HR Word of the Day

DECENTRALIZED WORKSITES
Decentralized site involves redistribution of decision making, people, power and
functions. The organization which deals in service providing
business decentralizes their work site in order to serve to any
specific geographical region. Following are few reasons why decentralized work sites
face problems:-
1. Inconsistent experience -  Each department independently decides their needs and
doesn’t consider other units or the entire experience.
2. Inefficient usage of
resources– There are different
needs in different departments
of the sites, usually most of the
operations are directed by the
senior officials of the main
office, the local employees are
treated merely as a facilitators,
which results in the inefficient
3. Slow turnaround time– To establish and usage of resources.
maintain an entirely new and independent
work sites causes much more time than the
centralized office. Dr. Isa Mishra
 MANPOWER PLANNING

Manpower planning may be defined as a strategy for the acquisition, utilization,

improvement and preservation of an enterprise’s human resources.

Manpower Planning (MPP) which is also called as Human Resource Planning

(HRP) consists of putting right number of people, right kind of people at the right
place, right time, doing the right things for which they are suited for the
achievement of goals of the organization. 

Dr. Isa Mishra

 MANPOWER PLANNING – Need

 Shortages and surpluses can be identified so that quick action can be taken
wherever required.
 All the recruitment and selection programmes are based on manpower
planning.
 It also helps to reduce the labour cost as excess staff can be identified and
thereby overstaffing can be avoided.
 It also helps to identify the available talents in a concern and accordingly
training programmes can be chalked out to develop those talents.
 It helps in growth and diversification of business. Through manpower
planning, human resources can be readily available and they can be utilized
in best manner.
 It helps the organization to realize the importance of manpower
management which ultimately helps in the stability of a concern.

Dr. Isa Mishra

 MANPOWER PLANNING – Importance

Key to managerial functions- The four managerial functions, i.e., planning, organizing,

directing and controlling are based upon the manpower.
Efficient utilization- Efficient management of personnel becomes an important function in
the industrialization world of today. Setting of large scale enterprises require
management of large scale manpower.
Motivation- Staffing function not only includes putting right men on right job, but it also
comprises of motivational programmes, i.e., incentive plans to be framed for further
participation and employment of employees in a concern. Therefore, all types of incentive
plans becomes an integral part of staffing function.
Better human relations- A concern can stabilize itself if human relations develop and are
strong. Human relations become strong trough effective control, clear communication,
effective supervision and leadership in a concern. Staffing function also looks after
training and development of the work force which leads to co-operation and better
human relations.
Higher productivity- Productivity level increases when resources are utilized in best
possible manner. Higher productivity is a result of minimum wastage of time, money,
efforts & energies. This is possible through the staffing and it's related activities –
(Performance appraisal, training and development, remuneration)

Dr. Isa Mishra

 MANPOWER PLANNING – Steps…

A. Analyzing the current manpower inventory

The following matters have to be noted-

 Type of organization
 Number of departments
 Number and quantity of such departments
 Employees in these work units

Dr. Isa Mishra

 MANPOWER PLANNING – Steps…
B. Making future manpower forecasts : Once the factors affecting the future
manpower forecasts are known, planning can be done for the future manpower
requirements in several work units. The Manpower forecasting techniques commonly
employed by the organizations are as follows:

Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi
technique.
Trend Analysis: Manpower needs can be projected through extrapolation (projecting past
trends), indexation (using base year as basis), and statistical analysis (central tendency
measure).
Work Load & Work Force Analysis: It is dependent upon the nature of work load in a
department, in a branch or in a division.
Whenever production and time period has to be analysed, due allowances have to
be made for getting net manpower requirements.
Other methods: Several Mathematical models, with the aid of computers are used to
forecast manpower needs, like budget and planning analysis, regression, new venture
analysis.

Dr. Isa Mishra

 MANPOWER PLANNING – Steps
C. Planning & control of manpower : Forecasts are translated into HR policies like
recruitment, selection, training & development decisions.

This stage involves the following:

1. Determining the time period of recruitment to decide whether to recruit on a

regular basis / outsource, etc.
2. Extent and scope of internal hiring
3. Scope for redeployment through training and retraining

Before any employment program is designed.

D. Utilization of manpower : Success is measured in terms of -

 Quantitative achievement visible from productivity trend, manpower cost,

etc.
 Qualitative achievement visible from attainment of organizational objectives.

Dr. Isa Mishra

 WORKLOAD FACTORS’ ANALYSIS – Steps…
A. Job Classification : by identifying job content & time requirement.

Technical job to be divided into different components, time requirement analysis to be

done for each component – this data is available in machine literature.

Time requirement for service jobs, query resolution, managerial jobs, etc. to be based on
past experience & benchmarking with others.

Limitations :

i. All jobs are not quantifiable

ii. Time study is time consuming
iii. Fatigue in a job is not considered in this process.
iv. With the advent of technology, standard time required for a job can vary over a
period of time. Ex. – job of a clerk may change to a computer operator.

Dr. Isa Mishra

 WORKLOAD FACTORS’ ANALYSIS – Steps

B. Forecasting the no. of jobs : based on demand projection

C. Converting the projected jobs into man hours :

Man hours for jobs = Time requirement of each job component x no. of
projected jobs

D. Converting the man hours into manpower requirement : This is done considering
fatigue allowance, leave reserve, etc.

Dr. Isa Mishra

 EXAMPLE – Analysis of Workload factor on a given day in Maintenance
Dept. of Delhi Vidyut Board to attend to customer complaints

A. Job Classification
Job category Hours per job
Related to meters 0.75
Related to installation 2.50
Related to maintenance 1.50
Related to emergency calls 1.10

B. Forecast of jobs in a day for different years

Job Category Year
2002 2003 2004 2005
Meters 15 13 11 8
Installation 85 95 110 125
Maintenance 27 35 41 45
Emergency 10 8 6 4
Calls
Dr. Isa Mishra
C. Converting Forecast into Man Hours required per day
Man hours for jobs = Time requirement of each
job component x no. of projected jobs

Job Category Year

2002 2003 2004 2005
Meters 11.25 9.75 8.25 6
Installation 212.5 237.5 275 312.5
Maintenance 40.5 52.5 61.5 67.5
Emergency 11 8.8 6.6 4.4
Calls
Total Man 275.25 308.55 351.35 390.4
Hours required
per day

Dr. Isa Mishra

D. Converting the man hours into manpower requirement per day

a. 20% fatigue allowance and 20% leave reserve is considered.

b. Out of 8 hours, 4.8 hours is available after giving a 40% reduction in man hours
per employee per day. (40 % of 8 hrs is 3.2 hrs which is deducted)

No. of YEAR
Maintenance
staff required
2002 2003 2004 2005
Employees 57 64 73 84
(275.25/4.8)

Dr. Isa Mishra

 QUANTITATIVE TOOLS FOR MANPOWER FORECASTS…

A. Time Series Analysis

Trend : Fluctuations in level of employment over a time period

Cyclical effects : Change in employment in relation to some particular event like
demonetization, economic liberalization, etc.
Seasonality : In case employment is relation to seasonal change
Step : Change in employment level due to economic environment / increased market
share / procurement of new machines, etc.

B. Normal Budgetary process : Budget of last year is pitched forward with a hike or
reduction as per upcoming situations apprehended / anticipated in the upcoming
financial year.

C. Moving Average Method : Here, average of the combined employment level data
for the recent past is considered as forecasted employment level for the next period.

D. Wastage Analysis Method : This aids in the study of extent of labor turnover.

Dr. Isa Mishra

 QUANTITATIVE TOOLS FOR MANPOWER FORECASTS
Moving Average Method : Example - Forecasting Manpower reqmt. In 2001 using
manpower data of Godrej for healthcare division for 6 years

Year Manpower Situation 1 : Forecasting manpower reqmt. In 2001 using

(in nos.) 6 point moving average
1995 500
Fm = 500 + 600 + 800 + 1000 + 1100 + 1300 = 5300/6=883
1996 600
6
1997 800 Situation 2 : Forecasting manpower reqmt. In 2001 using
1998 1000 4 point moving average, 1995 & ‘96 data are dropped
1999 1100
Fm = 800 + 1000 + 1100 + 1300 = 4200/4=1050
2000 1300
4

Most Accurate - Situation 3 : Weightages for different periods

Fm = (500)1 + (600)1 + (800)1 + (1000)2 + (1100)3 + (1300)4 =12400/12 = 1033

∑ Weightages

Dr. Isa Mishra

 DISADVANTAGES of QUANTITATIVE TOOLS

1. Productivity rise is always not due to human effort. It can be due to changes in
technology / sum total of operational & managerial efficiency. All factors have to be
integrated. However, all factors cannot be computed. Managerial judgment is used
then which can be subject to error.
2. Cannot be used in jobs which are not totally quantifiable like Customer Relationship,
Grievance handling.
3. Lack of proper HRIS may give inaccurate data.
4. Unavailability of previous data
5. Extrapolating on previous data can lead to problems as situations may be different.
Here, quantitative tools lose importance.

Dr. Isa Mishra

 QUANTITATIVE TOOLS USED WIDELY in Industries

A. Wastage Analysis

Manpower wastage is an element of labor turnover. It includes voluntary retirement,

normal exits, deaths, terminations. An absence of wastage analysis can lead to
inaccuracy in MPP / HRP.
Induction Crisis

Differential Transit

Leaves Settled connection

Time
Weeks Months / Years

Wastage Analysis Curve Dr. Isa Mishra

 QUANTITATIVE TOOLS USED WIDELY in Industries

Three Phases in Wastage Analysis

Induction Phase – marginal employees leave

Differential Transit phase – employee learns about the organization and identifies his
role in it.
Settled connection – employee settles down.

Normal observations:

Wastage decreases with the increase in length of service.

Wastage decreases with increased skill exercises.
Wastage varies with the level of employment.
Earlier, wastage was more in female employees.

Dr. Isa Mishra

 QUANTITATIVE TOOLS USED WIDELY in Industries

METHODS in Wastage Analysis…

I. Labour Turnover Index

In the year beginning, no. of employees = 250.
In the year end, no. of employees = 230.
Recruitments during the year = 0

No. of employees leaving = (250-230)=20

Average no. of employees employed = (250+230)/2 = 240
Labor Turnover = No. of employees leaving x 100
Average no. of employees employed
= (20 / 240) x 100 = 8.33%

In case, Recruitments during the year = 5

No. of employees leaving = (250+5-230)=25

Average no. of employees employed = (255+230)/2 = 243
Labor Turnover = (25/243) x 100 = 10%

Dr. Isa Mishra

 QUANTITATIVE TOOLS USED WIDELY in Industries

METHODS in Wastage Analysis…

II. Stability Index indicates stable workforce % for a given period.

Stable workforce % = No. of employees with more than 1 year of service X 100
Total employed one year ago

III. Cohort Analysis

IV. Census Analysis

Dr. Isa Mishra

 QUALITATIVE TOOLS FOR BETTER MANAGERIAL JUDGMENT

A. DELPHI TECHNIQUE

i. First, the group facilitator selects a group of experts based on the topic being
examined.
ii. Once all participants are confirmed, each member of the group is sent a
questionnaire with the instructions to comment on each topic based on their
personal opinion, experience or previous research.
iii. The questionnaires are returned to the facilitator who groups the comments
and prepares copies of the information.
iv. A copy of the compiled comments is sent to each participant, along with the
opportunity to comment further.
v. At the end of each comment session, all questionnaires are returned to the
facilitator who decides if another round is necessary or if the results are
ready for publishing. The questionnaire rounds can be repeated as many
times as necessary to achieve a general sense of consensus.

Dr. Isa Mishra

 QUALITATIVE TOOLS FOR BETTER MANAGERIAL JUDGMENT

Benefits :

 The Delphi method seeks to aggregate opinions from a diverse set of experts,
and it can be done without having to bring everyone together for a physical
meeting.
 Since the responses of the participants are anonymous, individual panelists
don't have to worry about repercussions for their opinions.
 Consensus can be reached over time as opinions are swayed.

Disadvantages :

 While the Delphi method allows for commentary from a diverse group of
participants, it does not result in the same sort of interactions as a live
discussion.
 Response times can be long ,which slows the rate of discussion.
 It is also possible that the information received back from the experts will
provide no innate value.
 Selection of experts has to be done in the right manner.

Dr. Isa Mishra

 QUALITATIVE TOOLS FOR BETTER MANAGERIAL JUDGMENT

B. NOMINAL GROUP METHOD

i. First, the group facilitator selects a group of experts based on the topic being
examined.
ii. All experts assemble together to comment on each topic based on their
personal opinion, experience or previous research. In case they cannot be
physically present, they are allowed to discuss amongst themselves.
iii. Experts rank their ideas as per their perceived priority.
iv. All ranked ideas are studied and group consensus is arrived at.

This process facilitates scientific group consensus.

This process takes lesser time than in Delphi method.

Dr. Isa Mishra