Tribhuvan University

Faculty of Management
Central Department of Public Administration
Public Administration Campus
MPA First Semester
(MPA 503: Public Sector Human Resource Management)

Unit-4
2081/02/31, Thursday

By: Ajay Krishna Parajuli

Learning Objectives
Retention Policy
• Compensation and benefits including safety and health
• Motivation, performance evaluation/ appraisal
• Code of ethics and discipline
• Grievance handling, collective bargaining, retirement and
dismissal
Compensation & Benefits
Compensation refers to any payment given by an employer to an employee
during their period of employment. In return, the employee will provide
their time, labor, and skills. This compensation can be in the form of a
salary, wage, benefits, bonuses, paid leave, pension funds, and stock
options, and more.
An attractive compensation and benefits plan can help us(an organization)
attract and retain top talent and keep them happy, motivated, and engaged
at work. This will help achieving the goal of the organization.
Compensation is generally monetary and may be adjusted according the
business needs, goals, and available resources.
Types of Compensation
I. Direct :-
Direct compensation is the financial compensation, or cash, given from
the employer to the employee for their services. It includes Base pay, Overtime
pay, Variable compensation (Commission or bonus),Sales compensation
II. Indirect :-
Indirect compensation refers to monetary and non-monetary incentives
given to an employee to increase their overall engagement and motivation at
work. This type of compensation still has a financial value, but employees don’t
receive it in cash form. Here are some of the common forms of indirect
compensation.
-Equity package
Equity as part of a compensation package essentially means the employee is offered
equity (ownership) in the company, either through shares of stock or the option to buy
such shares.
An equity package is common at start-up companies. These businesses may be low on
cash or funding and need other incentives to attract and retain employees.
-Stock options
This form of compensation entitles employees to purchase a set number of shares at a
fixed price after a certain period. This is different from an equity package because the
employee will not have any ownership in the company.
Many stock options require employees to work between three to five years before they
can access this compensation.
Benefits
Organization often offer a wide range of benefits that are meant to
protect employees’ future, including health insurance, life insurance, pet
insurance, pension plans, and more. Benefits are generally non
monetary. It is long-term in nature.
Health insurance is a big consideration for people working in countries
without access to free healthcare, such as Nepal.
Types Of Benefits
Some other Benefits
 Benefits at work:-
 Flexible working hours : According to a survey by Future Forum, 95% of
respondents care more about flexible hours than remote work, while a report by Adobe found
that 84% of enterprise employees would like some flexibility. On top of this, HBR’s survey
found more flexible hours to be second on the list of the most desirable employee benefits.
 Paid time off : Annual leave
 Leave: Sick leave, parental leave, public holidays, bereavement leave, study leave, adverse
weather leave, volunteer time off, and more.
 Skills development: Benefit that employers can offer is funding for extra tuition or student
loans, as well as budgeting for online courses, workshops, and certification programs that help
employees learn new skills and progress in their careers.
 Food & beverages
 Gifts & activities: Birthday, anniversary etc
 Benefits for health:-
 Healthcare: This includes common healthcare such as health
insurance, dental plans, and vision plans. But some companies go the extra
mile by offering more specialized services such as massage therapy,
physiotherapy, acupuncture, fertility treatment, and more. Apple’s major
campuses provide all employees with access to an on-site doctor, nurse,
dietician, and acupuncturist.
 Benefits for financial security
Retirement and pension plans
Insurances- Aside from health insurance
Financial growth benefits- stock options, stock ownership, and profit-sharing
plans
 Lifestyle benefits:-
Remote work: Work from home or any flexible places
Commuter benefits: providing a company vehicle, subsidizing public
transportation or car park fees
Work-life balance :This includes perks that help employees achieve better
work-life balance. For example, providing on-site childcare, on-site grocery
deliveries, dry cleaning services, and more.
Importance of Compensation & Benefits
• There are many benefits to a well-designed compensation and benefits program.
First, a good program can help to attract and retain talented employees. It can also
help to motivate employees to achieve the organization’s goals. Compensation and
benefits programs can also be used to reward employees for their hard work and
dedication. Finally, a well-designed program can help to reduce employee
turnover and improve morale.
Compensation in Nepal
• Role of direct compensation is important compared to indirect compensation.
• There is no uniformity in wage structure. Government has been fixing minimum
wages for various categories of workers.
• Job grades are prescribed for civil service and public sector enterprises. Job
grades in private service differs but generally government job is taken as points
of reference.
• The bonus act has limited the payment of bonus at 10% of net profit.
• Company act has set maximum limit of salary to the executive employees
• Legally, gender discrimination is not allowed. But some employers pay women
low rates compared to male workers mostly prevalent in tea estates and
construction.
Civil Service Pay system
• Pay & allowances
• Medical expenses
• Pension
• Disability allowance
• One month extra salary for festival
• Payment of accumulated leave
• 10% salary as PF
• Pension or gratuity for family in case of employees death
• Health insurance; travel insurance
• Labor act, 1992 has prescribed following compensation system for workers and
employees:
• Pay and allowances, minimum wages have been prescribed
• Welfare fund as prescribed
• Compensation for disability
• Gratuity, provident fund, medical expenses as prescribed
• Leave and payment for specified accumulated leave
• Housing facilities by allocating 5% of gross profit
• Day care centers for the children of women workers as prescribed
Contemporary Issues in Compensation
• Skill and Talent management
• Legal and regulatory framework
• Market wage rates
• Inflation and cost of living
• Employee expectations
• Performance based pay
• Benefits and perquisites
• Technological integration
Motivation
• Motivation refers to the internal and external factors that influence an
employee's willingness to put in effort, perform well, and persevere
towards achieving organizational goals.
• Derived from the Latin word "Movere" which means to move or drive
forward.
• According to Stephen P. Robbins, "Motivation is a process that
accounts for an individuals intensity , direction and persistence of
efforts toward attaining a goal ."
Theories of Motivation
• Maslow’s Theory of Hierarchical Needs
• Hertzberg’s Two-factor Theory
• McClelland’s Theory of Needs
• Vroom’s Theory of Expectancy
• McGregor’s Theory-x and Theory-y
Maslow’s Theory of Hierarchical Needs
 Abraham Maslow's
theory suggests that
individuals are
motivated by a
hierarchy of needs.
 He proposed that
people seek to fulfill
basic needs before
higher-order needs.
Hertzberg’s two-factor Theory
Poor hygiene factors may destroy motivation but improving them
under most circumstances will not improve team motivation.
Hygiene factors only are not sufficient to motivate people, but
motivation factors are also required ,
McClelland’s Theory of Needs
Vroom’s Theory of Expectancy
McGregor’s Theory X and Theory Y
Types of motivation
Intrinsic and Extrinsic motivation Financial and Non Financial motivation

positive and negative motivation

Intrinsic and Extrinsic motivation
Financial and Non Financial Motivation
Positive and Negative Motivation
Importance of Motivation
Performance Evaluation
Concept of Performance Evaluation
• Performance is accomplishment of assigned tasks. It is the result of efforts
plus abilities. It is a productivity measured in terms of effectiveness and
efficiency. Performance evaluation is the systematic, periodic, impartial
evaluation of an employee’s ability for doing his present job and his potential
for future job.
• Performance evaluation evaluates an employee’s actual performance relative
to performance standards. It measures what the employee does. It is review of
an employee’s performance on the job and his potential for assuming future
responsibilities. It reviews job relevant strengths and weaknesses of an
employee. It evaluates contribution of each employee to the accomplishment
of organization’s goals. It is results based.
• According to Dale S. Beach- “Performance evaluation is the systematic
evaluation of individuals with respect to their performance on the job and
their potential for development.”
• According to Wayne F. Cascio: “ Performance evaluation is a review of the
job-relevant strengths and weaknesses of an individual or a team in an
organization.”
• According to Dessler- “Performance evaluation is the process of evaluating
an employee’s current and or past performance standards.”
• Performance evaluation is the assessment of individual’s performance in a
systematic way. It is a developmental tool used for all round development of
the employee and the organization. Employees should perceive the
performance evaluation system as fair, equitable, and transparent.
Performance evaluation system can be formal and informal.
Features of Performance Evaluation

• Clear objectives • Focus on job

• Valid information • Specified standard
• Well defined criteria • Systematic
• Economical • On-going process
• Time saving • Multifaceted
• Due process • Corrective
Performance Evaluation Process
A performance evaluation is a formal interaction between employee and
manager. It is essential for assessment and discussion about the performance of
and for communication of weaknesses and strengths of employees performance.
Performance evaluation identifies performance deficiencies and action to rectify
deficiencies. The performance evaluation process consists of the following steps.
I. Set performance standards
II. Communicate performance standards to employees
III.Measure actual performance
IV. Find deviations
V. Discuss evaluation with employees
VI.Initiate corrective actions
Performance Evaluation Process

6. 1.
Corrective Set
Actions Standards

5. Performance 2.
Discuss Appraisal Communicate
Appraisal Process standards

4.
3.
Find
Measure
Deviations
Performance
Set Performance Standards
The starting point of performance appraisal is the establishment of performance standards.
They serve as the criteria of performance- what is to be done and how well it is to be done. It
is required to set the criteria to judge performance of the employees as successful or
unsuccessful. It is also necessary to set the criteria to know the degrees of employees’
contributions to the organizational objectives.
• job analysis, consisting of job description and job specification, serve as the basis for setting
performance standards.
•The standards should be specific and clear to understand. They should be measurable,
reasonable and attainable.
•Standards can be in terms of quantity, quality, time, cost etc.
Communicate Standards to Employees
After setting standards it is the responsibility of the management to communicate the standard
to all the employees of the organization. The employees should be informed and the standard
should be clearly explained. This will help them to understand their roles and to know what
exactly is expected from them.
Measure Actual Performance
It is the most difficult part of the performance evaluation process. It is more
difficult for measuring the actual performance of the employees that is
completed by the employees during the specified period of time.
The sources of measuring actual performance can be:
a) Personal observation
b) Internal reports
c) Special reports
Find Deviations
The actual performance is compared with performance standards. Deviations are
noted. The comparison helps to know the deviations in the performance of the
employees from the standards set. The result can show the actual performance being
more than the desired performance or, the actual performance being less than the
desired performance.
Discuss Evaluation with the Employee
The result of performance evaluation are discussed with the employee. This
provides performance feedback to the employee. The discussion is based on
comparison of actual results with standards. The results, the problems and the
possible solutions are discussed with the aim of problem solving and reaching
consensus.
Initiate Corrective Actions
The last step of the process is to take decisions for improving performance of
employees. It is necessary to take corrective actions while taking decision in
determining rewards, promotions, demotions, transfer etc. The corrective decision
taken at present will be supportive for future performance of employees. It makes
the employees more responsible towards assigned job.
Corrective actions are the crux of the performance appraisal process. They are
initiated to:
a) Corrective deviations
b) Change standards
c) Training assignment
Uses/Importance of Performance Appraisal
• The main use of performance appraisal is to measure and improve the performance of
employees and increase their future potential and value to the company. Other uses include
providing feedback, improving communication, understanding training needs, clarifying
roles and responsibilities and determining how to allocate rewards. The following are the
importance of performance evaluation both for employees and organizational performance.
 Performance improvement
 Promotion, Transfer, Termination
 Career planning and succession planning
Training and development
Policy formulation
 Compensation, benefits and rewards
 Validation of selection process
 Evaluation of HR programs
 Performance feedback
Objectives of Performance Appraisal
The primary objective of performance appraisal is to measure and improve the
performance of the employees and increase their future potential and value to
the company. This primary objective can further be divided into the following
sub-objectives:
To review the performance of the employees over a given period of time.
To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication between superior-
subordinates and management & employees.
To diagnose the strengths and weaknesses of the individuals so as to identity
the training and development needs of the future.
To provide feedback to the employees regarding their past performance.
Provide information to assist in the other personal decisions in the
organizations.
Methods of Performance Appraisal
A wide variety of performance evaluation method exist. The well-known methods are:
1. Job standard-oriented Methods
a) Essay method
b) Checklist method
c) Forced choice method
d) Critical incident method
e) Rating scales Method
2. Comparison Oriented Methods
f) Individual ranking
g) Group order ranking
h) Paired comparison
i) 360 degree feedback
3. Objective-oriented Method
a) Management by objectives (MBO)
Essay Method
• Under this method, the rater is asked to express the strong as well as weak
point of the employee’s behavior. The essay is based on qualitative
impression of the rater. The rater writes a narrative essay describing an
employee’s:
 Strengths and weakness: job knowledge and potential
 Job performance during the evaluation period
 Technical effectiveness
 Leadership ability
 Promotional potential
 Training and development needs
 Suggestions and improvements
 Advantages Disadvantages
a) It is simple. It does not require a) It is time consuming. Comparisons are
complex forms. not easy.
b) It provides details information for b) Unstructured essays differ in length
decision making purposes. and content. The data provided is only
Feedback can be given to qualitative.
employees. c) It focuses on the extreme behavior in
employee’s job.
d) The skills of the writer influences the
appraisal rather than the level of job
performance. Bias is present in
appraisal. It is subjective.
Checklist Method
Checklist is the simple type of individual evaluation. A checklist
represents a set of objectives or descriptive. Confidential performance
evaluation report uses this method. It is widely used by government
organizations. The checklist can be simple or weighted.
Simple checklist:
The checklist is a list of descriptive statements of employee behavior and
characteristics. The rater checks off ‘yes’ or ‘no’ for behavior that apply to the
employee.
Weighted checklist:
The statements in simple checklist are weighted by assigning points according to
their importance. The weight are assigned by HR department for scoring simple
checklist.
 Advantages and Disadvantages of Checklist Method

Advantages Disadvantages

a) It is economical form of performance a) The rater may be biased in

evaluation. distinguishing the positive and negative
questions.
b) It is easy for administration or
implementation. b) It is time consuming.
c) The rater may assign biased weights to
c) It needs limited training both rater the questions.
and employees.
d) It becomes difficult for manager to
d) It considers certain level of standard. assemble, analyze and weigh a number
e) It is most frequently used in the of statements about employee.
employee’s performance evaluation. e) It does not allow rater to give relative
ratings.
Forced choice Method
It consists of special type of checklist. Checklist items are arranged in groups. The
rater is forced to choose between two or more behavior-related statements that are
most or least descriptive of the employees being appraised.

Advantages Disadvantages

a) It reduces bias and distortion since a) Raters dislike this method. They
the rater does not know the right feel frustrated to make a choice
answers. It is objective between statements which are
b) It reduces error resulting from the difficult to differentiate.
subjective value system of the rater. b) This method is difficult and costly
to develop.
Critical Incident Method
This approach is focused on certain critical behaviors of employee that makes all
the difference in the performance. In this approach, the manager prepares lists of
statements of every effective and ineffective behavior of an employee. Such
situations are termed as incidents. The supervisor records such incidents. The
critical incidents are analyzed to evaluate employee performance.
Advantages Disadvantages
• This method is based on continuous • It is time consuming and cumbersome
factual documentation of actual job to record incidents. It requires close
behavior of the employee. Bias in supervision.
evaluation is reduced.
• It focuses on negative employee
• This method judges performance behavior on the job.
rather than personalities.
• It is difficult to quantify incidents.
• This method is useful for giving Comparison of employees is difficult.
feedback to employee for improving
performance.
Rating scales method (Graphic Rating Scale)
It is the most widely used method of performance evaluation. The rater
provides a subjective evaluation of an employee’s performance and
traits along a scale. The following factors are evaluated.
a) Quality and quantity of work
b) Job knowledge
c) Attendance, appearance
d) Loyalty and dependability
e) Honesty, integrity
f) Attitude, initiative, cooperation etc.
 Advantages and disadvantages of rating scales method

Advantages Disadvantages
a) This method is not free from the rater’s
a) This method is very easy to bias. The evaluation is based solely on
develop and administer. It is the rater’s opinion. It is subjective.
less time consuming. Many b) The evaluation criteria is not directly
employees can be rated related to job performance. It relies
quickly. heavily on personality traits. It assumes
equal importance for all characteristics.
b) Comparisons among
c) Rating errors may be present.
employees is possible. The
d) The evaluation is subject to individual
scales are standardized. The interpretations
evaluation is quantified.
Comparison-oriented Methods
They are based on relative standards.
Individual Ranking
The evaluator lists the employees in a rank order from the highest to the
lowest on the basis of overall performance. Only one employee can be the
‘best’ or the ‘worst’.
Advantages Disadvantages

a) It is easy to understand and a) Itnumber

is complex to administer when the
of employees is large. Several
administer. No forms are people cannot be compared
required. simultaneously.
b) It is efficient in terms of time b) It does not consider differences in tasks
and abilities. One “whole person” is
and cost. compared with another “ whole person”.
c) Comparison between c) It is highly subjective. It is based on
employees is possible. judgment.
Group order ranking
The evaluator places employees in particular classification, such as ‘top twenty
percent’, ‘second twenty percent’, ‘bottom twenty percent’ etc.

Advantages Disadvantages
a) It prevents evaluators from inflating a) It is difficult to administer when the
their evaluations. number of employees is small.
b) It is easy to administer and efficient b) It creates employee resentment.
in terms of time and cost.
c) It motivates employees to reveal
their capabilities and improve
performance.
Paired comparison
The evaluator compares each employee with every other employee on a one-on-one
basis in terms of overall performance. Pairs of employees are formed. Better
performance in each pair is identified. The overall rank of the employee is
determined by the number of times chosen as better performance in total pairs.
Advantages Disadvantages
a) It ensures that employees are a) It is not suitable for large number of
compared on one-on-one basis. employees. It is appropriate for up
b) It tends to result in reliable ranking to 20 employees.
of employees. The errors are few. b) Only the overall performance is
considered rather than distinct
performance dimension.
c) It does not indicate how to improve
performance.
360 degree Feedback
This method uses performance feedback information from multiple raters, such as superiors, peers,
subordinates and self for performance evaluation. It is generally used for evaluating managerial
performance. This method provides a comprehensive picture of managerial performance.
Developmental needs of managers can be identified.

Boss

360◦ Subordinates
Peers Feedback

self
Objective-oriented Method
It is based on objectives. The popular method is
Management-by-Objectives (MBO)
Management by objective is a comprehensive technique applied for planning and goal setting. It is
also known as management by results. In this approach, both top and operational level managers
jointly identify common goals; define each individual’s major areas of responsibility in terms of the
results expected from them. MBO converts organizational objectives into individual objectives. The
steps involved in MBO are:

Collaborative
Goal Setting

Performance
MBO Action
Evaluation
Planning

Performance
Review
Collaborative Goal Setting
Manager and subordinate meet to discuss and set time bound objectives for the
subordinate. The agreed objectives become standards for evaluating employee’s
performance.
• The objective should be SMART (Specific, Measurable, Agreed upon, Realistic and Time
bound). Organizational and departmental objectives serve as guidelines for setting
individual objectives. The objectives should fulfill the requirements of the job.
• The criteria for performance evaluation is also jointly agreed. Individual differences are
considered.
Action Planning
The means for achieving the objectives are determined by developing action plans.
It consists of
• Identifying activities necessary to accomplish objectives
• Establishing relationships between these activities.
• Estimating time and resource requirements for each activity.
Performance Review
The employee systematically monitors and reviews own performance.
MBO is based on the assumptions of the employees can exercise self-
control. Manager and subordinate also meet periodically to carry out
performance review.
Performance Evaluation
This is the final stage of MBO process. Performance evaluation is the
periodical review of performance to measure whether subordinate is
accomplishing his duties properly or not. There should be periodic review
of progress to ensure that everything is going on as per plan. Performance
should be measured on fair and measurable standard. Corrective actions are
initiated where the actual performance deviates from the standards. The
reviews are conducted in constructive manner to improve future
performance.
Advantages of MBO:
Application of MBO provides the following benefits to the organizations.
a) MBO is an objective method of evaluation. It is results-oriented. Employees
know exactly that their evaluation will be based on success in achieving
objectives. They feel committed to objectives.
b) MBO fosters participative management. Goal-setting and performance reviews
are done jointly by superior and subordinate. The supervisor is a counselor and
facilitator.
c) MBO assists planning and control. It motivates employees toward higher
productivity, innovation and creativity. Employees have freedom to determine
the means for achieving objectives.
d) Joint performance reviews help improve performance.
e) Rewards are linked to performance.
Disadvantages of MBO:
MBO has the following limitations for performance evaluation.
a) MBO cannot be effective where managers do not trust the employees. External
controls are not suitable for MBO. Top management support for MBO may be
lacking.
b) MBO is time consuming in developing and administering.
c) Employees tend to set very low or high very high objectives. Quality may be
compromised by quantity.
d) Difficulties arise in measuring performance of MBO activities.
e) Comparison between employees is not possible under MBO. Every employee has
different set of objectives.
f) Lacking of proper climate for MBO to succeed.
Problems of Performance Evaluation
Performance evaluation is a powerful tool to standardize , refine and reward the
performance of the employee. It provides guidelines about how to perform job
effectively in future so the overall objectives can be achieved. For this purpose there
must be an effective performance evaluation system in the organization. The following
are the common problems of performance evaluation.
a) Shifting standards
b) Different patterns
c) Role conflict
d) Time gap
e) Bias
f) Lack of skills
g) Organizational apathy
h) Human error
i) Lack of linkage
Performance Evaluation in Nepal
In Nepalese organizations, performance evaluation has received lower priority. Personal
judgment and subjective assessment have been the key criteria in many private sector
organizations. It is mostly linked with promotion and pay increment. However, it lacks
transparency and not used either for corrective action or for career planning. The lack of
performance evaluation system makes the competent employees highly dissatisfied at work
and with pay and benefits. Performance evaluation is often done by immediate supervisor in
Nepali organizations. In addition, recommendation from supervisors, peers, and customers
are also used as inputs. The following are the common features of performance evaluation
practices in many Nepalese organizations.
a) Low Priority
b) Informal and Subjective
c) Promotion-oriented Purpose
d) Lack of transparency
e) Personal biases and judgment
f) Not consider as a part of HR planning
g) Lack of MBO practice
Grievance Handling
• A grievance refers to any form of discontent or dissatisfaction with
any aspect of the organization.
• The dissatisfaction must arise out of employment and not due to
personal or family problems.
• The discontent can arise out of real or imaginary reasons. The reason
for such a feeling may be valid or invalid, legitimate or irrational,
justifiable or ridiculous.
• A grievance is traceable to be perceived as non-fulfillment of one’s
expectations from the organization
Types of Grievances
• Individual:(benefit, salary, career development.)
•Organizational:(work environment, policy, performance mgmt.)
•Behavioral:( perception, attitude.)
•External: (Market forces etc.)
Types Of Grievance in Public Sector
• Grievances against Policies:
• Citizens may express dissatisfaction against the policies of the Government, which could potentially impact a large
populace.
• Such grievances are typically voiced in the media and legislatures.

•Grievances due to Maladministration:

• This type of grievance arises when the Government policies are not efficiently implemented.
• Lack of coordination between various departments or agencies or inefficiency of officials due to heavy workload.
•Grievances due to Corruption:
• Arises due to lack of integrity ethic and morale among officials within the
administration.
• The public has been enduring the repercussions of rampant corruption at all levels.
Causes of Grievances
• Economic:
a) Employees may demand for individual wage adjustments. They may
feel paid less when compared to others.
b) For example, late bonus, adjustment to overtime pay, perceived
inequality in treatment, claims for equal pay.

• Work environment:
a) It may be undesirable or unsatisfactory conditions of work.
b) For example, light, space, heat, or poor physical conditions of
workplace, defective tools and equipment, poor quality of material,
unfair rules, and lack of recognition.
• Supervision:
a) Related to the attitude of the supervisor towards the employee such as
perceived nations of bias, favoritism, regional feeling etc.…
• Work Group:
a) Suffers from feelings of neglect.
b) Employee is unable to adjust with his colleagues
c) Victimization and becomes an object of ridicule and humiliation etc.…
• Organizational change:
a) Any change in the organizational policies can result in grievances. For
example, the implementation of revised company policies or new working
practices.
Effect of Grievance

• On production:
a) (low productivity, poor quality, quantity, wastage, increased cost)
• On the Employee:
a) (absenteeism , reduced commitment, morale, Accident increases)
• On the Manger:
a) (Strained superior-subordinate relations, indiscipline cases, No
industrial peace)
Grievance Redressal Mechanisms (GRM)

• A grievance redressal mechanism is an integral aspect of any

administration’s machinery.

• An efficient and effective grievance redressal procedure projects an

accountable, responsive, and user-friendly administration.

• In reality, an organization's grievance redressal procedure is a key

performance indicator for its efficiency and effectiveness, as it gives
critical input on the administration’s operations.
Grievance Redressal Mechanisms (GRM): A Framework
Steps in Grievance Redressal Mechanism
Technique to address (GRM):
LESSON TECHNIQUE--------
• L:-Listen Open door policy
• E:-Establish a fact
Suggestion box
• S:-Summaries
• S:-Spacifiy the problem Regular staff meeting
• O:-Obtain agreement
Grievance handling committee
• N:-Note everything
Real time redressal

Use of effective E-governance

Steps in Designing an effective (GRM):
Challenges of Grievance Handling
• Consumers don’t want to reveal their identities and want to report
anonymously, especially those against the authorities, and the unavailability
of such options makes it difficult for them to complain resulting in
hesitation.

• There is also a gender divide evident here, as women may not have the
requisite resources and opportunities to voice their grievances.

• Our society has a culture of adjustments and we don’t like to complain that
results in adjusting rather than raising their voices against the concerns and
the authorities.
Grievance Redressal Practices in Nepal
• Formal & institutionalized mechanism does not exist.
• Ministry wise some kind of practices/efforts can be seen, but not
Adequate.
• Appointment of nodal officer/arrangement of public hearing, mobile
team.
• No Real time Grievance redressal mechanism exist.
• Labor Act 2048
Way Forward
• A uniformity in public grievance redressal mechanism should be developed
with legal binding.
• An effective approach towards e-governance should be developed to solve
real time grievance with time bound approach.
• Right to information and Right to privacy must be protected as provisioned in
constitution as constitutional remedies
• The grievance redressal mechanism should not be looked upon as a challenge
but rather a priority for better policy outcomes and good governance.
• There should also be an awareness generation campaign for which the
government can make use of Local level where people would be made aware
of the channels of grievance.
 Collective Bargaining
• Concept
Collective bargaining is an important function of union. It refers to
negotiation, administration and interpretation of a time-bound written
agreement between two parties. It is collective because the union
represents the workers as a bargaining agent.
The collective bargaining implies collective negotiation of a contract
between the representative of managements on one side and those of
workers on the other, therefore collective bargaining is a process of
negotiation between the employer and the organized workers
represented by their union in order to determine the terms and
conditions of employment.
According to Stevens “Collective Bargaining as a social control
technique for reflecting and transmitting the basic power relationship
which underlie the conflict of interest in an individual relation
system”.
According to Allan Flanders- “Collective Bargaining is a power
relationship between trade union organization and the management
organization. The agreement arrived at is a compromise settlement of
power conflicts”.
According to International Labor Organization(ILO): “Collective
Bargaining can be defined as negotiations about working conditions
and terms of the employment between an employer and a group of
employees or one or more employees’ organizations with a view to
reaching an agreement.”
• The collective bargaining is the process of negotiating in terms of
employment between employer and a group of workers. The terms of
employment are likely to include items such as condition of employment,
working conditions, rules, base pay, overtime pay, work hours, shift length,
work holidays, sick leave, vacation time, retirement benefits and healthcare
etc.
• Collective bargaining is a dispute redressal mechanism where workers and
employers engage in a series of negotiations, diplomatic and political
exercises, to do collective agreement to resolve the dispute. The results of
collective bargaining establishes rule of employment for a set number of
years.
• The collective agreement lays down specific terms and conditions of
employment It has two aspect.
a) It defines employer-employee relation on the job through a collective
agreement
b) It interprets and administers the collective agreement
Common provisions in collective bargaining agreements relate to:
a) Union Recognition
b) Union Security
c) Wage Rates
d) Conditions of Employment
e) Benefits
f) Strikes and Lockouts
g) Seniority Clause
h) Discipline
i) Grievance Procedure
j) Management Rights
Importance of Collective Bargaining
Collective bargaining is important to both workers and employers. It provides
agreement of both parties on an acceptable contract.
a) It promote and protects the interest of both the parties and empowers them
economically.
b) It helps to establish uniform terms and conditions of employment to prevent
disputes.
c) It helps to settle down disputes when they arise. It leads to mutual understanding.
d) It lays down norms and rules for interrelationships between labor and
management.
e) It helps to establish favorable work climate.
f) It promotes participation and democratic leadership. Decisions are implemented
effectively.
Collective Bargaining Process
• The collective bargaining process consists of
a) Preparation for negotiation Preparation for negotiation
b) Contract negotiation
c) Agreement Contract negotiation
d) Union ratification
e) Contract administration Agreement

Union ratification

Contract administration
Preparing for Negotiation
This is the homework phase for both the union and management.
Information is gathered from the following sources;
a) Internal Sources: Grievance and accident records, job performance
reports, overtime figures, transfer, turnover, absenteeism, and
financial performance serve as internal source of information
b) External Sources: Economic forecasts, cost of living, terms of
recently negotiated contracts in similar organizations, and industry
labor statistics serve as external source of information.
At this phase both parties formulate a strategy for negotiation by
assessing other side’s power and tactics. Negotiators are designated
from both parties. Bargaining issues are identified.
Contract Negotiation
At this stage both parties meet at the bargaining table. Union delivers a list of demand to the
management. The negotiation continues formally. But the real negotiation takes place behind the
closed doors. A settlement is reached by both the parties based on compromises. It results in an
oral agreement.
Agreement
At this stage the oral agreement is converted into a written agreement/document. The legal
dimensions are carefully taken care of. It is signed by both parties.
Union Ratification
At this stage the union negotiators submit the agreement for approval from the members. If voted
for acceptance, the agreement is converted into a contract.
Contract Administration
At this stage the contract is administered by;
a) Informing union members and management about the contract.
b) Implementing the contract.
c) Interpreting the contract and resolving grievances.
d) Monitoring activities during the contract to provide feedback for next negotiation.
Management is primarily responsible for contract administration. The human resource managers
play a crucial role in day-to-day administration of contract.
Issues in Collective Bargaining
• Collective bargaining means collective negotiations between the
employer and employees, relating to their work situations. The success
of these negotiations depends upon mutual understanding and give and
take principles between the employers and employees. In collective
bargaining , the following three issues are taken into considerations.
Mandatory issue
a) Wages f) Benefits k) Security etc.
b) Working hours g) Severance Pay
c) Rest Period h) Pensions
d) Layoffs i) Insurance Benefits
e) Transfer j)Profit Sharing Plans
Illegal issue Voluntary issue

a) Closed Shops a) Indemnity bond

b) Separation of employee b) Pension benefits
c) Different wages c) Contract with internal unions
d) Termination d) Continuance of past Contract
e) Other discrimination e) Settlement of unfair labor charge
Code of Ethics and Discipline
A code of ethics is a formal document that outlines the moral principles and
guidelines that govern the behavior and decisions of individuals or groups
within a particular organization, profession, or community. It serves as a
framework for ethical conduct and provides standards against which actions
can be assessed for their moral correctness. It contains;
a) Core Values
b) Professional Responsibilities
c) Ethical Decision-Making
d) Professional relationships
e) Compliance and reporting
f) Continuous improvement
Importance of code of ethics
• Guidance for Ethical Behavior
• Promotion of trust and integrity
• Conflict resolution and decision making
• Legal and regulatory compliance
• Protection of stakeholders interests
• Accountability and Discipline
• Organizational Culture and Employee Morale
• Continuous improvement and Adaptability
What are ethics codes for?
• Code of ethics increases the probability that people will behave in
certain ways. It means that it focuses on sanctions for violations.
• Good ethics codes can focus public servant on action that result doing
the right things for the right reasons.
• Codes of ethics do not take away one’s own moral autonomy or
absolve the public servant from the obligation to reason.
• Codes of ethics can function as a professional statement.
Concept of Discipline
• Discipline is concerned with considerations of rules, regulations and
system of the organization. Large scale organizations have their own
rules and systems for maintaining standard of performance.
• Discipline bound the employee to act and behave in accordance of
system developed by the management of the organization. The
implementation of disciplinary measures facilitates the managers to
coordinate and control the activities of subordinates to maintain
standard of performance and to achieve predetermined objectives. It is
possible because all the members abide by the rules of the
organization.
• According to Decenzo and Robbins: “Discipline is a condition in the
organization when employees conduct themselves in accordance with
the organization’s rules and standards of acceptable behavior.”
• According to Gary Dessler: “Discipline is a procedure that corrects or
punishes a subordinate because a rule or procedure has been violated.”
• According to Caloon: “Discipline may be considered as a force that
prompts individuals or groups to observes the rules, regulations and
procedures which are deemed to be necessary for the effective
functioning of an organization.”
Importance of Discipline
• Promotes suitable behavior
• Improve efficiency
• Ensures safety
• Division of work
• Improve performance
• Ensures fairness
• Security to employees
• Eliminate unproductive workers
Types of Disciplinary Problems

• Attendance related problem

• Job-behavior related problem
• Dishonesty related
• Outside activities related
Attendance related problem Job-behavior related problem

• Absenteeism • Carelessness in doing work

• late arriving at work • Refusal to obey orders
• Leaving job without permission • Refusal to obey safety devices
• Habitual tardiness • Drunk at work
• Abuse of leave • Gambling /Fighting at work
Dishonesty related problem Outside Activities related problem

• Theft • Unauthorized strike

• Falsification of information • Smuggling
• Subversive Activities • Misuse wages of others
• Punch time card for other • Make embarrassing speech
employees • Give confidential information to
• Concealing defective work competitors
Guidelines in Administering Discipline
• For managing disciplines and to develop a disciplined workforce in an organization,
it is necessary to develop guidelines. The following are the general guidelines for
managing discipline in the organization:
• Development of policy
• Corrective disciplinary action
• Tracking of disciplinary cases
• Legal perspective
• Complaints redressal system
• Fairness
• Progressive disciplinary action
• Confidentiality of complaints
Disciplinary Actions
• Oral Warning
• Written warning
• Suspension
• Pay cut
• Demotion
• Dismissal
 Any queries?

Thank You.