Integration and devolvement of human resource practices in Nepal

Purpose – The purpose of this study is to explore the nature of human resource management in publicly listed finance sector companies in Nepal. In particular, it explores the extent to which HR practice is integrated into organisational strategy and devolved to line management. Design/methodology/approach – A structured interview was conducted with the senior executive responsible for human resource management in 26 commercial banks and insurance companies in Nepal. Findings – The degree of integration of HR practice appears to be increasing within this sector, but this is dependent on the maturity of the organisations. The devolvement of responsibility to line managers is at best partial, and in the case of the insurance companies, it is more out of necessity due to the absence of a strong central HR function. Research limitations/implications – The survey is inevitably based on a small sample; however this represents 90 per cent of the relevant population. The data suggest that Western HR is making inroads into more developed aspects of Nepalese business. Compared with Nepalese business as a whole, the financial sector appears relatively Westernised, although Nepal still lags India in its uptake of HR practices. Practical implications – It appears unlikely from a cultural perspective that the devolvement of responsibility will be achieved as a result of HR strategy. National cultural, political and social factors continue to be highly influential in shaping the Nepalese business environment. Originality/value – Few papers have explored HR practice in Nepal. This paper contributes to the overall assessment of HR uptake globally and highlights emic features impacting on that uptake.