(b) Introduction

8/2/2019 (b) Introduction

1/40

CHAPTER 1

INTRODUCTION

In the recent times the human resources function has got importance in

India, especially after liberalization of Indian economy. Earlier as

manpower was abundant and low production, production cost of the

Human Resource function was not realized. But now it is realized that

the organization can gain cutting edge with its competitor only with the

help of its human resources. The quality, skills, attitudes and

commitment of the human resources would make the difference in the

competitive market for each organization. This will either see the

company achieve good results profits or decline losses.

In the early times the labour welfare approach was basically concerned

with maintaining records of employees attendance records, leave of

different sorts casual leave / restricted holidays earned leave / sick

leave etc. It also looked after the wages, benefits and the

implementation of Factories act. With the advent of Trade Unionsdealing with trade unions was important.

Then came the fire-fighting phase. Here the function was frequently

dousing fires i.e. resolving conflicts and keeping the wheel of

production moving. Top management did the major policy decision while

Personnel Management and Industrial Relations played a supportive

role. The approach was more of a reactive type i.e. if there is some

problem then the personnel react and the problem is sought to be

saved, like putting out a fire.

1


2/40

Another stage came when the human resource cost increases due to

increase in number of benefits, some of legislations and some by

awareness, increase in scarce skilled workers etc. the attempt was

made to integrate the trade unions / workers with managements vision

of the enterprise, that survival and prosperity was common to both.

Thus, Need can manage these human resources which were so

important for the organizational development.

The management of these important human resources is possible with

the various functions / sub systems of human resource system. Human

resources can be managed when their skills and their potentials are

identified and developed. This would help even the organization to

develop itself.

Human Resource Management is a process to help employees to

acquire capabilities required to perform various functions

associated with their present and future roles, to develop their

general capabilities as individuals and exploit their innerpotentials and to develop organizational culture in which

superior subordinate among sub units are strong and

contribute to the professional well being, motivation and pride

of employees.

(K.Aswathappa)

The sub systems of Human Resource Management are

a. Manpower planning

b. Recruitment and Selection

c. Induction and placement

d. Performance appraisal

2


3/40

e. Potential appraisal and Career Planning

f. Training and development

g. Counseling and feedback

h. Rewards System

i. Quality of work life

1. Manpower Planning

It is the initial stage of Human Resource Management. To develop a

company in a better way the company must have the knowledge of its

manpower. How much manpower is needed? Whether it is or needs to

be developed? This can be known through manpower forecasting.

2. Recruitment and selection

After manpower planning is done the demarcation is decided whereas to

which posts need what types of candidates. After that through

interviews, selection is done. Selection aims to provide a link between

the companys business demands and the kind of personnel who can

deliver the demands thereon. The factors usually considered are

technical, intellectual, rational and interpersonal competence.

a. Screening of applicants

b. Group discussions

c. Test written/ psychological tests

d. Preliminary interview

e. Final interview

Thus, if an appraisal gets through then he is selected for the relevant

post. Besides these methods what is important for the selection of the

candidate is letters of reference and medical checkup.

3. Induction and placement

For those who join the organization, an induction programme should be

planned and organized by the human resource department. For every

3


4/40

new entrant at whatever level, an induction progarmme is necessary.

The duration may vary accordingly for a new entrant and a sr. manager.

The induction programme is well organized orchestrated events socialize

the entrants in a particular organization. New entrants have to learn

about the norms, values, culture, and productivity or organization and

expectations of the new employer. A pleasant and warm induction

programme leaves a lasting impression on the new entrant.

4. Performance appraisal

Once the individual is an employee of an organization then a continuous

track of his performance must be kept so that his performance must be

kept so that his performance for the organization keeps on incurring

profit. An appraisal on a continuing basis, during the working life of such

an employee is also very desirable and useful. Here one individual after

comparison with another, is ranked or rated as excellent, normal or

average. Such merit or efficiency ratings are generally used for

ascertaining an employees eligibility for promotion. The performance is

measured by the following technique.

a. Graphic rating scale

b. Group rating

c. Individual ranking

d. Critical incidents appraisals

e. The work standards approach

f. Management by objectives

g. An essay appraisal

h. Assessment center

5. Potential Appraisal

Current performance as measured by the attainment of results, is not

necessarily co-related with potential for promotion. If an individuals

4


5/40

current performance is high but his potential is low for advancement,

then organization faces difficulty to promote such individual.

The purposes of a potential review are to predict whether an employee

is capable of taking on more demanding work and the speed at which he

or she is capable of advancing. The potential appraisal is for the

employee to match firms forecast of requirements for managerial staff.

6. Training and Development

Training is essential to cope up with the changing environment and

automation. No organization can afford not to train its employees,

regardless of his previous education, training and experience. It is a part

of management development and also a form of organizational

development.

The training process follows the various steps like

a. Identification of training needs

b. Chalking out of training programme

The training needs can be identified by

a. Organization analysis

b. Task analysis

c. Manpower analysis

Training can be given by various methods like

a. simulation method

b. lectures

c. role play

d. management games

e. in basket exercise

f. computer

5


6/40

g. experimental methods

7. Counseling and Feedback

Counseling is helping the employee to grow and develop in the

organization. Every manager counsels his sub-ordinate knowingly or

unknowingly in his day to day life. Counseling thus is a didactic process.

It is based on the relation of the manager who counsels and the sub-

ordinate who receives it.

Counseling requires certain interpersonal skills, which can be acquired

easily if a manager is genuinely interested in developing his sub-

ordinates. The phases of counseling are

a. Rapport building

b. Exploration

c. Action planning

8. Reward System

To have highly motivated employees an organization must have good

rewards packages. Once the employees are in their job they need to be

rewarded for their performance. Most organizations find it difficult

managing these rewards to produce desired organizational behavior. As

a result, reward system is the most underutilized and mishandled

managerial tool.

The reward are generally decided by

a. Performance Appraisal

b. Potential Appraisal

9. Quality of Work life

6


7/40

The relationship of man to work is the basic element of social life. Thus,

quality of work life includes emphasis on extrinsic and intrinsic job

factors and some other factors life power, employee participation etc.

There are seven phases for quality of work life.

a. Hostility

b. Reluctance

c. Guarded commitment and indifference

d. Inter group dynamics

e. Positive interest

f. Isolation of negative elements

g. Networking

MANPOWER PLANNING

Manpower Planning for a business enterprise needs a conceptual outlay

to enable business managers to identify, plan and implement planning

for manpower. There is a need to appreciate basic definitions of

planning as is understood and applied in commercial situations, the core

strategy necessary for an organization to embark upon the journey of

recruiting, the methods and practices adopted by organizations in a

current scenario and the inherent constraints built into the planning

process.

To establish, as mentioned earlier, effective planning one must first

clarity the process and place in its proper context in the total

management system.

First, planning is not simply a matter of scheduling future events or of

anticipating changes that may occur in a given situation such as a

market or an entire economy.

7


8/40

Second, planning is not to be confused with MBO. MBO is a process that

depends on planning after goals and objectives have been established.

Third, planning is not same as controlling

Finally, it is not merely strategic planning or long range planning.

Fundamentally, it involves the consideration of future events. Since an

organization is a system and by definition a system is always in the

process of change, the management of an organization is the

management of change. To manage change is to manage the future by

making decisions in advance about that future. In short planning

involves more than simply trying the predict the future it is concerted

attempt to affect that future.

Manpower planning may be defined as a strategy for the

acquisition, utilization, improvement and preservation of the

human resources of the organization. The strategy articulates

the need as it exists today and the plan necessitates

formulation of the goals and action plan for achievement of thepeople plan. The process facilities hiring and retaining the right

profile of people of varying jobs, positions, places and time

frames depending on the organizational need.

Some common definitions of Manpower Planning are:

Manpower planning is a process by which an organization

should improve more from its current manpower position.

Through planning management strives to have the right number

and right kind of people at the right places at the right time,

doing things which result in both the organization and the

individual receiving maximum long run benefit.

(E.W.Vetter)

8


9/40

Manpower planning is the process including forecasting,

developing, and controlling by which a firm ensures that it has

the right number of people and the right kind of people at the

right places at the right time doing work for which they are

economically most useful.

(E.B.Geisler)

Manpower is the integration of manpower policies practices and

procedures so as to achieve the right number of the right

people in the right jobs at the right time.

(James Lynch)

Manpower planning is an integrated personnel function in order

to have a sufficient supply of adequately developed and

motivated people to perform the duties and tasks required to

meet organizational objectives and satisfy the individual needs

and goals of organizational members.(Leon Meggison)

The objectives of Manpower planning are:

To ensure optimum and effective use of current human resource.

To research and reconfigure new skills sets to cope with

organizational needs given depleting relevant skills population.

To assess the employability of the human resource given changingskills and competencies

To draw specific outlines of competences as they differ from today

To assess or forecast future skills requirement if organizations

overall objectives are to be achieved.

9


10/40

To identify control standards to ensure that necessary resources

are identified available as and when required.

To fundamentally study he corporate strategy, the business

mission and overall philosophy of recruiting technology,

outsourcing.

Analyze the people market environment and its changes as it

affects the firm vise a versa competition.

Features of manpower planning

1. At micro level the first tasks is the stock taking of existing

manpower. It is known as manpower inventory. The knowledge

about the present employees, their skills and qualifications arehelpful in estimating future manpower demand.

2. In manpower planning, the future manpower demand is

estimated. For this the factors like retirement, death,

dismissal, and resignation are to be taken into account.

3. Estimation of the supply of manpower is an important part of

manpower planning. The number of people with specific skills

required in future is determined. For this, most statistical

methods are utilized.

4. A plan is prepared to form equilibrium between the demand

and supply of manpower. The development of the business is

not possible if the right numbers of persons with right

qualifications are not acquired. For this, plans about the

matters like recruitment, selection, training and development,

transfers, promotions etc are prepared.

5. Manpower planning is done so as to benefit both the firm as

well as employees. It is obvious that the firm would be benefit

if the human resources are used up to optimum level. But on

other hand, training and development, transfer, promotions,

10


11/40

and policies about such matters should be framed as to

benefit the employees too.

Need for Manpower Planning

Manpower Planning is a management tool in forecasting and

predicting human resource needs of a corporate entity, controlling

labour costs, and is vital to the future profitability of the company.

forecasts do not have to be entirely revealing and correct. A scientific

basis for forecast would make substantive improvement over the current

scenario. Competitiveness of a firm will obviously be affected both by

shortage of manpower, labour or surplus of labour. Unfilled vacancies,

particularly in key positions adversely affect efficiency ad productive

schedules. An important advantage is that an enterprise can discover, at

an early stage, critical points in the labour force, so that remedial action

can be taken well in time. The critical points are highlighted such as

shortages most likely to occur, inefficient use of labour, critical positions,

potential trouble spots, etc. it helps the management in devising clear

and comprehensive employment policies or reviewing existing polices,

so as to make the most effective use of manpower resources.

While considerable strategic time, competence and managerial inputs

has been dedicated to the planning of corporate economic resources,

such as investment, technology, systems, manufacturing capabilities,

research and development, new product development, customer

management, planning for resource requirement has been denied its

priority, particularly at the company level. At the global level, manpower

research are periodically organized more to determined employment

potential, state of the unemployment rate, type, kind, demographics,

rather than to identify, indicate and suggest on how the manpower

11


12/40

requirements of the various priority areas and nations at large should be

met, both qualitatively and quantitatively.

Manpower planning being a relatively contemporary activity is today an

area of in depth study and research. Its importance and implications,

given the critical need for funding micro and macro level growth a fast

changing economy, have been realized at the corporate level in most

countries of the world. At the macro level, however despite the

realization of the advantages of manpower planning, countries with well

established manpower planning programs are still a relative minority

even among the large countries. The ability to predict, plan, search,

resource and execute a well orchestrated manpower plan is still not a

state of art activity. Needless to mention the growing population in

several parts of the world makes this job several times more complex.

However, on balance there is little evidence to claim, that with the rising

state of unemployment, several economies stagnating or into recession,

increasing cost of labour and the substantial portion that it forms of the

total running costs of a company more firms large, medium and small

will be persuaded to go in for some of scientific manpower planning.

Fundamentally, the market has changed. It is world of knowledge

worker. The rise of the intellect has been imminent. Manpower planning

no longer can confine itself to the traditional sources for hiring and

retaining. The skill of yesterday is neither available and nor are not

being sought after by the new generation. The human resources of

today see their roles having changed from that of a doer to that of a

continued nurture and retain a set of human resource that have become

more redundant than ever before.

12


13/40

Manpower planning is tied to the overall strategic planning efforts of the

organization. It is the attempt to forecast the future supply and demand

after human resources needed by the organization. Manpower planning

is the process of analyzing and estimating the need for and availability

of employees. Factors to consider include the current level of skills in an

organization and expected vacancies due to retirement, promotion,

transfer, sick leave, discharge or other reasons.

One of the most challenging responsibilities mangers face is identifying

and planning for people who will be needed as organization grows and

changes.

It is the main activity of the management which is aimed to coordination

the requirements for and the availability of different types of employees.

This involves ensuring that the firm has enough of the right kind of

people at the right time and also adjusting the requirements to the

available supply.

Types of Manpower Planning

Types of Manpower Planning can be distinguished by the criteria (1) on

the basis of the level at which it is done and (2) On the basis of the

period for which it is done.

Macro Micro Short Medium Long

Level Level Period period Period

13

Manpower Planning

Level Period


14/40

Types of manpower planning level wise

1. Manpower Planning at macro level (national level)

Manpower Planning is done on the national level as a part of the

planning for overall economic development. The objective behind this is

to provide more and more opportunities of employment, while utilizing

the human resources of then nation most efficiently.

It goes without saying that proper manpower planning is of high

necessity in a developing country like India. In Britain, manpower

research section of employment and productivity department

undertakes necessary steps for manpower planning. In India, manpower

planning is a part of over all planning and so its responsibilities lie with

the planning commission.

Manpower Planning by the Planning Commission covers I) Population

projections ii) Programme of economic development iii) Education

facilities iv) Occupational distribution and growth and v) industrial and

geographical mobility of personnel.

2. Manpower Planning at micro level (industry level)

As Manpower Planning is important at national level for the maximum

use of its manpower resources, it is also necessary at the level of the

business unit. Manpower Planning is important because it decides the

various measures to be taken such as recruitment, selection, promotion,

transfer etc. by a business unit. Manpower planning is important

because it decides the various measures to be taken such as

14


15/40

recruitment, selection, promotion, transfer etc. by a business unit. So as

to fulfill its future manpower demands this manpower planning is

possible at 3 levels in a unit.

1. At the departmental level

2. if there are a number of factories of the corporate the planning

can be done at the level of each individual factory taken apart,

and

3. At the top level, i.e. by the board of directors in a company.

Types of manpower planning period wise

1. Short term planning

Short term planning is that which is done for the period of one year.

Annual plans are made as a part of 5 year plan at national level. There

one year plans are short term plans. Plans are very useful at company

levels. For better results, short term planning should be considered as

ingredients of the medium term plan.

2. Medium term planningGenerally, any plan of period from 2 to 5 years is considered to be a

medium term plan. At national level, medium term plans are essentially

prepared as a part of financing planning. Medium term planning at

national level, for manpower planning gives special attention towards

employee opportunities. Such plans at micro level think much of training

and development of employees. Thus, it is possible to visualize the

requirements of personnel possessing right type of skills for coming 5

years.

3. Long Term Planning

The planning for the period so long as 10 to 15 years is known as long

term planning. This type of long term planning is generally done at

15


16/40

national level. This is important to estimate manpower needs of a nation

and accordingly to raise educational and training facilities, keeping in

view long view interest of the nation. Such long term planning is not

necessary at micro level except a long term development scheme has

been visualized by the management of a firm. But in normal practice,

such long term planning is not found at company level

Strategic advantages of Manpower Planning

There a number of more specific reasons for resorting to manpower

planning exercises at the level of the undertaking, reasons that can

make the exercise essential. These are

1. to establish the best cost balance between plant and manpower

utilization

2. to determine recruitment, level wise and occupation

3. ensure that we do not inherit surplus manpower hired on account

of an incompetent CEO.

4. to anticipate redundancies and avoid unnecessary dismissals or

aspirations.

5. to decide optimum training levels

6. to decide on worker training course

7. to provide a basis for management development programs.

Micro/Macro level advantages:

At the micro level corporate need to rely that manpower is a expensive

and a highly valuable resource to be used as effectively as possible.

Scientific level manpower planning at the corporate level will make

national level will ensure that the human resources are made available

both in quality and quantity for the planned development of the

economic growth of the country. In our country, there has been

considerate progress in this direction.

16


17/40

The ironical part of manpower planning is that forecasting etc.

techniques are very easy but to implement them is very complex and

difficult.

No Manpower planning techniques are entirely without error. Some

changes are unique and hence are more or less unpredictable. While

assessing future requirements, the estimates depend mostly upon the

nature of manpower assumptions in the organization. Corporate strategy

can affect manpower strategy and vice versa.

Zero budgeting is an approach in which one forces unit / division

managers to justify their total operation from zero. But practicality of his

approach is doubtful due to influence of law and unions.

Ideal approach can be thought upon over by only new units. Any

decisions on sub contracting, off loading some functions like

maintenance, production technology etc. may depend on the perceived

notions.

Organizations can proceed on a realistic approach using existing

information also.

The stages of manpower planning

1. To identify and assess relevant future external and internal

factors.

2. A human resource needs forecast can be made by comparing the

number of people and the skills that will be needed by the

anticipated labour force at the time of the expansion.3. Auditing current jobs and employee skills.

4. The actual human resource plan is formalized by drawing together

all the data generated from above processes.

5. A career and succession planning system is designed so that

individuals will have necessary skills.

17


18/40

6. Continual monitoring of internal and external factors is important

to identify whether the forecasted conditions are actually

occurring.

18


19/40

The major activities of manpower planning include

. Forecasting

It is forecasting the future manpower requirements either in terms of

mathematical projections of trends in economy and developments in the

industry or of judgmental estimates based upon specific future plans of

the company.

. Inventorying

It is inventorying present manpower resources and analyzing the degree

to which these resources are employed.

. Anticipating

Through this process it can be anticipated the manpower problems by

projecting present resources into the future and comparing them with

the forecast of requirements to determine their adequacy, both

quantitatively and qualitatively.

. Planning

Through this process the necessary programmes like recruitments,

selection, training, development, motivation and compensation are

planned. So that future manpower requirements will be met.

Corporate Goals for attaching importance to manpower planning

and Forecasting exercise are:

To determine hiring pattern and specific action plans

To anticipate redundancies

To minimize downsizing, surpluses early retirement, etc

To plan for optimum training levels

To manage management development programs

New project forecasting and recruitment planning

To cost the manpower in new project

To assist productivity bargaining, and

19


20/40

To assess future accommodation requirements

MANPOWER INVENTORY

If manpower planning is to be realistic then it must be based on sound

foundation of factual information. Thus, the planner must have as clear

a picture as possible of the existing staff. The manpower inventory

provides a cue to the planner.

One of the main requirements is to know how well the existing

manpower is utilized. It helps the planner a great deal providing a sound

basis for improving their performance, through training and

development.

In addition, it also enables the planner to identify the individuals who are

potentially able to take on bigger responsibilities. In order to make this

exercise meaningful it is important that the manpower inventory is as

complete and detailed as possible. The manpower inventory does not

consists of just the head count at it takes into account many activities.

The planner must know exactly how many there are in each piece of the

organization. To make the picture anything like complete it must tell

how many employees the organization has.

a. In each department

b. In each section

c. In each unit

d. Under each pay scale

e. Of either sex (male and female)f. Of each age group and so on

A collection of people contains an accumulation of individual skills and

abilities, which enhance the total synergy effect. Hence the manpower

inventory must provide a detailed analysis of these skills.

20


21/40

The skills inventory should provide rated information about professional

and technical skills. The realization of skills possessed by individual

employee increases the opportunities for promotion and transfer. By

providing a guide to individual growth it can assist personnel growth. By

gathering information on skills the planning could be made effective. A

skills inventory reveals what are immediately required.

Responsibility of HRP

Top level executives are responsible for HR planning as it is one of the

important factors influencing the success of an organization. The plansare usually prepared by the Human Resource Division in consultation

with other corporate heads. The responsibility and accountability for

manpower aspects of various divisions is on their respective heads. They

should undertake their own appraisals of future needs in such a way as

to provide a concrete basis for organization wide forecasting and

planning. The Human Resource Division must offer counsel and advice

to various divisional heads and coordinate the various manpower

estimates from time to time Prof. Geisler outlined the responsibilities of

Human Resource Department in respect of HR planning thus

Assist and counsel operating managers to plan and set objectives

Collect and summaries manpower data keeping long run objectives

and broad organizational interests in mind.

Monitor and measure performance against the plan and keep top

management informed about it.

Provide proper research base for effective manpower and

organization planning.

Limitations

21


22/40

The problems faced by human resource professional while preparing or

administering HR Plans may be summarized thus.

Effective Human Resource Planning

A comprehensive survey of Human Resource Planning practices in 45

companies covering a cross section of the manufacturing industry has

indicated the scant attention that is being paid to human resource

planning.

Human Resource specialists have pointed out the fact that most Indian

organization does not have adequate records and information on Human

Resources. Proper retrieval systems also are not available in most cases.

The computerized personnel information systems unlike their

counterparts in the Western World do not play an important role in India.

Even the current technologies and knowledge in respect of HR planning

is not put to use optically. Such practices, inevitably, lead to ineffective

HR planning.

To compound the problem further there are unpredictable external

influences on manpower planning such as changes in labour market

conditions, technology, market conditions, economic cycles, changes in

social and economic values, political changes etc. in such a scenario, it

becomes difficult to forecast the personnel available with an

organization at a future date. While vacancies caused by the retirements

can be predicted accurately other factors like resignations turnover,

deaths, and competitive attractions are difficult to forecast. This

problem becomes mainly acute in respect of important of importantpersonnel because their replacements cannot be arranged in a short

span of time. At times, top management support may not be available to

the HR planning efforts. These problems could be avoided, if certain

guidelines are followed.

22


23/40

a. Objectives

The HR plan must fit in with the overall objectives of the organization.

Important aspects such as people working in the organization, working

conditions, human relationship etc. must be kept in mind while

developing the plan.

b. Top Management Support:

The plan must meet the changing needs of the organizational and

should enjoy consistent support from top management.

c.

Employee skills inventory : The organization must have an up todate employee skills inventory showing previous jobs held, tenure on

current job, educational and training qualifications, specific

knowledge and skills, prior work performance, past and current

compensation, mobility factors. Markov Analysis may be passed into

service while preparing the manpower inventory.

d. Human resource information system: To manage employee skills

inventories, organizations should maintain computerized human

resource information systems containing data on individual

demographics, career progression, appraisals, skills, interests,

training, target position, performance ratings, geographic

preferences, promotablity ratings etc.

e. Coordination; A separate HR planning division must be created

especially in large organizations, to coordinate HR planning exercises

at various levels. The various plans for procurement, promotion andretention of human resources must be integrated properly.

23


24/40

The ultimate objective must be to make use of the human resources in

an optimal manner by filling future vacancies with the right type of

people.

BARRIERS TO HRP

Planners face significant barriers while formulating an HRP. The major

ones are the following

1. People question the importance of making HR practices future

oriented and the role assigned to HR practitioners in formulation of

organizational strategies. Their argument is simple there are

people when needed. Offer attractive packages of benefits to them

to quit when you find them in surplus. When the task is so simple

why an elaborate and time consuming planning for human

resources? Thus goes the argument. Surprisingly, this perception

about HRP is also held by the top management.

2. HR practitioners are perceived as experts in handling personnel

matters, but are not experts in managing business. The personnel

plan conceived and formulated by the HR practitioners when

enmeshed with organizational plan, might make the overall

strategic plan itself defective.

3. HR information often is incompatible with the information used in

strategy formulation. Strategic planning efforts have long been

oriented towards financial forecasting often to the exclusion of

other types of information. Financial forecasting often to the

exclusion of other type of information. Financial forecasting takes

precedence over HRP.

4. Conflicts may exist between short term and long term HR needs.

For example, there arises a conflict between the pressure to get

the work done on time and long term needs, such as preparing

24


25/40

people for assuming greater responsibilities. Many managers are of

the belief that HR needs can be met immediately because skills are

available on the market as long as wages and salaries are

competitive. The managers fail to recognize that by resorting to

hiring or promoting depending on short term needs alone, long

term issues are neglected.

5. There is conflict between quantitative and qualitative approaches

to HRP. Some people view HRP as a numbers game designed to

track the flow of people across the departments. These people take

a strictly quantitative approach to planning. Others take a

qualitative approach and focus on individual employee concerns

such as promo ability and career development. Best results would

accrue if there is a balance between the quantitative and

qualitative approaches.

25


26/40

RESEARCH METHODOLOGY

STATEMENT

Manpower Planning: As an HR Sub System

(A study of practices and opinions on Manpower Planning in Kaira

District Co-operative Milk Producers Union Limited (AMUL), Anand)

SIGNIFICANCE OF THE STUDY

The strong winds are sweeping the major parts of the world, it is well

impossible for any nation worth the name to remain unaffected by their

force. India with its large population, surpassed only by China, with its

key position in South Asia both in political and cultural terms, certainly

cannot escape the tremors. The India industry is facing a competitiveedge, which is to be achieved through people. Human assets are the

most important of all assets. People are the key factors in any industry.

And, it becomes very important for an industry to pick up the right

person for the right job. This becomes more important to the nation like

India where there is excess of manpower at hand but the industries

cannot afford to have them all. Hence, manpower planning gains

importance as it would decide not only whom and how many to include

in the organization but also to make an inventory of them. Manpower

planning is an integrated part of the organization, which leads the

organization towards its goals and to achieve its vision.

26


27/40

BROAD OBJECTIVE OF THE STUDY

To study the existing system of Manpower Planning as a sub system ofHuman Resources in Co-operative sector.

SPECIFIC OBJECTIVES OF THE STUDY

1. To understand the manpower planning done in the co-operative

sector.

2. To understand the method of forecasting in co-operative sector.3. To examine the main sources of manpower planning.

4. To learn about the views and opinions of employees of other

departments about manpower planning policies and procedures, in

general and specifically in their organization.

5. To examine the trend of manpower planning policies in the co-

operative sector.

HYPOTHESIS

Since the research attempts to only study the different aspects of the

system of manpower planning, nothing is hypothesized. Since no

relation is drawn between variables, it is a null hypothesis.

TYPE OF RESEARCH DESIGN

The study makes an effort to define the different aspects of the system

of manpower planning. It also explores the various factors affecting the

success or failure of this system, and its probable advantages and

27


28/40

benefits to the industry. Hence, the study is descriptive cum exploratory

in nature.

UNIVERSE

The total population of 75 respondents considered for study includes

middle and senior management employees of AMUL, Anand in Gujarat.

TOOLS FOR DATA COLLECTION

The required data was collected by questionnaires regarding various

aspects of the system of manpower planning, and opinions about thesame.

SAMPLE

The sample includes 75 HR executives and non HR employees from

AMUL, Anand in Gujarat.

SAMPLING

Selective sampling method and random sampling methods were used to

select the company and respondents respectively.

CHAPTER-II

28


29/40

FINDINGS, CONCLUSION AND SUGGESTIONS

FINDINGS

AGE OF THE RESPONDENT

41.33% i.e. 31 respondents belongs to the age group below 21-30

yrs.

10.66% i.e. 8 respondents belongs to the age group below 31-34 yrs.

9.33% i.e. 7 respondents belongs to the age group below 45-50 yrs.

38.66 i.e. 29 respondents belongs to the age group below 51-60 yrs.

GENDER OF THE RESPONDENTS

97.335 i.e. 73 respondents are male

2.66% i.e. 2 respondents are Female

EDUCATION QUALIFICATION OF THE RESPONDENTS

29.33% i.e. 22 respondents are post graduates.

56% i.e. 42 respondents are graduates.

4.66% i.e. 11 respondents are from other field.

DESIGNATION OF THE RESPONDENTS

2.66% i.e. 2 respondents are Sr. Executive

4% i.e. 3 respondents are Executive

93.33% i.e. 70 respondents are Sr. Officer

CATEGORIES OF THE RESPONDENTS

29


30/40

29.33% i.e. 22 respondents are highly skilled

66.66% i.e. 50 respondents are skilled

2.66% i.e. 2 respondents are semi skilled 1.33% i.e. 1 respondents is unskilled

RESPONDENTS FROM VARIOUS DEPARTMENTS

57.33% i.e. 43 respondents are from production department

10.66% i.e. 8 respondents are from H.R. Department.

24% i.e. 18 respondents are from Finance Department.

No respondents are from Marketing Department.

8% i.e. 6 respondents are from other Department.

Manpower planning is carried out in the organization.

89.33% i.e. 67 respondents had responded to personnel

department.

1.33% i.e. 1 respondents had responded to specialist manpower

planner.

9.33% i.e. 7 respondents had responded to manager of the

organization.

The organization have problem of shortage of labour

2.66% i.e. 2 respondents had responded to yes.

97.33% i.e. 73 respondents had responded to No.

30


31/40

The reason for shortage of labour.

one respondents had responded to the statement of reason for

shortage of labour.

The reasons which affects manpower planning in the

organization

None of the respondents had gave response to the over staff.

2.66% i.e. 2 respondents had responded to chronic shortage of

employee

40% i.e. 30 respondents had responded absence of staff.

33.33% i.e. 25 respondents had responded to inadequate training

to the employees.

22.66% i.e. 17 respondents had responded to lack of I.R. Plans.

The frequency of manpower planning

77.33% i.e. respondents are responded to every year

10.66% i.e. 8 respondents are responded to every 2 year

12% i.e. 9 respondents are responded of every 3 year

The information collected regarding employees

74.66% i.e. 56 respondents had responded to work history

25.33% i.e. 19 respondents had responded to strengths

0% i.e. No respondent had responded to weakness.

The reservation in an organization

31


32/40

100% i.e 75 respondents had responded NO.

The Mode of assessing current human resource.

50.66% i.e. 38 respondents had responded to H.R. Inventory

33.33% i.e. 25 respondents had responded to succession planning

14.66% i.e. 11 respondents had responded to Job Analysis

1.33% i.e. 1 respondents had responded to any other

The use of Human Resource Information system

(HRIS)

75 respondents had responded to yes for the use of HRIS.

The basis of succession planning

50.66% i.e. 38 respondents had responded to performance appraisal

46.66% i.e. 35 respondents had responded to potential appraisal

2.66% i.e. 2 respondents had responded to None.

The method of selection

61.33% i.e. 46 respondents had responded to promotion

38.66% i.e. 29 respondents had responded to hiring for outside.

32


33/40

The method of promotion

49.33% i.e. 37 respondents had responded to performance appraisal

32% i.e. 24 respondents had responded to seniority in organization 18.66% i.e. 14 respondents had responded to experience.

The method of forecasting

36% i.e. 27 respondents had responded to managerial judgment

42.66% i.e. 32 respondents had responded to ratio based analysis

20% i.e. 15 respondents had responded to work study

1.33% i.e. 1 respondents had responded to any other.

The method of Human Resource Audit

84% i.e. 63 respondents had responded to skill inventory.

16% i.e. 12 respondents had responded to organizational chart.

The average employees leaving the organization.

70.66% i.e. 53 respondents had responded to 0.5% to 1.5%

18.66% i.e. 14 respondents had responded to 1.5% to 3%

10.66% i.e. 8 respondents had responded to 3% and above

The areas where the organization loses its employees

53.33% i.e. 40 respondents had responded to unskilled

38.66% i.e. 29 respondents had responded to semi skilled

8% i.e. 6 respondents had responded to skilled.

33


34/40


35/40

The close linkage between manpower planning and

business plan

1.33% i.e. 1 respondent is disagree

28% i.e. 21 respondent were strongly agree.

53.33% i.e. 40 respondent were agree

17.33% i.e. 13 respondents are neutral

The department / work units send their manpower

requirements well in advance to the personal

department.

4% i.e. 3 respondents were disagree

28% i.e. 21 respondents were strongly agree

56% i.e. 42 respondents were agree

12% i.e. 9 respondents were neutral

The manpower planning plans are prepared on the

basis of requirement for at least next five years

.

2.66% i.e. 2 respondents were disagree




35


36/40

The capabilities of employees are utilized well in

advance in this organization


25.33% i.e. 19 respondents were strongly agree



The candidate are given an opportunity to visit to the

sight before they are finally selected





The profit sharing would help to motivate its

manpower.

1.33% i.e. 1 respondents were strongly disagree


13.33% i.e. 10 respondents were strongly agree


25.33% i.e. 19 respondents were neutral

36


37/40

The reason for absenteeism is health.

4 % i.e. 3 respondents were strongly disagree 26.66% i.e. 20 respondents were disagree


22.66% i.e. 17 respondents were agree


The reason of absenteeism is transport 9.33% i.e. 7 respondents were strongly disagree


40.% i.e. 50 respondents were strongly agree

9.33% i.e. 7 respondents were agree


37


38/40

CONCLUSIONS

This organization do manpower planning every year.

This organization were reluctant to reveal the organizations budget

for the manpower planning. This might be because either they

allocate fewer amounts for this function or the budget allocated

might be very high. The reason for this is unknown.

Reservations for specialized category are not in this organization and

with fewer budgets. It can be concluded that this organization does

not have reservations mostly for the physically handicapped

employees.

It is inferred that this organization, use human resource inventory as

a mode of assessment of current human resources . In fact, the

usage of human resource inventory can be a better way to assesscurrent human resources.

Ratio Based Analysis is given more importance as compared to other

methods of forecasting.

This organizations use performance appraisal as base for succession

planning.

This organization use HUMAN RESOURCE INFORMATION SYSTEM. This

system help in time keeping and list of the employee. This shows the

pattern of the modernization in the HR / Personnel department.

38


39/40

This organization uses ergonomics for manpower planning.

The turnover of the organization has an obvious effect on the

percentage of the employees leaving the organization.

The labour turnover of the organization is directly related to the

turnover of the organization. The organization loose un-skilled

employees. This is a challenge for any manpower planner.

Experience, designation and education has an obvious effect on the

agreement and the disagreement of the individuals

Irrespective of the experience or the education the individuals agree

that there should be close linkage between business plan and

manpower planning.

39


40/40

SUGGESTIONS

This organization use manpower planning but the effective use of

this sub system is the need of the time. Thus, an effective and

timely manpower planning must be done.

Organization must use succession planning as a mode of

assessing current human resources.

Organization must not only emphasize on the manpower planning

only but manpower planning management must also be

emphasized. Through this vocational guidance and total

information regarding the work to be performed must be given to

the employees as well as the new joinees.

Organization must start learning from the employees leaving

them. Taking exit interviews can do this. Ext interviews must give

the organization all the knowledge regarding why the employee is

leaving the organization and what can be improved in it.

(b) Introduction

Documents

Transcript of (b) Introduction