitive pricing with its competitor Coca Cola. The

Marketing department usually hires ad agency, provide feedback to the depots, and help the

sales department for schemes and sponsors.

3. Sales Department

The Sales Department is responsible for increasing the Sales keeping records using Sales

techniques keeping orders etc. It directly reports to the director of Sales. Retailer are

persuaded to sale more by providing schemes and providing retailer promotion programs.


4. Finance Department

The finance is the life blood of any organization. In this Department all the profit ,loss,

expenses, budgets, etc are kept and profitable segments for investments future investments

etc are kept here so that they can be used for achieving the goals of the organization .It

directly reports to the director of Sales.

5. Human Resource Department

In VBNPL, HR Department acts as the administrative and overall facilitator. The activities

regarding the employee acquisition, development, motivation and maintenance are not mere

scope of HR Department. It acts as an administrative body that makes strategic decisions

and evaluates performance, makes necessary amendments in organizational procedures and

also acts as the intermediate medium of communication and systematic working in VBNPL.

Necessarily, the importance as well as authority and responsibility of VBNPL’s HRD is

greater.

6. Store Department

The store Department is responsible for keeping all the raw materials, spare parts,

stationary, etc. so that it can be easily used when required as per the necessity.

7. Shipping Department

The shipping Department directly reports to the finance Department. After the orders are

made from the Salesperson or the depots, they are analyzed regarding their credit, amount

and the SKUs. The main work of the shipping is to keep the produced SKUs in the go down

so the they can easily be loaded to the transportation. Also it unloads the RGB in their store

so that they can be washed and used again for the future use. Commonly conflicts regarding

the price, time and quantity are occurred here.


8. Transport Department

The transport Department is responsible for carrying all the finished goods to the respective

depots and bringing back all the used RGB to the production Department .Usually all the

transportation are of contractual type. It reports to the production director. Guru Charan

Singh group of transportation is currently handling the transportation contract for the

distribution of the goods. Currently the company has 15 own vehicles for delivery.

9. Quality Control Department

In VBNPL quality is the most considered element for its success .The quality control

Department is in the production Department which the quality if it has been able to meet as

per the standard or not. It checks the water ,the pressure, amount of the syrup, sugar,

chemicals, etc before it is final Produced or taken to the shipping Department. During the

process of production of goods at each and every steps quality check is done per 1000

pieces so as to maintain consistency in quality.


5. HR ASSESSMENT

5.1 | HIERARCHY UNDER HR DEPARTMENT

The hierarchy under HR Department follows conventional tall hierarchy. The figure below

has been directly obtained from HR Department of VBNPL.

Figure: HR Hierarchy


5.2 | HR INFORMATION

TEAM UNANIMOUS assessed following information about the HR Composition in

VBNPL:

No. of Employees: 400 full time, 500-600 part-time and outsourced;

Gender Composition 88% Male, 12% Female;

Partially Deaf: About 3% estimated by HRD;

Turnover Rate: 2% annually on an average;

Absenteeism Rate: 0.25% annually on an average;

Nationalism: 98% Nepali, 2% Foreign;

Locality Composition: National Basis: 40% Inside Valley and 60% Outside Valley

Valley Basis:

75% Pepsicola Locals and 25% others;

Employee Composition: 20% Outsourced, 40% Full-timer and 40% Part-timer;

Skill Composition: 40% Skilled, 50% semi-skilled, 10% unskilled;

5.3 | GRAPHICAL REPRESENTATION

Figure: HR Assessment's Peek View


0

25

50

75

100

Employees Full Timer Part Timer Partially Deaf

Male Female

Figure: Employee Composition

Figure: Skill Composition


20%

40%

40%

Full Timer Part Timer Outsourced

Skilled Semi-skilled Non-skilled

6. FINDINGS

6.1 | HRD (HUMAN RESOURCE DEPARTMENT)

While doing our research on VBNPL, we were focused to our objectives of study. We interviewed

10 employees from different divisions (transportation, security, production, marketing, office, and

sales) and with 1 HRD’s representative. HRD’s representative was a diplomatic person, and we

tried our best to seek information. Following were the finding from our perspiration.

1. HR Acquisition:

VBNPL enjoys enough number of human resources with a great variability in skills and expertise.

Being a food and beverage manufacturer, a large portion of their HR includes engineers and

electricians (they were reluctant to provide us figures), whereas they have people with no skill at all

to experts on the job. The facts about HR Acquisition that we can find in VBNPL are short listed as

per the HRM curriculum’s scope.

1. Planning:VBNPL is highly concerned about HR Planning. Both top-down and bottom-up approach is

applied for ascertaining HR needs in present and futures. According to the employees, HR

Department used to hire part time workers on the contractual basis when the season of sale is

high, especially for the season of summer and autumn. It is estimated that nearly 1000 workers

will be working for every sale season. According to the HR representatives, HR Department

hires about 600 workers for 3 months to 5 months period (not exceeding 5 months), which

included general workers to facilitating bodies like transport and marketing personnel. The HR

Planning in VBNPL has following features:

! HR Demand and Supply are forecasted by the sales trend, labor statistics and HRIS;

! There is a pre-determined staffing requirement for every position.

! HRM follows a cyclic trend for HR Planning in normal work year.


2. Recruitment: Every year 600 (in an average) part time employees are hired by VBNPL in contractual basis.

Recruitment is direct as well as indirect. In direct recruitment VBNPL posts an advertisement

while they prefer outsourcing to advertisement as indirect method. However, for the 400 full-

timer positions of VBNPL, it prefers advertisement and free competition to outsourcing.

Generally, the HRIS is accepting walk-ins and many graduates and post graduates are offered

internships in the organization yearly. Following are sources and methods of recruitments in

VBNPL:Sources of Recruitment

Internal:

- Promotions

- Transfers

- Job Rotations

- Rehires and Recalls (for part-timer)

External:

- Employee referrals

- Walk-ins

- Employment agencies (security and maintenance)

- Recommendation from unions

- Internships from colleges and universities.

Methods of Recruitment

Internal:

- Job Posting

- HRIS

External:

- Advertisement

3. Selection: Both the organization representative and the general worker have a common point about

selection and that was, “The selection is free from nepotism and favoritism”. The organization

prefers not to be engaged in selection process at all so they prefer outsourcing to advertisement


in recruitment. For selection, the general criterion for part-time employee is the experience and

for full-time employees they thoroughly checks on every detail of the employee. The company

follows the following steps in selection process:

¬ Accepting application form;

¬ Job Interview;

¬ Selection Tests;

¬ Reference checks;

¬ Physical Examination (not often, but the company prefers partially deaf employees

in manufacturing line);

In the job interview, one to one and many to one, both methods are used. (According to HR

representative, students with very attractive scores are rarely passed in job interview).

Unstructured interview is preferred for general task workers while for extensive works like

chemical mixing, machinery operating, engineers, structured interview is preferred.

4. Socialization: For socialization of full time employees, maximum 90 days of interactive session may be

performed. Anyone is allowed to learn the work-procedure of other department. For good

performance everybody gets praise, and literally everyone is introduced to the fresher. For part

time employees, there is no such socialization scheme at all. However, the company celebrates

festivals like Dashain and Tihar (with no sacrifices), Teej, Bishwakarma puja, company’s

anniversary and posts congratulation letter for any personal occasions like birthdays, marriages

and anniversary, with great togetherness. About the organization’s composition, about 12% of

the employee (full time) is female, so it is a male dominant organization.

2. HR Training and Development:

VBNPL seems reluctant to provide regular training and development programs, so they prefer

employees who are already a know-all in the job he/she does. However, the full time employees are

well satisfied with current training and development scheme of the organization. Components of

VBNPL’s training and development are as follows:

1. Training: The operatives and supervisors are provided trainings (not on routine basis) when the


organization is in less work burden. Interpersonal trainings are very popular and as the

organization has not gone through break-through changes, there is no much of training for

adapting in new system. The fresher are, however, given on-the-job trainings from their

supervisors. And the QC’s employees are the employees who are offered training package at

usual basis. They are even sent to India and other countries for the purpose.

2. Management Appraisal:Leadership development programs and entrepreneurship development programs conducted by

different organization time to time are usually attended by the managers at different levels in

VBNPL. There are very rare cases of seminars and conference organized by the company itself.

However, they are attending seminars and conferences organized by the PepsiCo in

international basis. Workshops and meetings are very frequently and regularly occurring in

VBNPL. Apart from it, understudy assignments, coaching, job rotations, and multiple

management program are followed till date.

3. HR Motivation:

Table: Motivation tools in VBNPL

Even in motivational factors the organization discriminates on outsourced and company’s

employees. There are no exact motivational offerings for the outsourced employees like security,

maintenance and transport related employees. Bonuses are regularly provided for OT and

organization concerns about both tangible and intangible needs of the employees (both full time

and part time, but recruited directly). However, at lower level there are no exact motivated

employees, they are rather forced to work due to their personal situations, and in higher level as the

representative said, “I am satisfied, but I will be joining next organization if it can offer better”. So,

we came to the conclusion that employee motivation is achievable but still employee commitment

INTRINSIC TOOLS Feedback, Social Appraising, Participatory Management

EXTRINSIC TOOLS Bonuses, Rewards, Promotions, Allowances and TADA

Theory of Motivation Maslow's need Hierarchy Theory of Motivation

Major Motivator Money and Facilities


and loyalty at peak is unachieved in VBNPL. List of motivational tools applied by VBNPL is given

in the table above.

4. HR Maintenance:

HR maintenance is very irrational in VBNPL. There is no appropriate maintenance system but still

people are well stuck with the organization. It might be the intangible factors we were unable to

recognize in our business, but there was so significance of HR maintenance in VBNPL. Our

discovery includes:

1. Performance Appraisal:

VBNPL has no systematic appraisal mechanism. They believed that people are reluctant to

appraisal, so it will only demotivate them. But, they keep tracks about performance of a department

as well as the employees. In other words, they appraise employee whenever the situation demands.

Apart from it, VBNPL has a clear communication among departments, hierarchies and employees.

They believe in talking and resolving any performance issues with the employees. Till date there

have been no highly demanding appraisal issues in VBNPL.

2. Employee Discipline:

There is a dress code that everyone follows in VBNPL (apart from the receptionist at our arrival).

The labor union has fine establishment in VBNPL. Employees are not so much well disciplined, but

there has no demanding disciplinary issues in VBNPL till date. Firing employees is performed with

the consensus of HR Admin and labor union for problematic employees. Power people can be

found in formidable amount in VBNPL, so group discipline is distorted. However, with very low

degree of motivation, discipline at that level is still cost effective.

3. Reward Management:

Apart from being a motivational issue, reward management is also a maintenance issue. Reward

assures the commitment and retention of the employee in the organization and also keeps the

employee ever-ready to perform. However, money is the only demanded reward by the employees

at VBNPL. Full time and part time employee are satisfied with their compensation, but still they are

happy to have a raise, whereas there is no reward for outsourced employees. There is no such


systematic reward management system in VBNPL. Reward and punishment, both are under the

scope of HR Administration.

5. Subtleties:

Apart from the curriculum based investigation, we were able to discover following aspects of HRM

in VBNPL:

From HR representatives:

! HRD focuses on critical matters only, and anything general are dealt by the related

department or managerial personnel; there is enough autonomy.

! HRD representative said they usually work in a team, but was unable to specify it.

! HRD values experience and aptitude over certificate.

! HRD has democratic approach.

! HRD is free from nepotism and favouritism.

! HRD has general system and believes in no rigid system and flexibility.

From the employees:

! HRD has discriminating policy between outsourced and company’s employees.

! HRD has autocratic approach.

! HRD is free from nepotism and favouritism.

! HRD has very systematic approaches.

For a Management Student:

! Real time application of management science needs flexibility and creativity; an adaptive

capacity.

! Organization can be joined from sourcing, but moving forward depends up on one-self.


7. CONCLUSION

From the assessment on HRD of VBNPL, we came to following conclusion about HRM:

1. Organizational Analysis:

Table: Overall Organizational Analysis

2. HRM curriculum offered by T.U. has practical applicability, however, students need not to rely

only upon the words from a book. Adapting according to situation is demanding in realtime

management of Human Resources;

3. VBNPL is well-organized and managed organization. Flexibility and strategic planning are

major strengths of the organization whereas rivalry with other beverages and political instability

are its major threats;

4. We learnt that to be involved in management is far more different than to be involved in its

study, so development of management aptitude is very essential for a management student.

Heading Rating (out of 5) Remarks

Physical Environment 4 Clean and Hygienic

Social Environment 4 Friendly and Pleasant people

Political Environment 3 Union troubles sometimes

Acquisition Policy 5 Strictly Profession

Training and Development 3 Strata and hierarchy based, not for all

Motivation 3 Money was primary drive, not achievement needs among managers and supervisors

Maintenance Policy 3 No definite retention policy

Communication Mechanism 5 Well established communication lines

Control Mechanism 5 Quality Control is prime objective

Management Practice 5 Hierarchical, definite and integrated

Organization 4 Overall rating of VBNPL


Appendix I

1. Bottom-Up Questionnaire

1. Employee name: _________________________________________________________

2. Gender: Male [ ] Female [ ]

3. Education / Trainings: ____________________________________________________

4. How did you entered in the organization? _________________________________________________________________________

5. Are you clear about what your responsibilities and authorities are? Is your job described

and specified when you arrived at the organization?

[ ] Yes, I am clear

[ ] No, I am not clear

[ ] I only know my duties

[ ] Yes, my job is described and specified

[ ] No, my job is not described and specified

6. What the organizational wants from you, in your view?

[ ] Productivity

[ ] Quality

[ ] I don’t know

7. Does a labor union exist in your company?

[ ] Yes

[ ] No

[ ] I don’t know

[ ] I am a part of it.

8. Is the management participatory or dictatorial?

[ ] Completely participatory

[ ] Dictatorial

[ ] Both

9. What are the different events that the company organizes for you? (Please list by

numbers)

_________________________________________________________________________

_________________________________________________________________________


10. Do you think favouritism and nepotism exist in your company?

[ ] Yes

[ ] No

[ ] I don’t know

11. What are the supervisor’s efforts to make your work easy?

[ ] Regular supervision

[ ] Positive motivation

[ ] Friendly behaviour

[ ] Work training

[ ] Flexible work environment

[ ] Equipment availability

[ ] Justifiable decisions

[ ] Grievance control

* If any other efforts are mentioned please note them. ______________________________

12. Do you like to work in here?

[ ] Yes

[ ] No

[ ] Not forever

[ ] It’s more like “I must”.

13. Does the supervisor gives you credit for your job well done?

[ ] Yes

[ ] No

[ ] Only if beneficial

14. Are you ever threatened to be fired or replaced or demoted?

[ ] Yes

[ ] No

[ ] May be in future

15. Is there a chance that you will be promoted within next 5 years?

[ ] Yes

[ ] No

[ ] Probably

16. Does the company call experts to give you trainings and seminars?

[ ] No [ ] Often [ ] Sometimes [ ] Every year


17. Does the company give you additional benefits other than salary?

[ ] Transportation

[ ] Health Facility

[ ] Fringe benefits

[ ] Insurance facility

[ ] Advance pay

[ ] Provident fund

[ ] Free meal

[ ] Rest hours

[ ] Goods

[ ] Bonuses

*If any other benefits are mentioned please note them. ______________________________

18. Does the compensation fulfil yours and your family’s needs? [ ] Yes [ ] No ______________________________________________

19. Are you satisfied with your job?

[ ] Yes

[ ] No, but I have to.

[ ] Not sure

20. How easy is to work here?

[ ] Quiet easy

[ ] Not easy

[ ] It depends __________________________________________________________

21. What are the things, in your perception, that affects your performance? *in the

parenthesis fill + or -.

Political fluctuations ( )

Technology ( )

Power supply ( )

Work environment ( )

Labor Unions ( )

Org. Cultures ( )

Wage system ( )

Job characteristics ( )

*If any other elements are mentioned note them. __________________________________


22. How often conflicts occur at your job place?

[ ] Often [ ] Never [ ] Sometimes [ ] I don’t know

23. How flexible is the work place here?

[ ] Enough [ ] Not at all [ ] we have our codes

[ ] we have rules

24. Are you given feed backs for your jobs?

[ ] Yes [ ] No [ ] only for mistakes

25. Are you planning to work here for a while?

[ ] Yes [ ] No [ ] Until I find a better job.

26. What is the existing wage pay system?

[ ] Time rate [ ] Piece rate [ ] Differential rate

27. Is the wage pay system satisfactory?

[ ] Yes [ ] No

Special Notes:

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

Employee Analysis (by the interviewer)

a) Effect of globalization can be [ ] seen [ ] unseen

b) The employee

[ ] knows what’s s/he doing

[ ] doesn’t know what’s s/he doing well informed not well informed

c) The employee is

[ ] skilled [ ] semi-skilled [ ] un-skilled

d) The employee is

[ ] well trained [ ] neglected [ ] not trained at all

e) The employee is

[ ] under-compensated [ ] over-compensated [ ] just rewarded


f) The employee can be

[ ] further motivated [ ] further developed [ ] further used effectively

g) The employee is satisfied not satisfied dissatisfied not dissatisfied

frustrated

h) The employee has

[ ] basic needs

[ ] social needs

[ ] growth needs

[ ] power needs

i) The employee needs [ ] intrinsic motivator [ ] extrinsic motivators

j) The degree of employee morale is [ ] high [ ] medium [ ] low

k) Probability that the employee will retain within the organization is [ ] high [ ] low [ ] medium

l) The company’s choice to choose the employee is [ ] appropriate [ ] inappropriate


2. Top-down Questionnaire

1. Approach followed by this organization for human resource planning?

⏍Top down approach (Quantative)

⏍Bottom up approach (Qualitative)

⏍Mixed approach

2. Technique used by this organization to forcast human resource demand?

⏍ Management judgement

⏍ Expert forcast

⏍ Statistical analysis

⏍ Other methods

3. Organization’s preferences of employees

⏍ Experienced employees ⏍ Fresh employees

4. Company’s preference for external source recruitment

⏍ Private employment agencies

⏍ Educational institute

⏍ Professional associations

⏍ Advertisement

⏍ Employee referrals

5. Which selection method is more prefered by this organization

⏍Qualification /experience method ⏍Work proficiency method

⏍Comprehensive selection method

6. Preferred method of interview of this organization

⏍ One –by –one interview ⏍ Panel interview ⏍ Group interview

7. DO this organization have any type of policy to make this organization more representative

⏍ Yes, we maintain certain level of representation of different culture’s people

⏍ No, we prefer more on free competition

8. Organization’s initations to socialise new entrants

⏍ Empoyees are motivated to work in group

⏍ Regular assistance by supervisor for several days


9. Which method is widely used to determine training need?

⏍ Management audit method⏍ Task analysis method ⏍Any other method

10. Organization’s view regarding develpoment of managers?

⏍ No.of training and seminars will help to develop employee

⏍ Specific development programme is needed to develop employee

11. organization’s referred approach for training

⏍ On job training ⏍ Off job training

12. How do this organization provide advancement opportunities to its employee?

⏍ Promotion within the organization⏍ Further education and development programme

⏍ Depend upon employee

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

⏍ Performance evaluation

⏍ Personal Behavior and direct obesrvation

⏍ Interview

14. Which type of motivation will work best in nepalese context?

⏍ Extrinsic motivation

⏍ Intrinsic motivation

⏍ Depend upon employees

15. Which motivational theory best fit in this organization?

⏍ Maslow’s Need Hierarchy

⏍ Herzberg’s Theory

⏍ Expectancy theory

⏍ Equity theory

16. Do employees are involved in decision making process?

⏍ Yes,they are involved inshort term decision making

⏍ No

⏍ It depends upon situations

17. DO this organization practise MBO(Management by objective)?

⏍ Yes,for certain type of programme

⏍ No,we don’t practice it

18. Is here any kind of labour unions ?

⏍Yes ⏍No


19. Which method do this organization use for performance appraisal?

⏍Forced choise method

⏍Critical incident method

⏍Alternate ranking method

⏍Paired comparison

⏍Management by objective(MBO)

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

⏍Transportation facilities

⏍Health and safety insurance

⏍Lunch facilities

⏍Non of above

21. How do this organization handle employee grievance?

⏍Through open door policy ⏍Legal compliance ⏍Grievance procedure

22. Decision making style of this organization?

⏍ Individualism style

⏍ Collectivism style

⏍ Mixed style

23. Upto which level this organization recruit employee from external source?

⏍ Lower level ⏍ Middle level ⏍ Top level

⏍ depends upon situation

24. Deligated authority

⏍ direct authority by the parent organisation. ⏍ Decentrilized authority

25. Which one is prime concern of this organization?

⏍Efficiency ⏍Effectiveness

26. Current situation of employee turnover?

⏍ more then expected

⏍ Less then expected

⏍ Normal

27. Is Nepalese education system of is able to produce skilled manpower?

⏍ Yes, education system is able to produce skilled manpower

⏍ No, international degree is needed

⏍ It depends upon person

28. Any on field questions and their replies:


3. Organizational Analysis

Name of the Analyst:…………………………………………………………………

1. Physical Environment of the organization (Rate 0 to 5):

Equipments [ 5 / 4 / 3 / 2 / 1 ]Sanitation [ 5 / 4 / 3 / 2 / 1 ]Ventilation [ 5 / 4 / 3 / 2 / 1 ]Rest rooms [ 5 / 4 / 3 / 2 / 1 ]Cafeteria [ 5 / 4 / 3 / 2 / 1 ]Lighting [ 5 / 4 / 3 / 2 / 1 ]Q.W.L [ 5 / 4 / 3 / 2 / 1 ]

2. Social Environment of the organization (Rate 0 to 5):

Cultural diversity [ 5 / 4 / 3 / 2 / 1 ]Level of tolerance [ 5 / 4 / 3 / 2 / 1 ]Age gap [ 5 / 4 / 3 / 2 / 1 ]Gender diversity [ 5 / 4 / 3 / 2 / 1 ]Friendliness [ 5 / 4 / 3 / 2 / 1 ]Hostility [ 5 / 4 / 3 / 2 / 1 ]

3. Political Environment of the organization (Rate 0 to 5):

Effect of T. Unions [ 5 / 4 / 3 / 2 / 1 ]Strike Rate [ 5 / 4 / 3 / 2 / 1 ]Power people [ 5 / 4 / 3 / 2 / 1 ]Conflicts [ 5 / 4 / 3 / 2 / 1 ]Mgmt. Participation [ 5 / 4 / 3 / 2 / 1 ]

4. Acquisition policy proves to be: [ ] effective [ ] ineffective [ ] appropriate [ ] inappropriate [ ] needs development ________________________________________________

5. Systematic acquisition is: [ ] implied [ ] not implied [ ] can’t be implied

6. Training Programs are held: [ ] timely as per need [ ] not at all [ ] too much


7. Motivational tools are: [ ] adequate [ ] inadequate [ ] extrinsic [ ] intrinsic

8. The organization’s motivational practice is very close to:[ ] Needs Hierarchy Theory [ ] E.R.G Theory Expectancy Theory [ ] Equity Theory[ ] Goal Setting theory [ ] Theory of Needs [ ] Combined practice

9. Performance appraisal is: [ ] very good [ ] fair [ ] worst [ ] inappropriate

10. The working environment is: [ ] pleasant [ ] unpleasant [ ] healthy [ ] unhealthy

11. People are: [ ] well heard [ ] well communicated [ ] neglected [ ] befuddled

12. The organization portrays [ ] typical Nepalese organization [ ] adaptive international organization

13. Overall rating of HR Management System in the organization:[ ] Best [ ] Good [ ] Satisfactory [ ] Bad [ ] Worst

14. Suggestions (must) and unattained matters (if any):

Signature


Appendix II

List of Figures

Triangulated Mechanism Pg. 15Pepis Logo Pg. 18Top Level Management Pg. 19Middle Level Management Pg. 19Manager's Level Pg. 19Supervisor's Level Pg. 19Departments of VBNPL Pg. 20HR Hierarchy Pg. 25HR Assessment's Peek View Pg. 26Employee Composition Pg. 27Skill Composition Pg. 27

List of Tables

Critical Activities Schedule Pg. 13Motivation tools in VBNPL Pg. 31Overall Organizational Analysis Pg. 34


References

• Cash, W.H. and Fischer, Human Resource Planning (1987)

• DeCenzo, D.A. and Robbins, Personnel and Human Resource Management (1933)

• Dr. Dev Raj Adhikari, Fundamentals of Human Resource Management (1933)

• PepsiCo Website: www.pepsico.com

• Information Site: www.howstuffworks.com

• Information Site: www.wikipedia.com

• Various Magazines, Newspaper articles and Business Reviews


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