Human resource development (HRD) is a planned effort to facilitate employees’ learning of job-related behaviours, skills, knowledge, and attitude. To navigate the current competitive and dynamic nature of business environment, the role of human resource in overall management of an organization has become increasingly important.

That, however, wasn’t always the case in Nepal. Looking back a few decades, awareness of the importance of human resource management (HRM) in Nepalese organizations was non-existent. Several researches conducted in the past have shown that organizations regarded HRD as an area of least priority.

Things have changed drastically in the context of HRM in Nepal in the last decade. With globalization, Nepal could no longer remain untouched and uninformed about global trends, which included the importance of good HR practices to ensure organizational success. As a result, organizations had to adapt to the need to increasing demand for trained manpower, hence they had to embrace the emergence of HRM.

Although there is an increased effort in promoting HRD, organizations have been limited in utilising the benefits of effective HRM practices. HR personnel are largely tied up in administrative tasks which limits the scope of their ability to support the organizational growth. In a survey conducted among experienced HR managers from both profit and non-profit sectors, it has been concluded that the primary tasks HR personnel are expected to handle mostly involve recruitment, training, and performance evaluation. HR roles are confined to implementing the already existing HR practices while their involvement in formulating new organizational strategies and redirecting organizational goals are limited. Efforts should be made to transition the HR department from a static administrative role to a proactive strategic one.

There are signs that point towards HRM holding a more prominent strategic role in the future. This shouldn’t come at the expense of the administrative duties of the HR department as it is still a critical function that the department must tend to. However, giving HRM an opportunity to participate in organizational design and strategy formulation process could benefit the organization in the long run.

As more investment is being made towards HR, it is inevitable that the capacity of the employees will increase as consequence. With better trained employees and timely opportunity, HRM 
has the potential to add value to the organizations and giving them a competitive edge. HR also has the role of upholding organizational culture and making sure the strategies being formulated align with the company culture and value which would also result in a holistic organizational growth where the management and the employees are in synergy. 

As of now, HRM practices in Nepalese enterprises are yet to be at par with international practices. The progressive leaps made in the previous decades is a good indication that HRM is heading towards the right direction in Nepalese organizations. However, the need for systematic HRD approach encompassing strategic and administrative needs of an organization must be addressed in the coming years.