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Human Resource Development & HumanResource Planning
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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.
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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.
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Need for the study
To strengthen the area of manpower planning system.
HRD & other elements personnel system.
Develop appropriate methodology.
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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 ofco-operation .
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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Empirical studies on planning in India
and abroadNkomo conducted survey of fortune 500 firms:
54% of firms use formal strategic HRP, 15% use comprehensivesystems.
Lack of linkage between human resource planning & strategic business
planning.
strategic human resource planning is still in its impasses.
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Human resource planning is treated as short term exercise.
Many organizations lack the requisite expertise and abilities ofhuman resource planning
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Manpower planning today
An integral approach
New scenario in fully economic
Human beings are the sources
A rational approach of manpower
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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.
Public enterprises in the
economy of India
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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.
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In this context, guidelines of the department of public
enterprises are as follows:
1. Voluntary retirement scheme open for employees who havecompleted 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;
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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 monthlyemoluments at the time of retirement, or salary for the remaining
period of service, whichever is less.
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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.
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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
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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.
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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.
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Multi-skilling in the present context
Balancing the actual workload.
Process of technology absorption.
Gainful employment generation.
Liberalization laid stress on higher productivity .
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Growth of investment vis--vis employment in
public sector enterprises
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