Manpower Planning

Introduction

Manpower Planning which is also called as Human Resource Planning consists of putting right
number of people, right kind of people at the right place, right time, doing the right things for which
they are suited for the achievement of goals of the organization. Human Resource Planning has got
an important place in the arena of industrialization. It is the process of systematically forecasting the
future demand and supply for employees and the deployment of their skills within the strategic
objectives of the organization.
It is the process by which Management determines how the management should move from its
current manpower to its desired manpower utilization.

A very important process where management determines how an organization should move from its
current manpower position to a desired manpower.

Manpower planning has many different purposes within an organisation, one of the most basic
purposes is that it can be a tool that could be used to asses whether an organisation has the right
amount of employees with the correct knowledge, skills and attitudes that are needed to carry out
the job effectively while at the same time achieving the organisational goals.
Defining the present needs and estimating the future needs of manpower in an organization.
Particular useful to all big organization to able to meet and manage changes in terms of technical
know-how, products, markets, etc
Manpower planning focuses on acquiring, improving and retraining current employees.

In many organisations manpower are seen as the most important asset towards success but it can
also be the most volatile and unpredictable. Organisations at all times must send manpower to the
departments that need it, at the right time and in good cost. If this is not achieved it could result in
operational difficulties for the organisation .For instance in 2007, a group of high ranking police
officers in Ireland were due to retire all in the same year, this was an example of bad manpower
planning, as the human resource department had not monitored the age profile of that particular
department resulting in no specific development, progression, recruitment or training to cover the
retirement of those police officers.

Manpower planning is an important development in human resources management. It has spread

rapidly to nearly every size organization in almost every kind of business. The primary function
of manpower planning is to analyze and evaluate the human resources available in the organization,
and to determine how to obtain the kinds of personnel needed to staff positions ranging from
assembly line workers to chief executives. Smaller companies put Manpower planning in the
human resource or personnel department. Some of the largest corporations have established
separate departments for this function.

According to Stainer Manpower planning is a strategy for acquisition , utilization, improvement

and preservation of an enterprise’s human resources. It is a way of dealing with people in a dynamic
situation.

Since WWII and the growth of modern management science, solid business planning has become
the key differentiator enabling competitive success. It seems unnecessary to point out that planning
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for a businesses’ most critical resource is essential. As we move through the 21 century where a
globalized workforce is the basis of competition we find that the principles of manpower planning
are unchanging. Certainly, the how, what, and why of manpower planning change dynamically and
often; but the basic principles are like the glacier – very slowly, over eons.

Manpower plans were designed to to fit in with the overall business strategy and plan.It represents a
response by the personnel function to ensure that the necessary supply of people is forthcoming to
allow measurable financial, marketing and production targets to be met.
Manpower planning was defined by the Department of Employment in 1974 as ‘strategy for the
acquisition, utilisation, improvement and preservation of an organisation’s human resources.’
The main motive for manpower planning is to maintain the most appropriate staffing levels across
all departments of the organization. Lists of staffing levels are prepared, and HR is able to conclude
which departments are overstaffed and which are understaffed. It then takes measures to transfer
some employees from the overstaffed departments to the understaffed ones.
It should be apparent that the organizational development as well as the success of the business is
on account of highly competent people that a business organization keeps. Man power planning is
one of the key functions of human resource management that manages to maintain the good will of
a business while giving duly importance to the ‘M’ (for Men or human element) than that no other
‘M’ (Machine, Material or Money) is more valuable. It endeavors to the organizational development
in totality as well as the success of the business respecting the skills of the employees, their
knowledge, experience and talents. It is concerned with effective recruitment and selection process
in order that the skilled workers may be made available each and every time that a business
requires. Manpower planning is of great significance for various reasons necessitating the process,
at the same time, contributing significantly to the achievement of organizational objectives.

Human resources are regarded as the only dynamic factor of production. Other factors like
materials, methods, machines, money etc. are useless without their effective use by the human
resources. Thus, it is logical that there should be proper manpower or human resource planning in
the organization to use the other resources effectively.

Often, business time-frames are too short to encourage good strategic planning. The best companies
take the time and do it well. Workforce Planning or Human Resources Planning as it is commonly
called is one of the most impactfull aspects of business planning. Management literature is packed
full of reasons why HRP is crucial to business success. Without it there is little chance of the
business having the right people at the right place at the right time doing the right work.

This issue has been studied for decades. In a 1985 study based on a survey of 53 corporations in the
US and Canada and their approaches to business and human resource planning Elmer Burack found
that “the respondents, both human resource and business planners, emphatically endorsed the
1
concept that strategic and long-range business plans should include a human resource component.”
That position is one still held firmly by business executives globally.

Human resources planning in the broadest sense includes both strategic and operational human
resource planning as a continuous process rather than an activity limited to a fixed segment of the
business planning process.

Often HRP is considered to be a “human resources” program rather than a necessary business
activity. Operationally driven managers often forget the real purpose of planning. “By definition,
the strategically driven human resource function will be devoted to finding ways to help the
organization gain important advantages over its competitors.”Those advantages are often described
in terms of the capacity that a business has with which to pursue its objectives. “The capacity of an
organization to achieve its strategic objectives is influenced by human resources in three
fundamental ways: cost economics; capacity to operate effectively; capacity to undertake new
enterprises and change operations.”

Manpower Planning emphasizes:

• Establishment and recognition of future job requirements
• Scanning the organization thru systematic manpower audit
• Assured supplies of qualified participants
• Development of available manpower
• Effective utilization of current and prospective workforce members

Manpower planning is a systematic effort that comprises three key elements-

•Workforce forecast

•Manpower assessment

•Staffing programme

Manpower planning includes four factors:

Quantity,Quality,Space and Time.

•Quantity:How many employees do we need?

•Quality:Which skills ,knowledge and abilities do we need?

•Space:Where do we need the employees?

•Time:When do we need the employees? How long do we need them?

Manpower

Meaning: Total supply of personnel available or engaged for a specific job or task.It is the power of
human physical strength.

Planning

Planning is nothing but using the available assets for the effective implementation of the production
plans.

Planning is one of the basic functions of management of any organization. In commercial and
industrial undertakings, planning has been focused on profit making, procurement, production,
marketing, quality control and only most recently, manpower. Manpower planning has now been
recognized as an important part of the overall planning of any organization. Without the
procurement and maintenance of adequate number of personnel, it is not possible to realize the
goals of the organization. Manpower planning is essential to put the plans of the organization into
action for the achievement of its goals or objectives.

Meaning of Manpower Planning

Manpower planning is the process by which an organization ensures that it has the right number and
kinds of people capable of effectively and efficiently completing those tasks that are in direct
support of the company’s mission and strategic goals.

Need for Manpower Planning:

There is no denying the fact that the continual positive development of a business is owing to its
effective planning. Making preparations and arrangements on the basis of what is expected to
happen and performing tasks in an organized and capable way is one of the important roles of
management in that it involves effective planning process. It is through the process of planning as
well as designing the organizational structure by assigning an assortment of responsibilities to the
employees that business organizations may accomplish their set objectives. The concept that the
right person should be employed at the right place and at the right time is vitally important to a
business as it includes a wide and comprehensive range of activities in relation to “the management
of man” while it entails man power planning, at the same time, being focused on the effective
utilization of existing human element as well as fulfilling future needs of manpower in the
organizations whenever the situations necessitate.
Many factors will continue to drive man power planning need in the organizations. It is essential
when turnover of labor is to be determined and the situations become inevitable. There are times
when the situations give rise to replace the employees who have grown old, who are forced to
remain in bed because of illness, weakness, injury, mental disorders or a medical condition
involving disturbance to usual functioning of the mind or body. While executing effectively, man
power planning process entails analyzing the requirement of present and future vacancies. These
situations take place when some employees get retirements, when they are transferred or they are
promoted to higher positions. Similarly, it deals with the situations that arise at the time that
employees avail their leaves or in case of their absences. In order that the tasks being assigned may
be carried out in a way as has been planned or intended, business organizations need personnel
possessing necessary qualifications and experience and that is, to all intents and purposes,
accomplished through man power planning. In its positive form, it is of great importance to identify
the surplus as well as the shortage of the employees so as to move the man power from one area or
activity to another in case of the former, whereas latter indicates providing required personnel.
Manpower Planning is a two-phased process because manpower planning not only analyses the
current human resources but also makes manpower forecasts and thereby draw employment
programmes. The employment process begins with manpower planning i.e. the forecasting and
determination of the exact personnel requirements and a company and the specification of the
strategies and tactics for the acquisition, utilization, improvement and preservation of its human
resources. The aim of manpower planning is to avoid shortfalls and surpluses of labour. Shortages
lead to over utilization while surpluses lead to redundancy and underutilization of manpower. With
manpower planning, a firm does not react to each new set of circumstances on the basis of the
short-term personnel needs which they present. Rather, the systematic steps that are taken provide
overall co-ordination, direction, and logic for its personnel decisions.
•Shortages and surpluses can be defined

•All the recruitment and selection programs are based on manpower planning

•It reduces labor cost and overstaffing can be avoided

•With Manpower planning proper Manpower can be utilized properly

•Recruitment of sufficient and stable staff

•Retention of staff in the organisation

•the optimum utilisation of the staff

•the improvement of the staff performance

•the disengagement of staff, as necessary

•Present situation of manpower: It also helps to identify the available talents in a concern and
accordingly training programmes can be chalked out to develop those talents. It helps in
growth and diversification of business. Through manpower planning, human resources can
be readily available and they can be utilized in best manner.

•It helps the organization to realize the importance of manpower management which ultimately
helps in the stability of a concern.

•It also helps to identify the available talents in a concern and accordingly training programmes
can be chalked out to develop those talents.

•It helps in growth and diversification of business. Through manpower planning, human
resources can be readily available and they can be utilized in best manner.

•It helps the organization to realize the importance of manpower management which ultimately
helps in the stability of a concern.

•Increase in the size of the business:Wit the expansion of the plant, a large number of workers
are required to be recruited. At the time of taking the decision for expansion of he plant, a
stock of the existing manpower should be taken and future need of the personnel should be
assessed. This is very essential to know whether new responsibilities should be assigned
from among the existing personnel or personnel should be recruited afresh outside to met
the challenges of the new responsibilities.

•National policy on employment: No effective employee development programme can be

worked out unless it is linked with the manpower requirements of the organisation. While
developing e employee development programmes, the talent, abilities and motives of he
individuals as well as the organisational objectives in relation to the manpower should be
taken into consideration. An effective manpower planning can only help the organisation to
make its employee development programmes effective.

•National disruption in production:- National policy on employment does not permit any
employer to oust the worker recruited by the organisation. Therefore, it is very essential to
recruit the workers according to the needs of the enterprise and to develop a recruitment
policy of the organisation to avoid any unnecessary hardship in the near future. Only
 manpower planning can help the organisation in this regard.

•Effective recruitment an selection policy :- Future need may be predicted by manpower

planning, hence only right man on the right job at the right time may be recruited and
selected. The enterprise is not to invest much amount on the training of such workers who
are recruited and placed after proper scrutiny. The rate of labour turnover is also reduced by
an effective manpower planning.

•Increase in the size of the business:- Wit the expansion of the plant, a large number of
workers are required to be recruited. At the time of taking the decision for expansion of he
plant, a stock of the existing manpower should be taken and future need of the personnel
should be assessed. Ti sis very essential to know whether new responsibilities should be
assigned from among the existing personnel or personnel should be recruited afresh outside
to met the challenges of the new responsibilities.

•Avoiding disruption in production :- Manpower planning may help the organisation

procuring the skilled and qualified workers because future needs of personnel may be
estimated before hand and they are recruited and trained on the basis of a well developed
recruitment and training policy thus lowering the amount of expenditure on training. The
production is carried on uninterrupted.

•To carry out the work each org needs personnel with necessary qual, skills, knowledge, work
experience and apptitude for work.

•Replacement of people who have retired, died

•Due to frequent labour turnover which is unavoidable

•To meet the needs of expansion programmes

•Needed in order to identify areas of surplus personnel or where there are shortage of personnel.
5 Essential Elements of manpower
1.Analysing the current manpower resources
2.Reviewing employee utilization
3.Forecasting the demand for employees.
4.Forecasting supply.
5.Developing a manpower plan.
Advantages of manpower planning:
Manpower planning is a process of generating a plan, showing the demand for staffing over
a period of time, based on assumptions bout productivity and costs associated with the
employee. The supply of the resources available with in the hospital and the short falls, that
may have to be supplemented from out side, are also estimated. Manpower planning does
not stop with finding the required kind and number of employees but also determines the
action plan for all the function of personnel management.
Several benefits accrue with manpower planning. Firstly, the management is appraised of
the staffing levels across the entire organization. They can then take steps to strike a balance
everywhere. Secondly, planning and budgeting for additional manpower takes place. When
the organization is on an expansion path, it is able to assess the future requirements with
regards to employees and can thus thus start with the recruitment process. Also, when
 additional manpower is recruited, they need to be paid wages. By knowing well in advance
the numbers and amounts of wages, the organization is able to apportion money for staff.

•It offsets uncertainty and change. But HRP offsets uncertainties and changes to the maximum
extent possible and enables the organization to have right men at the right place and in right
time.
•It provides scope for advancement and development of employees through training, development
etc,
•It helps to anticipate the cost of salary, benefits and all the cost of human resources, facilitating
the formulation of budgets in an organization etc,
•To foresee the changes in values, aptitude, and attitude of human resource and to change the
techniques of interpersonal management etc
•It gives an idea of the type of tests to be used and interview techniques in selection based on the
level of skills, qualifications, intelligence, values etc. of future human resources.
•It causes the development of various sources of human resources to meet the organizational
needs.
• It helps to take steps to improve human resources contributions in the form of increased
productivity, sales, turnover etc,
•It facilitates the control of all the functions, operations, contribution and cost of human resources.

• It is useful both for organization and nation.

• It generates facilities to educate people in the organization.
• It brings about fast economic developments.
•Manpower planning ensures optimum use of available human resources
•It boosts the geographical mobility of labor.
•It provides smooth working even after expansion of the organization.
• It opens possibility for workers for future promotions, thus providing incentive.
• It creates healthy atmosphere of encouragement and motivation in the
organization.
•Training becomes effective.
•It provides help for career development of the employees.
•Enable the determination of personnel needs of an organization
•It is an essential component of strategic planning
•It helps to ascertain and identify critical shortages of skilled staff and take corrective action by
timely recruitment, etc so as to prevent production break-down or under-utilization of plant
capacity
An integral part of managerial succession plan by identifying and developing potential
managers
•Enable organization to cope with changes in competitive forces, markets, technology, product,
etc all of which always generate changes in job contents, skill demands, number and type of
personnel
•Enable the procurement of personnel with necessary qualification skill knowledge, work
experience and proper work attitude.
•Involves in selection and development of employees well in advance so as to meet any
contingencies.

•Besides looking and reacting to staff deficit, Manpower Planning is also able to identify any
surplus/redundancy, if any in an organization.
 •Reduce labor costs associated with attrition.

•Reduce recruiting & replacement costs.

•Focus training resources appropriately.

•Increase the ability to take advantage of new business opportunities.

•Improve employee morale & satisfaction

•Control rapid expansion or reduction in workforce.

•Monitor staffing and retention policies.

The main benefits or purposes of manpower planning are:

(i) To control labour costs and enhance efficiency by ensuring that only the most essential and
required personnel are hired and retained
(ii) To increase productivity by matching people with jobs that truly exists and is adequate for
them.
(iii)To provide a lead time to recruit and train workers ahead of need. Required skills are thus
provided for in advance
(iv) To provide a basis for other plans, such as plans for facilities, desks and office accommodation,
and assist in their formulation.
(v) To anticipate and overcome redundancies. The information provided about future manpower
surpluses and redundancies in particular area could be used by management to plan a retraining
programme for those who would be rendered redundant by changes in technology and company
reorganization. Such people can then be made available for jobs in which they are needed.
(vi)To show the implications of retirements and promotion plans in terms of management
development and succession planning.

Importance of Manpower Planning

In formulating an economic plan the planning has to be made regarding physical resources. In the
same way, the manpower planning will be helpful in overcoming the deficits of market. The
demand for labor depends upon assessment regarding present and future profitability of projects.
But the vision of individuals regarding future is not so accurate, the resources at their disposal are
merge, long gestating investment in education research with large many externalities are beyond
their conception. In such state of affairs the manpower planning becomes necessary so that the
deficiencies of market could be avoided.

The large number of benefits is accrued from the infra-structure built-up for manpower planning
such as information services in respect of job opportunities and skill requirements for various
occupations etc, provisions of agencies to projections of demand supplies and policies for
deployment as a part of development programme etc. all this enables the individuals to seek work
which suits their potential. They can decide about the best jobs or them. They can educate and train
themselves to meet the needs of employment they seek. Accordingly we can arrange for its people
to be employed in ways which are socially profitable and personally it will be rewarding.

•Understaffing loses the business economies of scale and specialization, orders, customers and
profits.

•Overstaffing is wasteful and expensive, if sustained, and it is costly to eliminate because of modern
legislation in respect of redundancy payments, consultation, minimum periods of notice, etc.
Very importantly, overstaffing reduces the competitive efficiency of the business.
Planning staff levels requires that an assessment of present and future needs of the organization be
compared with present resources and future predicted resources. Appropriate steps then be planned
to bring demand and supply into balance.
Thus the first step is to take a 'satellite picture' of the existing workforce profile (numbers, skills,
ages, flexibility, gender, experience, forecast capabilities, character, potential, etc. of existing
employees) and then to adjust this for 1, 3 and 10 years ahead by amendments for normal turnover,
planned staff movements, retirements, etc, in line with the business plan for the corresponding time
frames.
The result should be a series of crude supply situations as would be the outcome of present planning
if left unmodified. (This, clearly, requires a great deal of information accretion, classification and
statistical analysis as a subsidiary aspect of personnel management.)
What future demands will be is only influenced in part by the forecast of the personnel manager,
whose main task may well be to scrutinize and modify the crude predictions of other managers.

•Key to managerial functions- The four managerial functions, i.e., planning, organizing,
directing and controlling are based upon the manpower. Human resources help in the
implementation of all these managerial activities. Therefore, staffing becomes a key to all
managerial functions.

•Efficient utilization- Efficient management of personnel becomes an important function in the

industrialization world of today. Setting of large scale enterprises require management of
large scale manpower. It can be effectively done through staffing function.

•Motivation- Staffing function not only includes putting right men on right job, but it also
comprises of motivational programmes, i.e., incentive plans to be framed for further
participation and employment of employees in a concern. Therefore, all types of incentive
plans becomes an integral part of staffing function.

•Better human relations- A concern can stabilize itself if human relations develop and are
strong. Human relations become strong trough effective control, clear communication,
effective supervision and leadership in a concern. Staffing function also looks after training
and development of the work force which leads to co-operation and better human relations.

•Higher productivity- Productivity level increases when resources are utilized in best possible
manner. higher productivity is a result of minimum wastage of time, money, efforts and
energies.This is possible through the staffing and it's related activities ( Performance
appraisal, training and development, remuneration) .
•It is the first step towards manpower management.

•It refers to the process of using available assets for the implementation of the business plan.

•It also involves the process of coordinating and controlling various activities in the
organisation.

•Efficient utilisation and skilled labour.

•Higher productivity.

•It checks the corporate plan of the organization.

•It helps to face the shortage of certain categories of employees and/or variety of skills despite
the problem of unemployment.

•The rapid changes in technology, marketing, management etc. and the consequent need for new
skills and new categories of employees.

•The changes in organization design and structure affecting manpower demand.

•The demographic changes like the changing profile of workforce in terms of age, sex,
education etc.

•The government policies in respect to reservation, child labour, working conditions etc.

•The labour laws affecting the demand for and supply of labour.

•To plan for physical facilities, working conditions and volume of fringe benefits like canteen,
schools, hospitals, conveyance, child care centers, quarters, company stores etc.

•It gives an idea of type of tests to be used and interview techniques in selection based on the
level of skills, qualifications, intelligence, values etc. of future human resources.

•Introduction of computers, robots etc.

•It offsets uncertainty and change and helps to have right men at right time and in right place.

•it provides scope for advancement and development of employees through training,
development etc.

•It helps to anticipate the cost of salary enhancement, better benefits etc.

•To foresee the changes in values, aptitude and attitude of human resources and to change the
techniques of interpersonal, management etc.

•To foresee the need for redundancy and plan to check it or to provide alternative employment
in consultation with trade unions, other organizations and government through remodeling
organizational, industrial and economic plans.

•To plan for physical facilities, working conditions and volume of fringe benefits like canteen,
schools, hospitals, conveyance, child care centers, quarters, company stores etc.

•It gives an idea of type of tests to be used and interview techniques in selection based on the
level of skills, qualifications, intelligence, values etc. of future human resources.
 •It causes the development of various sources of human resources to meet the organizational
needs.

•It helps to take steps to improve human resource contributions in the form of increased
productivity, sales, turnover etc.

•It facilitates the control of all the functions, operations, contribution and cost of human
resources.

Activities involved in Manpower Planning:

•Identifying and designing current and planned organization structure of the organization.

•Estimating current and future workload for different functions and organizational units in the
organization, and, based on that, estimating the current and future total requirement of
people to fill the various positions of different types and at different levels.

•Developing profile or specifications for people to fill the various positions identified.

•Taking an inventory of existing employees in the company, and their capabilities.

•Comparing the manpower requirements and availability to determine the additional people
required in the organization at different times. While working out this requirement, suitable
provision is made for likely attribution of some of the existing employees. Similarly while
examining capability requirements of employees consideration is given to on the
development of skill and capability of people with work experience. This activity results in
identification of the total additional manpower requirements to be fulfilled by various
means.

•Determining, the means of acquiring the additional required manpower through various means
such as external recruitment, internal transfers and promotions, and training.

•Preparing recruitment plan.

•Preparing training plan.

Characteristics of Manpower planning:

•Ascertaining manpower needs in number and kind.

•It presents an inventory of existing manpower of the organization.

•Helps in determining the shortfall or surplus of manpower.

•Initiation of various organizational programmes.

•Acquisition, utilization, improvement and prevention of human resources.

WHAT ARE THE TRENDS THAT IMPACT MANPOWER PLANNING PLANNING?

A Personnel planner seeking to identify trends in human resource management should include the
following variables:

1. The state of the economy. The larger the company's sphere of operations, the broader the
spectrum of economic activity to consider.

2. Demographics. The age and sex groupings of the population and what may happen to them
in the future.

3. Employee losses or turnover. How will retirements, deaths, promotions and resignations
affect the current number of individuals employed at every level?

4. New skill requirements. What new skills will be needed due to new technology markets or
products?

5. Obsolescence of current skills and its effects.

6. The status and direction of materials prices.

7. The availability of materials--can they be cut off by uncontrollable events?

8. Technological changes.

9. Social changes. What effects do upgrading of educational backgrounds have on the willingness
of people to take menial or other types of lower level jobs?

10. Labor costs. In which direction and how far will they go? What are the alternatives?

Usefulness of Manpower:

a.National Level – generally done by the Govt and covers items like population projections,
programme of economic development, educational facilities, occupational distribution and
growth.

b.Sector level- May be done by the Govt- Central or State and may cover manpower needs of
agric, industrial and service sector.

c.Industry level- Manpower forcast for specific industries such as engineering, heavy industries,
consumer goods industries etc.

OBJECTIVES OF MANPOWER PLANNING:

•To link MPP with organizational planning

•To ensure the optimum use of human resources currently employed:To ensure optimum
utilisation of human resources currently employed in the organisation is one important
objective of manpower planning for this attention needs to be given to proper placement
induction,trainingand career development programmes.Meeting future manpower needs of
the organisation is one objective of manpower planning.

•To access or forecast future skills requirements:To determine the future manpower needs of the
organisation as per the renovation,modernisation,expansion and growth programmes of the
enterprise is one objective of manpower planning.
•To provide control measures to ensure that necessary recourses are made available as and
when required.

•To determine recruitment levels:To determine the recruitment needs of the organisation and
make suitable arrangements for the recruitment of right type of persons(with the help of job
analysis)is one objective of manpower planning.

•To anticipate redundancies and avoid unnecessary dismissals.

•To determine optimum training levels.

•To provide a basis for management development programmes.

•To deploy the manpower in new projects.

•To decide whether certain activities need to be subcontracted.

MANPOWER PLANNING INCLUDES:

-Recruitment plan
-Selection plan
-Induction plan
-Orientation plan
-Training plan
-Development plan
-Compensation development plan
-Salary administration plan
-Payroll Administration "
-Performance Appraisal "
-Performance Management "
-Industrial Relations "
-Counseling "
-Promotions "
-Terminations "
-Transfers "
-Staff amenities ".

These points are briefly explained below:

RECRUITMENT

Recruitment means to estimate the available vacancies and to make suitable arrangements
for thier selection and appointment.In the recruitment process,the available vacancies are
given wide publicity and suitable candidates are encouraged to submit applications so as to
have a pool of eligible candidates for scientific selection.it is the process of searching and
obtaining applications from interested candidates so as to have a pool of job seekers from
whom most suitable persons can be selected for appointment.

Need For Recruitment:

 The need for recruitment may be due to the following reasons-----------

d.Vacancies due to promotions,transfers,retirement,termination,permanent

disability,death and labour turnover.

e.Creation of new vacancies due to growth,expansion and diversification of business

activities.

a)A recruitment plan will cover:

•A number and types of employees required to cater for expansion or new

developments and make up for any deficits;

•The likely sources of candidates

•Plans for tapping alternative sources

•How the recruitment programmes will be conducted.

b))Recruitment is the development and maintenance of adequate manpower sources.

It involves the creation of a pool of available human resources from which the
organization can draw when it needs additional employees. Recruiting is the process
of attracting applicants with certain skills , abilities and other personal characteristics
to job vacancies in an organization.

c) The function of recruitment is to locate the sources of manpower to meet job

requirements and specifications. Recruitment forms the first stage in the process
which continues with selection and ceases with the placement of candidates.

d) Most organizations use a mixture of internal and external sources –promoting

from within when qualified employees are available and recruiting from external
sources when new skills are needed or growth is rapid.

e)Recruitment philosophy:

The key issues in recruitment philosophy are……….

•Whether to promote employees from within the organization or to hire from outside for various
vacancies at all levels.

•Whether the emphasis will be merely filling of vacancies or hiring employees for long term
careers.

Sources of recruitment are the outlets through which suitable and interested candidates are
available.Available sources of recruitment or methods of recruitment can be conveniently
into two broad categories.these are1)Internal sources and 2)External sources.

f. Internal Recruiting

Internal recruiting involves recruiting current or former employees for job openings in the
organization along with soliciting referrals from current employees. Various methods are discussed
below:

g.Human Resource Management Information System.

h.Job Posting

i.Job Bidding.

j.Former Employees.

k.Former Applicants.

l.Employee Referrals.

These points are briefly explanied below:-

m.Human Resource Management Information System:

Sophisticated HRISs and employee databases are excellent sources of applicants. Many of these
systems include data on employee training, education, and skills. In addition, some systems also
include information on employee career goals and employee performance ratings. The system is
able to match the requirements of a job with the characteristics and career goals of an employee to
instantaneously create a potential applicant list. These employees can then be contacted, often by an
automated email system, regarding their interest in a job opening.

B.Job Posting:

Job posting is the process of advertising and publicizing job openings to employees. This might be
accomplished by physically posting the opening on bulletin boards or by electronically posting
them on the company’s intranet or Internet. It is then up to the employee to actually apply for the
position.

C.Job Bidding:

Job bidding is similar to job posting and is more common in unionized environments. Job bidding
permits an employee to apply for a position even if no openings exist. The employee’s application is
then held for a period of time, usually for a year, and the employee receives automatic consideration
should the position come open. The process is often referred to as automatic consideration. Job
bidding might be more efficient when openings for a job come open quite frequently. The employer
can go to the job bid list without having to post each opening separately.

D.Former Employees:

Former employees are often a good source of applicants. Former employees include three
categories:

· Employees that have temporarily dropped out of the workforce For example, individuals
that have elected to stay home with their young children. Often these former employees are
ready to come back to the workforce or are willing to accept part-time employment.
· Retirees that might be willing to come back to the employer on a consultant or contract
basis.
· Employees that have left the organization for work in another organization.

Assuming that these employees were good performers prior to their exit from the organization, they
are likely to be good performers on their return. Many organizations have alumni and retiree clubs
and groups to keep in touch with former employees. This frequently provides a rich base from
which to recruit. Often employees leave thinking that a new organization provides a better working
environment, better pay, or more challenging work, only to be disappointed. They often can be
enticed back to the organization.

E.Former Applicants:

Applicants that previously applied for positions with the organization are to some extent known
quantities, depending on how far they got in the selection process. Good applicants should be
reconsidered. Many organizations keep files on excellent candidates that were not selected for prior
openings and re-recruit them for current positions. This method is both efficient and effective.
Much of the screening might have already been done and, if the applicants were previously
interviewed, they might have already been judged as acceptable.

F.Employee Referrals:

Many organizations have active formal employee referral programs, particularly in tight job
markets or where the employer has difficult-to-fill or high-turnover positions. These programs
reward employees for referring applicants to the organization. Other organizations have less formal
programs and encourage employees to refer potential applicants, but do not provide an incentive for
doing so.

Experience and research show considerable benefit to the employee referral type of recruitment.
First, employees are not likely to refer applicants that would not be good employees. They do not
want to be embarrassed by the performance or conduct of their referral. Also, candidates that are
referred by employees typically already have begun the orientation process and have somewhat of a
realistic job preview via their relationship with the current employee. Finally, there is a positive
correlation between employee referral and employee retention of those hired as a result.

There is, however, one potential problem that can associated with employee referrals. Employees
tend to refer their relative and friends, who most likely are of the same ethnicity or sex as
themselves. Therefore, this type of recruitment does not normally facilitate the achievement of
diversity and affirmative action plan goals and can create adverse impact. This is particularly true if
the organization has a past practice of discrimination.

Advantages of Internal Recruitment:

•Promotes high morale.

•Employees are familiar with the organization.

•Employee's performance and skill levels are already known.

•Promotes employee commitment.

•Provides a career path for employees.

•Provides opportunities for the employee to increase his or her salary.

•Reduces recruiting costs.

•Reduces orientation costs because the employee already is familiar with the job and
organizational culture.

•Reduces training costs because the employee likely has already learned some of the
requirements of the job through exposure to the job.

Disadvantages of Internal Recruitment:

•Can negatively affect morale and commitment of those not promoted.

•Does not encourage new and innovative ways of doing things.

 •Promotes individual competition for promotion, which can affect cooperation and
collaboration.

2.External Recruiting

External recruiting involves obtaining applications from individual external to the organization.
Company managements have to use external sources for the recruitment of supervisory staff and
managers as and when necessary.this may be with a view to introducing 'new blood' in the
organisation.Morever ,external sources need to be used when the internal sources do not provide
additional staff required by the organisation.

n.Media Advertising.

o.College and School Recruiting.

p.Labor Unions.

q.Employment Agencies.

r.Temporary Employment Agencies.

s.Suppliers and Competitors.

t.Professional and Trade Associations.

u.Walk-Ins.

v.Job Fairs and Special Events.

w.Internet.

x.Outplacement Firms.

These points are briefly explained below--------

A)Media Advertising:

Media advertising refers to recruitment using radio, television, newspapers, and so forth. This is a
technical area requiring expertise not normally available within the HR function. Writing effective
advertisements frequently calls for professionals in the field. Professionally done media advertising
can be an extremely effective and cost-efficient recruitment method. It allows the organization to
reach a large number of potential applicants, often resulting in significant savings in hiring costs.
By use of appropriate outlets targeted protected groups can be reached, which facilitates diversity
and affirmative action efforts. However, when poorly done media advertising can be extremely
expensive.

B)College and School Recruiting.:

College and university recruiting is a good source of entry- and mid-level managers and
professionals. In general, college recruiting requires a continuing relationship with the organization
and its placement office, and a history of hiring the college’s graduates. These together tend to put
the organization at the front of the referral queue. However, this is often an expensive proposition
requiring expenditure of both staff and financial resources. Sponsoring professional clubs and
providing scholarships and internships can be expensive if the organization never hires individuals
from the college. Many organizations have scaled down their college recruiting efforts to focus on a
few schools where they can maintain a continuing presence and hire excellent candidates in a cost-
effective manner.

Two-year colleges (junior and community colleges) and technical schools can be good sources for
entry-level, para-technical, and para-professional positions. The strategies associated with recruiting
at these institutions are the same as for higher-level institutions—only the type of positions being
recruited for is different.

High schools are a good source of blue-collar, clerical, and retail entry-level positions. Many
organizations do not realize the potential of recruiting at this level, often assuming that graduates
will pursue higher education. Good relationships with school counselors and athletic departments
often facilitate this type of recruitment.

C)Labor Unions:

Labor union hiring halls are often a good, and sometimes the only, source of applicants. This is
particularly true in the construction trades.

D)Employment Agencies:

employment agencies and job search firms often are good sources of job candidates. First, all states
have unemployment offices, displaced worker units, or similar agencies performing the same
function. These are often sources of applicants.

Private employment agencies can be viable sources of applicants. These firms most frequently
charge the organization a fee for referral of candidates, either on a contingency or retainer basis.
Contingency-based firms receive the fee only if the applicant is hired, whereas retainer-based firms
receive a fee for engaging in the search even if no one is hired. Employment agencies normally
prescreen the applicants for the organization and refer only those that are qualified. The agencies
often have contacts and relationships that the organization does not, and might be able to locate
excellent candidates for higher-level managerial and hard-to-fill technical and professional
positions. Although using employment agencies and search firms might be cost-effective and yield
results that the organization could not achieve on its own, doing so can be extremely expensive.
Costs for using these types of firms often run 25–30% of the yearly salary for the position being
recruited.

E)Temporary Employment Agencies:

Many private employment agencies provide temporary, part-time, or just-in-time workers. These
employees are paid by the temporary agency and are not employees of the organization. Temporary
agencies screen these workers and often provide training. These agencies have traditionally
provided lower-level blue-collar and clerical workers, but that is no longer the case. There are now
temporary employment agencies that specialize in providing technical, professional, and managerial
temporary workers. There are even agencies that specialize in temporary executives up to and
including CEOs.

The advantage of these agencies is in their flexibility. The employer has no continuing obligation to
the employee and can, within limits, rotate them in and out of the organization. This is especially
important to firms than have frequent variations in demand or are seasonal in nature. Employers pay
a fee to the temporary agency and do not have to worry about employee benefits or employment
taxes. In addition, organizations often use the temporary employment as a probationary period. The
temporary agency permits the organization to hire these temporary workers as permanent
employees for a fee.

F)Suppliers and Competitors:

Employees of suppliers and competitors are often good sources of applicants. They are familiar
with the industry and frequently familiar with the organization itself.

G)Professional and Trade Associations:

Virtually all professional and trade associations provide placement services for their members and
allow employers to post job openings on their website, typically for a fee. In addition, these
associations normally publish newsletters or journals in which the organization can place recruiting
advertisements. Most associations also have annual meetings or conventions that provide additional
opportunities for the organization to recruit in person. Organizations have found professional and
trade associations to be excellent sources of applicants, particularly for specialized types of jobs
such as banking, finance, human resource management, and so forth. Some associations are
organized around gender or ethnicity. They are good sources of candidates for organizations
engaging in diversity or affirmative action initiatives.

H)Walk-Ins:
Many organizations accept applications from individuals that visit the organization for the express
purpose of inquiring about job opportunities. Walk-ins have been found to be good sources of entry-
level employees. The mere fact that they have taken the time and effort to visit the organization
shows some level of interest and commitment.

I)Job Fairs and Special Events:

Job fairs held by other organizations—for example, the local chamber of commerce—tend to attract
a wide variety of applicants and might provide the organization with numerous recruiting leads and
applicants. However, many organizations have found that some individuals attending these types of
events are merely shopping and are not really interested in changing jobs. In addition, many of the
individuals tend to have low skills and might be largely unemployable. That being said, job fairs
held by organizations such as professional associations (for example, the Society for Human
Resource Management) can be an excellent source of candidates.

Internally held job fairs have proven to be an effective means of recruitment, particularly for entry-
level blue-collar and clerical employees. Organizations often open up their facilities during the
evening or on the weekend and provide free food and prizes as an incentive for potential applicants
to visit. Actually visiting the work site begins the realistic job preview process and might result in
better retention of applicants who are actually hired.

Organizations have also found that using special events as a recruiting tool has proven effective. A
booth or kiosk at sporting and civic events could produce viable candidates.

J)Internet:

The Internet has opened up all sorts of possibilities and associated challenges in recruiting. It
provides access to a worldwide population of potential applicants. There are essentially three major
sources of applicants using e-recruiting: commercial job boards, professional/trade association
websites, and the employer’s website.

Many organizations have successfully used commercial job boards such as Monster.com and
Hotjobs.com where, for a fee, employers can post job opportunities. Job boards have been found to
provide access to a large number of qualified candidates. However, because of ease of access many
of the candidates often are not seriously looking for a new job but are merely testing their
competitiveness in the job market or trying to determine current compensation rates.

Most larger employers now provide employment information on their websites. They typically find
this to be an effective and efficient means of generating applications. To be effective, access to job
information must be easy. Most employers provide a button on the home page that leads prospective
applicant to the information. Effectiveness is increased if the web page for employment information
continues the same format and theme as the home page and is consistent with the organization’s
image and culture. This is an important continuation of the employer branding previously discussed.
Internet recruiting can save time because the application forms and/or resumes are readily available.
Applicants can be immediately contacted via email. Internet recruiting is typically much less
expensive than media advertising or onsite recruiting initiatives. Internet recruiting expands the
relevant job market to the globe and has the potential to generate a large number of qualified
candidates.

However, the ease of application in Internet recruiting and the wide exposure of job opening
information often generate applications from those that are not qualified or that are not seriously
looking for work. In fact, Internet recruiting might generate too many applications that must be
screened and applicants that must be contacted, thus increasing the workload on HR. Fortunately,
there are now software packages that can largely automate many of these processes.

Internet recruiting poses problems for the tracking of applicant flow data. However, recent rulings
by both the EEOC and OFCCP have clarified the issue somewhat. As a general overview of that
guidance, employers have to consider applications received on the Internet as applicants for
applicant flow data only if the organization actually considers the applicant for an open position, if
the applicant maintains continued interest and follows the organization’s standard application
process, and if the applicant expresses interest and is basically qualified for a particular position.

A final concern about Internet recruiting is the potential for adverse impact caused by what is
known as the digital divide. Although access to the Internet has increased dramatically, certain
minority groups might have less access than other groups.

K)Outplacement Firms:

Many organizations have formed alliances with outplacement firms. These firms provide placement
assistance to individuals, many of whom have been involuntarily separated from their former
employer through no fault of their own. These individuals are often excellent candidates.

Advantages of External Recruitment:

•Brings new ideas and methods into the workplace.

•Selection can be made in an impartial manner as large number of qualified and interested
candidates are available.

•The management can fulfill reservation requirements in favour of the disadvantaged sections of
the society.

•Might bring in expertise not currently available internally.

Disadvantages of External Recruitment:

 •Individual might not be a good fit with the organization and organizational culture.

•Might lower morale and commitment of current employees that are deprived of promotion
opportunities.

•Employees feel frustrated due to external recruitment and their morale goes down.

•External sources of recruitment are costly and time consuming.

SELECTION

Selection is next to recruitment.It is the process of choosing the most suitable candidates out of
many interested candidates.it is the process of selecting the best and rejecting the rest.

Individual differ in their ability to perform the different types of activities. They differ in their
physical characteristics, intelligence and intellectual aptitudes etc. Because of these large
differences in human abilities, proper selection is very important in an organization.

Recruitment is selling the idea that a particular organization is a better place to work than a
competitive organization. Selection is basically staffing the people at right places according to their
competence.

The Employee selection Process takes place in following order-

y.Preliminary Interviews

z.Application blanks.

aa.Written Tests.

bb.Employment Interviews.

cc.Medical examination.

dd.Appointment Letter.

These points are briefly explained below-----

ee.Preliminary Interviews- It is used to eliminate those candidates who do not meet the
minimum eligiblity criteria laid down by the organization. The skills, academic and family
background, competencies and interests of the candidate are examined during preliminary
interview. Preliminary interviews are less formalized and planned than the final interviews.
The candidates are given a brief up about the company and the job profile; and it is also
examined how much the candidate knows about the company. Preliminary interviews are
also called screening interviews.

ff.Application blanks- The candidates who clear the preliminary interview are required to fill
application blank. It contains data record of the candidates such as details about age,
qualifications, reason for leaving previous job, experience, etc

gg.Written Tests- Various written tests conducted during selection procedure are aptitude test,
intelligence test, reasoning test, personality test, etc. These tests are used to objectively
 assess the potential candidate. They should not be biased.

hh.Employment Interviews- It is a one to one interaction between the interviewer and the
potential candidate. It is used to find whether the candidate is best suited for the required job
or not. But such interviews consume time and money both. Moreover the competencies of
the candidate cannot be judged. Such interviews may be biased at times. Such interviews
should be conducted properly. No distractions should be there in room. There should be an
honest communication between candidate and interviewer.

ii.Medical examination- Medical tests are conducted to ensure physical fitness of the potential
employee. It will decrease chances of employee absenteeism.

jj.Appointment Letter- A reference check is made about the candidate selected and then finally
he is appointed by giving a formal appointment letter.

INDUCTION

Induction Programs are designed to create just right impression about the company, its mission,
culture and policies among new recruits it also give the idea about company. A well-planned
carefully designed Induction Program will go a long way in clearing a path of fresh employee.
Induction Program for employee helps them develop a bond & feeling of oneness which make
leaving the organization difficult. It’s more of a family.

For freshers induction program tell that about workplace, some work related tips because they are
fresher they have no practical knowledge so they also get some comfort .

Purposes of Induction:

The purpose of induction is to provide various types of information to new employees.such

information includes the following:

•General information about the daily work routine and the terms and conditions of
employment.

•A review of the organisation's history ,founding fathers,objectives,operations,products/services

offered by the company,and how the employees job contributes to the organisation's needs
and

•A detailed information of the organisation' policies ,work rules and employee benefits.this
information is given in a brochure and a copy of the same is supplied to newly appointed
employees.

•To communicate to newly selected employee the details of job requirements.

•To help him in gaining confidence in his work and the organisation he has joined .

ORIENTATION

New employee orientation is the process used for welcoming a new employee into an organization.
New employee orientation, often spearheaded by a meeting with the Human Resources department,
generally contains information about safety, the work environment, the new job description,
benefits and eligibility, company culture, company history, the organization chart and anything else
relevant to working in the new company.

New employee orientation often includes an introduction to each department in the company and
training on-the-job. New employee orientation frequently includes spending time doing the jobs in
each department to understand the flow of the product or service through the organization.

The best new employee orientation:

* has targeted goals and meets them,

* makes the first day a celebration,

* involves family as well as co-workers,

* makes new hires productive on the first day,

* is not boring, rushed or ineffective, and

* uses feedback to continuously improve.

TRAINING

The quality of employees and their development through training and education are major factors in
determining long-term profitability of a business. If a company hire and keep good employees, it is
good policy to invest in the development of their skills, so they can increase their productivity.

Training often is considered for new employees and also for current employees because ongoing
training for current employees helps them adjust to rapidly changing job requirements.

Purpose of Employee Training:

•Creating a pool of readily available and adequate replacements for personnel who may leave or
move up in the organization.

•Enhancing the company's ability to adopt and use advances in technology because of a
sufficiently knowledgeable staff.

•Building a more efficient, effective and highly motivated team, which enhances the company's
competitive position and improves employee morale.

•Ensuring adequate human resources for expansion into new programs.

The Training Process:

kk.Identifying Training Needs:

Training needs can be assessed by analyzing three major human resource areas: the
organization as a whole, the job characteristics and the needs of the individuals. This
analysis will provide answers to the following questions:

* Where is training needed?

 * What specifically must an employee learn in order to be more productive?

* Who needs to be trained?

Begin by assessing the current status of the company how it does what it does best and the
abilities of your employees to do these tasks. This analysis will provide some benchmarks
against which the effectiveness of a training program can be evaluated. Your firm should
know where it wants to be in five years from its long-range strategic plan. What you need is
a training program to take your firm from here to there.

Second, consider whether the organization is financially committed to supporting the

training efforts. If not, any attempt to develop a solid training program will fail.

Next,company determines exactly where training is needed. It is foolish to implement a

companywide training effort without concentrating resources where they are needed most.
An internal audit will help point out areas that may benefit from training. Also, a skills
inventory can help determine the skills possessed by the employees in general. This
inventory will help the organization determine what skills are available now and what skills
are needed for future development.

Once company is determined where training is needed,it concentrates on the content of the
program. Analyzes the characteristics of the job based on its description, the written
narrative of what the employee actually does. Training based on job descriptions should go
into detail about how the job is performed on a task-by-task basis. Actually doing the job
will enable you to get a better feel for what is done.

Individual employees can be evaluated by comparing their current skill levels or

performance to the organization's performance standards or anticipated needs. Any
discrepancies between actual and anticipated skill levels identifies a training need.

II.Selection of Trainees

Once a company decides what training is necessary and where it is needed, the next
decision is who should be trained? For a small business, this question is crucial. Training an
employee is expensive, especially when he or she leaves your firm for a better job.
Therefore, it is important to carefully select who will be trained.

Training programs should be designed to consider the ability of the employee to learn the
material and to use it effectively, and to make the most efficient use of resources possible. It
is also important that employees be motivated by the training experience. Employee failure
in the program is not only damaging to the employee but a waste of money as well.
Selecting the right trainees is important to the success of the program.

III.Training Goals

The goals of the training program should relate directly to the needs determined by the
assessment process outlined above. Course objectives should clearly state what behavior or
skill will be changed as a result of the training and should relate to the mission and strategic
plan of the company. Goals should include milestones to help take the employee from where
he or she is today to where the firm wants him or her in the future. Setting goals helps to
evaluate the training program and also to motivate employees. Allowing employees to
participate in setting goals increases the probability of success.

IV.Training Methods

There are two broad types of training available to small businesses: on-the-job and off-the-
job techniques. Individual circumstances and the "who," "what" and "why" of a training
program determine which method to use.

On-the-job training is delivered to employees while they perform their regular jobs. In this
way, they do not lose time while they are learning. After a plan is developed for what should
be taught, employees should be informed of the details. A timetable should be established
with periodic evaluations to inform employees about their progress. On-the-job techniques
include orientations, job instruction training, apprenticeships, internships and assistantships,
job rotation and coaching.

Off-the-job techniques include lectures, special study, films, television conferences or

discussions, case studies, role playing, simulation, programmed instruction and laboratory
training. Most of these techniques can be used by small businesses although, some may be
too costly.

Orientations are for new employees. The first several days on the job are crucial in the
success of new employees. This point is illustrated by the fact that 60 percent of all
employees who quit do so in the first ten days. Orientation training should emphasize the
following topics:

* The company's history and mission.

* The key members in the organization.

* The key members in the department, and how the department helps fulfill the mission of
the company.

* Personnel rules and regulations.

Some companies use verbal presentations while others have written presentations. Many
small businesses convey these topics in one-on-one orientations. No matter what method is
used, it is important that the newcomer understand his or her new place of employment.

Some are briefly explained below:

•Lectures present training material verbally and are used when the goal is to present a
great deal of material to many people. It is more cost effective to lecture to a group
than to train people individually. Lecturing is one-way communication and as such
may not be the most effective way to train. Also, it is hard to ensure that the entire
audience understands a topic on the same level; by targeting the average attendee
you may undertrain some and lose others. Despite these drawbacks, lecturing is the
most cost-effective way of reaching large audiences.

•Role playing and simulation are training techniques that attempt to bring realistic
 decision making situations to the trainee. Likely problems and alternative solutions
are presented for discussion. The adage there is no better trainer than experience is
exemplified with this type of training. Experienced employees can describe real
world experiences, and can help in and learn from developing the solutions to these
simulations. This method is cost effective and is used in marketing and management
training.

•Audiovisual methods such as television, videotapes and films are the most effective
means of providing real world conditions and situations in a short time. One
advantage is that the presentation is the same no matter how many times it's played.
This is not true with lectures, which can change as the speaker is changed or can be
influenced by outside constraints. The major flaw with the audiovisual method is that
it does not allow for questions and interactions with the speaker, nor does it allow for
changes in the presentation for different audiences.

•Job rotation involves moving an employee through a series of jobs so he or she can get
a good feel for the tasks that are associated with different jobs. It is usually used in
training for supervisory positions. The employee learns a little about everything. This
is a good strategy for small businesses because of the many jobs an employee may
be asked to do.

•Apprenticeships develop employees who can do many different tasks. They usually
involve several related groups of skills that allow the apprentice to practice a
particular trade, and they take place over a long period of time in which the
apprentice works for, and with, the senior skilled worker. Apprenticeships are
especially appropriate for jobs requiring production skills.

•Internships and assistantships are usually a combination of classroom and on-the-job

training. They are often used to train prospective managers or marketing personnel.

•Programmed learning, computer-aided instruction and interactive video all have one
thing in common: they allow the trainee to learn at his or her own pace. Also, they
allow material already learned to be bypassed in favor of material with which a
trainee is having difficulty. After the introductory period, the instructor need not be
present, and the trainee can learn as his or her time allows. These methods sound
good, but may be beyond the resources of some small businesses.

•Laboratory training is conducted for groups by skilled trainers. It usually is conducted

at a neutral site and is used by upper- and middle management trainees to develop a
spirit of teamwork and an increased ability to deal with management and peers. It
can be costly and usually is offered by larger small businesses.

V.Trainers:

Who actually conducts the training depends on the type of training needed and who will be
receiving it. On-the-job training is conducted mostly by supervisors; off-the-job training, by
either in-house personnel or outside instructors.
In-house training is the daily responsibility of supervisors and employees. Supervisors are
ultimately responsible for the productivity and, therefore, the training of their subordinates.
These supervisors should be taught the techniques of good training. They must be aware of
the knowledge and skills necessary to make a productive employee. Trainers should be
taught to establish goals and objectives for their training and to determine how these
objectives can be used to influence the productivity of their departments. They also must be
aware of how adults learn and how best to communicate with adults. Small businesses need
to develop their supervisors' training capabilities by sending them to courses on training
methods. The investment will pay off in increased productivity.

There are several ways to select training personnel for off-the-job training programs. Many
small businesses use in-house personnel to develop formal training programs to be delivered
to employees off line from their normal work activities, during company meetings or
individually at prearranged training sessions.

There are many outside training sources, including consultants, technical and vocational
schools, continuing education programs, chambers of commerce and economic development
groups. Selecting an outside source for training has advantages and disadvantages. The
biggest advantage is that these organizations are well versed in training techniques, which is
often not the case with in-house personnel.

The disadvantage of using outside training specialists is their limited knowledge of the
company's product or service and customer needs. These trainers have a more general
knowledge of customer satisfaction and needs. In many cases, the outside trainer can
develop this knowledge quickly by immersing himself or herself in the company prior to
training the employees. Another disadvantage of using outside trainers is the relatively high
cost compared to in-house training, although the higher cost may be offset by the increased
effectiveness of the training.

VI.Training Administration:

Having planned the training program properly, you must now administer the training to the
selected employees. It is important to follow through to make sure the goals are being met.
Questions to consider before training begins include:

* Location.

* Facilities.

* Accessibility.

* Comfort.

* Equipment.

* Timing.

Careful attention to these operational details will contribute to the success of the training
program.
An effective training program administrator should follow these steps:

* Define the organizational objectives.

* Determine the needs of the training program.

* Define training goals.

* Develop training methods.

* Decide whom to train.

* Decide who should do the training.

* Administer the training.

* Evaluate the training program.

Following these steps will help an administrator develop an effective training program to
ensure that the firm keeps qualified employees who are productive, happy workers. This will
contribute positively to the bottom line.

VII.Evaluation of Training:

Training should be evaluated several times during the process. Determine these milestones
when you develop the training. Employees should be evaluated by comparing their newly
acquired skills with the skills defined by the goals of the training program. Any
discrepancies should be noted and adjustments made to the training program to enable it to
meet specified goals. Many training programs fall short of their expectations simply because
the administrator failed to evaluate its progress until it was too late. Timely evaluation will
prevent the training from straying from its goals.

DEVELOPMENT PLAN

Management development is an activity designed to improve the performance of existing

managers,provide a supply of managers to meet the need of organisations in future and
extend the understanding of the management activity by drawing from the following three
resource areas:

a)knowledge,b)experience c)trainee himself.

Develpoment is a long term educational process relating to conceptual and theoretical

knowledge.Development is a broader education for long term purposes.Development
programmes are for managerial staff.Managers and higher level manpower are given
training through internal and external methods.

The purpose is to update their knowledge and skills and to make them capable to face new
challenges from time to time.

COMPENSATION

Compensation is money received in the performance of work,plus many kinds of benefits

and services that organisations provide to their employees.

The compensation strategy and compensation policy includes several compensation

components and the ownership and the responsibilities have to be defined for them. The
compensation components should not have just one owner; the components should be
distributed to all the business leaders, as they need a financial tool to motivate their
employees. The HRM Function tends to centralize the compensation components ownership
to one place, but this approach can work just for a limited period of time and then it fails and
hurts the business.

The top management of the organization has to make a clear decision about the components
included in the compensation strategy and compensation policy. The compensation policy
has to define the roles and responsibilities of different departments and the general rules
applied to each compensation component in the organization.

The most typical components of the compensation policy are:

* Base salary

* Bonuses

* Incentives

* Benefits

These points are briefly explained below:-

•Base salary:The base salary is clearly in the ownership of the top management of the
organization and the HRM Function. The role of the base salary is to attract and
retain the talents from the market to work for the organization. The base salary is
very sensitive and the line management would love to make the base salary as high
as possible. The top management is a clear owner of the base salary and the HRM
Function is the process owner of the base salary policy to make sure, the
organization stays competitive on the job market and the costs are under the control.

•Bonuses:Bonuses are clearly different story from the point of the ownership. The HRM
Function should define the basic rules for the bonuses in the organization and the
line management should have the right to define additional rules for the calculation
and desired behavior of employees to pay the bonuses. The bonuses are the most
important component of the motivation of employees in many units. Bonuses are
very important topic to the line management as the line management can provide
very direct feedback to employees with the bonus release.

•Incentives:The Incentives are the part of the compensation policy, which should be
fully in the responsibility of the line management. The HRM Function should define
basic playground for the general rules about the incentive scheme in the organization
and the line management should have a full freedom to play the game, as they want
to play it. The incentives helps to get the targets immediatelly and the targets can
change quickly. The incentives have to be fully in the hands of the line management
 to support them in the effort to reach the efficient organization.

•Benefits:The benefits have the retention role in the compensation strategy. The benefits
should be fully driven by the HRM Function and the line management should
provide their own products and services as the benefits to the employees of the
organization.

Strategic Manpower planning

A comprehensive Human Resource Strategy plays a vital role in the achievement of an

organisation's overall strategic objectives and visibly illustrates that the human resources function
fully understands and supports the direction in which the organisation is moving. A comprehensive
HR Strategy will also support other specific strategic objectives undertaken by the marketing,
financial, operational and technology departments.
In essence, an HR strategy should aim to capture "the people element" of what an organisation is
hoping to achieve in the medium to long term, ensuring that:-
• it has the right people in place
• it has the right mix of skills
• employees display the right attitudes and behaviours, and
• employees are developed in the right way.

If, as is sometimes the case, organisation strategies and plans have been developed without any
human resource input, the justification for the HR strategy may be more about teasing out the
implicit people factors which are inherent in the plans, rather than simply summarising their explicit
"people" content.
An HR strategy will add value to the organisation if it:
• articulates more clearly some of the common themes which lie behind the achievement of
other plans and strategies, which have not been fully identified before; and
• identifies fundamental underlying issues which must be addressed by any organisation or
business if its people are to be motivated, committed and operate effectively.

The first of these areas will entail a careful consideration of existing or developing plans and
strategies to identify and draw attention to common themes and implications, which have not been
made explicit previously.
The second area should be about identifying which of these plans and strategies are so fundamental
that there must be clear plans to address them before the organisation can achieve on any of its
goals. These are likely to include:
• workforce planning issues
• succession planning
• workforce skills plans
• employment equity plans
• black economic empowerment initiatives
 • motivation and fair treatment issues
• pay levels designed to recruit, retain and motivate people
• the co-ordination of approaches to pay and grading across the organisation to create alignment
and potential unequal pay claims
• a grading and remuneration system which is seen as fair and giving proper reward for
contributions made
• wider employment issues which impact on staff recruitment, retention, motivation etc.
• a consistent performance management framework which is designed to meet the needs of all
sectors of the organisation including its people.
• policies and frameworks to ensure that people development issues are addressed
systematically : competence frameworks, self-managed learning etc.

The HR strategy will need to show that careful planning of the people issues will make it
substantially easier for the organisation to achieve its wider strategic and operational goals.
In addition, the HR strategy can add value is by ensuring that, in all its other plans, the organisation
takes account of and plans for changes in the wider environment, which are likely to have a major
impact on the organisation, such as:
• changes in the overall employment market - demographic or remuneration levels
• cultural changes which will impact on future employment patterns
• changes in the employee relations climate
• changes in the legal framework surrounding employment
• HR and employment practice being developed in other organisations, such as new flexible
work practices.

Finding the right opportunity to present a case for developing an HR Strategy is critical to ensuring
that there will be support for the initiative, and that its initial value will be recognised by the
organisation.
Giving a strong practical slant to the proposed strategy may help gain acceptance for the idea,
such as focusing on good management practice. It is also important to build "early or quick
wins" into any new strategy.
Other opportunities may present the ideal moment to encourage the development of an HR
Strategy:-
• a major new internal initiative could present the right opportunity to push for an accompanying
HR strategy, such as a restructuring exercise, a corporate acquisition, joint venture or merger
exercise.
• a new externally generated initiative could similarly generate the right climate for a new HR
strategy - e.g. Black economic empowerment initiatives.
• In some instances, even negative news may provide the "right moment", for example, recent
 industrial action or employee dissatisfaction expressed through a climate survey.

Making the HR Strategy integral to the organisation

The human resources practitioner should ensure that the HR Strategy is integrated with broader
organisational objectives. Above all, it should ensure that the rest of the organisation accepts the
Strategy. To achieve this objective, practitioners should:-
• consult all stakeholders on the nature of the strategy;
• cultivate and develop allies and supporters of the strategy through the consultation process;
• focus on the benefits which are being derived from the strategy through talking to and
persuading others, and by marketing the benefits of the strategy with concrete examples of
how it has helped;
• check that there is real commitment to the strategy at all levels of the organisation;
• give regular feedback on the implementation of the plan through employee newsletters,
exhibitions etc;

•where possible, build into the strategy quantifiable outcomes which can be easily monitored
and evaluated, so that it is possible to show the effect;
• make the strategy part of the induction process - especially for senior managers.

How can MPP be applied?

•The report details the sort of approach companies might wish to take. Most organizations are
likely to want MPP systems:

•which are responsive to change

•where assumptions can easily be modified

•that recognize organizational fluidity around skills

•that allow flexibility in supply to be included

•that are simple to understand and use

•which are not too time demanding.

•To operate such systems organizations need:

•appropriate demand models

•good monitoring and corrective action processes

•comprehensive data about current employees and the external labour market

•an understanding how resourcing works in the organization.

•If MPP techniques are ignored, decisions will still be taken, but without the benefit of
understanding their implications. Graduate recruitment numbers will be set in ignorance of
 demand, or management succession problems will develop unnoticed. As George Bernard
Shaw said: ‘to be in hell is to drift; to be in heaven is to steer’. It is surely better if decision
makers follow this maxim in the way they make and execute resourcing plans.
ManPower Plan Component
Three Ranges of Manpower Forecasting:-

•Short Range (0 to 2 years):

ll.Demand for Authorised expansion, technological changes, new legislation, Employee
turnover, lay-offs etc.
mm.Supply of Labour/Internal Departmental, divisional rosters, promotion, expected losses,
deaths.
nn.Supply of Labour/External Area employment levels, No of employees needed.

•Intermediate Range (2 to 5 years):

oo.Demand for Operating needs from budgets or plans. Expansion or contraction or
adjustments.
pp.Supply of Labour/Internal Mergers or acquisition plans, managerial and supervisory
development programmes
qq.Supply of Labour/External Labour Market projections, business development plans,
general institutional plans to hire.

•Long Range (Beyond 5 years):

rr.Demand for Geographical capacity, size of the org and systems, services offered, load
anticipated.
ss.Supply of Labour/Internal Mgt expectations of changing characteristics of employees and
future available manpower.
tt.Supply of Labour/External Mgt expectations of future conditions affecting immediate
decisions.
Manpower planning begins with answering several questions:
1.What new technologies are operating and how will these affect the work system?
2.What is the volume of business likely to be in the next five to ten years?
3.What is the employee turnover rate,and how much,if any is avoidable?
Once these questions are answered then HR department can move to further questions that can
lead to specific human resource activities such as training and hiring:
4.How many senior managers will a company need during this time period?
5.What type of workers will an company need and how many?
6.Are there people with adequate computer skills available for meeting a company's projected
needs?
7.What administrative personnel,technicians and secretaries will a company need to support the
additional managers and workers?
Answering these questions will also help to define the directions for the organisation's human
resource strategy.for e.g,if forecasting suggests that there will be strong need for more
technically trained individuals,the organisation can:
8.Define the jobs and skill needed in some detail.
9.Hire and train recruiters to look for the specified skills.
10.Providing new training for existing employees.
Other essential measures to ensure that manpower planning is an integral part company's human
resources policy include:
11.Creating a simple database of records with basic information on each employee(full
name,date of birth, address, start date,starting wage,current wage,skills etc.)
12.Developing job descriptions,performance standards and appraisals.
Resources required
The resources required for manpower planning in an organisation depend on the size of the
enterprise.one person can oversee the human resources system and planning,or several
people with different responsibilities could be involved if the factory employs a large
number of workers.Regardless of the size of the human resources department,it is important
to have the necessary personnel in place to develop,apply and monitor an appropriate
written human resources and policy.