ISGEC(Human Resource Planning) JMIT

A SUMMER TRAINING REPORT ON

HUMAN RESOURCE PLANNING AT

YAMUNA NAGAR

In the partial fulfillment of the degree of M.B.A. (Master of Business Administration) SESSION -2012-2014

Under the guidance of: Mrs. Medha Vasisht MBA faculty

Submitted by: Pooja Maggo MBA 3rd Sem. Roll. No. 2012025

SETH JAI PARKASH MUKUND LAL INSTITUTE OF ENGINEERING & TECHNOLOGY (JMIT), RADAUR (YNR.)

DECLARATION

I Pooja Maggo hereby declare that the research project on “Human Resource Planning" at ISGEC, Yamuna Nagar assigned to me for the partial fulfillment of Master of Business Administration Degree from Kurukshetra University, Kurukshetra. It is the Original work done by me & the information provided in the study is authenticated to the best of my knowledge. This Project Report has not been submitted to any other institution or university for the award of any other degree.

Pooja Maggo

ACKNOWLEDGEMENT

It is a matter of great pleasure to submit this report on “Human Resource Planning" at ISGEC. I would like to convey my sincere thanks to Mr. R.K Bhardwaj (HR Manager, ISGEC) for their cooperation and knowledge assistance in preparing this project. I feel highly obliged to Ms Anuja Goel, HOD and my guide Mrs. Medha Vasisht for the complete support and set of handy guidelines without which this report would not have its present shape. I believe that without their guidance the successful completion of this project report was impossible. I also want to give regards to all the employees of different department departments of ISGEC and my friends who helped me during the training period and also while preparing the report. Finally I would like to give regards to my parents for their moral support and understanding which played an important role in the completion of the project report.

Pooja Maggo

PREFACE Research is to see what everybody else has seen & thinking what nobody has thought. Pursuing M.B.A. spanning for a period of two years provides ample opportunities to learn theory, which forms the foundation of a successful professional carrier in business management. Greater practical insights are acquired through summer project, which forms an essential component for the completion of M.B.A. curriculum. The summer project involves research designing in HR, which gives yet another opportunity to sharpen the business acumen & its acts as an acid test by relating theory with the practicality. The working environment is changing at an accelerating rate from local to national to global organization from staffing the organization to Human Resource Planning of employee, which leads to the further development of an organization. HR research methodology serves a single purpose that of providing “Right people for the right work at the right time at right cost” and this can be possible by identifying HR issues & opportunities to select these issues for getting solution & take advantage of the opportunities that are selected. I had an opportunity to undergo eight weeks training in ISGEC. The focus of my project was Human Resource Planning in the organization. My entire project report is compiled into several contents which includes all significant aspects of the project. The conclusions and suggestions will certainly be helpful for the company official at. To take opportunities measures towards efficient & effective accomplishment of company goal & objectives. I have tried my best to compose & arrange report in a systematic manner. I left no stone unturned in collected these vital information. I have done justice & have been honest in collecting & analyzing data to give value added information in the report. At the same time I am also a human being & it’s quite natural to committing mistake. Therefore, I apologize for any of such deed & assure that it is unintentional. Any suggestion or comments are welcome.

CONTENTS Ch. Name

Topic

CHAPTER-1 COMPANY PROFILE

Page No. 1-11

1.1

Introduction

11

1.2

Introduction to Company

11

1.3

Introduction to Human Resource Planning

11

CHAPTER-2 LITERATURE REVIEW

12-12

CHAPTER-3 RESEARCH METHODOLOGY

13-13

3.1

Objectives of Study

13

3.2

Research Design

13

3.3

Data Source

13

3.4

Sampling Design

13

CHAPTER-4 DATA ANALYSIS & INTERPRETATION

14-14

CHAPTER-5 FINDINGS

15

SUGGESTIONS

15

LIMITATION OF THE STUDY

15

CONCLUSION

15

ANNEXURE

16-16 Bibliography

16

Questionnaire

16

CHAPTER - 1 INTRODUCTION TO ISGEC Indian Sugar and General Engineering Corporation manufactures and supplies pressure vessels and heat exchangers, presses, and boilers in India and internationally. The company offers shell and tube heat exchangers, boiler drums, reactors, columns and towers, boiler pressure parts, galvanizing baths or kettles, and fume hoods; mechanical and hydraulic straight side presses.

1.2

Company Overview

We are India's leading manufacturer of Presses (Mechanical & Hydraulic) for sheet metal forming / stamping applications. With an experience of over 40 years, we have supplied more than 2500 Presses till date in India and abroad. We have a wide range of presses to suit client's requirements. Please visit our website for more details www.isgec.com Contact Details Address:

Yamuna Nagar Works, Yamuna Nagar, Haryana, 135001, India

Telephone:

+91 1732 237302

Fax:

+91 1732 251495

Web:

www.isgec.com

Abstract In today's rapidly changing business environment, organizations have to respond quickly to requirements for people. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. Selecting the wrong candidate or rejecting the right candidate could turn out to be costly mistakes for the organization. Selection is one area where the interference of external factors is minimal. Hence the HR department can use its discretion in framing its selection policy and using various selection tools for the best results. These caselets discuss the importance of having an effective recruitment and selection policy.

They discuss the importance of a good selection process that starts with gathering complete information about the applicant from his application form and ends with inducting the candidate into the organization. Issues The importance of having an effective recruitment and selection policy in an organization, the recent trends that have influenced the process of recruitment and selection in an organization, various challenges faced by organizations in the process of recruiting and selecting employees Keywords Business environment, organizations, requirements, recruitment policy, the vacant positions, wrong candidate, rejecting, right candidate, costly, mistakes , external factors, minimal, HR department, selection policy, tools, gathering complete, information, applicant, application form, inducting Parts & Machineries Used in the Industry -ISGEC PRESSURE VESSELS & HEAT EXCHANGERS Shell & Tube Heat Exchangers

 Pressure Vessels  Boiler Drums  Reactors  Columns & Towers  Boiler Pressure Parts  Galvanising Baths or Kettles  Fume Hoods

Presses  Straight Side Presses - Mechanical

 Straight Side Presses- Hydraulic  'C' Frame Presses - Mechanical Boilers  Dump Grate Boilers

 Travelling Grate Boilers  Atmospheric Fluidised Bed Combustion Boilers (AFBC)  Circulating Fluidised Bed Combustion Boilers (CFBC)  Oil / Gas Fired Boilers  Waste Heat Recovery Boilers  Deaerators  Spares

Steel Castings  Hydro Turbine Castings

 Gas Turbine Castings Steam Turbine Castings  Valve Castings  Mn Steel Castings  Ni - Hard Castings  Pump Castings  General Castings  Sugar Mill Castings  Cement Mill Castings  S.G. Iron Castings Sugar Plants and Machinery  Complete Cane Sugar Plants

 High Performance Cane Mills  Process House Equipment

 Bagasse Fired Boilers  Spares Iron Castings  Castings for Pump and Compressor Industry

 Castings for Chemical & Dye Stuff Industry  Castings for Soda Ash Industry  Castings for Tool & Dies Industry  Castings for Machine Tools Industry  Castings for Steel Plant Industry  Castings for Sugar Industry Liquified Gas Container  Model 'A'

 Model 'B'

 Model 'C'  Model 'D' (approved by DOT, USA) Contract Manufacturing  Custom Job Work  (Heavy Engineering Equipment as per Client's Designs and Drawings )

ISGEC - Vision As per the leading company –ISGEC : 

Maximize shareholders value by the speed and quality of their response to market forces and business opportunities.



Be market leader in their core business.



Achieve and sustain global competitiveness in all their business.



Be the preferred supplier by providing their customer products and services that always exceed their requirements.



Grow as institution of strength of their people.



Be industry leaders in their commitment to safety and the environment.

ISGEC – Mission •

To consistently out perform the expectation & deliver superior value to both are customers & stakeholders.

•

To achieve this we will energize our people with a positive culture that rewards innovations, breeds initiatives & encourages intelligent risk taking.

ISGEC – Core Values

Honesty

We will be principled, straightforward and fair in all our Dealings.

Integrity

We will maintain the highest standards of professionalism

Flexibility

We will adapt ourselves to stay a step ahead of change

Respect

We will give each person room to contribute & grow.

Respect for Knowledge

We will acquire & apply leading edge expertise in all aspects of our business.

Team Performance

The teams comes first; none of us is as good as all of us.

Various Departments at Indian Sugar and General Engineering Corporation ISGEC The departments are categorized as –: Administrative Department 1.

PDC (personnel, Development and Communication) Which is primarily concerned with the recruitment, training, selection, promotion, demotion, retirement, work culture, work awareness and labor welfare.

2.

Accounts Department The function of this department is to maintain every detail and record of all the financial transactions done by various departments.

3.

Materials Department These people are concerned with procurement and storage of process material.

4.

Sales Department Selling out the finished paper/product is their main activity.

5.

Raw Material Department - Each and every raw material required for papermaking is arranged / purchased by this department.

6.

Traffic Department This department includes weighing section, raw material section, transport section etc.

Engineering Department 1.

Electrical Engineering

This department attaches itself with the maintenance of installations of electrical machines, distribution and generation of electrical energy and various other electrical installations at the unit.

2.

Mechanical Engineering This department is concerned with the maintenance of various machines, boiler operations etc.

3.

Civil Engine All the construction work like building of roads, sanitary, waste disposal, water supply etc. is taken care of by this department.

4.

Instrumentation Engineering This department carries out maintenance of all kinds of instrumentation and control of the whole plant.

5.

Power House It has a total installed capacity of 25 MW and maintained by two powerhouses, old and new, this department backs up the total power demand of the unit efficiently and effectively.

1.3

Introduction to Human Resource Planning

Human resource is the most important asset of an organization. Planning for human resource is an important managerial function. It ensures adequate supply, proper quantity and quality as well as effective utilization of human resources. There is generally a shortage of suitable persons. The organization determines its manpower needs and then finds out the sources from which the requirements will be met. If sufficient manpower is not available then the work will be suffer. Underdeveloped countries are suffering from the shortage of trained managers. Job opportunities are available in these countries but proper persons are not there. These countries try to import skill from other countries. In order to meet human resource needs an organization will have to plan in advance its requirements and the sources etc. The words human resource planning and manpower planning are generally used interchangeably. Human resource planning is not a substitute for manpower planning. Rather the latter is a part of its former i.e. manpower planning is integrated with human resource planning.

A human resource plan is a systematic process of matching the interests, skills and talents of individual community members with the long term goals and economic opportunities in the community. Like all CED activities, creating a human resource plan needs to involve the relevant community sectors, so that their participation and input will leas to strong community support. Based upon an assessment of community assets and limitations, a plan aims to endure a good fit between program designs and the result that are sought. Recognizing that learning and skill development is a systematic building process, a plan can also ensure that the community provides the necessary comprehensive continuum of skill development. This implies, for example, that when someone completes a personal development program, a succeeding step within the local human resource program uses that accomplishment to teach a new set of skills that are part of the path to employment and to other contributions to the community. “Manpower” human resources” may be thought as the total knowledge, skills, creative abilities, talents and aptitudes of an organization’s work force, as well as the values, attitudes and benefits of an involved. “Manpower Planning” and “human resources” planning are synonymous. Human resources or manpower planning is “the process by which a management determines how an organization should move forms its current manpower position to its desired manpower position. Through planning a management strives to have the right number and right kinds of people at the right places, at the right time to do things which result in both the organizations and the individual receiving the maximum long range benefits. Human resource planning is the process by which a management determines how an organization should move from its current manpower position to its desired manpower position. Through planning a management strives to have the right number and the right kind of people at right places, at the right time to do things which results in both the

organization and the individual receiving the maximum long range benefit.Human Resources Planning consists of series of activities 1. Forecasting future manpower requirements, either in terms of mathematical projections of trends in the economic environment and development in industry or in terms of judgmental estimates based on future plans of a company. 2. Making an inventory of present manpower resources and assessing the extend to which these resources are employed optimally. 3. Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirement to determine their adequacy, both quantitatively and qualitatively. 4. Planning the necessary Programmer of requirement selection, training, development, utilization transfer, promotion, motivation and compensation to ensure that future manpower requirement are properly met. The ultimate mission of human resources planning is to relate Future human resources to future enterprise need so as to maximize the future return on investment in human resources. In effect the main purpose is one of matching or fitting employee abilities to enterprise requirements with an emphasis on future instead of present arrangement. In order to integrate human resources planning with corporate point of time. For this estimate, the number and type of employees needed have to be determined. Many environmental factors effect this determination. They include business forecasts, Expansion and growth design and structural changes, management philosophy, Definition of HR Planning Quoting Mondy (1996) they define it as a systematic analysis of HR needs in order to ensure that correct number of employees with the necessary skills is available when they are required. When we prepare our planning programme, Practitioners should bear in mind that their staff members have their objective they need to achieve. This is the reason why employees seek employment. Neglecting these needs would result in poor motivation that may lead to unnecessary poor performance and even Industrial actions.

Importance of HR Planning Planning is not as easy as one might think because it requires a concerted effort to come out with a programme that would easy your work. Commencing is complicated, but once you start and finish it you have a smile because everything moves smoothly. Planning is processes that have to be commenced form somewhere and completed for a purpose. It involves gathering information that would enable managers and supervisors make sound decisions. The information obtained is also utilized to make better actions for achieving the objectives of the Organization. There are many factors that you have to look into when deciding for an HR Planning programme. HR Planning involves gathering of information, making objectives, and making decisions to enable the organization achieve its objectives. Surprisingly, this aspect of HR is one of the most neglected in the HR field. When HR Planning is applied properly in the field of HR Management, it would assist to address the following questions: 1.

Determining the numbers to be employed at a new location If organizations overdo the size of their workforce it will carry surplus or underutilized staff. Alternatively, if the opposite misjudgment is made, staff may be overstretched, making it hard or impossible to meet production or service deadlines at the quality level expected. So the questions we ask are: •

How can output be improved your through understanding the interrelation between productivity, work organization and technological development? What does this mean for staff numbers?

•

What techniques can be used to establish workforce requirements?

•

Have more flexible work arrangements been considered?

•

How are the staffs you need to be acquired?

The principles can be applied to any exercise to define workforce requirements, whether it be a business start-up, a relocation, or the opening of new factory or office.

2.

Retaining your highly skilled staff Issues about retention may not have been to the fore in recent years, but all it needs is for organizations to lose key staff to realize that an understanding of the pattern of resignation is needed. Thus organizations should: •

monitor the extent of resignation

•

discover the reasons for it

•

establish what it is costing the organization

•

compare loss rates with other similar organizations.

Without this understanding, management may be unaware of how many good quality staff is being lost. This will cost the organization directly through the bill for separation, recruitment and induction, but also through a loss of long-term capability. Having understood the nature and extent of resignation steps can be taken to rectify the situation. These may be relatively cheap and simple solutions once the reasons for the departure of employees have been identified. But it will depend on whether the problem is peculiar to your own organization, and whether it is concentrated in particular groups (e.g. by age, gender, grade or skill). 3.

Managing an effective downsizing programme This is an all too common issue for managers. How is the workforce to be cut painlessly, while at the same time protecting the long-term interests of the organization? A question made all the harder by the time pressures management is under, both because of business necessities and employee anxieties. HRP helps by considering: •

the sort of workforce envisaged at the end of the exercise

•

the pros and cons of the different routes to get there

•

how the nature and extent of wastage will change during the run-down

•

the utility of retraining, redeployment and transfers

•

What the appropriate recruitment levels might be.

Such an analysis can be presented to senior managers so that the cost benefit of various methods of reduction can be assessed, and the time taken to meet targets established. If instead the CEO announces on day one that there will be no compulsory redundancies and voluntary severance is open to all staff, the danger is that an unbalanced workforce will result, reflecting the take-up of the severance offer. It is often difficult and expensive to replace lost quality and experience. 4.

Where will the next generation of managers come from? Many senior managers are troubled by this issue. They have seen traditional career paths disappear. They have had to bring in senior staff from elsewhere. But they recognize that while this may have dealt with a short-term skills shortage, it has not solved the longer term question of managerial supply: what sort, how many, and where will they come from? To address these questions you need to understand: •

the present career system (including patterns of promotion and movement, of recruitment and wastage)

•

the characteristics of those who currently occupy senior positions

•

The organization’s future supply of talent.

This then can be compared with future requirements, in number and type. These will of course be affected by internal structural changes and external business or political changes. Comparing your current supply to this revised demand will show surpluses and shortages which will allow you to take corrective action such as: •

recruiting to meet a shortage of those with senior management potential

•

allowing faster promotion to fill immediate gaps

•

developing cross functional transfers for high fliers

•

hiring on fixed-term contracts to meet short-term skills/experience deficits

•

Reducing staff numbers to remove blockages or forthcoming surpluses.

Thus appropriate recruitment, deployment and severance policies can be pursued to meet business needs. Otherwise processes are likely to be haphazard and inconsistent. The wrong sort of staff is engaged at the wrong time on the wrong contract. It is expensive and embarrassing to put such matters right. HR planning makes the organization move and succeed in the 21 st Century that we are in. Human Resources Practitioners who prepare the HR Planning programme would assist the Organization to manage its staff strategically. The programme assists to direct the actions of HR department.HR have an enormous task keeping pace with the all the changes and ensuring that the right people are available to the Organization at the right time. It is changes to the composition of the workforce that force managers to pay attention to HR planning. The changes in composition of workforce not only influence the appointment of staff, but also the methods of selection, training, compensation and motivation. It becomes very critical when Organizations merge, plants are relocated, and activities are scaled down due to financial problems. Advantages of HR Planning Strategic Advantages There are a number of more specific reasons for resorting to HR planning exercises at the level of the undertaking, reasons that can make the exercise essential. These are: 1. To establish the best cost balance between plant and manpower utilization. 2. To determine recruitment, level wise and occupation wise 3. Ensure that we do not inherit surplus manpower hired on account of an incompetent CEO. 4. To ensure that people do not substitute systems and process 5. To anticipate redundancies and avoid unnecessary dismissals or aspirations 6. To decide optimum training levels. 7. To decide on worker training courses 8. To provide a basis for management development programs Micro/Macro Level Advantages At the micro-level, corporate need to realize that manpower is a expensive and a highly valuable resource to be used as effectively as possible. Scientific level HR planning at

the corporate level will make national planning more realistic and effective. The need for HR planning at all levels needs no mean emphasis. Manpower planning at the national level will ensure that the human resources are made available both in quality and quantity for the planned development of the economic growth of the country. In our country, there has been considerable progress in this direction. Factors Influence the Manpower Plan The factor which contribute to the planning of manpower resources in ISGEC both in terms of internal considerations and external factors which influence the final outcome of the manpower plan. Internal considerations a)

Wastage Analysis Initially the manpower planner will be concerned with the average number of employees that leave and there need replacing just in order to maintain a constant number of employee resources in the organization. In the organization with many departments and demarcated lines of responsibility this can become quite a difficult statistical task requiring considerable time and effort in the collection, synthesis and analysis of data. It is far more likely that an employee is simply seen as a payroll number or a job code. The constant ebb and flow of ‘numbers’ within the organization requires a far more rigorous calculation of ‘wastage’ than the rule of thumb and management-owner discretion in smaller firms. The simplest way of calculating wastage is through a turnover analysis; Number leaving in one year

x 100 = x%

Average number of employees b)

Business Objectives It may be of course that stability in employee numbers is not what is required as the business may well be expanding or contracting in response to product market pressures. If an organization is experiencing rapid product market growth as it launches a new innovative product the requirements for staff may well increase to cover the extra workload. In the short term organization can adjust to unpredicted ‘shocks’ in the product market through making short-term adjustments to the

supply of employees within the organization. The most obvious ways in which an organization adjusts its manpower in response in increasing demand are to increase the use of overtime, to temporarily extend the hours of those employed, to draw on subcontract labour, and to recruit short-term labour from temporary employment agencies. This shows the importance of considering business objectives during the process of manpower planning and the creation of a manpower plan. c)

Markov Models These models are often used by manpower planners in the consideration of internal factors which need to be considered in the development of a manpower plan. The Markov model and variants of it attempt to model the flow of individuals within the organization. It states that organizations have predictable wastage patterns according to length of service, and that this patterns according to length of service, and that this pattern can be discerned early on in an individual’s career.

External Considerations a)

State Legislation One extremely important area that needs to be considered whilst formulating a manpower plan is the restriction, which are imposed on organizations by the government in the areas of individual and collective labour law. The evolution of the industrial system in the UK has been characterized by successive governmental interference in the way in which labour is recruited, deployed, trained, promoted and made redundant. Legislation on the hours that people can be expected to work, the time that can be spent working in front of a VDU, rest periods, the provision of basic medical facilities and recently the necessity to provide facilities for pregnant employees, all impose some restriction on the practice of manpower planning. Organizations cannot simply consider their own operational and internal organizational needs. This has important considerations for those that are responsible for manpower

planning as there are a number of legal considerations to bear in mind when developing and conducting manpower planning. b)

Regional Development Schemes The importance for manpower planners is that in the development of manpower plans the organization needs to know where it is likely to trade more profitably. So, for example, if the development of a new product is going to necessitate the construction of a new site and the creation of 2000 new jobs, it will be the responsibility of the manpower planner to provide information on the most profitable location for this plant. It may well be that as a result of regional development schemes the company would be far better locating with tax privileges which reduce the costs of production relative to constructing the new plant more locally. In the creation of manpower plan it is important that such ‘external considerations’ are evaluated such that the organization’s manpower plan provides the most profitable resourcing alternatives.

c)

Micro-Level Factors Finally in the development of a credible manpower plan attention needs to be focused on the nature of the local labour markets. Successful manpower planning not only provides information on the immediate local labour market, but needs to compare and contract the age, skill and cost profiles of such local labour market. In this way the organization plans the resource implications of organizational expansion, contraction and structural change in terms of quantity, quality and price.

d)

Analyzing Demand and Supply Once the external and internal considerations have been brought together in the development of the manpower plan the planning department is in a position to analyze the net demand and net supply of new and current employees. There are two stages in the planning process, namely an analysis of the current state of play in the organization’s human resources and an analysis of the future plans and requirements of the business.

Human Resource Planning Process The three key elements of the process are •

Forecasting the demand for labor,

•

Performing a supply analysis, and

•

Balancing supply and demand considerations.

A careful attention given to each step is beneficial to top managers and supervisors to meet their staffing requirements. Each of these elements can be blended with the overall process in the following manner.

Once the Corporate strategy and objectives are clear, estimates of demand and supply can be made with the help of certain approaches and methods. When each projection is formulated, the difference between them is determined. This difference is termed as known as Manpower gap. The whole purpose behind human resources planning is to close this gap!! There are different strategies which we will discuss later in this lesson only which result in filling the manpower gap. One thing, which you should consider before beginning the process of forecasting: Always decide on a. The approach of how the estimation is to be based qualitative or qualitative,

b. Basic factors to be considered, whether we are projecting wastage or redundancy or labor costs or absenteeism or labor turnover, c. Frequency of the forecasting exercise (that is, dealing with: rate of changes and matching estimations), and finally, d. Specific techniques to be adopted (this depends upon the approach adopted) such as time series analysis, Markova analysis, probability techniques, work load analysis, work study analysis, job analysis etc. The moment you have decided upon these parameters, and then it’s a smooth sail to towards demand and supply forecasting

Forecasting Demand A key component of HRP is forecasting the number and type of people needed to meet organizational objectives. Since it’s an open system that we exist in, a variety of organizational factors, including com-appetitive strategy, technology, structure, and productivity can influence the demand for labor. For example, utilization of advanced tech-neology is generally accompanied by less demand for low-skilled workers and more demand for knowledge workers. Let us consider few of the main factors, which can help us forecast demand of human resources in an organization. We can easily categories the factors in three different sources that can be viewed clearly from the following slide.

External Environmental Challenges These challenges arise from three important sources Economic developments, Political, legal, social and technical changes, and the Competition. For example, liberalization, opening up of banking sector, capital market reforms, the on-line trading systems have created huge demand for finance professionals during 1990-1995 in India. The demand for certain categories of employees and skill is also influenced by changes in political, legal and social structure in an economy. Likewise, firms employing latest technology in construction, power, automobiles, software etc., have greatly enhanced the worth of technicians and engineers during the last couple of years. Technology, however, is a double-edged weapon and hence, its impact on HR plans is difficult to predict. For example, computerization programs in Banks, Railways, Post and Telegraph Departments may reduce demand in one department (book keeping, for example) while increasing it in another (such as computer operations). High technology with all its attendant benefits may compel organizations to go lean and downsize workforce suddenly. Employment planning under such situations becomes complicated. Quantitative Approaches Quantitative approaches to forecasting involve the use of statistical or mathematical techniques; they are the approaches used by theoreticians and professional planners. One example is trend analysis, which forecasts employment requirements on the basis of some organizational index and is one of the most commonly used approaches for projecting HR demand. Forecasting Supply Once an organization has forecast its future requirements for employees, it then goes on to the next search that is from where can it fulfill its requirements. It therefore needs to determine if there are sufficient numbers and types of employees and how many are eligible for the plausible positions. Supply analysis thus, involves planning for procurement: who, from where, how and when of recruitment. It scans the internal and external Environment for the best-fit candidate for the positions in question. Thus, there are two source of supply- internal and external.

Internal sources: The most popular approach to be followed by all managers is to look within the organization among its cadre first. Until and unless the opening is not related to immensely diversified field of which the existing workforce might not possess requisite skills, and the cost of training may be working out to be high, it is easier to go in for an internal source for recruitment. Because it is cost saving in many ways to utilize what is already available to the organization. An internal supply analysis is done with 1. Staffing tables/manning charts, which are pictorial representations of all organizational jobs, along with the numbers of employees currently occupying those jobs and future employment requirements. 2. Markov analysis, which shows the percentage (and actual number) of employees who remain in each job from one year to the next, thus keeping track of the pattern o employee movements through various jobs. Thus this analysis results in a composite matrix of supply. 3. Skill inventories that list each employee’s education, past work experience, etc. 4. Replacement chart that helps us derive the profile of job holders, departmentwise and reveals those who could be used as replacements whenever the need arises. External sources: It is only when the cost of procuring the labour from internal sources is more and also the present staff cannot be spared for the future assignment, the company can refer to the external market. For this, they need to keep themselves updated regularly on what is available now, what will be available later. Whether the skills required in future will be easily available or certain training, for instance need to be incorporated. For example, a company in the present scenario wanting to start its BPO operations in India may not have problem which a company 10 years back would have faces, as there are ample requisite skills available in the market. Not only skilled labor but also they are motivated to join such company for fast earnings. Thus, HR planners need to keep themselves abreast of the

Labor market conditions such as local employment, trends of relevant categories of employees, competition for such skills, availability of part time labour, migration trends of labor, etc. Therefore to summarize what information should be available for a comprehensive the supply forecast and analysis? 1. The skill base, potential trainability and current and potential productivity level of the existing work force. 2. The structure of the existing workforce in terms of age distribution, skills, hours of work, rates of pay and so on. 3. The possible changes in the productivity, size and structure of the workforce due to resignations and retirements, promotions and transfers, absenteeism and other external factors (economic and cultural), which may induce such changes. 4. The availability of the relevant skills in the external labor market for present and future use. The HR planner will have to assess and monitor factors such as: market value, image/preference of the existing labor for the company,

Determining Manpower Gaps The final stage is to balance out the demand and supply gap. The closer the gap the better it is for the company when it actually goes into procuring. Now you will see how we can utilize the data we have collected in the last two stages. A comparison chart can be developed to find what is available and to what extent it can fulfill the demand forecast. This exercise helps us have an idea of the quantitative and qualitative gaps in the workforce. A reconciliation of demand and supply forecasts will give us the number of people to be recruited or made redundant as the case may be. This forms the basis for preparing the manpower plan. The manpower plan is further divided into the following resultant operational plans. •

Recruitment plan to show how many and what type of people is required and when they are needed;

•

Redeployment plan to help chart out the future movement in terms of training and transfers.

•

Redundancy plan will indicate who is redundant, when and where; the plans for retraining, where this is possible; and plans for golden handshake, retrenchment, lay-off, etc.

•

Training plan to chart out if training is required. If yes, when and to which level; whether it will be done in-house, done in phases or included as part of a formal induction program. This includes the cost and benefit analysis of all the options available.

•

Productivity plan Will indicate reasons for employee productivity or reducing employee’s

costs

through

work

simplification

studies,

mechanization,

productivity bargaining, incentives and profit sharing schemes, job redesign, etc. •

Retention plan Will indicate reasons for employee turnover and show strategies to avoid wastage through compensation policies, changes in work requirements and improvement in working conditions.

•

Check/reviews points The success of the entire exercise is dependent upon frequent reviews so that none of the factors are left out and changes are constantly taken care of the important thing is to clearly demarcate point for periodical checks to incorporate deficiencies and periodic updating of manpower

inventory based on training and performance reviews, in the light of changing circumstances.

TOP ORGANIZATION STRUCTURE CGM

Secretar y

Head PR

Head Medical

Head R&D

Head Comm.RM

Head fabrication

Head Pro chem

Head PDC

Head Engg. Serv.

The basic process of HR Planning in ISGEC 1. Analyze the environment of the organization and its past operations 2. Evaluate the environment for HR trends, patterns, educational changes, literacy levels, demographic transitions in people 3. Evaluate education patterns, school pass out rates, professional courses capacity, market liberalization for international opportunities, availability of easy financing for college studies 4. Evaluate any major shift in people relocation, geographic movements, natural calamity constraints 5. Establish Corporate strategy, goals, objectives and action plans 6. Link the corporate strategy to the HR strategy and mission 7. Ensure connectivity of corporate plans to hr plans and targets 8. Determine the Organization Structure, process flows, design details 9. Draw up a Demand Forecast for Manpower 10. Conduct a HR Inventory both at the micro and macro levels 11. Plan for an Attrition Process both desired and undesired 12. Design HR policies for retention and career planning of high performers 13. Integrate HR policies with changing aspirations of the employees and the potential population in the market place 14. Draw up a supply Forecast for Manpower evaluating source, actual availability, possibility of attraction to the corporate 15. Study whether Demand is greater or less than Supply 16. Establish Manpower Objectives for short, medium and long term and keep a flexibility on the profile and employee fit with the corporate culture 17. Start an Action program and make individuals and teams responsible for meeting the recruitment targets. 18. Update the Manpower records and make system data friendly. Stages in the HR Plan: Process Analysis Stage 1

Corporate Objective/ Strategy Formulation and Structuring

Stage 2

Supply ABD Market Evaluation Forecast

Stage 3

Demands and Competitive Forecast

Stage 4

HR Planning

STAGE I

STAGE II

Evaluation of HR Predict resources the

of Evaluate

STAGE IV HR Planning to bridge the

within current manpower at requirements by the gap

corporate

knowledge

losses

STAGE III

& the close of forecast end of period.

knowledge gaps.

known

forecast HR resources and those

Preempt period.

availability in the change mkt.

of

between

in provision

Make required by the end of for forecast period

unplanned

Ensure strategy –

environment

structure interface

changes.

Manpower Planning Based on the future business growth needs, we do the Manpower Planning and Profit center budgeting every year. We follow a well laid down sequential and scientific method for inducting prospective candidates. A set of Ideal Expectations expected from the person performing the specific function has been clearly documented in the form of Responsibility and Authorities Manual.

Training and Development Training & Development is one of the most effective means for inculcating dynamism and self-renewing capability. It also attempts to cope up with the barriers to the competencies and nourishes the overall health of the organization. Our aim is to integrate individual development needs with the business needs and make training a participative process.

CHAPTER - 2 REVIEW OF LITERATURE Human Resource Human resources are a term with which many organizations describe the combination of traditionally administrative personnel functions with performance, Employee Relations and resource planning. The field draws upon concepts developed in Industrial/ Organizational Psychology. Human resources have at least two related interpretations depending on context. The original usage derives from political economy and economics, where it was traditionally called labor, one of four factors of production. The more common usage within corporations and businesses refers to the individuals within the firm, and to the portion of the firm's organization that deals with hiring, firing, training, and other personnel issues. Human Resource Development In terms of recruitment and selection it is important to consider carrying out a thorough job analysis to determine the level of skills/technical abilities, competencies, flexibility of the employee required etc. At this point it is important to consider both the internal and external factors that can have an effect on the recruitment of employees. The external factors are those out-with the powers of the organization and include issues such as current and future trends of the labor market e.g. skills, education level, government investment into industries etc. On the other hand internal influences are easier to control, predict and monitor, for example management styles or even the organizational culture. •

In order to know the business environment in which any organization operates, three major trends should be considered:

•

Demographics – the characteristics of a population/workforce, for example, age, gender or social class. This type of trend may have an effect in relation to pension offerings, insurance packages etc.

•

Diversity – the variation within the population/workplace. Changes in society now mean that a larger proportion of organizations are made up of "baby-boomers" or older employees in comparison to thirty years ago. Traditional advocates of "workplace diversity" simply advocate an employee base that is a mirror reflection of the make-up of society insofar as race, gender, sexual orientation, etc. Skills and qualifications – as industries move from manual to a more managerial profession so does the need for more highly skilled graduates. If the market is "tight" (i.e. not enough staff for the jobs), employers will have to compete for employees by offering financial rewards, community investment, etc.

CHAPTER - 3 RESEARCH METHODOLOGY 3.1

OBJECTIVES OF THE STUDY

• To understand manpower needs for COMPANY • To anticipating surplus or shortage of staff and avoiding unnecessary detentions or dismissal. • To help the organization to cope with the technological development and modernization. To know about career planning of every employer of the organization and making succession programmers.

3.2

RESEARCH DESIGN

As the study is based on Human resource planning so for going into the detail of HRP Descriptive Survey Method should be followed. Universe The set of objects which has to be clarified before carrying out a study is known as Universe. It may be finite or infinite. In my research universe is finite & it will be in region specifically in YAMUNA NAGAR Sample This refers to the number of items to be selected from the universe to constitute the sample. Sampling Size 20 Respondents

3.3

DATA SOURCE

The data can be collected by two ways: PRIMARY SOURCE  SECONDARY SOURCE Primary Data The data collected for the first time by the researcher himself is called primary data. There are several methods of collecting primary data like questionnaire, Personal interviews etc. The method adopted for the study will be:  Questionnaire  Personal interviews Secondary Data The data already available is called secondary data. This data may be present in the form of journals, publishing’s etc. under this report the information will be collected from different sources like:  Internet  Magazines  Newspapers  Company bulletins  Journals  Books etc.

3.4

SAMPLING TECHNIQUE

Random Sampling:-This sampling is chosen to know about the views of different HR manager simultaneous.

CHAPTER - 4 DATA ANALYSIS & INTERPRETATION 1.

Company following Human Resource Planning Yes (

)

No (

Yes No

80%

)

80% 20%

80%

70% 60% 50% 40% 30%

20%

20% 10% 0%

Yes

No

80% respondents say that the company is following Human Resource Planning and 20% say no.

2

According to you main purpose of human resource planning To ensure optimum and effective use of human resources

(

)

To research and reconfigure new skill sets

(

)

To draw specific outlines of competencies

(

)

To identify control standards

(

)

To ensure optimum and effective use of human resources To research and reconfigure new skill sets To draw specific outlines of competencies To identify control standards

35%

35% 30% 20% 15%

35% 30%

30% 25%

20%

20%

15%

15% 10% 5% 0% Optimum & effective

Draw Specific Outline

35% respondents say that the main purpose of human resource planning is to ensure optimum and effective use of human resources, 30% say that to research and reconfigure new skill sets, 20% say that to draw specific outlines of competencies and other 15% say that to identify control standards.

3.

(HR) planning is a strategic process that forecasts the demand for jobs in the Strategic organization projects and anticipates the supply of workers Yes (

)

No (

Yes No

70%

)

70% 30%

70%

60% 50% 40%

30%

30% 20% 10% 0%

Yes

No

70% respondents say that Human Resource (HR) planning is a strategic process that forecasts the demand for jobs in the organization and anticipates the supply of workers and other 30% say no.

4.

Human resource planning is a continuous process Yes (

)

No (

Yes No

)

82% 18%

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

82%

18%

Yes

No

Most of the respondents say that Human resources planning are a continuous process and 18% say no.

5.

Company recruits internally or externally. Internally

(

)

Externally ( )

Internally Externally

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

85% 15%

85%

15%

Internally

Externally

According to 85% Respondents Company recruits internally and 15% say that company recruit externally.

6.

HRP Should be centralized or decentralized Centralized

( )

Decentralized

Centralized Decentralized

40% 60%

60%

60% 50% 40%

( )

40%

30% 20% 10% 0%

Centralized

Decentralized

40% Respondent say HRP should be centralized and 60% respondent say it should be decentralized.

7.

Human resource planning most required to large companies Yes (

)

No (

Yes No

)

85% 15%

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

85%

15%

Yes

No

According to 65% Respondents human resource planning only relevant to large companies but other 35% say that the HRP not only relevant to large companies, They Says that HRP should also relevant to small companies.

8.

HR Planning helps in recruiting people according to the set budgets Yes (

)

No (

Yes No

)

77% 23%

80%

77%

70% 60% 50% 40% 30%

23%

20% 10% 0%

Yes

No

According to 77% Respondents HR Planning also provide the basis for budgeting and other 23% say that it don’t provide the basis for budgeting.

9.

The main factor that increased attention to human resource planning Environmental force globalization

(

)

Economic Conditions

( )

New Technologies

( )

Changing work force seem

( )

Environmental force globalization New Technologies Economic Conditions Changing work force seem

20% 50% 12% 18%

50%

50% 40% 30% 20%

20% 12%

10% 0%

18%

Environment

Eco. Conditions

According to 20% respondents Environmental force globalization increased attention to human resource planning, 50% say that it is New Technologies, 12% say that Economic Conditions and other 18% say that Changing work force seem increased attention to human resource planning.

10.

HRP is a time consuming & expensive process

Yes (

)

No (

Yes No

70%

)

70% 30%

70%

60% 50% 40%

30%

30% 20% 10% 0%

Yes

No

According to 70% Respondents HRP is a time consuming & expensive process and 30% respondents say no.

CHAPTER - 5 FINDING As in today’s scenario human capital is one of the most inputs of any value generating process, so the scope of human resource practices and policies is also increasing day by day. ISGEC which is the top STEEL industry also believes that tacit knowledge of human resource actually make a big difference which ultimately help to achieve the targets according to vision, mission, goals and objectives. 1.

The procedure followed in the organization for Human Resourse Planning is effective enough to attract the efficient candidates.

2.

Company us human resource planning very efficiency

3.

Human resource planning helps the company in recruiting people according to set budget.

4.

Company uses mostly internal method for recruitment.

5.

Company uses new technology time to time which contribute most to increase attention to human resource planning

SUGGESTIONS AND RECOMMENDATIONS •

Human resource planning of the organization should be integrated with other organization plans.

•

Company should also give preference to external sources for recruitment also because in this way company get more talented personal that have current knowledge.

•

To make effective manpower planning top management must provided their support.

•

For effective human resource planning the management information system of the organization should be effective and reliable.

•

Manpower planning should be done by the company time to time

LIMITATIONS Every coins has two sides in the same way while during our project analysis we also come across such things that created problem for us. These are listed below:•

Sample size taken for the study was not enough to carry out the analysis as the result may not be generalized for the whole population.

•

Geographical area covered in the survey was limited.

•

The HR manager because of shortage of time was not able to explain the deep information about the study.

•

Managers gave half-hearted response which may lead to wrong conclusion.

CONCLUSION Human resource is a key economic resource, and a scare one. It therefore demands the same attention a company gives to planning sales, investment or profits. It is this fact that has led to the development of manpower planning among an increasing number of business organizations. For the company, the returns from manpower planning can be measured in term of higher efficiency and productivity as a result of better utilization of its manpower resources and the elimination of waste in recruitment, training and other personnel schemes. The benefits to the individual employee and the country are not less important. Poor HR Planning and lack of it in the Organization may result in huge costs and financial looses. It may result in staff posts taking long to be filled. This augment costs and hampers effective work performance because employees are requested to work unnecessary overtime and may not put more effort due to fatigue. If given more work this may stretch them beyond their limit and may cause unnecessary disruptions to the production of the Organization. Employees are put on a disadvantage because their live programmers’ are disrupted and they are not given the chance to plan for their career development. The most important reason why HR Planning should be managed and implemented is the costs involved. Because costs forms an important part of the Organizations budget, workforce planning enable the Organization to provide HR provision costs. When there is staff shortage, the organization should not just appoint discriminately, because of the costs implications of the other options, such as training and transferring of staff, have to be considered. Finally HR planning is continuous, ongoing process; and companies that treat it as a five-year burdensome task will be deeply disappointed. In fact it is preferable that they do start this task as it may turn into a ritual. Even the most carefully calculated forecasts are liable to be overtaken by unforeseeable changes. A system of assorting plans to these changes with as little delay as possible is an essential part of manpower planning. Indeed one might say that it is the essential characteristic of a well-managed enterprise. HR

planning is a recruitment start up. HR planning is not the job of Human Resources Management (Personnel) people. It is the job of the CEO. Wherever the CEO has relinquished his responsibility and delegated HR hiring and structuring the organizations have lived to tell a tale. Corporate who seek the best minds to remain competitive need to plan for their hiring and thereafter their retention need to get their act together now? Absence of HR planning would mean an absence of a leader at a point in time now known now, definitely in the near future.

ANNEXURE BIBLIOGRAPHY Books Reference  Subba Rao 'Human Resourse Management' K . Ashwathapa. 'Personnel management'. & 'Human Resource Management'  C.R.kothari, Research Methodology  R.S. Dwivedi . 'Personnel management'.  T . N. Chabbra 'Human Resourse Management' Websites Referred  www.hr.guide.com  www.ISGEC.com  www.wikipedia.com

QUESTIONNAIRE Name

: ________________________________

Age

: ________________________________

Address

: ________________________________

Phone no.

: _________________________________

Instructions:

Tick in the appropriate column.



The information provided by you is confidential and is used only for academic purpose.

Q1.

Is your company following Human Resource Planning? Yes

Q2.

Q3.

(

)

No

(

)

According to you what is the main purpose of human resource planning? To ensure optimum and effective use of human resources

( )

To research and reconfigure new skill sets

( )

To draw specific outlines of competencies

( )

To identify control standards

( )

Is Human Resource (HR) planning is a strategic process that forecasts the demand for jobs in the strategic organization projects and anticipates the supply of workers? Yes

Q4.

)

No

(

)

Do you feel that human resource planning is a continuous process? Yes

Q5.

(

(

)

No

(

)

Whether the Company recruits internally or externally Internally

(

)

Externally ( )

Q6.

HRP Should is centralized or decentralized? Centralized

Q7.

Decentralized ( )

(

)

No

(

)

Does HR Planning helps in recruiting people according to the set budgets? Yes

Q9.

)

Is human resource planning only relevant to large companies? Yes

Q8.

(

(

)

No

(

)

According to you what is main factor that increased attention to human resource planning Environmental force globalization ( )

New Technologies

Economic Conditions

Changing work force seem ( )

( )

Q10. Do you think that HRP is a time consuming & expensive process? Yes

(

)

No

(

)

( )

CHAPTER-1 INTRODUCTION

CHAPTER-2 LITERATURE REVIEW

CHAPTER-3 RESEARCH METHODOLOGY

CHAPTER-4 DATA ANALYSIS & INTERPRETATION

CHAPTER-5 FINDINGS

SUGGESTIONS

LIMITATION OF THE STUDY

CONCLUSION

ANNEXURE