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Case Analysis Of Tea Industry Nepal Management Essay

All organizations evaluate the performance of their employees to find out their relative price for the job these are doing. Performance has been related to the productivity, it is very important for the business to accomplish its goals and objectives. Effective performance for the business means that productivity can be taken care of with fewer amounts of employees. Performing effectively is also of critical importance to the employee because organizations can't tolerate poor performance, they (employees) are more likely to be dismissed. The effective management performance, therefore, isn't just essential for the long-term survival of the organizations but is also a moral obligation on the employees.

Performance appraisal is the systematic evaluation of individuals to their performance on the job and their potentials for development (Dale S. Beach, 1980: 290). Wendell French has identified performance appraisal as a organized and periodic assessment of how well employees are undertaking their jobs with regards to established criteria and the communication of that analysis to employees. It is an activity of evaluation an employee's job performance in terms of its requirements.

A systematic performance appraisal provides information to make decisions about various problems such as promotions, pay enhances, layoffs, training and development and exchanges. It really is management's powerful tool in handling human source of information and productivity. Managers can improve an employee's job performance through clarifying targets and analyzing performance. Employees also, in general, prefer having some type of appraisal to develop an appropriate eyesight of their own efficiency and opportunities (Roberta, V. R. 1986; 23). Formal performance appraisal can meet the three needs, one of the business and the other two of the individuals within the organization:

It provides organized judgments to back up salary increase, copy, demotion or termination.

It is the method of connecting to subordinates the tendencies, attitudes, skills or job knowledge and let him know where he stands.

It can be used as a base for instruction and counseling the individual by his superior.

The effective management of performance isn't only essential for the success of the business but is also in the best interest of the employees. The underlying assumption of performance management is the fact that the individual employees can satisfy their needs and targets by contributing to the attainment of the organization's goals. This may cause employee's determination and better job-satisfaction which reaches the central of HRM (Cushway. 2001).

The performance appraisal process generally involves the following six steps as depicted in Figure 1. 1 (Decenzo and Robbins, 1988).

Figure 1. 1 The Performance Appraisal Process

Establish performance standards

Communicate performance anticipations to employees

Measure actual performance

Compare actual performance with the standards

Discuss the appraisal with the employee

If necessary, initiate corrective action

The performance appraisal process begins with the establishment of clear and objective criteria of performance developed out of job examination and job information. These standards have to be communicated to the employees. Subordinates have to receive and understand the information properly. The third step is the way of measuring of the genuine performance. For this, four measures can be employed by managers, specifically, personal observation, satisfied accounts, oval reports and written accounts. The fourth step is the comparability of genuine performance with the criteria. If any deviations are located between standards and genuine performance, the director may check out the fifth step to go over the appraisal with the employees. The final step in the appraisal is the initiation of corrective action when necessary.

Performance evaluation systems in Nepalese organizations are necessary. The results of performance appraisal aren't used in conditions of job development, pay back management and employee training and development. The results are mostly used to decide whether to market employees or not (Adhikari, 2006: 250).

The main purpose of performance analysis in authorities and public corporations is the campaign of employees. It is not used for performance opinions to employees, compensation management and recognition of training and development needs. In civil service, 40 percent of performance appraisal is confidential and therefore non transparent to staff (Agrawal, 2004 : 232).

Three different approaches can be found for doing appraisals. Employees can be appraised against (i) utter standards, (ii) comparative standards, or (iii) objectives (MBO). However, nobody approach is actually best. Absolute requirements are individual focused whereas relative criteria list individuals. Management by objectives facilitates ongoing improvement of performance results.

Most of the private sector companies in Nepal lack systematic performance appraisal system. Personal judgment and subjective assessment of owner-manager functions as the main element requirements for performance appraisal (Agrawal, 2004: 232). Formal and organized performance appraisal system was non-existent in tea industry of Nepal.

Promotion is the vertical activity of an individual within an organization's hierarchy, associated with increased responsibilities, enhanced position and usually with an increase of income, though not always so (Manappa and Saiyadaan, 1993 : 186). It is the advancement of a worker to an increased job-rank in the organizational hierarchy along with a pay rise (Pigors and Myers, 1981: 303). Employees consider their ultimate success with their profession and performance in conditions of the quantity and rate of recurrence of advertising they get during their service. Yoder et al noticed that campaign provides motivation to initiative, organization and ambition, minimizes discontent and unrest, attracts ready individuals, necessitates logical training of growth, and forms and effective reward for loyalty and assistance, long service, etc. (Yoder et al ; 1985). It does increase satisfaction in the employees that their abilities and capabilities are being known. In turn, they trust the organization and devote for the achievement of organizational goals and targets.

In Nepal, the Civil Service Take action was promulgated in 1956 which stated that campaign should be given to civil service staff on the basis of work efficiency (Civil Service Take action, 1956, Article 8, (2)). Many changes have been done in the advertising system of the staff in the government organization since that time. The Administrative Reform Percentage formed under the chairmanship of Mr. Vedananda Jha suggested that the promotion conditions for civil service personnel should include (a) seniority, (b) experience, (c) academics certification and training, and (d) departmental performance statement including co-operative frame of mind. Another Administration Reform Commission produced under the chairmanship of Mr. B. B. Thapa noted as campaign occupied special importance in the career development of employees, so capability to hold higher campaign and the capability to perform the task satisfactory in today's position were the primary criteria of promotion (GoN, 1976, Survey of Commission payment). Amendments were done in the Civil Service Guidelines in 1978 and 1983. Similarly the Administrative Reform Committee developed under the chairmanship of the then prime-minister Mr. G. P. Koirala in 1991 emphasized performance oriented promotion system. The new Civil Service Action, 1992 laid stress on performance capability with conditions such as past performance, seniority, work connection with remote area, and academics qualification. Likewise, the comparative weight-ages of campaign requirements of civil service employees were evolved after 1992.

NASC's review on advertising system of civil services mentioned that there was lack of clearness in its purpose and no uniformity in the common promotion period between level and services. The risk of subjectivity in merit score was a major apprehension in the intellects of civil servants for giving more weight to merit ranking. Even the performance evaluators' views were in favor of 'no hyperlink of the campaign with the performance'. Basic perquisites for sound performance appraisal routines, such as clear organizational and sectional aims, individual job descriptions, sufficient and reliable information system etc. were not properly provided in the civil service. Majorities were in favor of number allotting 50 percent of car seats to the campaign by competitive assessment as compared to the exiting twenty five percent, in some instances even less.

Somlai (1992) ascertained that professionals lacked satisfactory means or perseverance to regulate the motivation and productivity of these workforce. Job description, performance appraisal and productivity signals were non-existent; rewards and sanctions were irrationally applied; salaries were not genuinely related to knowledge and or effort requirements; offices got limited facilities; poor co-operation and limited delegation. The top of the decision making level was congested by trivialities while middle-level personnel were in a soporific frenzy over the responsibilities for sophisticated planning and fiscal matter.

K. C. (1995) in his article (based on Ph. D. dissertation on "Improving Potential in the Nepali Civil Service" published to the School of Birmingham, UK) says (the administrative system in Nepal) that Nepali organizations were organized in a mechanistic way, that have been not instrumental for reaching organizational objectives. Staff system had not been able to set up performance based prize and punishment system. Staff functions and services delivery systems were intensely influenced by casual relations. Besides, ineffective leadership and cumbersome management methods were other important issues. The informal administrative culture was seen as a the ideas such as 'bholi' (tomorrow), 'mathi' (superior) and 'manasay' (motive not openly portrayed).

The review presented above fairly implies that the limited endeavors have been made to study workers / HR management procedures in public areas and private businesses of Nepal. Those studies have reveal some areas of workers / HR management, however, the concluding remark suggests that personnel /HR management before remained neglected areas of management. This review also suggests that no systematic efforts have been designed to study HRM methods in tea industry of Nepal. This knowledge space has needed a systematic analysis which could bridge up such a difference. The present review is an try out in that route.

The Harvard Model

This model is considered to be always a detailed model as it seeks to include six critical the different parts of HRM. The dimensions one of them model are: stakeholders' pursuits (shareholders, management, worker groups, federal government, unions and community); situational factors (labor force characteristics, business strategies and conditions, management viewpoint, labor market, unions, responsibilities technology, regulations and social worth); HRM insurance plan choices (staff influence, HR circulation, reward systems and work systems); HR results (determination, competence, congruence, cost performance) and long-term consequences (individual wellbeing, organizational performance, and interpersonal wellbeing).

This model depicts management as a real actor, with the capacity of making decisions in conditions of HRM to balance the interest of most stakeholders keeping in view of the situational factors. HRM benefits such as organizational commitment, employees' competence, congruence and cost efficiency can be achieved through participative environment. The long-term effects are associated with each other for the reason that achievement of worker welfare leads to organizational effectiveness and this ultimately may donate to sociable wellbeing.

Tea industry which occupies an important position in the countrywide economy is growing thoroughly mainly in the eastern region of Nepal. It is, being one of the very most labor intense, agro-based market sectors; it involves significant amounts of workforce, which provides direct career to about 41000 workforces. After the privatization of Nepal Tea Development Firm in 2000, the change in possession is also accompanied by profound changes in organizational techniques and culture that could have a deep effect on organization behavior and performance (Manandhar, 2002: 37).

There have been just a few research studies in the field of human reference management in private enterprises of Nepal. And there's not yet been any specific research conducted in HRM in tea industry of Nepal. So, because of the poor research-base on HRM and having less knowledge existing in this field, the study work is nearly called for the streamlining of HRM techniques. Research can lead to an increased understanding of an improvement in HRM techniques. It provides insights for professionals as they attempt to increase employee output and satisfaction while minimizing absences and turnover. Research can also identify potential problem areas related to HRM.

Lack of specific research in this field has urged the researcher to take up the task of conducting a thorough research with the goal of examining and inspecting the actual HRM practices in tea industry of Nepal. This research will reveal a clear picture about the prevailing point out of HRM techniques in tea industry. The outcome of the analysis may serve as a study infrastructure on which further researches can be built. And the information and conclusions derived from this analysis may be useful and ideal for practicing professionals, as well as organizers, policy makers and other firms worried, through better understanding of HRM practices associated with tea industry. Thus, it is just a modest look at towards evaluating and understanding HRM techniques in tea industry of Nepal.

Industry background

The golden starting of tea plantation in Nepal dates back to the year 1863, with the first tea control factory was established in the year 1878, in Ilam Tea Real estate. In 1959 Budhkaran Tea House was proven at Jhapa which was the first tea house in private sector. Immediately after this business, Satighatta, Nakkalbanda, Mittal, Giribandhu Tea Estates and Himalaya Tea Garden were established. The establishment of Nepal Tea Development Corporation (NTDC) in 1966 is known as to be a landmark to augment the tea cultivation.

Generally, two types of tea orthodox and CTC (Crush, tear and curl) are stated in Nepal. At the moment, there are 128 tea estates and 45 tea processing factories as authorized in NTCDB. Basing on the previous statistical amount of total tea plantation section of 16420 hectares, and multiplying by 2. 47 folks per hectare, it's estimated that about 41000 people are employed in tea industry of Nepal

Tea industry which occupies an important position in the nationwide current economic climate of Nepal but there's not yet been any specific research conducted in HRM in tea industry of Nepal. So, in view of the indegent research-base on HRM and having less knowledge existing in this field, the research work is virtually needed the streamlining of HRM practices. Research can lead to an increased knowledge of an improvement in HRM procedures. It'll provide insights for managers as they attempt to increase employee productivity and satisfaction while minimizing absences and turnover.

Research target, research questions or hypothesis and objectives

Research aim:

The research target is to explore, the employee performance appraisal and advertising practices process are being found in Nepalese Tea Industry.

Research question:

What are the procedures and ways of performance appraisal and campaign being employed in Tea Industry of Nepal?

Research objectives

The specific objectives of this review are:

1. To judge the performance appraisal of employee

2. To investigate the techniques of advertising practices

3. To investigate the potency of the staff performance appraisal and advertising practice

Research Methodology:

This study seeks will be analyzing and figuring out the performance appraisal and promotion practices of employee in tea industry of Nepal. So the research design applied will be descriptive and analytical in dynamics. This is a study cum exploratory type of research - the most frequent form of primary HRM research.

Source of Data:

In the initial phase of inspection, a comprehensive analysis of various relevant materials - books, studies, research works etc. will be done. Both the primary and secondary resources of data collection tools will be employed. For the primary date three phases will be driven. First period, the researcher will visit the different tea expresses with semi structure interview schedules, design to get information on what was being done and how was it being done relating to various areas of worker performance and appraisal process. Then after first field research, he will build some research questions regarding to structure interview for pilot research. So, finally with the aid of pilot study he'll fully prepare research question for composition interview for different worker as workers, managers and associate.

The supplementary data will be collected from various printed and unpublished information, documents and documents of Central Bureau of Reports, Labor Department / Office, Middle for Economic Development and Supervision of TU, Nepal Tea and Espresso Development Mother board, Agro Enterprise Center under Federation of Nepal Chamber of Business and Industry. Data may also be collected from publications of different nationwide and international companies, research works, catalogs and relevant articles shared in different journals, magazines and papers etc. and will review for obtaining necessary information.

Sampling Process:

The sampling way for selecting the tea estates will be judgmental sampling. The tea estates for this study will choose mainly on the basis of their size of plantation, variety of employees, and production performance of the firms representing both corporate and business and private sector, and hilly as well as Terai region. Because of this analysis, five leading tea estates having their own handling factories will be decided on comprising two tea estates from corporate and business sector, particularly Kanyam tea point out from hilly part of Ilam and Tokala from Jhapa region. Alternatively three tea estates from the private sector, specifically, Budhkaran, Satighatta and Giribhandhu will be chosen from Jhapa district. Five employees from different degree of each property will be considered as an example. So sample of this research will be 30.

Analysis of Data:

After the collection of data from both major and secondary options most of the processing work, tabulation and computations will be conducted manually in the beginning. Data will classify into different groups and finally they'll be shown in tabular varieties. Likewise, the respondents' views and ideas will be analyzed in terms of different degrees of employees such as managers / officials, assistants and laborers. The analyses of data will be made with the aid of relevant statistical tools such as simple average, percentage and chi-square checks. For computation and statistical research electronic methodical calculator and computer will use.


After the proposal has been accepted by the School of Wales the following time lines will be used:

Gantt chart:

Months and weeks '




Weeks "


Weeks "


Weeks "


Weeks "

















Read literature

Conform objectives

Draft books review

Field survey with semi framework interview schedule

Research question for structure interview for pilot study

Pilot study

Prepare research question for final interview

Conduct final interview with employee

Tabulation of uncooked data



Writing thesis




Both main and secondary resources will be used in the study. In the initial phase of research, a comprehensive research of various relevant materials - books, information, research works etc. will be done. The supplementary data because of this study will be used from previous research works, books and relevant articles publicized in different publications, magazines and papers etc.

In the first level of key data, the tea estates were went to with the semi-structured interview schedules design to get information on what was being done and how was it being done. Get back information from first visit, more reliable semi structure interview will be designed and piloted with 7 non-sampled employees of different levels such as professionals, assistants and staff. Finally, revise structure interview schedules will be construct and administer to the 25 sample employees with different level.

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