RETENTION POLICY OF STANDARD CHARTERED BANK NEPAL LIMITED

By:

BEAUTY GUPTA

PU Regd. No.

Purwanchal University School of Management Campus

A Thesis Proposal Submitted To:

Office of the Dean

Faculty of Management
Purbanchal University

In Partial Fulfillment of the Requirement for

Master in Business Administration (MBA)

Biratnagar, Nepal
November , 2019

0
1.1.Introduction
Employees are an institution’s most important resource, whether this institution is privately or
publicly owned. The reason for it is due to the fact that employees are there to carry out the
functions of the institution, so that the institution can either; make a profit, in the case of
private companies or deliver basic services to citizens or inhabitants of a particular territory,
in the case of government institutions. Despite which sector of society is involved, the human
resources of that sector remain a priority, in the sense that their knowledge is invaluable to the
institution and should not be vulnerable to the phenomenon of labour turnover.

The global employment growth, cross border encroachment, rapid cultural change due to
industrialization and search for greener pasture are some of the contributing factors that has
immensely altered the Human recruitment, development and retention strategies. The global
employment rate is now growing where Asia continent is now emerging as an economic
power house where employment opportunity would be double by the year 2015. This factor in
the long term would affect many of the industry unstable employee turnovers.

Turning to the specific issues related to the Nepalese workplace, a number of papers in the
past indicated that organisation are unable in complying provisions relating to labour Act,
which directs the HRM to plan the strategies incorporating it, the role of personnel department
is negligible in different HR related matters such as recruitment and selection, as to which the
employee relations and their proper placement aren’t kept in the priority list of strategic
management. Training and development and performance evaluation and its implication for
career development of employees is not properly understood (Adhikari, 2012). Employee
dissatisfaction and higher turnover rate are observed as of not strategically designing,
planning and implementing the HRM practice and strategies.

The global employment growth, cross border encroachment, rapid cultural change due to
industrialization and search for greener pasture are some of the contributing factors that has
immensely altered the Human recruitment, development and retention strategies. The global
employment rate is now growing where Asia continent is now emerging as an economic
power house where employment opportunity would be double by the year 2015. This factor in

1
the long term would affect many of the industry unstable employee turnovers.
Turning to the specific issues related to the Nepalese workplace, a number of papers in the
past indicated that organisation are unable in complying provisions relating to labour Act,
which directs the HRM to plan the strategies incorporating it, the role of personnel department
is negligible in different HR related matters such as recruitment and selection, as to which the
employee relations and their proper placement aren’t kept in the priority list of strategic
management. Training and development and performance evaluation and its implication for
career development of employees is not properly understood (Adhikari, 2012). Employee
dissatisfaction and higher turnover rate are observed as of not strategically designing,
planning and implementing the HRM practice and strategies.

1.2.Statement of problem
Employee turnover has high impact in the organisations knowledge base, financial and
future succession thus the purpose of the study is to overview the academic theories and
research methodologies in HRM, those practically being used and review if these strategies
actually brought in place by HRD of commercial banks does have an impact on turnover.
The measures of the overall strategies that are placed by the HRD bylaws would be the key
concern that would first tried to be understood and later effectiveness of those strategies
designed and implement would tired to be analysed, i.e. has it decrease employee turnover.
Similarly the research considers to answers various questions that point to high employee
turnover. Employee retention mechanism addressed in the HR policy and guidelines for
mitigation of turnover for which approaches undertaken for retention strategy is effective or
not. Likewise the findings would also let us know if effectiveness of strategies for
Employee Retention if is really working for Banks and is employee resigning trend are normal,
or are in growing stage. To know the answer of questions as like, do you have
retention strategies, succession planning, are the remuneration fair enough, and is working
environment, culture and leadership qualities of the organisation favorable to employee or
not.

2
1.3.Research Questions
The research question of this study are:
What are the various factors and variables affecting Retention of Employee.
What is the use and appropriateness of the HRM policy and guideline brought in place by
the banks.
What is the turnover causes with that to the standard determinants of HRM.

1.4.Objectives of the study

The objective of this study are :
i. To analyze the various factors and variables affecting retention of employee
ii. To analyze the use and appropriateness of the HRM policy and guidelines brought in
place by the banks.
iii. To analyze the turnover causes with that to the standard determinants of HRM.

1.5.Significance of the study

Retention of key employee would be the key function of management, when there is
tremendous market growth possibility. Retention refers to the methods employed by the
management to convince the key employees stay with the organisation for a longer period
of time minimum for 5 years. Since key employees are the brain of organisation, retention
of employees should be the major concern of the management.
As organisation select the employee recruit them, trains them and develop them, all these
procedure incur cost for the organisation, and once the employee that the organisation
have invested in once leaves, then organisation would bear additional cost. The
organisation not only would bear cost but also would loss knowledgeable and trained staff
that they have invested into.
The study is therefore beneficial for stakeholder, regulators and the management to know
and understand what are the needs and wants of the current labour force in the financial
market that is deployed in any off the financial organisation. As the research has tried to
studies various retention factors and the job satisfaction variables in an employee, it would
somehow make management strategic planners, government regulators to understand if
current studied factors and variables are implemented in the financial market or their
organisations.

3
This study also has made and attempt to contribute to knowledge industry, especially in the field
of HR retention of key employees, fulfilling the gaps of previous studies in the case of
Nepal researcher, elaborating new variables and factors that has effect on employee
turnover. The organisations at large would be benefited from the outcome from this study,
also the new unemployed graduated students and HRM students can differentiate the job
attractiveness of different commercial banks with different offers offered by them.

1.6.Research methodology
Research methodology is a systematic way to solve a problem. It is a science of studying how
research is to be carried out. Essentially, the procedures by which researchers go about their
work of describing, explaining and predicting phenomena are called research methodology. It is
also defined as the study of methods by which knowledge is gained. Its aim is to give the work
plan of research.

1.6.1. Research Design

As stated earlier the main objective of the study which is to evaluate the impact of the
Retention Management Policy that is in place within the Nepalese Banking Sector. The
effectiveness of the Policy can only be explained through descriptive theoretical research as
opposed to a quantified basis. The problems associated with staff retention need to be
described, explained and interpreted which is the role of qualitative methodology. However,
although the study adopts a primarily qualitative approach, features of quantitative analysis
do exist and these are evident in the findings of the study.

1.6.2. Population and sample

Burger and Silima (2006) states that the most important reason for sampling is it gives
feasibility. That it is often too costly and impractical to study an entire population and
researchers make use of sampling to save time and resources.

So, the research intends in utilising the random sampling method to select a total number of
fifty employees that would be willing to participate in the study through various those employees
of banks and financial institutions. The selection of participants was not limited to a particular
gender, age group or designation as overall employee are tried to be studied
4
1.7.Limitation of the study
There are many other factors which may affect the level of employee retention but due to
time constraint other moderating variables are not taken for research. More over the sample
is also limited as the only focus is on the mostly Middle and Upper level of management of
five commercial banks. The accuracy of the results may be influenced by biasness. The
study is exclusive of any intervening or moderating variables. The response from
participants may be lower than expected, which may interfere with their willingness to
participate.

1.8.Organization of the study

This study is divided into five chapters as follows:
Chapter I: Introduction
This chapter covers the introduction, background of the study, statement of problem, significance
of the study, objectives of the study, scope of the study and organization of the study.
Chapter II: Review of Literature
This chapter incorporates the theoretical analysis and brief review of related literature available.
It also includes a discussion on the conceptual reviews as well as review of major studies in
general.
Chapter III: Research Methodology
This chapter contains research design, sources of data and information along with different
analytical as well as statistical tools and techniques.
Chapter IV: Presentation and Analysis of Data
This chapter deals with the presentation and analysis of data by using different statistical tools
and technique.
Chapter V: Summary, Conclusion and Recommendations
This chapter deals with a summary of the study, conclusion drawn from the findings and
recommendation of the study.

5
 BIBLIOGRAPHY

Adhikari, D. R. (2012). International Labor and Employment Relations Association

(ILERA) World Congress. Philadelphia, Pennsylvania, USA.

Atif Salman, A. N. (December 30, 2014). Factors Affecting on Employees Retention in Banking
Sector: An Investigation from Karachi. European Journal of Business and Management,
Vol.6, No.37, 2014.

Hom, R. G. (2004). Innovative Theory and Empirical Research on Employee Turnover.

Information Age Publishing Inc.

Khadka, S. (2009). Foundation of Human Resource Management. Kathmandu: Pradhan

Book House.

Kumar, S. (September 2013). The impact of employee benefits as retention strategy in a

concept dining restaurants chain in India. The National College of Ireland.

Marker, P. C. (2007). Turnover Drivers and Retention Factors Affecting Hourly Workers:
What is Important? Management Review: An International Journal , 14-27.

Robert Esienberge, P. F.-L. (1990). Perceived Organisational Support and Employee

Diligence, Commitment and Innovation. Journal of Applied Psychology , 1-9

Venkatesh, P. J. (2006). In Human Resource Managment. New Delhi: Oxford University

Press.

Zachariah, M. (November 2012). A study on Employee Retention Factors affecting it.

Interdisciplinary Journal of Contemporary Research in Business , 1-18.