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MANPOWER UTILISATION & IMPROVEMENT

Career It may be defined as a succession of related jobs, arranged in hierarchical order, through which a person moves in an organization.

Career Planning
Career planning can be defined as a sequence of separate but related work activities that provides continuity, order and meaning in a persons life.

Essence of Career Planning


It is a process by which one selects career goals and path to these goals. Career goals are the future positions one strives for as a part of a career. Career path is the sequential pattern of jobs that form a career.

Objectives of Career Planning


To attract competent persons and to retain them in the organization. To provide suitable promotional opportunities. To enable the employees to develop and make them ready to meet future challenges. To increase the utilization of managerial reserves within an organization.

To correct employee placement. To reduce employee dissatisfaction and turnover. To improve motivation and morale.

Career Planning VS Human Resource Planning


Career Planning It evaluates ones abilities and interests, considering alternative career opportunities, establishing career goals, and planning practical development activities. There are two types of career planning :1. Individual Career Planning :- is a map of sequence of jobs of the individual concerned without regard to the organization.

It helps in making choices with respect to occupation, organization, job assignment and self-development measures. Career pathing, personnel skills inventories, career information systems and career counseling are different career planning activities in an organization.

2. Organizational Career Planning :- is a map of sequence of jobs for an employee within the organization itself. Human Resource Planning HRP provides higher management with the idea on the inventory of skills and potential available in the organization based on which, expansion, technology up gradation , etc are undertaken by the organization.

Certain basic information's required for manpower planning are inventory of manpower needs in terms of number, types, levels and time, possible changes in functions and activities with the passage of time. HRP need desired behavioral and attitudinal changes to meet the manpower needs, training opportunities, resources and training time etc .

Succession Planning It identifies the likely vacancies for higher level executives and locating likely successors to man such vacancies.

Advantages of Career Planning for Individuals


The process of CP help the individuals to have the knowledge of various career opportunities, and his priorities etc. This knowledge helps him to select the career which is suitable to his life styles, preferences, family environment, and self development. It help the organization to identify internal employees who can be promoted.

Internal promotions ,up gradation and transfers motivate the employees, boost up their morale and also increased their job satisfaction. Increased job satisfaction enhances employee commitment and creates a sense of belongingness and loyalty to the organization.

Employee will await his turn of promotion rather than changing to another organization. It decreases employee turnover. It improves employees performance on the job by tapping their potential abilities and further employee growth. It satisfies employees needs.

Advantages of Career planning for the Organization


Ensures the availability of human resources with required skills, knowledge and talent. It improves the organizations ability to attract and retain highly skilled and talented employees. It ensures women and backward class people to avail opportunities for growth and development.

It continuously satisfies employees expectations, and thus minimizes employees frustration. It attract and retain people from different cultures, enhances cultural diversity. It projects employees interest, thus promotes organizations goodwill.

Process of Career Planning


Steps in Career Planning Analysis of individual skills, knowledge, abilities, aptitudes.etc. Analysis of career opportunities both within and outside the organization. Analysis of career demands on the job holder in terms of skills, knowledge ,abilities ,aptitudes etc & in terms of qualifications, experience, and training received etc.

Relating specific jobs to different career opportunities. Establishing realistic goals both short-term and long-term. Formulating career strategy covering areas of change and adjustment. Preparing and implementing action plan including acquiring resources for achieving goals.

Career Development (process)


Career Development It is a process of planning the series of possible jobs which an individual may hold in the organization over time and developing strategies designed to provide necessary job skills as the opportunity arises.

Career Development & Career Planning


Career development is a systematic process of guiding the movement of human resources of an enterprise through different hierarchical positions. where as career planning is a process of establishing career objectives for an employee (or by the person himself) and developing planned strategies to achieve them including activities which help him in making choices with respect to occupations, organization's job assignments and self development measures.

Career Development Process

To design a suitable career development program it is essential to understand the different career stages or development cycles of an individual employee. Career development cycle may be grouped under following four categories.

A. B. C. D.

Exploratory Stage Establishment Stage Maintenance Stage Stage of Decline

Succession Planning

Succession planning is used to identify, develop and make the people ready to occupy higher level jobs as and when they fell vacant.

Importance of Succession Planning


It provides a powerful link between the business needs and the need for performance changes/training needs. It determines what management skills in what quantities are required in the future. It strategically ensures a suitable supply of suitable successors for senior or key jobs and future roles.

It( SP) deals with future needs in two ways : One covers the range from near future (simple filling the vacancies caused by labor turnover.) The other deals with the far distant future.(The strategic process).Here the help of training professional need to be used to make strategic decisions to make business effective.

Why Succession Planning


The consequence of appointing the wrong successor can be disastrous. Management development through succession planning becomes more imperative today. Its relevancy felt more at highest level.

Aim of Succession Planning


To ensure that possible suitable managers are available to fill vacancies created by promotion, retirement, death ,leaving . Identify a cadre of managers available to fill the new appointments in future. Prepare the right people for higher responsibilities.

Provide a powerful link between the business needs and the need for performance changes/training needs. It helps in retaining the best talents.

Benefits of Succession Planning


Ensures the person the required expertise for his prefixed higher position. The problem of waiting long for expertise will be solved. The charisma of pre-trained expertise will produce dynamic leaders. Problem of forcefully sacrificing ones self esteem does not arise. Ensures high morale and efficiency.

Model of Strategic Succession Planning System


BUSINESS STRATEGY

STRATEGIC HUMANRESOURCE PLANNING

BUSINESS NEEDS

STRATEGIC SUCCESSION PLANNING

EFFECTIVE BUSINESS OPERATION

THE NEED FOR PERFORMANCE CHANGES/TRAINING NEEDS

Manpower Audit
Man power audit is an overall quality control check on HR activities in a division or company and an evaluation of how these activities support the organizations strategy.

HRM OBJECTIVES

ORGANISAT IONAL OBJECTIVES

HRM ACTIVITIES

HRM AUDIT

HRM OUTCOME S

Benefits of Manpower Audit


To identify contributions of the HR department to the organization. To improve the professional image of the HR department. Bringing greater responsibility and professionalism among members of the HR. Clarification of HR departments duties and responsibilities.

To know the effectiveness of HR policies and practices initiated. Finding critical personnel problem Ensuring timely compliance with legal requirements. Reduction of HR cost through effective personnel procedures.

To increase acceptance of necessary changes in the HR department. A through review of the departments information system.

Process (steps) of HR Audit


SCOPE
HUMAN RESOURCE FUNCTION MANAGERIAL COMPLIANCE EMPLOYEE SATISFACTION

APPROACHES
COMPARISON OUTSIDE AUTHORITY STATISTICAL COMPLIANCE MBO

HUMAN RESOURCE RESEARCH

EVALUATION REPORT

CORPORATE STRATEGY

FEEDBACK

The process of HR audit constitutes of : Step -1-Scope of Audit Step -2- Approaches to HR Audit Step -3 Human Resource Research Step -4- Evaluation Report

Step 1- Scope of Audit


A. Audit of HR function B. Audit of managerial compliance C. Audit of human resource climate (employee satisfaction ) D. Audit of corporate strategy

A- Audit of HR Function
The above involves audit of all HR activities. For each activity, the auditors must :Determine the objective of each activity Identify who is responsible for its performance. Review the performance Develop an action plan. To correct deviations if any between results and goals. Follow-up-the action plan

B- Audit of Managerial Compliance


The above involves : Audit of personnel policies, procedures and legal provisions. How well these complied with should be highlighted so that corrective action can be taken. Compliance with legal provisions is vitally important as any violation makes the management guilty of an offence.

C- Audit of HR Climate
HRM climate has an impact on employee motivation, moral and job satisfaction. The quality of the climate can be measured by examining the following :Employee turnover Absenteeism Accidents Attitude surveys

D- Audit of Corporate Strategy

HRM is affected by corporate strategy Understanding the strategy has strong implications for HR planning, staffing, remuneration, HR and other HR activities. HR professionals strongly influence the success of corporate strategy.

Step -2 Approaches to HR Audit


Auditors may adopt any of the following approaches for evaluation : Comparative Approach the results of their company are compared with those of the model company. Outside Authority Approach auditors use standards set by an outside consultant as benchmark for comparison of own results. Statistical Approach is based on the companys existing information like absenteeism, and labor turnover rates.

Compliance Approach past actions needs to be complied with legal requirements and company policies and procedures like auditing managerial compliance. MBO Approach creates specific goals against which performance can be measured. This is meant for specialists and operating managers to set objectives in their areas of responsibility.

Step- 3- Human Resource Research


HR research can lead to an increased understanding of and improvement in HR practices. Major areas covered in HR research are :Wage surveys Effectiveness of various recruitment sources. Effectiveness of training efforts Survey of supervisors effectiveness.

Recent industrial settlements. Job analysis Job satisfaction surveys Survey of employees needs Attitude survey towards reward system. Areas of high accident frequency. Findings on the above topics shall constitute the basis for HR audit.

Step - 4 Evaluation Report


Evaluation report is clean if HR performance is fairly satisfactory. Evaluation report is qualified when HR performance contains gaps. The evaluation report provides feedback to the HR department.

Human Resource Accounting


It is a process of identifying, measuring and communicating data about human resources. It involves measuring the costs incurred by the organizations to recruit, select ,hire, train and develop human assets. It also measures the economic value of people to the organization.

Importance of HR Accounting(HRA)
HRA projects How the organization makes investments in its people. How the values of employees increases by training and experience over a period of time. The above mentioned information on human resources facilitates effective management in the organization.

HRA projects two categories of information's regarding human resources in the organization (A)Basic information about human resources : Number of employees Categories of employees Grades of employees Total value of human resources Value per employee.

(B) Human Resource Acquisition Number of employees acquired during the year Cost of acquisition Levels for which they were required Human Resource Development All information's pertaining to HRD activities of the organization

Human resource maintenance Costs related to human resource maintenance Human resource separation Costs related to HR separation, attrition rate etc Details of benefits provided to the employees.

Approaches to Valuation of Human Resources


(A)Non-monetary measurement approach:involves the classification of human resources in terms of : Skills(skill inventory) Performance Evaluation Potentiality for development & promotion Results of attitude surveys and subjective value

(B) Monetary Measurement Approach : Capitalization of historical costs method Replacement cost Opportunity cost Economic value method Present value method

HR Measurement Metrics
An organizations competitive advantage largely depends on the way it manages its largest asset-its people. Human capital management (HCM) is considered to be vital for the fundamental success of a business, while effective measurement is crucial to deliver effective HCM.

A broad human resource measurement policy enables the organizational management to collect consistent information about the employee population, that improves decision making. This measurement policy also ensures that management and development activities remain relevant with overall business strategy.

With a sound HR metrics program, HR management can make business decisions that are based on cold facts rather than gut feeling to back up business cases and request for resource.

HR Metrics
The most widely used HR metrics covers the following : Employee attitudes Employee turnover Employee skill levels Out sourcing costs Service centre operations Staffing process Training programs utilization and effectiveness.

HR Metrics Process
Each metric contains two to five indicators. For example- employee attitude metric contains the following indicators:Job contentment (the percentage of employees satisfied with their job) Manager contentment (the percentage of employees satisfied with their manager)

Example-Human Capital Metrics


Deutsche Bank Publishes indicators as part of its strategy to remain as an attractive employer and maintain a balance of interest among employees, shareholders, customers , and society.

In addition to numbers such as head counts, which are normally published in annual reports, Deutsche bank provides the following information.

Human Capital Metrics of Deutsche Bank


2000
Employee Commitment index 72

1999
66

1998
n/a

Absentee rate
Employees leaving bank for a new job Expenses for Training (in Euros) Employees purchasing shares Managers in Global Equity Plan

2.3 %
7.8 % 237.2 65 % 77 %

2.4 %
6.8 % 222.4 65 % 79 %

2.7 %
5.7 % 201.7 62 % 83 %

HR measurements have significant implications for all areas of the business performance. For instance, employee attitude and turnover metrics are reported to have key influence on decision making in the organization.