HRM Practices & Civil Service Performance in Nepal

This PhD thesis investigates the impact of Human Resource Management (HRM) practices on the reorganization and performance of the Nepalese civil service. The study critically reviews existing literature on civil service reform and HRM practices focusing on employee motivation. It assesses factors influencing civil service performance in Nepal, identifies HRM practices contributing to reorganization, and investigates HRM challenges, suggesting pre-conditions for success. The research employs a deductive approach, utilizing both primary data (a questionnaire survey of managerial-level civil servants with 10+ years of experience) and secondary data (literature review). Qualitative data analysis techniques are used to interpret findings, exploring themes related to motivation, incentives, performance appraisal, and the impact of HRM practices on restructuring and reorganization. The thesis concludes by offering recommendations to improve HRM practices, particularly concerning monetary incentives, to enhance the performance and satisfaction of Nepalese civil servants. The study highlights challenges such as political instability, low morale, weak performance measurement, and the need for incentive-based motivation strategies tailored to the unique context of the Nepalese civil service.

PhD Thesis
Evaluating the Impact of Human Resource Management Practices on
the Re-organisation and Performance of the Civil Service in Nepal
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ABSTRACT
In the modern era motivation plays most significant role in the organization as through this
staff members prefer to take active participation in the affairs of the organization and this in turn
acts as development tool for the entity. It directly depends on every business enterprise which
motivation theory to consider so that its staff members can work for the betterment of organization.
It is well known fact that employees working in organization are considered as most valuable
resource and its absence can automatically decline performance of the business. Therefore,
motivation as a tool has been adopted by every business enterprise so that management can meet
with overall requirement of staff members in effective manner. It is identified that in country like
Nepal employees working in the government organizations are having low motivation level and due
to this basic reason they are ineffective in rendering service to the customers. Incentive provided to
the staff members can be both in positive and negative manner and combination of both financial
along with non financial incentive is regarded as appropriate as this can easily satisfy need of every
employee in most efficient manner.
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ACKNOWLEDGEMENT
I owe my deepest gratitude to my mentor who inspired and guided me with his wisdom and
knowledge. His commitment to the highest standards motivated me to carry out the entire
dissertation in the right manner. I would express sincere thanks to my family members and friends
who provided me immense support throughout the entire research work. I would also like to thank
my colleagues and team members who helped me in gathering the data for the study and its
analysis.
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TABLE OF CONTENTS
CHAPTER 1- INTRODUCTION........................................................................................................5
1.1 Introduction...........................................................................................................................5
1.2 Rationale of the study...........................................................................................................7
1.3 Aims and Objectives.............................................................................................................9
1.4 The structure of the study....................................................................................................10
CHAPTER 2 - LITERATURE REVIEW...........................................................................................12
2.1 HRM in Nepal civil services...............................................................................................12
2.2 Civil service and incentive based motivation......................................................................13
2.3 Research within civil services of Nepal and overall human resource management practices 16
2.4 Civil services work environment........................................................................................20
2.5 Motivation in Civil Services...............................................................................................22
2.6 Incentive theory of motivation ...........................................................................................24
2.7 HRD planning in Nepal civil services.................................................................................28
2.8 Motivation of the civil servants..........................................................................................30
Chapter 3: CONCEPTUAL FRAMEWORK.....................................................................................37
3.1 Introduction.........................................................................................................................37
3.2 HRM practices in civil services in Nepal............................................................................37
3.3 Failure of civil service in earlier years................................................................................39
3.4 Factors affecting employee motivation...............................................................................40
3.5 Performance Management..................................................................................................42
3.6 Purpose and significance of performance management......................................................44
3.7 Taylor's Theory of Motivation.............................................................................................45
3.8 Effectiveness of monetary motivation................................................................................49
3.9 Non monetary motivation...................................................................................................49
3.10 Ways to motivate employees.............................................................................................50
3.11 Performance Appraisal .....................................................................................................50
3.12 Impact on employee performance.....................................................................................55
3.13 Sources of Motivation.......................................................................................................55
3.14 Positive and Negative Motivation.....................................................................................57
CHAPTER 4: RESEARCH METHODOLOGY................................................................................62
4.1 Introduction.........................................................................................................................62
4.2 Research design...................................................................................................................62
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4.3 Research Philosophy...........................................................................................................65
4.4 Research approach..............................................................................................................68
4.5 Data Collection...................................................................................................................70
4.6 Data Analysis......................................................................................................................74
4.7 Research strategy................................................................................................................77
4.8 Sampling.............................................................................................................................78
4.9 Data Validity and Reliability...............................................................................................81
4.10 Limitations of the study....................................................................................................81
4.11 Ethical Consideration........................................................................................................82
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INDEX OF TABLES
Table 1: Aims, objectives & questions.................................................................................................9
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ILLUSTRATION INDEX
Illustration 1: Conceptual Framework................................................................................................38
Illustration 2: Research onion.............................................................................................................63
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CHAPTER 1- INTRODUCTION
1.1 Introduction
Nepal became Republic in the year 2008 after monarchs for most of its modern history has
ruled the entire nation (Aladwan, Bhanugopan and D'Netto, 2015). In Nepal, the monarchy of King
Gyanendra abolished in the year 2006 after occurrence of war which took place between Maoist
rebel and the Monarchy (Albrecht, 2000). So, this directly lead to dominance of new government by
Maoists and it was developed in the year 2008 (Hodder, 2015). The entire history of the country
has been influenced due to political instability and the civil services of the country also suffered
from firms which are poor. Further, after the introduction of the new system the main priorities of
the new regulatory authority were management of human resource and overall development of the
civil services. As per view of Budhwar and Debrah (2013) various efforts have been applied in
order to reform the civil services of Nepal but despite such initiatives taken, officials of regulatory
authorities did not have the power to re-organise and introduce civil service reforms on a result
oriented basis (Budhwar and Debrah 2013). Further, in the year 1990's the government of Nepal set
up an administrative Restructuring Commission so as to re-organise the civil services in Nepal in
effective manner (Shakya, 2009).
At present Nepal is facing large number of challenges in moving to a federal, secular and
democratic state. Further, approach such as federal can make regulatory authorities more receptive
to the changing need and requirement of the people living in the nation. According to Duff and Bull
(2011) there exist direct relationship between quality services and overall motivation level of the
employees rendering civil services (Duff and Bull, 2011). As in case when staff members are highly
motivated then it enhances their capability to deliver high quality services to the local people which
is above their expectations level. Moreover, it is well known fact that every individual living in the
society has some sort of expectations from local authorities in the form of development of the
country etc (Sinha, 1992). Further, an efficient civil service is necessarily required for improved
effectiveness and motivation, and it directly leads to better services to the local public etc. However
Rana (2011) argued that, main objective of Nepal civil service is to serve the state in enhancing
public welfare through maintenance of peace and proper order in the society (Rana, 2011)).
Moreover, main stress is also on effective distribution of economic resources available within the
country and carrying out wide range of development activities for socio-economic development.
Further, importance of managing human resource that are linked with civil services is increasing at
faster pace as it also contributes in the development of the economy as well as the nation (Budhwar
and Debrah, 2013).
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Political instability and overall changes taking in Nepal are adversely affecting entire nation
as the initiatives taken for public welfare are not at all effective and this can be one of the reason
behind slow economic growth of country (Baer, 2014). Nepal has a civil service which considers
total strength of 105, 510 positions, with around 0.4 percent staff members of total population and
1.2 percent of total economically labour force which can be defined as the population of 10 years of
age and above. So this strength is rendering services to 27.0 million population of the country which
is increasing at a faster pace of 2.25 percent. As per view of Moideenkutty, Lamki and Murthy
(2011) overall administrative reform is applying larger efforts of which civil service is a significant
part (Moideenkutty, Lamki and Murthy, 2011). Further, the services rendered to the local public
directly depend on employees who are assigned responsibility by government to work for the
welfare of society. It is well known fact that to manage human resource is not an easy task as
various factors are present on the basis of which needs of employees rendering civil services can be
satisfied in effective manner (Bockel and Noordegraaf, 2006). Managing staff members in
appropriate manner is quite important as through this it is possible to deliver effective services for
the welfare of society. Further, human resource is regarded as one of the most valuable asset of the
organization and its presence is necessary especially in case of civil services (Prabhu, 2004). This
resource takes into consideration individuals with wide variety of skills, knowledge, attitude and
they are expected to perform job activities so that maximum contribution to the society is possible.
In short employees are critical to the success of the business enterprise and main stress is on
enhancing efficiency of employees so that more effective results can be obtained easily. According
to Hondeghem and Vandermeulen (2000) motivational techniques are regarded to be more effective
especially at the time of managing human resource as through this staff members take active
participation in the affairs of the enterprise and in turn acts as development tool. Due to this basic
reason government organisations have also adopted incentive schemes with the help of which
workforce are managed in appropriate manner (Brewer, Selden and Facer II, 2000). The practices
employed for managing human resource has direct impact on the performance of the firm as
employees are considered as the key resource and without proper management it is not possible to
respond to the changing needs of the society in efficient manner (Duff and Bull, 2011). However
Kessler, Heron and Gagnon (2006) argued that to render civil services is not at all easy as it requires
proper participation of staff members so that interest of local public can be safeguarded in effective
manner. Due to this specific reason training, motivation and overall development is significant in
every organization so that staff members can more contribute in the affairs of company (Budhwar
and Debrah, 2013).
The government of Nepal has designed institutional and organisational structures for
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carrying out crucial activities such as running public administration and delivering services to the
local public (Aladwan, Bhanugopan and D'Netto, 2015). Large number of firms is structured from
the centre down to the local level for rendering services to people living in society and this has
contributed in economic development. The overall system of government of Nepal is effective in
nature which involves regional, central, zonal, district and overall area level. Further, people living
in the society have to face many issues due to which government of the country has positioned area
level offices which builds close contract between government and the local public (Burgess and
Ratto, 2003). Employees rendering civil services have to be managed properly so that they can
easily resolve the queries of the people.
1.2 Rationale of the study
Despite the many efforts and measure recognized to motivate employees to improve their
performance and productivity, the civil services in Nepal still far behind the expectations. Moreover,
it is suffering from many drawbacks in terms of transparency, inefficiency, lack of responsibility
and low productivity (Cintas, Gosse and Vatteville, 2013). In comparison with other nations, Nepal
took long time than other nations to adopt changes into governmental structure from monarchy to a
democratic and federal structure. Followed by the government reform, significant efforts are also
taken to introduce improvement in the civil services in Nepal (Van Rijckeghem and Weder, 2001).
There are commendable steps taken by the first and second Nepalese Constituent Assembly in 2008
and 2013. The most notable was abolition of monarchy and establishment of democratic republic
form of government. There were also challenges faced by the new assemblies but the republican
structure remained in place (Delves, 2011). Efforts of the new constitution heads were duly
recognized at the international level as they focus on serving the citizens. The Prime Minister soon
after taking charge issued special directions for the top government heads. He instead requested to
consider and rewards civil servants equally without any discrimination solely on the basis of
performance (Francois, 2000). This can be understood as that focus of the Prime Minister is towards
equality among the public servants.
The reason to prepare this study is to understand the way HRM practices in private
organization can be implemented to improve the motivation level of employees. There is huge
difference in the structure and system of public and private form of organization. The attitude and
work process of employees are also significantly different (Shah, 2007). The study will evaluate
impact of HRM practices in the re-organization and performance of civil services in the country.
The below par efficiency and performance of civil servants requires an in-depth research
into the supervision and satisfaction level of employees. There is direct and close relationship
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between the efficiency and performance with the satisfaction level, because it determines the
success of implementation of the efforts by the employees (Dixit, 2002).
The aims and objectives of the study also call for identification and analysis of the factors
influencing the structure of public service commission and actions of civil servants in Nepal. The
researcher shall highlight the factors most affecting the successful implementation of the services in
the country (Easterly, 2001). The study is conducted to assess the effects of earlier recommendation
proposed by the commissions for reforms in the civil services of the Nepal. It will also take into
recent improvements in the Nepal civil services. Along with these are the interpretations and
impacts of the data procured from different sources (Doig, Watt and Williams, 2007). The
information will serve as potent tool in providing other nations the specific strengths of the HRM
practices on civil services. The study could be used as benchmark for other under developed and
developing countries as well as developed economies who are struggling with issues of civil
services (Rauch and Evans, 2000). The study stresses that the incentive based motivation aspects is
a critical tool in improving the level of satisfaction among the civil servants which influences
productivity and efficiency.
Keeping all these points, low efficiency and productivity, there is much to be researched
about the various aspects of HRM in civil services. It is because there is close relationship between
objectives of the civil services and motivation of employees (Duff and Bull, 2011). The degree of
success that an employee is motivated is significant in determination of success of broad objectives
(Van and et. al., 2002). More particularly, among the two types of motivation theories, the incentive
motivation is more preferred to achieve higher satisfaction.
There are studies undertaken on the reforms in civil administration in Nepal, failure of civil
services, restructuring of state and human resource planning in civil services. There were no
research and studies focused on impact of HRM practice on the re-organization and performance of
civil service, especially in reference to incentive theory of motivation (Easterly, 2001). The
intention to carry out this study is discuss the impact of motivation practices on performance of civil
servants. The subject matter of the study surrounds structure and system of civil services in Nepal
and incentive theories of motivation (Shah, 2007). These two actually are two different aspects
because motivation is not significantly linked with public sector services with the way it is linked
with private sector services. Moreover, civil services are a huge area to apply the theories of
motivation in the legislative framework. The results of the data interpretation are intended to
develop decision making to involve motivation theories in the civil services at the national level
(Farnham, Horton and White, 2003). The present study is an attempt to explain the way employees
in the civil services can be motivated with financial means to achieve higher satisfaction and
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