CHAPTER-1 INTRODUCTION

1.1 BACKGROUND It is obvious that unless transportation is sufficiently developed, development plans and programs cannot be effectively implemented. Therefore to bring about efficiency and coordination between administration and other sectors of the industry transportation has been given the top priority and also to develop the economical status of the people transportation is one of the main requisites. In a mountainous country, air-transportation plays a vital role. Nepal, being the mountainous and landlocked country is facing many problems in providing better transportation facilities to all parts of the country. The geographical features of Nepal have influenced the role of economic growth of Nepal as a whole in general. Therefore, transportation must be developed in Nepal and extended to all part of the country and to other countries as well. The history of air transportation and the Aviation Ministry of Nepal are not very old. The commencement of civil aviation of the Himalaya kingdom on Nepal dates back to the month of April 1949 when a single vintage Beechcraft landed at the green pastureland Called Gaucharan in Kathmandu. After the first ever landing, a series of air services by 28 setter Dc-3 Dakota aircraft were started from 1950. The flight were between Kathmandu, Patna, Calcutta and Delhi. Actually, the history of the countrys civil aviation began with the Late His Majesty the King Tribhuvan returning to Kathmandu by a plane DC-3 Dakota aircraft, on the 18th Feb 1951. The credit of starting an aviation business in Country goes to the Democratic movement of 1951. On the same year, the domestic flights started from Pokhara, Bhairhawa, Simara and Biratnagar. In 15th June 1955 the Kathmandu airport was named as Tribhuvan Airport. The year 1957 saw the formal establishment of the Department of Civil Aviation under then Ministry of Works, Communication and Transport. Royal Nepal Airlines Corporation RNAC was established as a public 1

sector undertaking on the 1st July 1958. The Statutory regulations regarding civil aviation were introduced under the civil Aviation Act, 1959(2015 BS). Nepal became the member of Civil Aviation Organization (ICAO) in 1960. In 1964, Tribhuvan Airport was declared as Tribhuvan International Airport. In 1972 Air Traffic control and Communication Services were completely taken over from Indian technical assistance personnel by the Nepalese side respectively in 1966 and 1972 .In 1975, 1981 extension and strengthening of Runway were done. After the restoration of Democracy in 1992 His Majesty the Government adopted the Liberal Sky Policy, as a result a number of private Airlines are emerged in the domestic as well as international front. In 1993 Promulgation of a comprehensive national civil aviation policy, after which there were introduction of a number of private Helicopter services. In 1995, there were Expansion and Improvement of Domestic Terminal Building at TIA. Establishment of airport security for all domestic airports, radar installation, V-SAT terminal and AMSS system installation completed. In 1997 the Airspace restructured the Radar system and successfully run by 1988. 1.2 HISTORICAL BACKGROUND OF THE BUDDHA AIR Buddha started operating commercial flight in September 1998 with two twin otter aircrafts DHC 6 300 and with in a short span this airlines has garnered a lot of patronage from passenger alike since then it has been providing service to almost all part of Nepal. Though its regular schedule and charter flight the airlines now enjoy the best market share on its flight sector. Experience flying crew and maintainance personal, welcoming cabin crew efficient and professional ground handling and related service has resulted in the best performance of the airlines. Buddha Air provides the widest and the best connecting network of flight in Nepal. Lukla 9100 ft, the gateway to Mount Everest, Jomsom 8800 ft in popular Annapurna region, Simikot 9250 ft, the most gateway to Mansosarovar in the Tibet autonomous region of china, are a few of the main popular tourist destination where Buddha operates schedule and charter flight.

Buddha Air has been promoted by Thamserku Trekking (Pvt) Ltd, which is one of the largest and most successful trekking agency in the kingdom of Nepal. This is evident from the fact that it has been awarded by Nepal Government number of times in the past year for earning the highest amount of foreign exchange from trekking tourism. Although one of the youngest airline in the airline industry of Nepal, Buddha Air has been very fortunate enough to scale the highest of success ever since its operation in 1998. This has been largely successful because of its team of well experienced, qualified and dedicated staff to oversee the functioning of all spheres of management and the day to day functions. Moreover, the use of STOL (short take off and landing) aircrafts has been the advantage to this airlines, as Nepal being a hilly region where almost 83% of the area are covered by mountains and hills. This has provided to be very effective and encouraging. The purpose of the company is to play a role of economic stimulator for the development of rural areas, in particular and other areas in general, aswell as tourism industry of the country. With two aircrafts it started commercial flights operation in remote sectors like LUKLA, PHAPLU, LAMIDANDA, RUMJATAR, TAPLEJUNG and far western sectors such as DOLPO, SIMIKOT, JUMLA etc. Over the span of 4 years, Buddha Air added 2 twin otter aircrafts and became the market leader in air transportation in remote region of the country. In the period of six years, Buddha Air added three SAAB 340B 36 seater aircrafts in its fleet. With these SAAB aircrafts Buddha Air expands its wing to all trunk routes such as POKHARA, BIRATNAGAR, NEPALGUNJ, BHAIRAHAWA, BHADRAPUR and EVEREST SIGHTSEEING FLIGHT. Now Buddha Air is the only domestic airlines which offer the widest and best connecting network of flights in the country. Distinctive-Advantages Buddha Air offers the widest network of flights in Nepal. The main concentration of flight services is on the rural inaccessible areas of the country. The airline is promoted by Thamserku Trekking, Nepal's largest adventure travel company. Thamserku Trekking has been awarded by HMB/N several times for being the highest foreign currency earner in trekking tourism. The airline has a well-defined mission

statement, goals, objectives and strategies and is managed by a team of wellexperienced and qualified professionals. The company uses a comprehensive and useful Airlines Management Information System with well defined systems and procedures. The airlines are known for most regular flight services in its flight network. Khangri Resort with a chain of deluxe mountain lodges along the Everest trekking trails as well as the Hotel Mt. Annapurna in Pokhara as sister concerns have enabled the airlines to offer value-added services to the customers. The airline is associated with Air Dynasty Aviation, an operator of helicopters, which also puts the airlines in competitively advantageous position. In the past Buddha Air and Air Dynasty have teamed up to provide services with a combination of fixed winged and rotor winged flights to remote destinations of Nepal. Company Name: Buddha Air Private Limited (Incorporated Under Company Act) Aircraft Suppliers: Kenna Borek Air Limited, Canada NS Aviation NORSE Air, South Africa Manpower strength: 379 staffs Operations: 43 Engineering: 43 General: 293 Main Banker: Himalayan Bank Limited Nepal Investment Bank and Development Bank Limited Insurance Company: Shikhar Insurance Co. Limited Promoter: Thamserku Trekking Pvt. Ltd, the largest adventure travel company of Nepal.

ROUTE MAP

Figure 1-2: schedule and charter flight Route 1.3 INTRODUCTION TO THE TITLE SUBJECT MATTER (HUMAN RESOURCE MANAGEMENT) The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have. Note that some people distinguish a difference between HRM (a major management activity) and HRD (Human Resource Development, a profession). Those people might include HRM in HRD, explaining that HRD includes the broader range of activities to develop personnel inside of organizations, including, e.g., career development, training, organization development, etc. 5

There is a long-standing argument about where HR-related functions should be organized into large organizations, e.g., "should HR be in the Organization Development department or the other way around?" The HRM function and HRD profession have undergone tremendous change over the past 20-30 years. Many years ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork around hiring and paying people. More recently, organizations consider the "HR Department" as playing a major role in staffing, training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner.

Entry-level jobs are filled by college graduates who have majored in a wide range of fields. For many specialized jobs, previous experience is an asset; for more advanced positions, including those of managers, arbitrators, and mediators, it is essential. Keen competition for jobs is expected due to the abundant supply of qualified college graduates and experienced workers.

1.4 OBJECTIVES OF THE STUDY The performance of Buddha Air is based on the outcome of employees and the performance is also decided by the efficiency of its employees. How the performance in the Buddha Air is low and why is its market share going down? Are these all due to the employees? Keeping these questions in mind, the main objective of the study is as follows: To find out how the HRD has conceived. To find out the selection criteria for training of HRD and assess satisfaction of employees. To suggest recommendation based on the findings to the Buddha Air. To assess the effect of critical variables like career planning, employees development policy, job satisfaction, promotion, transfer, motivation, salary and perks etc and to help develop the Human Resource.

1.5 ASSUMPTION AND LIMITATION OF THE STUDY The study has drawn inference from the Buddha Air. Though some datas are primary but mostly based on secondary data provided by the concerned authority. Even though the study is specially focused on Buddha Air but due to time constraint, we are unable to visit other airlines. The study is based on the Kathmandu head office only. This study has dealt with the employees and managers. This study deals with the period of 2006-2010. The study is done in three phases: a) Pre- service program b) In- service program c) Special development program

1.6 RESEARCH AND METHODOLOGY Research methodology refers to the way of collecting, tabulating and analyzing the data for research work. It helps in carrying out the entire research work in desired way. In order to achieve the objectives of the study, the major contents of research methodology include the following. SOURCES OF DATA/ INFORMATION Both the primary and secondary data were collected to support my research program and to help me prepare this report. PRIMARY DATA Primary data is the first hand data .Research was primarily conducted consulting with the HODs of HRM department. The policy of the organization in terms of planning, selection, recruitment, promotion, retrenchment were personally provided by the HODs.They also provided with information regarding various potential competitors of the airlines in the market. These information were very valuable in terms of understanding about the organization, especially the function of HRM department and other different marketing, operational and other various field policies 7

and procedures. Similarly the informal group of the organization also provided valuable support by providing the valuable information required for the making of this report. SECONDARY DATA Secondary data are the second hand information which has already been collected by other researchers to find solution of the problem at hand. Secondary data is considered very crucial as it saves the time as well as cost. Some journals and broachers of airlines and its associates, CAAN journal, different airlines journals and broachers were consulted. Various websites were referred in completing this report. Websites on various airlines were viewed, its various competitors, various associations related with airlines, etc. as a secondary source of information to cover various aspects of airlines. 1.7 ORGANIZATION OF THE STUDY This study has been organized into three chapters. The title of the each of these chapters is as follows: Chapter-1 Chapter-2 Chapter-3 : : : Introduction Presentation and Analysis of Data Summary, Conclusions and Recommendation

The introduction chapter includes the background, historical background, introduction to the title subject matter, objectives of the study, assumption and limitation of the study, research methodology and organization of the study. The second chapter deals with presentation and analysis of data and information. The last chapter contains the summary, conclusions and recommendation of the study.

CHAPTER- 2 PRESENTATION AND ANALYSIS OF DATA

2.1 EMPLOYEES DEVELOPMENT POLICY The term Policy has greater significance in an organization for giving direction to the activities regarding finance, production, marketing, employees, development, etc. Such policy is a pre-determined course of rules and action, guides the performance of objectives and provides the standard or ground for the decision. Therefore, policy. Whether it is employee or not, presents its (organizations) objectives. The objective of the employees development policy is to provide an individual with the knowledge of the environment or ecology under which he is to function; the knowledge of administrative management to achieve optimum performance and cultivation of necessary attitudes. Therefore, employee development policy is an essence of the organization planning in absence of employee development policy the training and development programs would be the building without foundation which could be broken down. It makes clear that employee development policy add-up the long life succession for organization i.e. one of the key part of them. So, being an essence ingredient of human resource management, the employee development must follow its policy. No one is perfect fit at the time of hire or appointment and some training and education must take place. If the employee development policies and programs are good, they will return values to the organization in terms of increased productivity, heightened morale, reduced costs and greater organizational stability and flexibility to adopt to changing requirement. Employees are the key assets of the organization. So, better employee development policy carries the beneficial values to the organization that can add-up to long life careers. Employee development program and policies are not only important to the organization, but also has great values to the employees. Keeping transition apart, every employee wants to enhance his or her skill, knowledge and capacity. They do

not wish for the same skill, same knowledge and same capacity for a long time, they wish for their progress in their work field that demands some strong and effective employee development programs. Therefore it is one of the essence factors for organization for its success running in this competitive era. Employee development enhances the skill, knowledge and abilities of employees to perform the required specifies job. It is particularly needed in organizational management. It requires the perfect policy for the employee development, which can be successfully added-up to the life of organization with great profit and reputation. Therefore, employee development policy is like an investment which gives the dividends for the organization. In other words, it is the seed for the best harvest. Hence, every organization must be careful at the time if making and implementing these policies for the purpose of employee development. Table no. 1 Measurement of Employees Development Policy Response Yes No No Response Sources: Interview This above table interprets a description of how many employees of the organization are aware of the employee development programs of their organization. 20.1% of the respondent gave their positive answers. According to them, in the name of employee development programme it was practicing a kind of training which was being provided by the management in various topic every year. But sometimes it reflected the biases of the management. The other 62.7% of the respondent were not aware about the programmes of the organization regarding the employee development policy. This indicated the fairness of the organization. If the employee do not know about their development programmes how can the participate in the development 10 Percent of Buddha Air 20.1% 62.7% 17.2%

programmes held in the organization. So it bars the development of the employees qualities or chance to improve the employees productivity through their efficiency is broken. There might be some reasons that 17.2% of the respondents were silent during questioning. 2.2 TRANSFER While dealing with the human resource management and development once again a considerable factor transfer makes an entry. The term transfer implies the horizontal movement from one place to another. It is the movement of employees from one job to another of equivalent rank or of the same pay class within the organization. Generally, it does not effects ones status, post, facilities, etc. It may occur within the same department or same organization when the changing of position or work unit in another geographical location in the same organization. Transfer itself has two characteristics pay and status remain the same slightly change in duties and responsibilities. The advantages of transfer are that one who is transferred from one place to another, gets opportunities to enhance the talent and new idea which can be more effective and use the changes of manipulation. If one is in one post for a long period of time, this makes it easy to get the ideas for manipulation. So, transfer is that situation when a movement of a person takes place into the organization and sometimes it may take place out of the organization by work force. Thus, transfer holds the variety in its work i.e. i) ii) iii) iv) v) vi) vii) General transfer or production transfer related to production process to satisfy needs of the organization, Remedial transfer exists when one is expected to be better fitted or adjusted in other job, Personal transfer is made at the employees own request in some special situation, Versatility transfer exist to increase the versatility of an employees, Plant or Humanitarian transfer is used when an employee is lay-off in replacement of him transfer is made, Shift transfer is made according to the conveniences of their work so far as timing are concerned, Punishment transfer is used to punish the employees in their mistake and 11

viii)

Diversion transfer is from one department to other department according to the organizational need or at the request of the employees.

Hence, as every transfer affects organizational affairs, it must be reasonable every time. The following table contains information about satisfaction of transfer system of Buddha Air. Table no.2 Measurement of transferring system Response Yes No No response Percent of Buddha Air 85% 15% Sources: Interview According to the above table, 15% of the respondents in Buddha Air were dissatisfied with its transfer system. The reasons behind this dissatisfaction can be summed up as follows: a. biasness of executive and senior managers, b. lack of prediction over employees performance, c. transferring unsuitable person in specified sector knowingly or unknowingly, d. lack of rules and regulation over transfer, e. political pressure, etc Besides this dissatisfaction, 85% of the respondents were satisfied with their transferring system. They were satisfied because of the following reasons: a. Employees unwillingness to be transfer elsewhere, b. Unaware about transfer system, c. Priority in transfer system over other systems, d. Got desired place or sector through transferring.

12

Thus, in Buddha Air, any employee can be transferred from one office to another with good reason, but there are two sides: satisfactory and unsatisfactory employees. 2.3 PROMOTION One interesting job may turn into a big job if one is staying for long time or throughout his life. No one wants to stay in job for a long time and long period of time. Everyone looks forward to the progress or wants to be shifted to another job which produce higher remuneration and satisfaction. When he/she is moved or up graded to a position higher category carrying more responsibilities and higher pay is considered as promotion. So, promotion is a reassignment if the individual to a job of higher rank involving more difficult duties and greater responsibilities. Usually, but not always, persons pay is raised at the time he or she is promoted to the recoup of responsibilities will be greater. It may involve either an improvement in the employees status, in his/her chance for advancement or in greater job satisfaction or better working condition. Seniority and merit are the two basis of promotion system. Seniority refers to the length of the service in the organization, whereas merit consist the qualification of the employees. Through a fair performance appraisal, one should be promoted which is one of the acts of the motivation of an employee. If mistake is made in act of promotion system, one valuable employee who is actual and right candidate for that promotion, may be discourage in his or her job. That kind of frustration may affect his or her performance or productivity. Hence, psychological aspects of promotion system are more important that financial incentives. So, the Fulton committee observed: The right promotion at the right time is an essential part of process of developing to the full talents of men and women service. The capacity Study appointed by the UN commented: It must be realized that if senior posts are invariably or frequently filled from outside the service, it will prove impossible to retain first class people in the lower ranks, since they will inevitably seek to fulfill their ambitions in other careers which offer better prospects of advancement. Thus, the constraints on efficiency and capacity would be compounded

13

An appointment from a given position to a position for higher grade, involving a change of duties to a more difficult type of work and greater responsibility, accompanies by change of title and usually an increase in pay. As we are clear about promotion and its values in an organization, it should elicit about promotion in the Buddha Air. In the Buddha Air, the major basis that management are applying for the employees promotion i.e. service period, qualification, ability to solve problems, ability to solve higher responsibility, seniority. Now, the opinions of existing promotion system of Buddha Air are as follows: Table no.3 Measurement of promotion system Response Yes No No Response Percents of Buddha Air 84.4% 15.6% Sources: Interview In Buddha Air, 15.6% of the respondents had drawn their negative views over their existing promotion system of their organization. The main reasons for these dissatisfaction are as follows: a. lack of good concepts and proper basis for promotion, b. big biasness of executives and senior managers, c. political pressure, d. lack of strict rules and regulation, e. more candidates for one promotion etc, In spite of this dissatisfaction, 84.4% of the respondents were satisfied with this system and the reason behind this are: a. no chance to get more promotion,

14

b. ignorant about this system, c. did not want to say more than what was good.

2.4 JOB SATISFACTION To retain the employees in the organization for a long period, there must be the job satisfaction for the employees. Job satisfaction is one of the operating factors of human resource management and holds much more contribution to the organization. Human resource development is meant for making the organizational members efficient and enables them to perform more effectively. For this effective performance, job satisfaction is like a wall of the organizational building. If the employees are not satisfied with their job, the carried out result would be negative and the performance and productivity of the employees would graphically show the down word slopping. Thus, satisfied employees are like the ornaments for the organization. The term job satisfaction was brought to limelight by Hop pock (1935). He received 32 studies on job satisfaction conducted prior to 1933 and observed that job satisfaction is a combination of psychological , physiological and environment circumstances that cause a person to say, I am satisfied with my job. Such a description indicated in the variety of variables that influence the satisfaction of the individual but tell us nothing about the nature of the job satisfaction. Actually we can say that job satisfaction is the end state of feeling. It emphasizes the fact that the feeling is experienced after a task is accomplished or an activity has taken place whether it is highly individualistic effort or collective endeavor. The feeling could be negative or positive whether the need is satisfied or not. That satisfaction constitutes the positive or negative feeling of job satisfaction. Therefore, job satisfaction is the end state of feelings which may influence subsequent behaviour. Job satisfaction is a distributive one that is an individual feeling which could be caused by a variety of factor including group. Since there is no agreement on a specific definition, generally questionnaires are developed to measure satisfaction with various aspects of work and the resultant behaviour or score is called job satisfaction.

15

When a person comes to work, he or she brings his or her total personality, his or her attitudes, likes and dislikes, personal characteristics and these in turn, influence the satisfaction her or she drives from his or her work. Therefore, these personnel characteristics may fall into the various aspects of work behaviour like absenteeism, adjustment, accidents and low productivity. It is not only consisted by job satisfaction, it is also affected by the job motivation and job environment. Fair job evaluation and motivation with fair job environment hold the job satisfaction to large extent. So job satisfaction and its measurement is a challenging job for the management and also a pertinent. Now it should be clear through the following table: Table no.4 Measurement of job satisfaction Response Yes No Percent of Buddha Air 85.7% 14.3% In response to the question Are you satisfied with your job? it was found that 85.7% of respondent in Buddha Air were satisfied with their jobs and 14.3% were not. They were satisfied because of the good relationship with their fellow members and their employer and they get what they want i.e. attractive salary, salary plus perks, adequate training, good working environment, prestigious work, etc. On the other side others were not satisfied because they felt they were bearing extra burden of work and there was no participation in management. But management were not ready to accept these things, We dont know why they are unsatisfied when we are giving them duties to perform according to their level and there is no biasness and also we are giving them priority over their suggestion irrespective of level. 2.5 CARRER PLAN The development function is at an end and the employees are properly qualified and effectively performing the assigned job when the employees are trained and appraised. But todays demand must look beyond the present assignment, since

16

neither organizational requirements nor individuals attitudes and abilities are ever constant. Individuals employee carriers must be of concern to organizations and managers in order that human resources may be developed to meet constantly changing environmental conditions. A carrier is a sequence of separate but related work activities that provides continuity, order and meaning to a persons life. Careers are both individually perceived and socially constrained; not only do people make careers out of their particular experiences, but career opportunities divided in society also influences and make people. Career plan refers to planned and systematized efforts of organizations to chalk out the work of individuals in such a way as to optimize their efforts for excellence in their work. A career development means to provide all conditions conducive to the development of the persons once recruited in the organization so that they can occupy higher position in the organization and ultimately occupy the top echelons in the organization. A well designed career development plan and program involves three main ingredients; a) An effective career development plans and programs provides substantial employees assistance in self-diagnosis of interests, aptitudes and capabilities. b) c) Provides complete information concerning career development with in the organization. The Third major ingredient is that of aligning individual careers with the career opportunities through a continuing programs of training, education, transfer and advancement Hence, there is a need to plan the career development program effectively including all employees both individually and collectively. It is not an isolated activity but must be interlined properly with other aspects of the personnel policy and organizational objectives.

17

So, career plans and programs are a pivotal for any organization for the sustainable employees for a long period of time. The following table contains information about the career plan of Buddha Air. Table no.5 Measurement of Career Plan Response Yes NO No Response Percent of Buddha Air 53.6% 35.7% 10.7% Sources: Interview During questioning 10.7% of the respondents were silent in Buddha Air which reflected their unwillingness to put forward the answer the question related to career plan. 53.6% of the respondent had the positive answer to this question meaning that they knew about career plan of their organization. According to them Buddha Airline had plans to develop its employees gradually. Through orientation class, several training and programs, participation in several seminars of conferences, Buddha Air is planning its employees and plans to make them more efficient that other employee of any other competitors. Beside its plan, still 35.7% of the respondents were in the dark about its career plan. They only knew about the development programs helping at their organization at present and unknown about their future career plans. 2.6 JOB MOTIVATION Why do people work? It is one of the pertinent questions related to human resource management, especially to elicit the topic of job motivation. We can not get the same answer of this question from all the people. One of the ways to answer this question is to say that people work to satisfy their need: Biological, Social, and Ideological. But prestige in society and maintenance of self-respect also inspire them to work. So, the concept of motivation is used by the psychologists and sociologists as means of answering the question posed above concerning human behaviour. Psychologists say that it is a variable, which is a characteristics of the organism, not directly observable and therefore only to be inferred indirectly from the behaviour of the organism. Hence, peoples behaviour is not stagnant. It is purpose-oriented, goal directed. 18

We can define the term motivation in two ways. One is a little bit traditional and refers to human needs and ways and it means to satisfy these needs. The need includes needs to achieve, needs to acquire power, status and a group of friends, needs to recognized by the others and so on. The other one is more broad and accepts that motivation refers to the arousal, sustenance and direction to behaviour that includes such aspects as what initiates a particular behaviour or what compels people to behave as they do. According to James Draver,Motivation is the term employed generally for the phenomena involved in the operation of incentives or drives. According to Morgan, Motivation is a general term referring to behaviour instigated by needs and directed towards goals. Woodworth and Marquis, Motivation, i.e. a state or a set of the individual which disposes him for certain behaviour and for seeking certain goals. We expect people to work because it produces wealth. But it is not only one motivational factor to motivate the people or employees. Here are several motivational factors viz; reward, security of job, congenial associates, credit for work done, a meaningful job, opportunity to advance, comfort, safety, attractive working conditions, a competent and fair leadership, reasonable orders and directions, socially relevant organizations etc. In every organization, the role of motivation is high for better performance of employees, sustainable existing employees for a long time, and successful running of the organization in this competitive era. Every organization has to be concerned with it and it has to consider ways and means to motivate employees to achieve organizational effectiveness, so every organization should give serious thought to the followings: A) Identify the goals of individuals working in the organization and make attempts to design tasks and procedures, rules and regulations that will help to render individuals goals congruent to organizational 19

goal through interviews, attitude surveys, and discussion with employees and by just being sensitive to the hopes and aspiration of employees. B) Direct motivation of an individual is not possible. A reward, promotion or any such signal increases output and efficiency but only for the time being. C) It is highly subjective phenomenon. What a manager may consider motivation may just have the contrary effect. Hence, an appreciation of employees needs, hopes and aspiration with an open mind is more necessary on the part of the manager. From the above statement, it is clear that motivational factor is one of the devices to generate more efficiency. Therefore, every organization should have such type of devices which influence the employees more or attract them more. In the Buddha Air these are the factors which they generally use to motivate their staff: challenging job, job security, advancement, favorable working environment, growth, recognition, participation, creativity, reward. However along with these factors promotion is more over practiced as a motivational factor. As a motivational factor it has financial increment too, but most of the employees are not satisfied with this promotional motivational factor as according to them there is biasness over choosing the person who is to be promoted. 2.7 SALARY AND REMUNERATION The salary and remuneration for the employees is based on the work or standard which is performed by them with their ability, skill and knowledge. Determining rates of monetary compensation is one of the most difficult functions of human resource management. It is also one of the most pivotal to both the organization and employees because salary and remuneration often constitute the greatest single cost of doing business. In most organizations, the approaches towards salary and remuneration still differentiate between the employees occupying posts levels of the hierarchy. The main difference is that those in blue collar jobs, at the lower end are usually hourly rated. Their wages are paid weekly, where as salary earners are employed in middle 20

to senior posts with salaries quoted as an annual amount, which are paid monthly in equal installments. Salary and remuneration are designed for three things; 1. To attract capable employees to the organization. 2. To motivate them toward superior performance and 3. To remain their services over an extended period of time. The importance of salary and remuneration is very great for every employee. The standard of living and the social prestige of an employee depend to a great extend on the pay he draws. A man or woman chooses his career on the basis of pay which he or she expects to receive. The health and vitality of services depends on the level of remuneration. Therefore, the salary system must be so designed as to attract, motivate and retain the staff. The tempo of understanding challenging and arduous tasks by the Organization can only be asserted if they have the right number of employees, with the right level or talent and skill, in the right place, at the right time, performing the right activities to achieve the right objectives. But organizations (private or public) cannot attract such talented and motivated personnel unless they establish their image as model employers because an organization has no right to exist in the modern work. Therefore, to some extent, it depends upon the employers capacity to pay and a sound salary and remuneration program is very essential for the successful running. In fact, without salary and remuneration employees would be a stagnant creature, never moving, never acting. It is one of the powerful forces to imply or incite all employees to work. Hence, every organization whether it is private or public, must give their full priority to the employees salary to render their performance with satisfaction. Buddha Airline has its own rules and regulations regarding salary remuneration. Being a private company, it is fully dependent upon its own resources providing salary. Buddha air has been providing more salary to its staff and it is one of the satisfactions of the staff that produce more concentration in work, more productivity and more profit. And we feel lucky to work in this organization as such things are 21

taken quite seriously. We no longer are worried about our future regarding financial remarked one personnel from Buddha air. In comparison to other airlines, the staff of Buddha airline is more satisfied regarding salary and they draw more salary. Thus, as a private body Buddha Air has been providing more salary than other domestic airlines. 2.8 ALLOWANCES Allowance is one of the considerable factors for managing human resource of an organization. Every organization provides its employees certain tangible benefits over and above the basic pay check. It is a kind of incentive, used to describe material and non material benefits to employees in addition to their normal salaries for making their best efforts to promote productivity or efficiency. Therefore, primary effect of such type of allowances is to retain employees in the organization on long-term basis. Every employee wants to add up some extra benefit in their salary as permanently or periodically. Allowance is known as supplementary compensation has variety of titles in industry or business. It consists; the payment for not worked includes paid rest periods, paid lunch period, wash-up time, cloth-change time, get ready time, vacations, holidays, sick leaves , personal leave, voting time, and jury duty etc, hazard protection includes hazard of illness, injury, debt, unemployment, permanent disability, old age, death etc, employee services consists housing, food, advice, recreation, fringe-benefit service as cafeterias, paid legal services, career counseling, educational tuition, aid in housing, medical services, low cost loans, use of organization vehicles for personal reasons, day care centers for children, paid membership in certain private organization etc, legally required payments includes unemployment compensation, workers compensation insurance, old age and survivors insurance under social security, Medicare, etc.

22

Simply speaking, it may concern with sick leave allowance, holiday allowance, vacation allowance, medical allowance, dearness allowance, clothing allowance, house rent allowance, traveling allowance, etc, In the absence of allowance, employees would be disappointed rendering the less or low employee productivity. It is one of the motivation factors provided in terms of money. Actually, money, in itself, has no meaning. It is a token which acquires significant motivating power when it comes to symbolize intangible goals. This token value may differ from person to person and in the same person from time to time. In todays business life, it would be unrealistic not to recognize the significance of allowance as motivate in getting the work done. Before joining the proposed job most of the person wants to know those facilities providing by the organization. If handsome allowances exist, diligent and talented persons would be attracted to join the organization. Hence the role of allowance in this field holds the great significance. The staff of Buddha Air has been enjoying several allowances since its establishment in 1998. The headings of allowances are outfit, telephone, meal, dearness, convenience, and flying allowances. Staffs are entitled for all the benefits and services only after 6 months. For six months newly recruited individuals are kept under probation period. Each staff is entitled for 18 days annual leave. Buddha air lines provide 50% and 100% discounts in the ticket fare of the staffs as according to their level in the organization. Directors are provided with 4 tickets without any charge and 2 tickets with fifty percent discount annually. Officers are provided with 3 tickets without any charge and 2 tickets with fifty percent discount and the junior officers, supervisors and Assistants are provided with 2 tickets with full discount and 2 tickets with 50% discounts. Each employee has a distinct record book. Each and every activity of an individual working in the organization is recorded in the personal record book. This is done so as to facilitate a merit performance evaluation. 10% of the basic salary is deposited in EPF (provident fund) and the organization provides additional 100% of the 10% in the name of the employee in EPF. For e.g. If

23

an employee has Rs 3,000 salary then 300rs goes in the provident fund from his basic salary and another 300 is provided by the organization in the name of the employee. Employees are required to provide with a doctor certificate if in case absent for more than 3 days. Operational employees (pilots) are provided with 80% allowance i.e. if their salary is 3000rs then their allowance is 2400rs that makes 5400rs salary and if their flying hrs per month is more than 50hrs than for additional flying hrs extra 100rs is paid for every hrs. Hence, the staffs of Buddha Air are enjoying more allowances than the staff of other domestic airlines. 2.9 FINDINGS The main purpose of this study was to Understand the human resource development of Buddha Air. It was based on primary data and secondary data and concerned only the employees of Kathmandu valley. The sample sizes of this study were 10% of 387 in Buddha Air. The study dealt with productivity, HRD, selection criteria, job satisfaction, career plan, employee development policy, job motivation, transfer, promotion, salary and remuneration, allowance. The technique used for data collection was questionnaire method and secondary method and analysis and interpretation were based in simple preceilite rank method. The main findings are the studies were. Buddha Air utilized more fleets with more eligibility of employees. In the Buddha Air, there was also high tendency towards HRD concepts. Employees are hired on the contractual basis and the Buddha Air being a private organization, formation of workers union is completely unacceptable. Employees are required to sign in a written agreement providing that they will not be involved in any unions and other so kind. Buddha Air from the date of establishment till the date today has not faced any kind of disputes and conflict with their employees. So the past experience of the organization with the handling of disputes is nil. Buddha Air as a private company, it is absolutely free from political intervention. In case of Buddha Air although there were no study about employees satisfaction, most of the employees were satisfied with their job. In Buddha Air a gap between career plan and employees development programmes could be seen. Employees of Buddha

24

Air were motivated providing them with various incentives and benefits. Employees opinion regarding salary and perks were optimistic in the Buddha Air.

25

CHAPTER- 3 SUMMARY, CONCLUSION AND RECOMMENDATIONS

3.1 SUMMARY
History of this airline is traced back to 1998 with two otter aircraft. In that year, Buddha Air was set up with the view of providing the transportation facilities in the rural area and helping that area to develop. Over the span of 4 years, Buddha Air added 2 twin otter aircrafts and became the market leader in air transportation in remote region of the country. In the period of six years, Buddha Air added three more SAAB 340B 36 seater aircraft in its fleet. Now Buddha Air is the only domestic airlines which offer the widest and best connecting network of flights in the country. Buddha Air though being one of the youngest airlines in the airline industry, it has achieved considerable success due to the team effort, experienced and knowledgeable manpower. The airline has a well-defined mission statement, goals, objectives and strategies and is managed by a team of well-experienced and qualified professionals. The main concentration of flight services is on the rural inaccessible areas of the country to promote the rural areas thereby helping the country to be established as a developed country in the world. Keeping this in view, in order to ensure smooth functioning and effective organizational growth, Buddha Air has been dedicated towards motivating and the takes the keen interest in the welfare of the employees of the organization. It runs with the view that it is the team effort that is behind the success of the organization, so team should be given the priority. Thus the prime motive of the organization is to help in the rural development of the country through air transportation and to build itself as the most successful airline in the airline industry. This report has been prepared as per the requirement of Purbanchal University regarding the subject of Human Resource Management. This topic Human Resource Management is studied in this report. This report contains of Buddha Air regarding its historical background, objectives, roles, planning etc. The main objective of this 26

study is to know the human resource management position of Buddha Air. Some of the facts and the figures are included to evaluate the trends of Human Resource Management.

3.2 CONCLUSION Nepal being an underdeveloped country has high rate of unemployment, due to which there is large no. of workforce available. Hundreds of individuals apply for job whenever the vacancies for any position are announced. So it is the duty of the human resource department to list out those candidates fit for the job. A company is only as valuable as its assets and no assets are more valuable than human beings. In fact how a company recruits and manages its human capital is often times the wild card that differentiates the winners from the losers and the leaders from laggards. For many specialized jobs in the human resources field, previous experience is an asset; for more advanced positions, including those of managers, it is essential. Many employers prefer entry-level workers who have gained some experience through an internship or work-study program while in school. Personnel administration and human resources development require the ability to work with individuals as well as a commitment to organizational goals. This field also demands other skills that people may develop elsewhereusing computers, selling, teaching, supervising, and volunteering, among others. The field offers clerical workers opportunities for advancement to professional positions. Responsible positions sometimes are filled by experienced individuals from other fields, including business, government, education, social services administration, and the military. Human Resource management aims to link HRM activities with strategic need of the organization and use people most wisely with respect to the strategic need of the organization. They ensure that corporate planning process consider HRM issues while formulating strategies. They also provide guidance on the design of the organization processes to ensure that they help everyone do their job better. It is the duty of the HRM department to review the levels of motivations and commitment through out the organization and plan ways to improve them to boost productivity.

27

HRM department in Buddha Air is handled separately like any other department. It is given key importance to implement its strategy as it deals with personnel working in the organization. Up to date records of each and every staffs of all the stations are kept in the head office of the organization. This organization is drawn giving the crucial importance to HRM department unlike those of Royal Nepal Airlines. Buddha Air is headed by the concept that people as human resource are vital for achieving objectives , better people achieve better results. Due to this employees are highly motivated with different incentives and different benefits. They are treated as the strategic resource and valuable assets for achieving the organizational goals and objectives. Working condition is also given priority with clean sanitation and working place, providing the employees to work with their full potential and capacity. Thus, Human resource department of Buddha Air is highly successful compared to other domestic airlines in achieving its goal through proper management of human resource and employees being represented as a source of competitive advantage. 3.3 RECOMMENDATIONS 1. New airlines companies have been launched with accepting more competitions with more courageous that may be affected to Buddha Air. Hence, improvements must be strict with more attractive and effective planning. 2. It can be suggested that it needs more fair and transparent selection system. And it should implement the punishment system for both superior and inferior level strictly in one a crosses the companys rules and regulation regarding selection procedure. 3. 4. It also should develop career development and staff development plans and should strictly stick to it. More attention and tactfulness is needed at the time of changing technology and the employees should be developed as per the requirement of technology and management. Companies, recruitment and promotion should be regular active. Existing rules should be followed strictly. 5. It should adopt regular analysis of employees satisfaction whether they are motivated or not. If they are not, the cure should be made effectively. In this case, it should carry out more attractive employees package such as several allowances, attractive prizes or rewards, growth, good working environment, participation in management and decision making etc. 28

6. 7. 8.

Planning should be effectively done in order to cope with the external changes. There should be scientific job description and job specification of each position. It needs to adopt a policy of restraining the growth and restructure the composition of its staff for maintaining the level of unskilled and semi skilled staff at existing levels and increasing only the number of skilled staff required.

9.

They need to supplement their training programmes by administrative and management moulds. At the movement, the training is basically focused on technical aspects.

10.

Financial, personnel and other relevant authorities should be decentralized and delegated to lower level officials.

29