Human Resource Development & Human Resource Planning

Emergence of human resource development

When human factor came in the context. Human Resource Development as a Discrete approach. Human Resource Development gives employment opportunity. Due to technological development human resource came into existence.

Need for human resource planning

Organization needs well competent employees. Replace employees due to separations. Expansion, diversification or contraction of the organization.

Identify areas of surplus personnel or shortage of personnel.

Manpower utilization.

Need for the study

To strengthen the area of manpower planning system.
HRD & other elements personnel system. Develop appropriate methodology.

Limitations of the study

The results of the study cannot be generalized for other public sector undertakings.
The present study suffered from lack of representativeness of the sample. Exploratory research design- demands a very high degree of co-operation .

Human resource planning

The ongoing process of systematic planning to achieve optimum use of an organization's most valuable asset - its human resources. The objective of human resource (HR) planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply.

In Tata Steel

Manpower planning relates to establishing job specification, determining the number of people required, and finding supply sources to fill these requirements. In the broadest perspective, manpower planning takes into consideration current and future demands for skills and probable availability of individuals armed with such skills.

Mello suggested 5 major objectives of HRP

To prevent overstaffing and understanding. To ensure that the organization has right employees with the skills in the right places at the right times. HRP is responsive to changes in its environment. To provide direction to all human resource activities and systems.

HRP is to unite the perspectives of line and staff managers.

Empirical studies on planning in India and abroad

A survey conducted by agarwal during 1972

PSUs were engaged in limited manpower planning.

49 central PSUs responded. 14 public enterprises prepared recruitment and training plans. Only 11 formulated succession plans.

 25 Public enterprises estimated future manpower requirements on a regular basis, 18 did so on ad-hoc basis,& remaining 6 enterprises did not make any estimate.
In the opinion of agarwal, the situation has not changed and current status of manpower planning in PSUs are evolving.

Empirical studies on planning in India and abroad

Greer, Jackson & Fiorito Surveyed 137 US based companies. The aspects includes: HRPs adaptation to conditions of environment uncertainty.
Reasons for conducting human resource forecasting. Problems in HRP. Areas of HRP emphasis in the future.

 Human resource managers perceptions of the importance of HRP and factors correlated with perceptions.
Factors correlated with difficulties in linking HRP to strategic planning. Resources devoted to HRP.

Empirical studies on planning in India and abroad

Nkomo conducted survey of fortune 500 firms: 54% of firms use formal strategic HRP, 15% use comprehensive systems. Lack of linkage between human resource planning & strategic business planning. strategic human resource planning is still in its impasses.

 Human resource planning is treated as short term exercise.

Many organizations lack the requisite expertise and abilities of human resource planning

Manpower planning today

An integral approach New scenario in fully economic Human beings are the sources

A rational approach of manpower

Public enterprises in the economy of India

Public sector enterprises are now in the pangs of transformation. Proper utilization of human potential. The progressive build up of the public sector began in the 1950s.

Voluntary retirement / Golden Handshake for PSU Employees

Golden Handshake is a kind of voluntary retirement, usually quite early in the career of an employee with hefty ex-gratia benefits, to make it as attractive as shaking hands with gold. Out of 23 lakh employees in the 246 central PSUs, some 4.5 lakhs are found to be surplus. Thus, voluntary retirement scheme has become one of the ways of dealing with redundant human resources in an organization.

In this context, guidelines of the department of public enterprises are as follows: 1. Voluntary retirement scheme open for employees who have completed 10 years of service and or 40 years of age;
2. Management of the enterprise has the right not to consider any request under VRS; 3. Terminal payments include: Balance of provident fund accumulation; Leave encashment as per rules;

 Gratuity as gratuity act;

One/three months notice pay as applicable.

Ex-gratia payment equivalent to one and a half months emoluments for each completed years of service, or the monthly emoluments at the time of retirement, or salary for the remaining period of service, whichever is less.

4. Higher ex-gratia can be proposed only after the approval of the Department of Public Enterprises. This rule, however does not apply in the case existing scheme.
5. The above rules apply to all categories of employees.

The golden handshake scheme payment of 45 days emolument for each completed year of service for the remaining months of service whichever is lower. The aggregate cost of the scheme may be R s.7000 crores .If spread over 3 years or so, the estimate around Rs. 10000 crores on the basis of following calculation: No. of employees to be covered under the scheme 4,50,000 Average emoluments of an employee in PSU(per month) Rs. 5000 Average duration of service in completed years 20 Average duration of months of entitlement regarding monthly 30 emoluments Product of number (i),(ii) & (iv) Rs. 6750 crores

Multi-skilling for use of surplus manpower in PSUs

1. Recent trend in industrial organizations.
2. Attracted many PSUs.

3. This approach is very useful for PSUs mainly for two reasons: Meeting futuristic needs Absorbing the surpluses.

Steps to operationalize multi-skilling approach

Identification of areas where additional manpower is required. Where from manpower can be drawn for retaining in multi-trade. Grouping of skills.

Imparting training based on the grouping of skills.

Incentives for acquisition of additional skill in the same or other trade.

Multi-skilling in the present context

Balancing the actual workload. Process of technology absorption. Gainful employment generation.

Liberalization laid stress on higher productivity .

Growth of investment vis--vis employment in public sector enterprises