Human Resource Management Process:

Human Resource Management Process consists of eight activities necessary for staffing the
organization and sustaining high employee performance. The process is described below:

HR Planning Selection
&
Requisition

Orientation Training

Appraisal Benefits &

& Compensation
Evaluation

3.0 Human Resource Management in OM Megashree

Pharmaceteutical Pvt. Ltd, Nepal
Human Resource Planning in OMS:

Planning is the core area of all the functions of management. It is the foundation upon which the
other three areas should be built. Planning requires management to evaluate where human
resource of the company is currently, and where it would like to be in the future. From there an
appropriate course of action to attain the company's goals and objectives is determined and
implemented.
Every organization has employment planning. OMS has also its employment planning. They
usually forecast their personnel needs based on their mission, strategic goals & objectives &
technological and other changes resulting in increased productivity. Although there are several
methods to predict personnel needs, but they use managerial judgment because it gives the more
real world scenario for personnel needs. They think that the other methods cannot give the
accurate situation of the personnel needs. These are basically graphical methods, which can not
measure the actual personnel needs. But managerial judgment method depends upon the change
in productivity, market conditions etc.

Recruitment and Selection process in OMS:

We are looking for top-caliber people who want the flexibility and resources to grow in their
career. If you're the kind of person who has always stood out, we offer a place where you can
continue to excel. No matter what your field or range of interests, there are vacancies where your
talents can likely be applied and developed. We have thousands of diverse people from different
cultures and backgrounds working in a variety of different jobs in different fields

 Merit is the sole criteria for selection.

 Attitude is given as much weight age as functional competencies.

 Panel interviews comprising of Functional Head & HR Head.

 Sources for recruitment are through campus, consultants, employee referrals, internal job
 postings and the internet.

 Positions in Officer Cadre involve written tests.

 Antecedent verification is an integral part of our recruitment process.

 Medical fitness is pre-requisite for all positions.

 We are an equal opportunity employer and do not discriminate on the basis of race,
community, religion or sex.

Recruitment process:

A responsibility for recruitment usually belongs to the HR department. This department works to
find and attract capable applicants. Job description and speciation provide the needed
information upon which the recruitment process starts. The functions of the recruitment office of
OMS are given below:

1. Need Assessment
2. Defining the position description
3. Checking the recruiting options
4. Advertisement
5. Screening and Short – listing Applications
6. Written test
7. Selection interview (3 – tier)
8. Employment decision (Application Bank)
9. Pre- employment medical check-up
10. Offer letter
11. Orientation / Induction
12. Placement
13. Follow –up
Source of Recruitment:

Nepal is done in four ways depending on the job category of the vacant position. Therefore, the
recruitment process of this organization is classified into four types, which are done based on the
job grade/ group. These are as follows:

 Entry-level management
 MT (Manager Trainee)
 Mid or / and Senior level management
 Graded staff / Non- management staff

Internal Source:

There could be a person competent for the required job working within the organization. If there
is, the existing manpower is then shuffled to place the selected person in the new post. If there is
no such person inside the company, then the management goes for the second step.

Job-posting programs:

HR departments become involved when internal job openings are publicized to employees
through job positioning programs, which informs employees about opening and required
qualifications and invite qualify employees to apply. The notices usually are posted on company
bulletin boards or are placed in the company newspaper. Qualification and other facts typically
are drawn from the job analysis information.

The purpose of job posting is to encourage employees to seek promotion and transfers the help
the HR department fill internal opening and meet employee’s personal objectives. Not all jobs
openings are posted .Besides entry level positions, senior management and top stuff positions
may be filled by merit or with external recruiting. Job posting is most common for lower level
clerical, technical and supervisory positions.

Departing Employees:

An often overlooked source of recruiters consists of departing employees. Many employees

leave because they can no longer work the traditional 40 hours work week .School, child care
needs and other commitments are the common reason. Some might gladly stay if they could
rearrange their hours of work or their responsibilities .Instead, they quit when a transfer to a part-
time job may retain their valuable skill and training. Even if part-time work is not a solution, a
temporary leave of absence may satisfy the employee and some future recruiting need of the
employer.

External Source:

All the above options being considered, the company goes for external recruiting if needed.
Those who best meet the skills, qualifications, experience and competencies required for the
position should fill vacancies. Therefore, if there is no candidate within OMS, Nepal who is
suitable for the role, external advertisement should be placed to attract the potential candidates
followed by the selection procedures.
Advertisement:

The Company gives advertisement in national dailies (both Nepali and English) to attract the
talents from the market. OMS, Nepal puts two types of advertisements in the newspapers. The
purpose of the concealed identity is to avoid the unwanted pressure from the stakeholders for the
employment of their desired candidates. But this way the company may lose the talents out there
in the market who would have applied for the same post had they known the name of the
organization. This is why the company kept the identity open in their recent job advertisement
when the quality of the candidate was a very important factor to consider. By revealing the OMS
identify, the company attempts to attract the best potentials among all the others.

Employee referrals:
Employee referral means using personal contracts to locate job opportunities. It is a
recommendation from a current employee regarding a job applicant. The logic behind employee
referral is that “it takes one to know one”. Employees working in the, in this case, are
encouraged to recommend the names of their friends working in other organization for a possible
vacancy in the near future.

Employment Agency:

An agency finds and prescreens applicants, referring those who seem qualified to the
organization for further assessment and final selection. An agency can screen effectively only it
has a clear understanding of the position it is trying to fill. Thus it is very important that an
employer be as specific and accurate as possible when describing a position and its recruitment
to an employment agency.

Walk-ins and Write-ins:

Walk-ins are some seekers who arrived at the HR department of OMS in search of a job; Write-
ins are those who send a written enquire .both groups normally are ask to complete and
application blank to determine their interest and abilities. Usable application is kept in an active
file until a suitable opening occurs or until an application is too old to be considered valid,
usually six months.

Selection Process:

Selection is the process of gathering information for the purpose of evaluating and deciding who
should be employed in particular jobs.

Screening and Short-listing Applications

The responses to the advertisements are sorted and screened. The CVs as well as the Covering
letters are judged. In the covering letter, the style and language of writing, the emphasis put on
the areas asked for tin the advertisements and the quality of the letter (whether it is specifically
tailored to the advertisement or just a standard response) are the aspects that are judged.
Different weights are assigned to the selection criteria mentioned in the man specification
depending on their relative importance. (for example, educational institutions , NPC licence in
case of pharmacist are given the highest weight among the local ones). Based on the presence of
these factors to the desired extent (experience, educational degree, computer literacy, etc) the
cumulative weights for all the applicants are counted and the short list of a sizable number of the
top most candidates is generated. However, the HR officials also study the CVs with the
respective line manager to check whether any valuable deciding parameter is missed that are
mentioned in the CVs. Then the candidates selected in the short list are called for the written test.

Written Test
Written test is not a regular part of the normal recruitment process. It is conducted as and when
required. Previously no written test was taken for the management employee, the applicants had
to go directly through the interview process. After the introduction of the manager trainee
program, the written test before the interview process has proved to be effective and a useful tool
to select the desirable candidates. The written test includes psychometric test, test on behavioral
competency, and written test on communication skills. The candidates are called for the
preliminary (first) interview based on their performance in the written test.

Selection Interview
The interview process is a three-tier one. A preliminary interview is conducted which follows the
“elimination method”. After that, the second interview takes place with a very few number of
candidates. Then the finally selected person is called for the final interview. The interview time
is kept convenient for the candidate especially if s/he is working elsewhere at the time of
interview. In that case the chosen time is after the business hour.

Reference Check
Reference checks allow obtaining information and opinions regarding the person’s character,
quality of the work and suitability for the position. It is an opportunity to validate the information
received from the candidate via their resume and the interview. Speaking to the candidate’s
manager or other people whom they have worked with should also check internal candidates.
The opinion of a referee who has worked can for an extended period is likely to be more accurate
than the assessment from one to two hours of interviewing.

The candidate’s immediate supervisors are needed to be contacted. Permission should be

obtained to contact the candidate’s referee especially if their current employer is contacted. It is
not unusual for a candidate to be uncomfortable with the organization’s speaking to a current
employer. If they are uncomfortable, an alternative person other than the current employer has to
be chosen by the candidate (work colleague, for example). Unless the candidate is a graduate or
school leaver with no prior work experience, only contact work related referees should be
contacted. At least two reference cheeks should be done, however the more the better.
There is a sample reference-checking guide that is more or less followed. It is important to
prepare a reference check guide that asks the referee about the key skills, competencies and
experience required for the position. Reference checks need to be done by line manager or
personnel of the HR department.

During the interviews, the candidates would have given some examples of incidents, tasks or
projects that can be asked about. The referee should be asked what the candidate did in those
examples, which ascertain whether the information received from the candidate is consistent
with that of the referee.

Subjective questions may not always be a reliable guide; however it can be useful to get the
referee’s opinion on areas such as quality and quantity of work, strengths and weaknesses etc.

Employment Decision
If the candidate has no problem with the stated terms and conditions of the job and the
organization mentioned and discussed in the final interview, s/he is offered an application blank.
The application blank is a standard format of employee-information that includes all the
information the organization needs regarding the personnel. The candidate has to fill this blank
and submit this to the company along with a CV.

Pre-employment Medical Check-up:

After submission of the application and the CV, the selected person has to go through full
medical check-up that guarantees her/his physical fitness to perform the job successfully. A
medical practitioner who uses a physical capability analysis that assesses the candidate against
the physical capabilities documented for each role conducts the medical. A medical is also
appropriate for internal candidates if they are applying for positions that require different
physical capabilities.

Offering the Role:

Once the health check-up is done, the candidate is given an offer letter specifying the salary
package, welcome letter, job responsibilities, utilities that will be provided by the organization.
Even at this stage the selected candidate has the chance to withdraw her/himself from the job
offer. s/he is always free to discuss whatever difficulty may arise regarding pay-
structure/facilities, etc. the door of HR is kept open for any sort of relevant discussion.

verbal offer:
The verbal offer of the role to the candidate is given once the medical and reference checks have
been successfully completed. The discussion should cover the following:
 Tell the candidate that you would like to offer them the role.
 Congratulate them.
 Tell them the remuneration package that is being offered, including superannuating.
 Ask them if they are happy with it.
 Ask them if they verbally accept the position.
Tell them that we will be sending them a written letter of offer and introductory package.
written letter of offer:
A written letter of offer must be forwarded to the candidate. Once the candidate has verbally
accepted the position, the appropriate letter of offer is organized. This letter should be sent to the
candidate within two days of making the verbal offer. An introductory package will be sent to
the successful candidate, along with the letter of offer. At least one week before the person
commencing in their new position, an

appointment notice will be placed on notice boards and/or the internet.

FIGURE: RECRUITING YIELD PYRAMID FOR OM MEGASHREE PHARMACEUTICALS, NEPAL

Number of Candidates

Accept job offer Offers/Acceptance

Receive job offer 3 Interview/offers

4
Interview Assessment Center/interview
4

Called for the assessment Center 22 Written/assessment center

150
Invite for the written test Screens/Invites
400

Initially screened out 700 Contacts/Screens

Initial contacts/Resumes received

 THE RECRUITMENT AND SELECTION PROCESS OF OMS

Checking the recruiting Advertisement in National

Need assessment options Dailies
 Vacancy in existing (Both Nepali and English)
post(s)
 Internal
 Market expansion
 Increase in production  External
capacity
 Launching new product
 Introducing new system

Written test (optional) Sorting Applications

Interview  IQ test
 Preliminary interview:  Behavioral competencies Weights are assigned based on
elimination process (short-  Communication skills the selection criteria
listing)
 Second interview: work
knowledge /behavioral
competency
 Final interview: pre-selection
interview

Selection Orientation /induction Follow up

 Application blank filling
 Medical check-up  Exposure to all important HR Department continuously
 Offer letter business /functions and interacts with the new entrants
locations of the company assisting to cope up with the
work environment, work
Employee Socialization

Socialization is a process of adaptation. Organization entry socialization refers to the adaptation

that takes place when an individual passes from outside the organization to the role of an inside
member.
OMS organize its Socialization process of three stages:
1. Pre-arrival stage: This stage explicitly recognizes that each individual arrives with a set
of organizational values, attitude, and expectations.
2. Encounter stage: Here the individuals confront the possible the dichotomy between their
expectations and reality.
3. Metamorphosis stage: Finally, the new member must work out any problems discovered
during the encounter stage.
The organization gets higher productivity, greater employee commitment, and lower turnover
rates through socialization. Employees achieved reduced anxiety, increased awareness of what is
expected on the job, and an increased feeling of being accepted by their peers and bosses. When
socialization works, employees receive the confidence and satisfaction what comes from feeling
that they are members in good standing in the organization.
Training and Development program of OMS:

Training:
A learning experience in that it seeks a relatively permanent change in an individual that will
improve his or her ability to perform on the job. To make training a success, a trainer should take
care of the following points:
 Make learning meaningful.
 Make skills transfer easy and
 Motivate the learner

Employee Training Method

On-the-job Training:
On the job training is a training that shows the employee how to perform the job and allows him
or her to do it under the trainer’s supervision
On the job training is normally given by a senior employee or a manager like senior merchandiser or a
manager. The employee is shown how to perform the job and allowed to do it under the trainer’s
supervision.

Advantages:
 Relatively inexpensive
 Trainees learn while producing
 No need off-site facilities
Drawbacks:
 Low productivity while the employees develop their skills
 The errors made by the trainees while they learn.
Apprenticeship Training: It traditionally involves having the learner study under the tutelage of
a master craftsperson.
Informal Learning: This learning process is not determined or designed by the organization.
But the organization may ensure it by creating a learning environment in the organization.

Job Instruction Training: Listing each jobs basic task, along with key points, in order to
provide step-by-step training for employees.
Lectures: The most simple and quick way to provide knowledge to large groups of trainees.
Simulated Training: It places the trainee in an artificial environment that closely mirrors actual
working conditions.

Off-the-job Training:

It includes:

 The Case Study Method: Here the manager is presented with a written description of an
organizational problem to solve in a discussion with other trainees.
 Management Game: The manager presented with a computerized decisions regarding
but simulated situations.
  Outside Seminars: Many organizations now are using this popular method on various
aspects of business and management.
 Behavior Modeling: It involves the Modeling-Role playing-Social reinforcement-
Transfer of training.

Development:

Any attempt to improve current or future management performance by imparting knowledge,

changing attitudes, or increasing skills.
Any effort toward developing employees must begin by looking at the organizations objectives.
The objectives tell us where were going and provide a framework from which our managerial
needs can be determined.

Employee Development Method

Managerial On-the-Job Training: The development of employee’s abilities can take place on
the job. It includes:
 Job Rotation: It involves moving a trainee from department to department to broaden
their understanding of all parts of the business and test their abilities.
 Coaching Approach: The trainee works directly with a senior manager or with the
person they are to replace.
 Action learning: Here the management trainees are allowed to work full-time analyzing
and solving problems in other departments.
Types of Training:

 Technical Training
 Management Training
 Safety Training
 Occupational Health
 General Training (Management, Accounts, Sale etc.)
 Social Skill Training
 Refresher Training
 Workers Education Training

Training Process
 Identifying the training needs: What kind of training is needed for how many
people to what standard of performance the objectives of the training must be
determined.
 Analyzing the attitudes, skills & knowledge(ASK)of the job:
Designing what has to be learned.

Planning the training program & implementing

 The stages of the training
 Recording the results
 Providing the stuff and equipment

Evaluating the results

 Deciding whether the training objectives have been met

  Considering how they could have been met more effectively

Training Aids
The following training aids are generally used in training programs in BAT

 Multi media
 Overhead projector
 Flip chart
 White board etc.

Performance Appraisal:
At OMS appraisals are done by the Self-appraisal system. Goals are set by participative
management approach and performance is evaluated quantitatively against those previously set
objectives. Managers appraise the performance of their subordinates through a 5 points Graphic
Rating Scale. The total appraisal process is completely transparent to everyone within the
organization.
1 for unsatisfactory

2 for marginal

3 for target

4 for superior

5 for outstanding
Employee Compensation:
Employee compensation refers to all forms of pay or rewards going to employees and arising
from their employment. It has two min components:

1. Direct financial payments: Wages, salaries, incentives, commissions, and bonuses.

There are two ways to pay directly:
 Time based pay: Daily, hourly, weekly, biweekly or monthly wages and salaries
 Performance based pay: Ties compensation directly to the amount of product
the worker generates.
2. Direct payments: Financial benefits like employer-paid insurance and vacations.

Factors influencing the design of compensation plan

 Legal considerations in compensation

 Union influences on compensation decisions
 Corporate policies and competitive strategy
 Policy issues affecting the plan of an organization

Establishing Pay Rates

Step-1
The Salary Survey: A survey aimed at determining prevailing wage rates. A good salary
survey provides specific wage rates for specific jobs. Formal written questionnaire
surveys are the most comprehensive, but telephone surveys and newspaper ads are also
sources of information.
Step-2
Job Evaluation: A systematic comparison done in order to determine the worth of one
job relative to another. Job Evaluation method includes:

1. Ranking: Involves ranking each job relative to all other jobs, usually based on overall
difficulty. There are several steps in this method:
 Obtain job information for each job
 Rank jobs by department or in clusters
 Select just one compensable factor
 Rank jobs
 Combine ratings
2. Job Classification: Categorize jobs into groups
3. Point Method: A number of compensable factors are identified and then the degree to
which each of these factors is present on the job is determined.
4. Factor comparison: Ranking jobs according to a variety of skill and difficulty factors,
and then adding up these rankings to arrive at an overall numerical rating for each given
job.

Step-3
Group Similar Jobs into Pay Grades: A pay grade is comprised of jobs of
approximately equal difficulty.

Step-4
Price each Pay Grade-Wage Curves: This curve shows the relationship between the
value of the job and the average wage paid for this job.

Step-5
Fine-Tune Pay Rates: A series of steps or levels within as pay grade usually based upon
years of service.
 Benefits and Rewards Package

Indirect financial and non financial payments employees receive for continuing their
employment with the company.
There are several types of benefits:
 Supplemental Pay Benefits
 Insurance Benefits
 Vacations and Holidays
 Sick Leave
 Parental Leave and Family Leave
 Medical Leave
 Retirement Benefits

Health & Safety

Health

Pre- employment medical check-up: The selected person before joining has to go through full
medical check-up that guarantees his /her physical fitness to perform the job successfully. A
medical practitioner who uses a physical capability analysis that assesses the candidate against
the physical capabilities documented for each role conducts the medical check-up. A medical is
also appropriate for internal candidates if they are applying for positions that require different
physical capabilities.
Medical Facilities: Doctors are arranged to visit each location of numbers of times a week to
provide necessary medical support to the employees. Moreover, the non-management staffs
enjoy medical treatment at Hospital at company arrangement.

Health Insurance Policy: Management staffs enjoy health insurance for self, spouse and two
children up to 21 years for hospitalization only. Delta Life Insurance provides the insurance and
the company pays the premium.

Safeties

SHEQ  SHES (Safety Health Environment Security)

S for Safety

H for Health

E for Environment

Q for Quality

Why Safety and Environment Issues are required?

The safety and environment issues are required because of the following reasons:

 Safety leads improved productivity

 Employees Satisfaction
  To comply the national law and order

 To keep the work environment sound and healthy

 Maximum productivity through employees’ satisfaction

 Helps loss prevention

Now a day, safety is considered as the most vital issue for all occupation & work situation in all
the developed country of the world. It is very good sign that in our country certain organizations
are also emphasized on safety like other developed country of the world. Safety aspects are also
incorporated with “ IMMSS Policy” i. e., integrated management system & standard. It is
developed from the following standard.
 In house safety of the OMS (that was previously practiced)
 ISO (Specially for electrode business)
 Environment Laws of Nepal
 Labor Law of Nepal

Company Safety Policy

It comes from the group chairman e to adapt in the factory. The Managing Director counter signs
the policy for each individual country and the copy of the policy is circulated to all the levels in
the organization. So it is the duty of all the employees to emphasize on safety. There is an Oath
in OMS, Nepal regarding safety. That is “ SAFETY FIRST – QUALITY MUST”.The safety
policy of OMS, Nepal “ safety health and environment management” which is signed by the
Managing Direcotr carries certain messages for us. It complies with the local safety laws of
Nepal. One important issue of this policy is DUTY OF CARE. It can be described as ‘ not to do
any thing that may cause risk to others, properties even to myself and also let other not to do
even that may hazardous to himself only. There is another planning for emphasized on safety.
Safety aspect may include in every one’s KPI & CSF. There are some other important points of
the policy that we should care and implement in hour daily work. The copy of the safety policy is
attached herewith for the ready reference.

Finally it should be noted that OMS, Nepal not only believes the oath “ safety first” but also
implements it through their works. Beginning of the orientation program with Safety Department
may be an example of this practice.

Motivating Employees in OM Megashree Pharma:

The advantage of having a Management by Objective (MBO) system is that everyone becomes
Self-motivated. Everyone is motivated to achieve, to perform. The only challenges is to keep the
employees’ moral high in times of failure. In OMS, one of the tasks of the management is
counseling. Managers are there to help the employees to achieve the goals, which in turn keep
the employees motivated.

Apart from creating a healthy working environment and ensuring employee empowerment, OMS
offers a number of benefits to keep them motivated.
The benefits offered by the company are given below:
1. Education costs of the children
2. Permanent job facility
3. Leave facilities
4. Yearly Employee Awards
5. Promotion
6. Foreign Travel with Family Offers
7. Share from revenue etc.