International School of Management HRM Case Study: Kathmandu Logistics

This document presents a comprehensive analysis of two case studies related to Human Resource Management (HRM). The first case study focuses on Kathmandu Logistics Pvt. Ltd., which is experiencing high employee turnover. The analysis explores the need for an HR department, examines recruitment and selection practices, and discusses potential solutions to address employee dissatisfaction and improve performance management and training. The second case study involves The Mild Steel Company, highlighting the challenges of implementing new recruitment policies and the importance of considering employee needs and job satisfaction. The analysis identifies management practices that the company can implement to improve employee relations, enhance job satisfaction, and retain employees. The document provides detailed explanations, examples, and recommendations for both cases, offering valuable insights into effective HRM strategies.

INTERNATIONAL SCHOOL OF MANAGEMENT AND TECHNOLOGY
(ISMT)
Tinkune, Gairigaun, Kathmandu
Semester Online Examination
Subject –Unit 3 Human Resource Management (Y/508/0487)
Full Marks – 100 Pass Marks – 40
Case Study: 1
Sinha is a senior employee of Kathmandu Logistics Pvt. Ltd. having its headquarters at
Kathmandu and branches at all major cities in the country. The managing partner of the firm
asked Sinha to head its eastern branch at Biratnagar. The firm has been quite successful since its
inception in 1950‘s, but has witnessed high turnover among its younger staff in the last five
years. The managing partner is convinced that the problem is not salary, because a recent survey
indicated that the firm ‘s salary structure is competitive with that of other major firms. Driven by
this incomprehension, the managing partner wanted Sinha to find out the real reasons.
Having settled in Biratnagar, Sinha met the four Senior Managers to determine why the branch
has had such a high attrition rate amongst the younger staff. Krishna, age 46, stated that the
younger staff lacked dedication and failed to appreciate the career opportunities provided by the
firm. Govind, age 52, said the younger employees were always complaining about the lack of
meaningful feedback on their performance, and many mentioned that they would like to have a
mentor in the organization to assist with their development. Govind further explained that the
firm does provide performance rating to its staff and the previous Manager had always
maintained an open-door policy. Manohar, aged 39, said that he has received complaints that
training was not relevant and was generally dull. He explained that various persons in the firm
who worked with training from time to time acted mainly on guidance from Kathmandu. Radha,
aged 35, said she believed that the root of the problem is the absence of an HR department.
However, she said that when the idea was mentioned to the managing partner in Kathmandu, it
was completely rejected.
Q.no 1
Ans: Yes, I think that Kathmandu Logistics Pvt. Ltd needs an HR Department. Human Resource
(HR) is the paragliding concept used to describe employee management and development within
an organization. Ultimately, it is just about rising the efficiency of the employees. HR plays a
significant role in developing positive business culture and improving employee engagement and
productivity of both which are critical to business success. HR is an area of expertise many
business owners lack.
HR covers so much more than hiring, firing and pay reviews. It encompasses all aspects of
people management, communication and is pivotal in building a positive culture. When
employees don’t feel supported, opportunities are not given, work long hour and so on, their
performance motivation is impacted.
The main function and purpose of HR are:
 Recruitment and On-boarding
 Performance management and training

 Building and maintaining company culture
 Business communications
 Legal and regulatory compliance
1. Recruitment and On-boarding
Finding the opportune individuals to work in your business can be troublesome. The recruitment
procedure can take months and failing to understand the situation can be exorbitant. Finding a
solid match with regards to selecting ability is one of the most significant parts of HR. Recruit an
excessive number of individuals, excessively little or enroll an improper applicant and your
business will endure.
The significance of onboarding is maybe the most thought little of part of the recruitment
procedure. onboarding alludes to the entire experience of employing, inviting, situating and
connecting with a newcomer and absorbing them into the way of life of your association.
Poor onboarding can have a tremendously negative effect and leave capable new workers
separated from the word go. Great onboarding amplifies representative commitment and builds
maintenance. For direction, see the Recruitment and Induction Guide by the Chartered Institute
of Personnel and Development (CIPD).
2. Performance management and training
Performance management, preparing and advancement are a major piece of HR. Practically all
representatives will have a few shortcomings in their work environment aptitudes. Execution the
executives assists with tending to those issues. A viable exhibition the board framework
empowers supervisors to offer help to representatives who need it and recognize future whizzes.
Learning openings add to better representative commitment, expanded profitability, diminished
worker turnover and add to an increasingly positive culture.
Exhaustive preparing and self-awareness help to diminish any feeble connections in the
organization (counting chiefs). Putting resources into your workers fortifies your association and
gives your business a serious edge.
3. Building and maintaining company culture
Positive business culture is not, at this point a pleasant to-have. It drives worker commitment,
work fulfillment and staff maintenance, and it characterizes business achievement. HR assumes a
key job in creating, strengthening and changing the way of life of an association. Pay, execution
the executives, preparing and improvement, enlistment and on-boarding and fortifying the
estimations of the business are for the most part fundamental components of business culture
secured by HR.
Getting society right isn't simple. It requires a multi-pronged methodology and necessities
predictable sustaining (read increasingly about working environment culture in The Culture
Economy Report 2020). Basically, HR assumes a critical job in setting the correct tone with
regards to organization culture.
4. Business communications
Each business requires compelling correspondence to work. Most organizations include
individuals and depend on a progression of connections with others. How correspondence
happens in a business is regularly characterized by HR. Basically, correspondence frames the
premise of your way of life.

Great correspondence mitigates false impressions, expands representative commitment, shapes
the reason for better customer connections, energizes development and inventiveness and assists
with building a positive culture.
5. Legal and regulatory compliance
HR experts have a full comprehension of work law and the entirety of the administrative
necessities of a business with regards to their kin. This is a colossal region and shouldn't be
disparaged. An out of line excusal guarantee could be a costly misstep.
Utilizing a committed HR proficient isn't an extravagance for SMEs, it's fundamental. It's regular
for business people to begin their business wearing the HR cap, yet caring for HR and the
complexities of work law isn't viable time the executives and it's exorbitant for the business
when something turns out badly.
Business pioneers should focus on developing the business and leave HR to the experts. For a
private venture this may mean low maintenance HR administrator in any case or necessities can
be redistributed. Having somebody to manage everything representative related from
nonattendance the board, staff complaints, occasion privilege, pay, to maternity and paternity
approaches will guarantee your business is kept consistent.
HR the executives can likewise assume a significant job in key arranging and friends
development. For instance, HR experts partake in:
 Intending to recruit or move workers when an organization develops.
 Preparing new representatives as the organization makes changes or grows.
 Creating impetus projects to enable the organization to rival different businesses.
 Exploring laws and arrangements identified with representatives in different states or
nations.
 Setting up worker transportation, moves, and different coordinations varying.
a. With reference to two approaches to recruitment and selection, explain their strengths and
weaknesses in the context of Kathmandu Logistic Pvt. Ltd. (15 marks)
Q.no: 2
Ans: Recruitment refers to the procedure by which laborers are recognized, enrolled, talked
with, picked, recruiting and on boarded. At the end of the day, it includes everything from
distinguishing the need to round out a staffing recruitment. Enrollment is the capable of
various staff, contingent upon the size of an association. Bigger associations can have whole
enlistment crews, while others can just have a solitary. The employing administrator might
be liable for the recruitment in little outfits. Along these lines, different business re-
appropriates the preparation to outside firms. Organization consistently looks for
representatives through promotions, work sheets, web based life destinations and other for
new positions. Numerous organizations use enlisting programming to better and all the more
proficiently source top competitors. It generally works related as a piece of Human Resource.
Human Resource Management, additionally called HRM or HR for short, is the limit of
people the board inside an affiliation. HR is liable for empowering the general goals of the
relationship through convincing association of human capital — focusing on agents as the
association's most critical asset.

Selection is the path toward enrolling qualified staff and planning void positions. Rather than
enrollment, decision will excuse each and every inadmissible candidate. This is cultivated
and dull method. It moreover costs a lot of associations to offer sensible expenses to invite
candidates suitable for void positions. As often as possible, the determination strategy will
occur after selection considering the way that in the wake of studying the enrollment
application, the contender doesn't find the right competitor for the position they are searching
for, they will configuration truly to enroll the candidate fitting.
The strengths and weaknesses in the context of Kathmandu Logistic Pvt. Ltd:
Strength:

Case Study: 2
The Mild Steel Company, which was established in January 1965, employed 500 workers and a
large number of technical and clerical staff. The company had its units at various places and the
corporate policies were formulated by the Board of Directors.
For a long time, the company had no well-defined recruitment policy. Several employees without
any professional background were elevated to the posts of managers. Subsequently, when these
persons demanded promotion, the management conceded their demands by promoting them to
even higher posts.
But in recent years, with the changing economic conditions, growing competitions, and
consequent marketing difficulties, the management felt the need for infusing fresh and young
blood in the organization. The company felt that qualified young engineering graduates would be
best suited for the front-line executive posts. If properly trained, the management concluded the
young engineers would be able to put the whole organization on sound footing after a few years
when they reach higher positions.
Before recruiting the young graduates, the management decided to put a qualification embargo
on the old times so that the inadequately qualified managers would never have a chance to rise in
the organization hierarchy.
The company advertised in all leading newspapers inviting applications from First Class
Engineering Graduates for appointment as Junior Executives. The selected candidates were to get
an all-inclusive salary of Rs. 40,000 per month. The candidates were to be put on probation for
one year, after which they could be confirmed in their posts.
Nearly 300 candidates responded to the advertisement. Fifty candidates were selected after
written examination and interview. The selected candidates were imparted intensive theoretical
and practical training and were placed in various shops.
The management started watching the functioning of the various shops that were run by the
young and qualified executives. But they found no improvement.
Meanwhile, discontent was growing in the old timers. They protested that their promotion
opportunities were blocked by the management ‘s new recruitment policy. On the other hand, the
new executives complained that there was no job satisfaction.
Subsequently the management was very much disappointed when 27 of the new executives
submitted their resignations one after another. The management also learnt that the remaining
graduate engineers were also in search of better prospects elsewhere.
The Chief HumanResource Manager of the company conducted an exit
interview of the graduate engineers leaving their jobs to find out the real causes of such a spate
of resignations. The graduate engineers had the following complaints.
1. They were not anything that they will get satisfaction from the jobs. They were also not in
a position to utilize their special knowledge to the fullest extent.
2. Their working conditions were not satisfactory.
3. There was no challenge in the job, and future prospects were completely dim.
4. The management-workers relation was very unhealthy. The entire atmosphere was
charged with doubt, suspicion, and misunderstanding.
5. The senior officers did not give any importance to them and their suggestions.
The management called for a conference of the senior executives to review the company’s
policies of selection, recruitment, training, and induction.
Questions:

1. Explain at least two different management practices that the company will get benefits
from. Give suitable examples. (15marks)
2. Discuss how applying the HRM practices you recommended can help the company
become more effective in terms of raising organizational profit and productivity. (15
marks)
Case Study: 3
Q.no: 1
Ans: HR department assume a significant job in such zones as workforce arranging,
representative and work relations, preparing and advancement and lawful consistence
inside their associations. Since it isn't straightforwardly engaged with the creation of
products and administration, HR might be viewed as a different capacity separated
from the everyday tasks of a business. However, a compelling HR office can have a
genuine effect to the association's prosperity. A HR division ordinarily experiences
various inner and outside components as a major aspect of its capacity.
Internal factor that affect Human Resource Management decision-making
 Level of growth: An internal factor that impacts HR is the organization's pace
of current and anticipated development. Organizations encountering forceful
development and fast extension may require its HR division to concentrate on
enlistment and staffing. Increasingly stale organizations may put a more
prominent spotlight on endeavors on worker maintenance and improving the
organization's way of life and work environment condition through updating
sets of responsibilities and upgrading pay and incidental advantages programs.
Scaling back organizations may need to take the lamentable choice to lose a
portion of its staff; a message that is regularly left to HR to transfer.
 Use of technology: One of the key interior components influencing human
asset arranging is the readiness for the HR office and friends the board to
utilize innovation to help in certain key HR capacities. For instance,
organizations that utilize instruments, for example, online advantages the
board, where representatives can make changes to their advantage plans all
alone, give HR laborers more opportunity to concentrate on different
territories like enlisting or preparing and worker improvement. This can let
loose a lot of time and assets over the association.
 Organizational Structure: Essentially, there are two kinds of authoritative
structures—tall and level. Tall or Pyramid kind of authoritative structures are
appropriate to organizations that are work situated. Here the authority is
vested at the top and the pyramid shows the progressive system of positions.
Level associations are appropriate to innovation arranged organizations. Level
hierarchical structures demonstrate decentralization of power. A large portion
of the advanced associations are innovation based and blessed with capital
and exceptionally instructed representatives. These associations will in
general have an authoritative structure where the quantity of representatives at

the working level is moderately not many. In current associations, the activity
of HR chiefs is a difficult and critical one.
 Policies: Policies are the guide maps in the association. Approaches mention to
individuals what they could possibly do. These direct the way wherein the
destinations of the association are to be accomplished. Targets show the goal
yet the course towards that goal is appeared by approaches.
A portion of the significant approaches that impact crafted by a HR director
are recorded as follows:
i. To give safe working conditions to representatives.
ii. To urge the representatives to accomplish however much of their
potential as could be expected.
iii. To give such remuneration to representatives that supports significant
level of execution.
iv. To give limited time roads to workers.
Arrangements offer standing responses to repeating questions and determine the
means to be taken in deciding.
External factor that affect Human Resource Management decision-making
 Available Labor pool: Maybe the primary capacity of HR divisions is to keep
up sufficient staffing levels through workforce arranging. One outside factor
that impacts the capacity to select qualified competitors is the work advertise
accessibility, which is influenced by joblessness rates, number of qualified
laborers in the sensible driving separation and, now and again, the accessibility
of candidates with specific abilities, for example, nursing or innovation. An
association may experience issues recognizing and pulling in reasonable up-
and-comers, particularly if a similar ranges of abilities are sought after all
through the business. The organization's geographic area may likewise be a
factor if the work pool isn't huge enough in the prompt region. At that point,
HR directors may need to center their enrolling endeavors outside the locale
and pay movement bundles as fitting to urge qualified staff to take up a
position.
 Government Regulation: Government and state working environment laws and
guidelines are outside components influencing human asset the executives that
require HR to guarantee the organization is in consistence. Guidelines can
impact how an organization approaches recruiting, preparing, redressing and in
any event, teaching its laborers, and a slip up could bring about authorizations
against the organization or even claims documented by representatives,
planned workers, sellers and clients. A model is the Americans with
Disabilities Act, which by and large makes the requirement for organizations
to change their office arrangements or give other sensible facilities to people
with inabilities.
 Technological Advancements: This is viewed as an outside impact since when
new advances are presented the HR office can begin seeing how to cut back

and search for approaches to set aside cash. A vocation that used to take 2-4
individuals could be sliced to one done by a solitary individual. Innovation is
reforming the manner in which we work together and from a customer point of
view, yet from an inside cost-reserve funds way.
 Workforce Demographics: As a more seasoned age resigns and another age
enters the workforce the HR office must search for approaches to pull in this
new arrangement of competitors. They should recruit in an alternate manner
and offer various kinds of pay bundles that work for this more youthful age.
Simultaneously, they should offer a workplace contusive to how this age
functions.
Q.no: 2
Ans: Legislation, laws and different guidelines, for example, The Employment Rights Act,
Equal Pay Act, Sex Discrimination Act, The National Minimum Wage Act, and The
Disability Discrimination Act and so on must be gone along by any business in the midst of
dynamic particularly in dynamic of HRM as it might absolutely change any choice or plan set
by the HR division. A few components applicable to work are considered in business
enactment which incorporate:
 Equal employment opportunity
 Affirmative actions
 Sexual harassment
 Working time regulations
 Wages and remuneration
 Working conditions
 Trade unions and other industrial relationships
 Welfare, safety and health
 Social security
 Special provisions for other occupations or groups etc.
These above key referenced components guarantees that legally binding understandings of
businesses coordinate with those of representatives in consistence with enactment. The
extensive effect of business enactment when HR chiefs take choices in regards to the
occupations and whole organization is talked in the accompanying: The absolute first effect is
on choices in regards to the working environment plans and security estimations of the
laborers where the HR faculty ought to agree to the base prerequisites else they will be
lawfully punished. Once more, as the key target of enactment is protecting laborers from
separation and disparity, troughs of HR need to detail uncommon HR plans and working
environment overseeing strategies. Enactment additionally directs finance approaches and
other compensation and advantages designs in accordance with the working time booking and
arranging as needs be so every HR choice goes right affirming reasonableness and uniformity.
Additionally work enactment impacts government disability plans of the organization and
exceptional arrangements relying upon circumstances and employment nature .
Government laws sway human asset the executives on a national level, albeit private ventures
may now and again be absolved relying upon their size. Notwithstanding government

enactment, each state has its own business law guidelines, influencing such subjects as records
maintenance, work relations, worker criminal records checks and even the mileage repayment
prerequisites for representatives. Thusly, HR experts must be knowledgeable in the ever-
changing field of business law to limit the association's obligation in all parts of HR tasks.
The impact of employment legislation on the Human Relations has been widely considered, at
any rate there has been sensibly little idea with respect to the consequences for human asset
experts. The suggestion explores this issue by organizing thirty one semi-sifted through
gatherings at three open part affiliations. Three possible spaces of effect are perceived: The
lead of the action, undeniably whether it has become more legalistic; the probability to have
an effect in affiliations' logically expansive procedure; and the ace status of human asset.
Concerning the in any case, the action of the human asset fit in working practice is seen as
like that of a conclusive legitimate understanding, including quieting expected dangers of
worker suit. On the second, key dynamic is seen as a perilous space in pro relations as there
are such a tremendous number of requests and outside impacts that are outside the ability to
control of the human asset work. In any case, the idea of the cutoff lies in sound quiet
objected to operational essential practices. At long last, on the third the speculation battles that
human asset pros inside the worker relations condition are alliance based useful real heading
yet that they come up short on the instructive extraordinary position and dynamic aptitudes
expected of genuine experts. Considering, work rule has raised the twisted level required in
the calling, which along these lines has raised the human asset character with a definitive
target that in future the action may move impressively advance toward formalization and
professionalization.