INTRODUCTION

The Uttar Pradesh Financial Corporation was established on 1stNovember

1954 under the state financial corporation Act 1951.Uttar Pradesh financial

corporation took a humble step for the industrial development at the state of

Uttar Pradesh by providing financial assistance to upcoming small and medium

scale industries in the state of Uttar Pradesh and Uttranchal also for

modernization, diversification and expansion of existing Industrial units.

UPFC plays a vital role in the order to make the financing activities efficient &

thereby develops the economy of the state. UPFC has it’s head office at 14/88,

Civil Lines, Kanpur. UPFC has 19 Regional Offices that are spread throughout

the state of U.P. The objective of Regional Offices is to ensure greater

efficiency and providing quicker, faster, and quality services with regard to

sanction, disbursement, and recovery of loans. The Regional Offices has been

successful to a great extent in achieving their objective of services to their

client.

The state government with the consent of IDBI appoints the M.D. of the

corporation. He is a whole time officer of the corporation and assisted by a

team of officers.

 Corporation is funded through

 Loan from State Government

1
 Refinance from IDBI/SIDBI

 Bonds (SLR as well as Private Placement Bonds)

 Market borrowing viz. bank limits etc.

 Income from Non-fund based activity like financial services and

consultancy.

 Adhoc borrowing from RBI

 Share Capital

 Internal Cash profits

Function of Uttar Pradesh Financial Corporation

Provides loans for creation/purchase of fixed assets of the units.

 Recreation and entertainment

 Health care

 Food processing and agro based export oriented units.

 Automobiles ancillaries

 Electronics

 Engineering goods

 Assist small industries through NEF

 Encourage women entrepreneurs through Mahila Udyam Nidhi.

2
 Provides financial assistance for working capital under single window and

working capital loan schemes.

 It confers the right to provide whole range of services such as issue

management , underwriting, equity, participation, and project certification

for raising finance from primary market.

 It undertakes joint financing with Pradeshiya industrial corporation of UP

(PICUP)/scheduled banks for service sector like Hotels, Nursing homes,

Information technology projects etc.

3
 OBJECTIVES OF UPFC

 To achieve the objectives of establishing State Finance Corporation in every

State of the country. UPFC has made detailed objectives, which are as

follows;-

 Providing financial assistance by way of fixed asset term loan & working

capital loan to small and medium scale industries and service sector units

for faster and rapid industrialization of the state.

 To develop industrially backward districts of the state.

 Foresting growth of SMEs.

 Providing seed capital assistance to smaller units and women entrepreneurs

under “National Equity Fund” and “Mahila Udyam Nidhi” schemes.

 Providing capital investment subsidy to cold storage up to 25% of capital

cost of project as per scheme of N.H.B.

 To have courtesy and customer friendly approach.

 Time bound sanction & disbursement of loan.

4
 COMPETITIVE INTEREST RATES.

 To work an agent of Central/State Government to implement and operate

various scheme of the Government.

 Frequent interaction with entrepreneurs & associations.

 Transparency in operation.

 To introduce policies to benefits entrepreneurs.

 Large network of 19 Regional Offices with delegated authority to provide

service at their doorsteps.

5
 UPFC’S PRIORTIES

 Synergy with State Industrial Policy to make U.P.an “Udyog Pradesh”.

 Frequent interaction with Entrepreneurs & Industrial Associations through

“Vittiya Bandhu” for problem solving and enable of investments.

 To accelerate industrial growth rate in the state.

 Decentralization of operational powers to Regional Offices spread all over

the state.

6
 LIMITS OF ACCOMODATION

UPFC provides financing assistance to new/existing units going in for

diversification/modernization/expansion for acquisition of fixed assets such as

land, building, plant and machinery Corporation also provides working capital

to existing units with sound track record and also to new units under single

scheme. The maximum assistance, which UPFC can grant at present, is

Rs.2000.00 lakh in case of companies & Rs 800.00 lakh in case of proprietary

& partnership firms. The paid up capital and free reserves of assisted concern

should not exceed Rs.2000.00 lakh. Earlier, there was a ceiling on total cost of

project has now been dispensed with. At present, UPFC can sanction loan to an

unit without any upper limits of total cost of project.

7
 JURDICTION OF REGIONAL OFFICE OF UPFC

There are 19 Regional Offices of UPFC, which are located in different city of

Uttar Pradesh. Names of Regional Offices and district under their jurisdiction

are as below:-

S.No. Name of Regional Office DISTRICT COVERED

1. Azamgarh Azamgarh
Mau
Ballia
Jaunpur
2. Agra Agra
Firozabad
Mathura
3. Aligarh Aligarh
Etah
Hathras
4. Allahabad Allahabad
Fatehpur
Pratapgarh
5. Bareilly Bareilly
Badaun
Pilibhit
Shajanpur

8
 Dehradun
6. Dehradun Chamoli
Haridwar
Paurigarwal
Rudraprya
Tehrigarhwal
7. Etawah Auraiya
Etawah
Farrukabad
Kannauj
Mainpuri
8. Faizabad Ambedkar Nagar
Bahraich
Balrampur
Gonda
Faizabad
Sultanpur
Sravasti Nagar
9. Ghaziabad Ghaziabad

10. Haldwani Almora

Haldwani
Kashipur
Nainital
Pithoragarh
Udham Sing Nagar

9
 Champavat
Bageshwar

12. Jhansi Banda

Hamirpur
Jalaun
Jhansi
Lalitpur
Mahoba
Orai
13. Kanpur Kanpur Nagar
Unnao
Kanpur Dehat
14. Lucknow Barabanki
Hardoi
Lakhimpur Kheri
Lucknow
Raebareli
Sitapur
15. Muzaffarnagar Muzaffarnagar
Sharanpur

16. Moradabad Bijnor

Jyotiba Phoole Nagar
Mradabad
Rampur

10
17. Noida Gautam Buddha Nagar

18. Varanasi Bhadohi

Chandauli
Ghazipur
Mirjapur
Varanasi

11
 MANPOWER AT UTTAR PRADESH FINANCIAL
CORPORATION

The organizational structure of UPFC is operative under one chairman, one

managing Director & one General Manager which is being governed by six

zones & nineteen Regional Offices for better performance & quick clearance of

financial offers to be dealt with different parties and & their requirement . the

whole network is run by the efficient and competent officers with their under

staff of approximate 700 employees.

Though, the department is meant or feeding financial assistance to the needy

industrialists for the development & growth of the industry but the return of the

investment does not permit to carry on such large unit with excessive

engaged manpower .to overcome the situation every where the computer

network is being introduced for smooth functioning with accurate back-up of

records as & when required.

12
 FUNCTIONS OF VARIOUS DEPARTMENTS AT HEAD
OFFICE

Planning & Monitoring Department

This department performs following work:-

 Analyze the MIS received from the ROS and put up before authorities

with necessary suggestions & feed back every month.

 To ensure preparation of data for Annual Reports.

 Analyze the Balance Sheet of other State & National level Financial

Institutions and put up comparative studies and suggestions after through

analysis to improve functioning of the Institution.

Estate Department

The responsibility of this department is to look after the better upkeep of Head

office as well Regional Office and assets held by the corporation like

residential houses/flats, vehicles, Office furniture’s and other accessories at

lowest expenditure.

13
R.M.A. & M.B.D. Department

This department looks after following works;-

 General accounting work, record keeping of RO’s, trial balances

compilation, bank reconciliation, income tax.

 Refinance a ailment from SIDBI, HUDCO and Banks restructuring of

accounts, maintenance of bank and cashbook.

 Preparation of salary of staff, T.A. bills, Provident fund, Special Scheme

Account and Budget allocation.

 Preparation of Annual Accounts of the corporation i.e. Balance Sheet

and Profit & Loss Account.

Arrangement of funds

Besides this, following activities are also be ensured by this department like

Merchant Banking, Sale & Purchase of Shares, lease finance,house building &

vehicle advance, correspondence related to State Govt.Ministry of Banking

Govt. of India,IDBI,SIDBI,SLR Bonds holder, PP Bonds and coordination

with other financial institutions.

14
Administration Department

This department looks after the work related to personnel and human resource

development like:-

 Matters relating to appointment, promotion, confirmation, resignation,

retirement.

 Sanction of various types of leave, disciplinary proceeding, litigation

related to service matters.

 Pay scales, its fixation, time scale, E.B., stagnation.

 Transfer/posting, maintenance of ACRs, Gen. Administration & HRD

work.

 Payment of retirement benefits, P.F., Gratuity, Group Insurance, Leave

Encashment, Reimbursement of medical claim, SC/ST matters etc.

Law Department

Legal matters related to units as well as service matters are being looked after

by this department. After receipt of cases for opinion/ filing writ/ caveat/ SLP/

review petition at courts/ tribunal, the matters are examined and action is taken

expeditiously. This department is also responsible for timely filing of CA’s in

various courts both at HO & in the RO’s.

15
Internal Audit Department

This department ensures compilation of replies received from zones about audit

observation, AG audit & PUC paras, their follow-up, timely submission to the

State Govt. and other authorities. This department also conducts audit of each

Regional Office once in a year for better control and submits audit report to

Managing Director.

Computer Department

The Computer Department is responsible for the following:-

 Proper up-gradation and updating of data pertaining to accounts.

 Proper maintenance of computer, UPS, Printers etc.

 Net working, e-mailing of information, web site, and proper

maintenance of all problems arising at Regional Office level.

Policy Scheme Making Department

A new department for taking initiatives in new policy & scheme formation was

created. The department explores niches and draw policies keeping in view the

survival of the corporation. This department is very active in providing an

effective front before at State/central Govt., Banks and other Financial

Institution .He is also responsible for the formulation of new scheme, change in

16
existing schemes as well as matter related with signing of MOU with the State

Govt. & other financial institutions.

Special scheme Department

This department deals with the various schemes of State and Central Govt. like

NHFDC , Audhoyik Nivesh Protsahan Yojna, Capital Subsidy to Cold Storage

from N.H.B. etc.

Corporation Secretariat Department

This department conducts various meetings like Board of Directors, E.C.I.C,

A.G.M., Settlement Committee and also compliance of all Statutory

requirements etc.

Project Department

The responsibility of the department were as under:

To keep all the records/files/circular related to sanction of the loan proposals.

To prepare related statements for perusal of authorities on monthly basis

related to change of specification / supplier of machines, building specification

/ site, relaxation in pre-disbursement & during disbursement condition,

Reschedulement, change of management/constitution etc.

17
 RECOVERY & REHABILITATION DEPARTMENT

The responsibility of the department were as under:-

 To keep all the records/files/circulars to recovery & Rehabilitation of the

cases.

 To prepare related statements for perusal of authorities on monthly basis

related to OTS, Sale, Rehabilitation, Reschedulement, issuance of

recovery certificate and notice U/s 29 of SFC’s Act etc.

 As per order of M.D. dated 22.07.2009 these 3 departments are not in

existence now. The function and working of 3 departments have been

merged with the concerned Zones.

18
 SANCTION PROCEDURE OF LOANS UNDER DIFFERENT
SCHEME:

The proposal/applications of the prospective borrower and registered at

Regional Office upto loan amount of Rs. 50.00 lacs and for loan above Rs.

50.00 lacs at Head Office of the Corporation. The application is processed by

concerning Regional Office for loan proposal upto Rs. 1.00 Crore. The loan

proposal is processed normally by a team of technical and a finance officer

who examine the proposal after getting required information from borrower.

They prepare appraisal memorandum and check technical feasibility and

economic viability. Appraisal memorandum mainly covers, location,

infrastructure, cost of project, means of financing, profitability indicators like

BEP, Cash Flow, IRR, Pay back period, DSCR etc., marketing aspects like

demand supply position of the product, distribution channels and existing

capacity etc. The appraisal team also assigned credit rating to the proposal to

decide the interest rate depending upon the risk quantified through the credit

rating model. The appraisal is prepared as per internal guide-lines, norms issue

from time to time. The appraising officers also inspect the site and verify the

antecedents of promoters. The appraisal memorandum prepared is checked by

19
appraisal in charge/Regional Manager at R.O. and is sent to Zonal Officer at

Head Office. After thorough examination by Zonal

Office, proposal is put-up with the recommendations before concerned

sanctioned authority for taking decision. The proposals which are under

jurisdiction of Executive Committee and Board of Directors are put up only

after clearance by Advisory Committee. The powers of sanction of

loan mount delegated to various Committees is as under: -

(i) Internal Committee Upto Rs.150 lacs

(ii) Executive Committee Above Rs. 150 lacs

After sanction of loan, sanction advise is issued by R.O./H.O. The

comprehensive loan policy giving detail operational guidelines of sanction is

available at website of the Corpn.

20
 SUPERVISION & ACCOUNTABILITY

For proposal processed at Regional Office: Regional Manager For proposal

processed at Head Office: Zonal Manager, Concerned Sanctioning Authority.

DOCUMENTATION & DISBURSEMENT PROCEDURE:

The Law Officer scrutinizes the title papers and other legal documents as per

terms of sanction before disbursement and prepares title report and get the legal

agreement signed. The documentation is done by Law Officer at Regional

Office. After this legal transfer note is prepared and file is forwarded to

disbursement department of R.O. After this Borrower is required to fulfill all

other stipulations made by Sanctioning Authority before approaching the

disbursement. The disbursement incharge checks the compliance of the terms

and conditions of sanction and gets the inspection done . On the basis of the

security created and verified the disbursement amount is calculated after taking

into account the stipulated margin . The entire disbursement is made through

Regional Offices in stages depending upon the creation of the assets / security.

21
 SANCTION : LOAN SANCTION NORMS

 Debt- equity ratio should not be normally less than 1:1

 Security debt ratio not be normally less than 2:1

 DSCR (debt service coverage ratio) should not be less than 2:1

 Repayment period to be kept normally between %-7 years including

gestation period of 12 months.

 Security margin for loans disbursement purpose is not taken less than 20%.

 Proposals for credit rating less than b+ are not considered.

Disbursement: Loan disbursement norms

Security based disbursement

Normally, Capital raising conditions of 75% to 100% of the promotions

contribution is required before disbursements.

22
 SCHEME FOR WORKING CAPITAL TERM LOAN (WCTL)

This Scheme is meant for small & medium scale industrial units whose net

worth is positive and the units which are not financed by UPFC should be in

operation preferably for a minimum period of 03 years and should have earned

profits in the last financial years.

 Units which has availed working capital loan from the bank would also

be eligible.

 Maximum limit of Working Capital Term Loan to a Company/Firm is

restricted to Rs. 150.00 lacs.

 Debt Equity Ratio shall normally be less than 1.50 : 1.

 Security Debt ratio should not be less than 1.5 : 1.

23
SCHEME FOR RE-SANCTIONING OF WORKING CAPITAL

TERM LOAN IN SEASONAL INDUSTRIES.

The scheme of re-sanction of Working Capital Term Loan was introduced by

the Corporation in the year 1995 with a view to help entrepreneurs maintain

their working capital level without much problems for smooth running of

units. Certain modification were introduced subsequently based on the

experience of the Corporation in operation of the scheme. The scheme received

very encouraging response from out borrowers. However, entrepreneurs who

are running seasonal industries have requested a different scheme as their

working capital funds are required mainly during the season of that particular

activity and they have to unnecessary bear interest cost for the fully year

making their operations less competitive in market. We have, therefore,

devised a scheme for re-sanction of working capital for only seasonal

industries, viz; cold storage, rice mills, dall mills etc., where borrowers will

have an option to prepay the loan amount (during the off-season) and get in re-

sanctioned during season.

24
1] ELIGIBILITY CRITERIA

(i) The party has been consistently regular in repayment of loans and have not

diluted the security already mortgaged to the Corporation.

(ii) Existing Working Capital term Loan has been substantially repaid, but

there is some outstanding balance in the account.

(iii) Corporation will have 1st charge on the prime assets and no pari-passu

2nd charge will be permissible in favour of any Bank/Institution.

2] QUANTUM OF ASSISTANCE

(i) Working Capital Term Loan can be considered for re-sanction only upto

the extent of the amount repaid, ensuring there is no dilution of original

Security Debt Ratio. R.M. shall have security verified in order to ensure

above.

(ii) If the quantum of assistance is more than the amount already repaid the

entire proposal will be treated as a fresh case and shall not be covered under

the scheme.

3] PROCEDURE

On a simple application of the borrower, the Regional Office would prepare an

appraisal note as per enclosed format on the orders of the R.M. > A.G.M.

25
4] SANCTIONING AUTHORITY

The Regional Managers / Asstt. General Manager will be the Sanctioning

Authority under the scheme. However, if any R.M. /A.G.M. re-sanctions a

case in violation of [a] Eligibility Criteria or [b] Quantum of assistance, thery

shall be held personally responsible and liable for disciplinary action.

5] CURRENCY OF LOAN

Total Currency of re-sanctioned loan will not exceed the currency period of

WCTL sanctioned by the I.C. /S.L.C. a part of which is being re-sanctioned.

However, R.M. / A.G.M. can re-sanction as many times as deemed fit within

the currency of loan as per terms and condition of the scheme.

6] MAIN TERMS OF THE SCHEME

[i] No processing fee, Legal Fee and Service Charge will be levied.

[ii] Annual Supervision Charges will be levied @ 1% on amount outstanding

on proportionate period on monthly basis.

[iii] Legal Documentation will be done for extension of charge incorporating

various terms and conditions on a simple format to be designed by Law

Department, H.O..

[iv] As per the Standing Circular, no pre-payment premium shall be applicable

in seasonal industries.

26
7] RECORD KEEPING

[i] After a loan re-sanctioned by the R.M./A.G.M., a copy of the note be sent

to the Project Division who in turn will put up the same for information of the

I.C./ S.L.C., as the case may be.

[ii] Complete records regarding re-sanction will be maintained by the

Regional Office concerned and they will do pasting etc. of original appraisal

notes and orders of re-sanction as per norms.

27
 COMPOSITE LOAN SCHEME

The scheme is for artisan, village & cottage industries and SSI in the tiny

sector are eligible.

 Original Investment in Plant & Machinery should not exceed Rs.

25.00 lacs.

 Assistance only upto Rs. 10.00 lacs [Both for fixed assets + Working

Capital ].

 Promoter’s contribution upto Rs. 2.00 lacs is nil and above Rs. 2.00 lacs

to Rs. 10.00 lacs at Debt Equity Ratio 3 : 1.

 No security upto Rs. 5.00 lacs and above Rs. 5.00 lacs on selective basis

depending upon project.

28
 HUMAN RESOURCE PROCESS

Each organization works towards the realization of one vision. The same is

achieved by formulation of certain strategies and execution of the same, which

is done by the HR department. At the base of this strategy formulation lie

various processes and the effectiveness of the former lies in the meticulous

design of these processes. But what exactly are and entails these processes?

Let’s read further and explore.

The following are the various HR processes:

1. Human resource planning (Recruitment, Selecting, Hiring, Training,

Induction, Orientation, Evaluation, Promotion and Layoff).

2. Employee remuneration and Benefits Administration

3. Performance Management.

4. Employee Relations.

The efficient designing of these processes apart from other things depends

upon the degree of correspondence of each of these. This means that each

process is subservient to other. You start from Human resource Planning and

there is a continual value addition at each step. To exemplify, the PMS

(performance Management System) of an organization like Infosys would

29
different from an organization like Walmart. Lets study each process

separately.

Human Resource Planning: Generally, we consider Human Resource

Planning as the process of people forecasting. Right but incomplete! It also

involves the processes of Evaluation, Promotion and Layoff.

 Recruitment: It aims at attracting applicants that match a certain Job

criteria.

 Selection: The next level of filtration. Aims at short listing candidates

who are the nearest match in terms qualifications, expertise and potential

for a certain job.

 Hiring: Deciding upon the final candidate who gets the job.

 Training and Development: Those processes that work on an employee

onboard for his skills and abilities upgradation.

Employee Remuneration and Benefits Administration: The process

involves deciding upon salaries and wages, Incentives, Fringe Benefits and

Perquisites etc. Money is the prime motivator in any job and therefore the

importance of this process. Performing employees seek raises, better salaries

and bonuses.
30
Performance Management: It is meant to help the organization train,

motivate and reward workers. It is also meant to ensure that the organizational

goals are met with efficiency. The process not only includes the employees but

can also be for a department, product, service or customer process; all towards

enhancing or adding value to them.

Nowadays there is an automated performance management system (PMS) that

carries all the information to help managers evaluate the performance of the

employees and assess them accordingly on their training and development

needs.

Employee Relations: Employee retention is a nuisance with organizations

especially in industries that are hugely competitive in nature. Though there are

myriad factors that motivate an individual to stick to or leave an organization,

but certainly few are under our control.

Employee relations include Labor Law and Relations, Working Environment,

Employee heath and safety, Employee- Employee conflict management,

Employee- Employee Conflict Management, Quality of Work Life, Workers

Compensation, Employee Wellness and assistance programs, Counseling for

31
occupational stress. All these are critical to employee retention apart from the

money which is only a hygiene factor.

All processes are integral to the survival and success of HR strategies and no

single process can work in isolation; there has to be a high level of conformity

and cohesiveness between the same.

32
 HUMAN RESOURCE PLANNING

Human Resource Planning (HRP) is the process of forecasting the future

human resource requirements of the organization and determining as to how

the existing human resource capacity of the organization can be utilized to

fulfill these requirements. It, thus, focuses on the basic economic concept of

demand and supply in context to the human resource capacity of the

organization.

It is the HRP process which helps the management of the organization in

meeting the future demand of human resource in the organization with the

supply of the appropriate people in appropriate numbers at the appropriate time

and place. Further, it is only after proper analysis of the HR requirements can

the process of recruitment and selection be initiated by the management. Also,

HRP is essential in successfully achieving the strategies and objectives of

organization. In fact, with the element of strategies and long term objectives of

the organization being widely associated with human resource planning these

days, HR Planning has now became Strategic HR Planning.

Though, HR Planning may sound quite simple a process of managing the

numbers in terms of human resource requirement of the organization, yet, the

actual activity may involve the HR manager to face many roadblocks owing to

33
the effect of the current workforce in the organization, pressure to meet the

business objectives and prevailing workforce market condition. HR Planning,

thus, help the organization in many ways as follows:

 HR managers are in a stage of anticipating the workforce requirements

rather than getting surprised by the change of events

 Prevent the business from falling into the trap of shifting workforce

market, a common concern among all industries and sectors

 Work proactively as the expansion in the workforce market is not always

in conjunction with the workforce requirement of the organization in

terms of professional experience, talent needs, skills, etc.

 Organizations in growth phase may face the challenge of meeting the

need for critical set of skills, competencies and talent to meet their

strategic objectives so they can stand well-prepared to meet the HR

needs

 Considering the organizational goals, HR Planning allows the

identification, selection and development of required talent or

competency within the organization.

It is, therefore, suitable on the part of the organization to opt for HR Planning

to prevent any unnecessary hurdles in its workforce needs. An HR Consulting

34
Firm can provide the organization with a comprehensive HR assessment and

planning to meet its future requirements in the most cost-effective and timely

manner.

An HR Planning process simply involves the following four broad steps:

 Current HR Supply: Assessment of the current human resource

availability in the organization is the foremost step in HR Planning. It

includes a comprehensive study of the human resource strength of the

organization in terms of numbers, skills, talents, competencies,

qualifications, experience, age, tenures, performance ratings,

designations, grades, compensations, benefits, etc. At this stage, the

consultants may conduct extensive interviews with the managers to

understand the critical HR issues they face and workforce capabilities

they consider basic or crucial for various business processes.

 Future HR Demand: Analysis of the future workforce requirements of

the business is the second step in HR Planning. All the known HR

variables like attrition, lay-offs, foreseeable vacancies, retirements,

promotions, pre-set transfers, etc. are taken into consideration while

determining future HR demand. Further, certain unknown workforce

35
 variables like competitive factors, resignations, abrupt transfers or

dismissals are also included in the scope of analysis.

 Demand Forecast: Next step is to match the current supply with the

future demand of HR, and create a demand forecast. Here, it is also

essential to understand the business strategy and objectives in the long

run so that the workforce demand forecast is such that it is aligned to the

organizational goals.

 HR Sourcing Strategy and Implementation: After reviewing the gaps

in the HR supply and demand, the HR Consulting Firm develops plans to

meet these gaps as per the demand forecast created by them. This may

include conducting communication programs with employees,

relocation, talent acquisition, recruitment and outsourcing, talent

management, training and coaching, and revision of policies. The plans

are, then, implemented taking into confidence the mangers so as to make

the process of execution smooth and efficient. Here, it is important to

note that all the regulatory and legal compliances are being followed by

the consultants to prevent any untoward situation coming from the

employees.

36
Hence, a properly conducted process of HR Planning by an HR Consulting

Firm helps the organization in meeting its goals and objectives in timely

manner with the right HR strength in action.

37
 MANPOWER PLANNING AND DEVELOPMENT PROCESS

Manpower planning and development is also known as human resource

planning. This process is an essential cornerstone in the efficient management

of personnel in an organization. Manpower planning entails getting the right

number and type of personnel to do the required tasks for the fulfillment of the

goals and objectives of the organization. The manpower planning process is an

ongoing and continuous strategy which is undertaken through a systematic set

of procedures.

Analysis entails assessing the current status of the manpower within the

organization. The analysis is done by taking an inventory of the skills,

competencies and abilities of all personnel in the organization. It is also entails

accounting for the number of departments and the sizes of these departments

within the organization. The analysis helps the human resource (HR) managers

to make informed forecasts about the human.

38
 FUTURE PROJECTIONS

Forecasting entails making future projections with regard to an organization’s

human resources needs. This is done through employee brainstorming and

input from experts, such as human resource management consultants. Other

methods of forecasting include using past trends and statistics to project the

future, and analyzing the workload in each department to determine how many

personnel are needed to undertake the work. Forecasting helps the HR

managers answer questions such as how many employees are needed to recruit,

and how should the departments be restructured for efficiency.

39
 GAP ANALYSIS

The gap analysis is a comparison of the current status of an organization’s

manpower and the projected manpower needs. The gap analysis entails

detailing the specific numbers of employees needed, how restructuring will be

done, the steps which will be taken to train employees, and the types of skills

and competencies needed to undertake various tasks in the organization. The

gap analysis is taken as a preparatory step for the development and

implementation of programs that will assist the organization to meet its human

resources needs.

40
 STRATEGY DEVELOPMENT

Strategy development entails establishing programs to facilitate in the actual

implementation of the results of the gap analysis. Thus, HR managers develop

training programs to impart skills needed by the employees for better

performance. The managers also develop strategies on how to restructure the

departments, how to recruit the most competent personnel, and how to

outsource various services or skills to cut costs. Through monitoring and

continuous improvement of these strategies, an organization can efficiently

manage its human resources.

41
 OBJECTIVES OF MANPOWER PLANNING

Proper utilization of your workforce can help you save money now, and as you

plan for your company's future. Manpower planning requires the interaction of

departmental managers with your human resources professionals to maintain

current staff levels and plan for future workforce needs. Use manpower

planning to provide a framework by which your company can prepare for and

monitor future growth.

42
 STAFFING LEVELS

Staffing levels can change based on company growth, losses due to layoff or

temporary and seasonal employment needs. The objective of manpower

planning is to forecast staffing level needs and work with company managers

to make sure each department is properly staffed. The human resources group

plans for seasonal rises in employment needs to insure that production levels

and customer service quality are not affected. This includes working with

temporary agencies to supply seasonal staff and running employment

advertisements that bring in part-time candidates.

43
 FUTURE NEEDS

One of the functions of manpower planning is to anticipate the future skill set

needs of the company and begin the process of finding qualified candidates.

The human resources department needs to be involved in all aspects of

business planning to prepare for recruiting in job duties that the company has

not dealt with in the past. For example, a toy manufacturer decides to get into

the radio-controlled toy market and needs to hire technicians and engineers to

design and make the toys that the company has never made in the past.

44
 SKILL MATCHING

It is less expensive to utilize existing personnel than to hire new employees to

fulfill job needs within the organization. Hiring new employees requires

recruiting costs, training expenses and the cost of low productivity as the new

employee settles into his job. Manpower planning involves tracking each

employee's skill set, which allows the company to move employees around

within the company to prevent having to look outside the company. For

example, an accounts payable employee who has payroll skills can be moved

into the payroll department with a high level of competence.

45
 EFFICIENCY

A company needs to efficiently utilize its workforce to maintain productivity

and also keep employee morale high. Developing part-time positions, creating

different work shifts, offering overtime to compensate for increased production

needs and maintaining a pertinent training program are ways that manpower

planning maximizes workforce efficiency. Shift options and offering

employees the tools they need to do their job, such as training, help to maintain

employee morale.

46
 RESEARCH METHODOLOGY

This chapter aims to understand the research methodology establishing a

framework of evaluation and revaluation of primary and secondary research.

The techniques and concepts used during primary research in order to arrive at

findings; which are also dealt with and lead to a logical deduction towards the

analysis and results.

Research methodology has its special significant in solving operational &

planning of industries to gaining new knowledge relative problems.

47
 Research design

The research design applied here was descriptive research & exploratory

research design.

In case of descriptive research, we know the problem, we just have to find the

solution to the problem. Generally descriptive research design is applied after

exploratory research design.

Methods of Descriptive Research Design

1. Survey

2. Interviews

3. Questionnaires

4. Other observations

48
 DATA COLLECTION

This report is based primary and secondary data. Primary Data is collected by

survey and personal interviews.

Secondary data is collected by the study of various reports. The reports

studied under secondary data.

THE DATA SOURCE

The data has been taken from two sources

 Primary data source

The primary data source has been collected through questionnaire by

Personally interviewing each respondent on a number of queries structured

in a questionnaire.

 Secondary data source

Secondary data was collected from following sources

Prior research reports

Websites

Books

Personal consultation

49
 THE AREA OF WORK

The investigation is around 100km. of Bareilly city. The reason for choosing

this design is to get responses from the industries.

The report is the result of a survey which was undertaken

around 100 Km. from Bareilly city. The objectives of the project have been

fulfilled by getting response from industries about the HR policies through a

personal Interview in the form of a questionnaire.

Another objective of this project has been to getting responses of

employees about their HR policies through questionnaire.

The responses available through the questionnaires are used to

evaluate the HR policies of the industries and to know the employees opinion

about their HR policies. UPFCL is willingness to analysis the internal and

external environment of the industries.

The project also covers an analysis the job satisfaction of the

employees.

50
 LIMITATION OF STUDY

1-This project is based on the method of HR policies and due to

constraint of time is not possible to work on all tools and techniques of HR

policies.

2- The data collection is also limited.

3- This project report is based on my own perception and finding so it can

not use for generalizing purpose.

4-Data are extracted from various employees and secondary sources so

any error in the statement will subsequent affect the company R&S process.

51
 For Employer

Ques: - what is the sector of this industry?

1) Private Sector

2) Public Sector

3) Joint Sector

1 2 3

10%

30%

60%

Conclusion:- By this question, I come to know that 60% industries are

private sector , 30% in public sector and 10% in joint sector.

52
Ques: - What is scale this industry?

1) Large Scale

2) Medium Scale

3) Small Scale

1 2 3

10%

20%

70%

Conclusion:- Answering this question is industries having 70% in large scale

, 20% in medium scale and 10% in small

53
Ques:- What is the number of manpower in your organization?

1) Staff

2) Company roll

3) Contract based

4) Casual based

1 2 3 4

20% 20%

25%
35%

Conclusion:- Answering this question 20% employees are in staff, 35%

employees are in company roll, 25% employees are in contract based and 20%

employees are in casual based.

54
Ques: - What are the methods adopted to improve productivity?

1) Productivity improvement

2) Quality improvement

3) TPM

4) Other methods

1 2 3 4

10%
30%

30%

30%

Conclusion:- Answering this question 30% industries are adopting

productivity improvement method, 30% industries are adopting quality

improvement method, 30% industries are adopting TPM method and 10%

industries are adopting others improvement methods.

55
Ques:- Do you have medical reimbursement scheme?

1) Yes

2) No

1 2

10%

90%

Conclusion:- Answering this question 90% industries are having medical

reimbursement scheme.

56
Ques:- Are you providing canteen facilities?

1) Yes

2) No

1 2

10%

90%

Conclusion:- Answering this question 90% industries are having the canteen

facilities.

57
Ques:- What is the age of retirement of employees of this industry?

1) 56- 58 Years

2) 58–60 Years

3) 60- 62 Years

1 2 3

30% 20%

50%

Conclusion:- Answering this question 20% industries are having employees

retirement age 56-58 years, 50% industries are having employees retirement

age 58-60 years and 30% industries are having employees retirement age 60-

62 years.

58
Ques:- Do you have career plan for employees?

1) Yes

2) No

1 2

10%

90%

Conclusion:- Answering this question 90% industries are having career plan

for their employees.

59
Ques:- Do you have services gifts scheme?

1) Yes

2) No

1 2

20%

80%

Conclusion:- Answering this question 80% industries are having services

gifts scheme.

60
 Ques:- Do you have your own transport facilities?

1) Yes

2) No

1 2

10%

90%

Conclusion:- Answering the question 90% industries are having own

transport facilities.

61
Ques:- How much amount is deducted from transport Facilities?

1) 200-400 Rs.

2) 400-600 Rs.

3) 600-800 Rs.

4) More than 800 Rs.

1 2 3 4

10%
30%
20%

40%

Conclusion:- Answering this question 10% industries are deducted 200-400

rs , 20% industries are having 400-600rs, 40% industries are having 600-

800rs and 30% industries are deducted more than 800 rs.

62
Ques:- How much conveyance allowance is given to employees?

1) 200-400 Rs.

2) 400-600 Rs.

3) 600-800 Rs.

4) More than 800 Rs.

1 2 3 4

20% 20%

30% 30%

Conclusion:- Answering this question 20% industries are given 200-400rs

conveyance allowance, 30% industries are given 400-600rs, 30% industries are

given 600-800rs and 20% industries are given more than 800rs.

63
Ques:- Do you have house rent allowance?

1) Yes

2) No

1 2

10%

90%

Conclusion:- Answering this question 90% industries are having house rent

allowance.

64
Ques:- How much amount is deducted from house rent allowance?

1) 200-500 Rs.

2) 500-800 Rs.

3) 800-1100 Rs.

4) More than 1100 Rs.

1 2 3 4

10% 20%

40%
30%

Conclusion:- Answering this question 20% industries are deducting 200-

500rs from house rent allowance, 30% industries are deducted 500-800rs,

40% industries are deducted 800-1100rs and 10% industries are deducted more

than 1100rs .

65
Ques:- Do you have overtime facilities?

1) Yes

2) No

1 2

10%

90%

Conclusion:- The result of this question came as 90% industries are having

overtime facilities for their employees.

66
Q you have children’s allowance?

1) Yes

2) No

1 2

20%

80%

Conclusion:- The result of this question came as 80% industries are having

children allowance for employees.

67
Ques:- Are you providing Bonus?

1) Yes

2) No

1 2

10%

90%

Conclusion:- By this question 90% industries are providing bonus for their

employees.

68
Ques:- What is the method of calculation of Bonus?

1) As per HR policy

2) As per Govt. norms

3) Both of these

1 2 3

20%

10%

70%

Conclusion:- By this question 70% industries are adopting both methods i.e.

as per HR policy and as per govt. norms.

69
Ques:- Do you have incentive schemes?

1) Yes

2) No

1 2

10%

90%

Conclusion:- Answering this question 90% industries are having incentive

schemes.

70
Ques:- Do you have any Awards?

1) incentive

2) Attendance Award

3) Star of the month

4) Quality control Award

5) All of these

1 2 3 4 5

2% 2% 3% 3%

90%

Conclusion:- Answering this question 90% industries are having all of these

awards relative to the industries.

71
 For Employees

Ques:- What is your age?

1) 20 – 35 Years

2) 35- 50 Years

3) 50 – 65 Years

1 2 3

10%

40%

50%

Conclusion:- Answering this question 40% employees are 20-35 years, 50%

employees are 35-50 years and 10% employees are 50-65 years.

72
Ques:- Do you agree with your training programs?

1) Yes

2) No

1 2

10%

90%

Conclusion:- Answering this question 90% employees are agree with your

training programs.

73
Ques:- Are you satisfied your canteen facilities?

1) Yes

2) No

1 2

10%

90%

Conclusion:- Answering this question 90% employees are satisfied your

canteen facilities.

74
Ques:- Are you agree with your medical facilities?

1) Yes

2) No

1 2

10%

90%

Conclusion:- Answering this question 90% employees are agree with your

medical facilities.

75
Ques:- Are you satisfied your health scheme policy?

1) Yes

2) No

1 2

30%

70%

Conclusion:- Answering this question 70% employees are satisfied with your

health facilities.

76
Ques:- Are you satisfied your welfare programs?

1) Yes

2) No

1 2

20%

80%

Conclusion:- Answering this question 80% employees are satisfied with your

welfare programs.

77
Ques:- Are you having house rent allowance?

1) Yes

2) No

1 2

20%

80%

Conclusion:- Answering this question 80% employees are having house rent

allowances.

78
Ques:- Are you satisfied your Grievance handing procedure?

1) Yes

2) No

1 2

10%

90%

Conclusion:- Answering this question 90% employees are satisfying with your

grievance handing procedure.

79
 Ques:-Are you agree your promotion policy?

1) Yes

2) No

1 2

10%

90%

Conclusion:- Answering this question 90% employees are agree with your

promotion policy,

80
 FINDINGS

1) According to finding this study i.e.60% industries are the private

sector, 25% in public sector & 15% in joint sector.

2) In the study industries are adopting all the health facilities i.e.

Drinking , lighting , cleaning & Disposal.

3) According to this study the companies having fair safety of

acquirement in their industries and i.e. they do not provide proper

guideline for using machines.

4) In this report companies are provide proper leaves benefit with

out any additional deduction in the salaries.

5) In this report mostly industry adopting duality improvement

method to improving their productivity in plant for safety

measurement for

81
6) In the industry industries having the fair medical facilities in their

industry i.e. on the plant hospital facilities.

7) According to this study industries are providing the canteen

facilities & also having the free of cost with out any deduction

deduction.

8) In this study the average age of retirement of employees 58-65

years.

9) In this study mostly industries are having the career plan for their

employees & also having the gift and cash scheme for their

employees.

10) In this report industries are having the own transport facilities with

deduction Rs.600-800.

11) The transport facilities are only the 50Km. surrounding the

industries plant but they providing more then 800Rs. For the

conveyance allowance.

12) In this study that industries are providing the career plan for their

employees they provide the gift and cash scheme for their

employees .

82
13) According to this study 95% industries are having the house rent

allowance with deduction 600-800Rs. A rounding the 50Km. of

the plant.

14) In this study the industries are having the over time allowance

according govt. norms & their HR policy.

15) In this study industries are providing the bonus for their employer

according the govt. norms.

16) In this study employees are satisfied with the company’s

promotion policy and performance analysis.

83
 SUGGESTION AND RECOMMENDATION

1) The industry must be having proper training programs for their

employees to improving their skilled. Some training methods are

below under:-

 Job rotation

 Sensitivity training

 Simulation exercise

 Incident method

 Conference

 Lectures

2) The industries must be having the all the necessary health

facilities in the plant of i.e. having fire facilities, monthly health

facilities and ambulation facilities.

84
3) The industry must be adopting duality improvement methods for

increase their productivity. Some methods are suggest under as

below:-

 decision program chart.

 International organization for standardization.

 Quality management system.

 Six Sigma.

 Total productive maintenance.

4) The industries must be providing canteen facility free of cost

there employees.

5) The industries must be having career plan for their employees to

developing there skills i.e. management games,

play-role and management grid.

6) The industries must be having own transport facilities with

minimum deduction surrounding 65Km. from the plant.

85
7) The industries must be providing house rent allowance according

to the location with minimum deduction.

8) The industries must be having incentive to increase their

productivity i.e. welfare provision, safety provision and health

provision plans.

9) The industries must be having the fair promotion policy for the

employees and management i.e. performance evaluation, 360o

performance appraisal and task analysis.

10) The industries must be providing the children allowance

and also having own school for the employees children’s.

11) The employees want to increase their conveyance

allowance and also the house rent allowance

12) The employees want to fair welfare measurement method

i.e. equal allowances and job analysis.

86
13) The industries must having proper communication

methods between employees and employer. Some communication

methods are below under:-

 Open door communication

 Routine checking.

14) The industries are having proper grievance handing

procedures foe solving employee’s problems at least minimum

time.

87
 BIBLLOGRAPHY

1Singh A.K. Human resource management

2 Flippo Edwin B., Human resource management

3 Jha A.K., Management of human resource

4 ASWTHAPA K, Human resource management

5 Human resource management review IFCIA Unv.

6 Internet (google.com)

7. Kumar Ashok, Encyclopedia of HUMAN RESOURCES

8. Times of India dated 12-08 08

88
 QUESTIONNAIRE

Name and address of the company:-

Name and Telephone no. and destination of the person to be contacted for

clarification:-

Ques 1:- what is the sector of this industry?

1) Private Sector

2) Public Sector

3) Joint Sector

Ques 2:- What is scale of this industry?

1) Large Scale

2) Medium Scale

3) Small Scale

Ques 4:- What is average age of employees in your industry?

1) 20 – 35 Years

2) 35 – 50 Years

3) 50 – 65 Years
89
Ques 5:- What is an average service of employees in this industry?

1) 5 – 10 Years

2)10 – 15 Years

3) 15- 20 Years

Ques6:- What is the number of manpower in your organization?

5) Staff

6) Company roll

7) Contract based

8) Casual based

Ques10: - What are the methods adopted to improve productivity?

5) Productivity improvement

6) Quality improvement

7) TPM

8) Other methods

Ques11:- Do you have medical reimbursement scheme?

1) Yes

2) No

90
Ques12:- Are you providing canteen facilities?

1) Yes

2) No

Ques14:- What is the age of retirement of employees of this industry?

1) 56- 58 Years

2) 58–60 Years

3) 60- 62 Years

Ques16:- Do you have career plan for employees?

1) Yes

2) No

Ques17:- Do you have services gifts scheme?

1) Yes

2) No

Ques19:- Do you have your own transport facilities?

1) Yes

2) No

Ques20:- How much amount is deducted from transport Facilities?

1) 200-400 Rs.

91
 2) 400-600 Rs.

3) 600-800 Rs.

4) More than 800 Rs.

Ques21:- How much amount is the conveyance allowance given to

employees?

1) 200-400 Rs.

2) 400-600 Rs.

3) 600-800 Rs.

4) More than 800 Rs.

Ques22:- Do you have house rent allowance?

1) Yes

2) No

Ques23:- How much amount is deducted from house rent allowance?

1) 200-500 Rs.

2) 500-800 Rs.

3) 800-1100 Rs.

4) More than 1100 Rs.

92
Ques24:- What is the timing of shift for working employees?

1) 6 AM - 2 PM

2) 2 PM – 10 PM

3) 10 PM – 6 AM

4) 8 AM – 5 PM

5) All of these

Ques25:- Do you have overtime facilities?

1) Yes

2) No

Ques26:- Do you have children’s education allowance?

1) Yes

2) No

Ques27:- Are you providing Bonus?

1) Yes

2) No

Ques28:- What is the method of calculation of Bonus?

1) As per HR policy

2) As per Govt. norms

3) Both of these
93
Ques29:- Do you have incentive schemes?

1) Yes

2) No

Ques30:- Do you have any Awards?

1) incentive

2) Attendance Award

3) Star of the month

4) Quality control Award

5) All of these

For Employees

Ques1:- What is your age?

1) 20 – 35 Years

2) 35- 50 Years

3) 50 – 65 Years

Ques2:- Are you agree with your training programs?

1) Yes

2) No

Ques3:- Are you satisfy your canteen facilities?

94
 1) Yes

2) No

Ques4:- Do you agree with your medical facilities?

1) Yes

2) No

Ques5:- Are you satisfied your health scheme policy?

1) Yes

2) No

Ques6:- Are you satisfied your welfare programs?

1) Yes

2) No

Ques:- Are you having house rent allowance?

1) Yes

2) No

Ques:- Are you satisfied your Grievance handing procedure?

1) Yes

2) No

Ques:-Are you agree your promotion policy?

1) Yes

2) No
95