TO WHOM IT MAY CONCERN

Project of Human resource management in roulkela steel plant.

Submitted by mukesh kumar lumba

CONTENTS
1-Introduction to the to the topic 2-Research Methodology 3-Organizational overview 4-Review of secondary literature 5-HRM Practice in RSP 6-Analysis of questionnaires 7-Conclusion and Suggestion APPENDiIX A-Bibliography B-Questionnaire

PURPOSE/OBJECTIVES OF THE STUDYThe objectives of this is to have a framework of knowledge relating to the concepts and practices of HRM.

THE OBJECTIVES OF THIS STUDY ARETo achieve effective utilisation of human resources in the achievement of organizational goal. To study the human resources management practices in Rourkela Steel Plant. To have a clear idea about Rourkela Steel Plant.

To link the theories of HRM with the HRM practices in RSP. To know the future plan for human resource management practice in RSP.

CHAPTER-1
Introduction to topic HRM-Definition ,scope and objective Concept of HRM Need of HRM Importance of HRM Function of HRM

Components of HRM

INTRODUCTION
Since ancient civilization man has made remarkable progress in every field.From the days of ancient hunters to the days of modern man having cooked food.Earlier they took days and months to reach their destination but now we can move in hours and minutes. Human beings are generally considered as the SOCIAL ANIMALS as they love to live in groups.Though some individual prefer to works independently in isolate circumstances but vast majority of all works in todays environment takes place within the context of STRUCTURAL ORGANIZATION .An organisation generally defined as the human

grouping who works for the accomplishment of some specific goals and missions.To look after the various concern set for the organisation adequate resources in man and material and other factors. It is the human resources , which is of paramount importance in the success of any organization because most of the problem organisation settings are human and social rather than physical , technical. Human Resourses comprises a large numbers of individual of different sex,age,socioreligion group and different educational or litrary standard.each individual who work as his own set of needs,drives,goals and experiences.each has own physical and psychological

Human Resource Management

Human resources is an increasingly broadening term with which an organization, or other human system describes the combination of traditionally administrative personnel functions with acquisition and application of skills, knowledge and experience, employee relations and resource planning at various levels. The field draws upon concepts developed in Industrial/Organizational Psychology and System Theory. 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 although this perspective is changing as a function of new and ongoing research into more strategic approaches at national levels. This first usage is used more in terms of 'human resources development', and can go beyond just organizations to the level of nations. The more traditional usage within corporations and businesses refers to the individuals within a firm or agency, and to the portion of the organization that deals with hiring, firing, training, and other personnel issues, typically referred to as 'human resources management'.Different terms are use to denote human resource management. They are labour management, labour administration, labour management relations, employee employer relations, industrial relations, personal administration and human asset management. In simple words it can be defined as Employing people, maintaining and compensating their series in time with the job

and organizational requirement. Human resource management is also an managerial function concerned with hiring, motivating and maintaining people in an organization. It generally focuses on people in organization. Human- People/us Resource- Assets/ costs of organization Management- it is controlling and coordinating to achieve some common goals or objective. HRM is generally a search for best practices to generate high levels of employees, commitment and performance. A) Rational or economic view- emphasis on people as costs and resources to be worked to secure efficiency. B) Social or psychological view- Emphasis on people as not cost but as involvement

 Deals with the people" dimension in management  HRM encompasses those activities designed to provide for and coordinate human resources of an organisation  Personnel /Human Resource Management is the function performed in the organisation that facilitate the most effective use of people to achieve organisational and individual goals  Every organisation consists of people and acquiring, utilising their services, developing their skills, motivating themto enhance their performance and ensuring that they remain committed to the organization are essential for the accomplishment of organisational goals :  HRM is a process that basically consists of four functions acquiring, developing, motivating and retaining human resources

History of HRM

 The industrial revolution  Scientific management  Trade unionism  Human relations movement  Human resources approach

Scientific management approach

 One best way of doing the job involving high degree of standardization and usually required little mental effort  Time and motion study  Economic man theory piece rate system

Human relations approach

 Emp productivity is not only affected by job design and economic rewards but also by some social and psychological factors

 Group relationships and management support  Treating employees with respect  Growing strength of the unions were also responsible for shift to human relation approach

Limitations of Human relations approach

 Based on over simplified concept of human behavior . The assumption that happy worker is a hard worker is found to valid for only a part of workforce  Did not recognize individual differences. Each employee is unique  Did not recognize need for job structure, it did not give adequate importance to procedures , standards and work rules that help achieve goals  Failed to recognize-PM, career development, job enrichment , career planning

Human resources approach

 Which treats the organisational goals and employees needs as being mutual and compatible, and which can be persued in unison

 Based on a number of principles such as:1. Employees are asset to the the organisation 2. programs , policies and practices must cater to the needs of the employees and should help in their work and personal development 3. create and maintain conducive environment to encourage employees to develop and use their KSA for benefits of the organization

Key functions of HRM

 Human Resources may set strategies and develop policies, standards, systems, and processes that implement these strategies in a whole range of areas. The following are typical of a wide range of organizations:  Recruitment, selection, and onboarding (resourcing)  Organizational design and development  Business transformation and change management  Performance, conduct and behavior management  Industrial and employee relations  Human resources (workforce) analysis and workforce personnel data management  Compensation, rewards, and benefits management  Training and development (learning management)  Implementation of such policies, processes or standards may be directly managed by the HR

function itself, or the function may indirectly supervise the implementation of such activities by managers, other business functions or via third-party external partner organizations

Major trends of HRM

To know the business environment an organization operates in, three major trends must be considered: 1. 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. 2. 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. 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. 3. Skills and qualifications: as industries move from manual to more managerial professions so does the

need for more highly skilled graduates. If the market is "tight" (i.e., not enough staff for the jobs), employers must compete for employees by offering financial rewards, community investment, etc.

ourkela Steel Plant

1. Rourkela Steel Plant (RSP), the first integrated steel plant in the public sector in India, was set up with German collabor ation with an installed capacity of 1 million tonnes. Subsequently, its capacity was enhanced to 1.9 million tonnes. The plant was modernised in the mid-1990s with a number of new units having state-of-the-art facilities. Most of the old units were also revamped for effecting substantial improvement in the quality of products, reducing cost and ensuring cleaner environment. RSP was the first plant in India to incorporate LD technology of steel making. It is also the first steel plant in SAIL and the only one presently where 100% of slabs are produced through the cost -effective and qualitycenteric continuous casting route. RSP presently has the capacity to produce 2 million tonnes of hot metal, 1.9 million tonnes of crude steel and 1.67 million tonnes of saleable steel. It is SAILs only plant that produce silicon steels for the power sector, high quality pipes for the oil & gas sector and tin plates for the packaging industry. Its wide and sophisticated product range includes various flat, tubular and coated products. Almost all major units of the plant, including its Personnel Department and Steel Township, are certified to ISO:9001 standards. RSPs Silicon Steel Mill, Sintering Plant II, Environment Engineering Department, Plate Mill, Hot Strip Mill, ERW and SW Pipe Plants, Special Plate Plant as well as Steel Township have been awarded ISO:14001 certification for Environment Management. PRODUCT-MIX TONNES/ANNUM Plate Mill Plates 2,99,000 HR Plates 92,500 HR Coils 3,98,000 ERW Pipes 75,000 SW Pipes 55,000 CR Sheets & Coils 4,33,000 Galvanized Sheets (GP& GC) 1,60,000 Electrolytic Tin-Plates 85,000 Silicon Steel Sheets 73,500

Total Saleable Steel

16,71,000

2. Location Rourkela Steel Plant is located in the north -western tip of Orissa and at the heart of a rich mineral belt. Being situated on the Howrah -Mumbai rail mainline, Rourkela is very well connected with most of the important cities of India. The nearby airports are Ranchi (173 km), Bhubaneswar (378 km) and Kolkata (413 km). Rourkela also has an airstrip maintained by RSP

Type Industry Founded Headquarters Key people Revenue Total assets Employees Website

PSU (BSE: SAIL) Steel 1954 Ranchi, Jharkhand, India C.S Verma (Chairman) US$9.82 billion (2008) [1] US$10.54 billion (2008) 131,910 (2006) www.sail.co.in

Steel Authority of India Limited (SAIL) is one of the largest steel makers in India. With a turnover of Rs. 48,681 crore, the company is among the top five highest profit earning corporates of the country. It is a public sector undertaking which trades publicly in the market is wholly owned by Government of India and acts like an operating company. Incorporated on January 24, 1973, SAIL has more than 131,910 employees. The company's current chairman is C.S Verma. With an annual production of 13.5 million metric tons, SAIL is the 16th largest steel producer in the world.

Major plants owned by SAIL are located at Bhilai, Bokaro, Durgapur, Rourkela, Burnpur (near Asansol) and Salem. SAIL is a public sector company, owned and operated by the Government of India. According to a recent survey, SAIL is one of India's fastest growing Public Sector Units.
Contents

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History
1959-1973
SAIL traces its origin to the Hindustan Steel Limited (HSL) which was set up on January 19, 1954. HSL was initially designed to manage only one plant that was coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and Steel Ministry. From April 1957, the supervision and control of these two steel plants were also transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved to Calcutta in July 1956, and ultimately to Ranchi in December 1959. A new steel company, Bokaro Steel Limited, was incorporated in January 1964 to construct and operate the steel plant at Bokaro. The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end of December 1961. The 1 MT phase of Durgapur Steel Plant was completed in January 1962 after commissioning of the Wheel and Axle plant. The crude steel production of HSL went up from 1.58 MT (1959-60) to 1.6 MT. The second phase of Bhilai Steel Plant was completed in September 1967 after commissioning of the Wire Rod Mill. The last unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was commissioned in February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969 after commissioning of the Furnace in SMS. Thus, with the completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in 1968-69 and subsequently to 4MT in 1972-73.

1973-present
The Ministry of Steel and Mines drafted a policy statement to evolve a new model for managing industry. The policy statement was presented to the Parliament on December 2, 1972. On this basis the concept of creating a holding company to manage inputs and outputs under one umbrella was mooted. This led to the formation of Steel Authority of India Ltd. The company, incorporated on January 24, 1973 with an authorized capital of Rs. 2000 crore, was made responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was restructured as an operating company. Since its inception, SAIL has been instrumental in laying a sound infrastructure for the industrial development of the country. Besides, it has immensely contributed to the development of technical and managerial expertise. It has triggered the secondary and tertiary waves of economic growth by continuously providing the inputs for the consuming industry. SAIL today is one of the largest industrial entities in India. Its strength has been the diversified range of quality steel products catering to the domestic, as well as the export markets and a large pool of technical and professional expertise.siva

Vision

To be a respected world class corporation and the leader in Indian steel business in quality, productivity, profitability and customer satisfaction.

CREDO We build lasting relationships with customers based on trust and mutual benefit. We uphold highest ethical standards in conduct of our business. We create and nurture a culture that supports flexibility, learning and is proactive to change. We chart a challenging career for employees with opportunities for advancement and rewards. We value the opportunity and responsibility to make a meaningful difference in people's lives.

Major Units
SAIL Integrated Steel Plants
1. Rourkela Steel Plant (RSP) in Orissa set up with German collaboration (The first integrated steel plant in the Public Sector in India, 1959) 2. Bhilai Steel Plant (BSP) in Chhattisgarh set up with Soviet collaboration (1959) 3. Durgapur Steel Plant (DSP) at Durgapur, West Bengal set up with British collaboration (1965) 4. Bokaro Steel Plant (BSL) in Jharkhand (1965) set up with Soviet collaboration (The Plant is hailed as the countrys first Swadeshi steel plant, built with maximum indigenous content in terms of equipment, material and know-how) 5. IISCO Steel Plant (ISP) at Burnpur, West Bengal

Special Steel Plants

1. Alloy Steels Plants (ASP), Durgapur, West Bengal 2. Salem Steel Plant (SSP), Tamil Nadu 3. Visvesvaraya Iron and Steel Limited (VISL), at Bhadravathi, Karnataka

Subsidiaries
1. Maharashtra Elektro-smelt Limited (MEL) in Maharashtra

Central Units
1. 2. 3. 4. Centre for Engineering and Technology Research and development centre for iron and steel Management Training Institute SAIL safety organization

5. Raw materials division 6. Central Marketing Organization 7. SAIL consultancy organization[2]

Joint Ventures
NTPC SAIL Power Company Pvt. Ltd (NSPCL)
A 50:50 joint venture between Steel Authority of India Ltd. (SAIL) and National Thermal Power Corporation Ltd. (NTPC Ltd.); manages the captive power plants at Rourkela, Durgapur and Bhilai with a combined capacity of 314 megawatts (MW). It has installed additional capacity by implementation of 500 MW (2 x 250 MW Units) power plant at Bhilai. The commercial generation of 1st Unit has commenced in April2009 and the 2nd Unit in October 2009

[Bokaro Power Supply Company Pvt. Limited (BPSCL)

This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed in January 2002 is managing the 302-MW power generating station and 660 tonnes per hour steam generation facilities at Bokaro Steel Plant. BPSCL has proposed to expand its capacity by installing 2x250 MW coal based thermal unit at Bokaro. In addition, construction activities are underway for installation of 9th Boiler (300T/Hr) & 36 MW Back Pressure Turbo Generator (BPTG) project at Bokaro.

Mjunction Services Limited

A 50:50 joint venture between SAIL and Tata Steel formed in 2001. This company promotes e-commerce activities in steel and related areas. Newly added services include e-Assets sales, Events & Conferences, Coal Sales & Logistics, Publications etc..

SAIL-Bansal Service Center Ltd

SAIL has formed a joint venture with BMW industries Ltd. on 40:60 basis to promote a service centre at Bokaro with the objective of adding value to steel.

] Bhilai JP Cement Ltd

SAIL has incorporated a joint venture company with M/s Jaiprakash Associates Ltd to set up a 2.2 MT slag based cement plant at Bhilai. The company shall commence cement production at Bhilai by March'2010, whereas clinker production at Satna shall start within 2009.

Bokaro JP Cement Ltd

SAIL has incorporated another joint venture company with M/s Jaiprakash Associates Ltd to set up a 2.1 MT cement plant at Bokaro utilizing slag from BSL. The project implementation is under progress with commencement of cement production likely by July2011.

[edit] SAIL&MOIL Ferro Alloys (Pvt.) Limited

SAIL has incorporated a joint venture company with M/s Manganese Ore (India) Ltd on 50:50 basis to produce ferro-manganese and silico-manganese required for production of steel..

[edit] S&T Mining Company Pvt. Ltd

SAIL has incorporated a joint venture company with TATA Steel for joint acquisition & development of coal blocks/mines. New indigenous opportunities for coking coal development are being explored by the Joint Venture company for securing coking coal supplies.

[edit] International Coal Ventures Private Limited

Towards achieving the target of making steel PSUs self reliant in the area of coking coal, a joint venture company has been incorporated comprising of five central PSU companies i.e. SAIL, Rashtriya Ispat Nigam Limited (RINL), Coal India Limited (CIL), NTPC Limited and National Mineral Development Corporation (NMDC). The company is scouting for coal properties in Australia, Mozambique and other target countries.

[edit] Ownership and Management

The Government of India owns about 86% of SAIL's equity and retains voting control of the Company. However, SAIL, by virtue of its `Maharatna status, enjoys significant operational and financial autonomy

[edit] The SAIL Network Map

Please refer the following The SAIL Network Map

[edit] Achievements
y y

SAIL was featured in the 2008 list of Forbes Global 2000 companies at position 647 [3] . National Institute of Personnel Management conferred the National Award on SAIL for Best

HR Practices 2008.
y

SAIL was adjudged as the top Indian company under the Iron and Steel Sector for the Dun &

Bradstreet Rolta Corporate Awards 2008.

y

Golden Peacock Award for Combating Climate Change 2008 for BSP, Occupational

Health and Safety 2008 for BSL. [4].

Major departments in raourkela steel department y Production department

RAW MATERIAL SOURCE RAOURKELA steel plant is the firstpublic sector integrated plant to be set of.bulk Of its raw material supply comes fromits own captive mines.basically its an ore based steel plant .most of the coal obtained from jharia kargil and raniganj area.about 360 km.distance from raourkela.the iron ore supplied from own captive mines and Kala Iron mine.BF grade lime stone jump are supplied from purnapani lime stone 7 dolamite qurries withen 42 km from plant, sms grade lime stone obtain from santa in MP which is around 500km from plant.dolamite is obtain from BIRMITRAPURAMAND BASDUR IN MP manganes ore is obtainfrom Denguraand baramda within 85 kmsfrom plant. quartzite is gor fromlocal river beds .florspar is purchased from gujrat.

Steel making process

The coal from mines are recivedeither directly or throughwasheries in open or closed wagons. There is battries,coal is treating in the absence of air in ovens driving out violet metter.the coal get carbonised and result in cock, which is required for melting ironore in the blast frunsane.

(B) PERSONNEL DEPARTMENT

Personnel department is the part of management functions which are primarily concern with human relationship organisation. The major functions of personnel department in Raurkela steel plant are as follows.

1. Management of regular employee and executive 2. Requirement 3. Human resource planning 4. Training and development of employees 5. Walfare & employee services,award scheme 6. Performance appraisal 7. Transfer production 8. Redress of grievance 9. Settlement of dispute 10. 11. 12. 13. 14. Industrial relation Intractin with operating trade unions Canteen admn. Contract labour management Requirement of foreign personnel

(C) FINANCE DEPARTMENT

The head of the department is designated as Gm ( finance) the department looks after all affair with money and no case involving money can be processed unless the finance department concurrence is approved.the main function are;

1. Budget and budgetary control 2. Finance accounting 3. Cost accounting and cost control each process 4. internal auditing 5. Stock verification 6. Time keeping and payments 7. examining the financial viability of investment decision 8. reciving varification7 payment of bill to the contractor or supplier 9.

Human Resource Management Unit -2 Human Resource Planning Human Resource Management is very important for the survival and prosperity of an organisation. Procurement of right kind and right number of employees is the first operative function of Human Resource Management. Before selecting the right man for the right job, it becomes necessary to determine the quality and quantity of people required in the organisation. This is the primary function of Human Resource Planning. Human Resource Planning Human Resource Planning is the planning of Human Resources. It is also called manpower planning/ personnel planning/ employment planning. It is only after Human Resource Planning that the Human Resource department can initiate the recruitment and selection p rocess. Therefore Human Resource Planning is a sub-system of organisational planning. Definition Human Resource Planning is a strategy for the acquisition, utilisation, improvement and preservation of an organisation s human resource - Y.C. Moushell Human Resource Planning is a process of forecasting an organisation s future demand for human resource and supply of right type of people in right numbers J.Chennly.K Features of Human Resource Planning 1. It is future oriented: - Human Resource Planning is forward-looking. It involves forecasting the manpower needs for a future period so that adequate and timely provisions may be made to meet the needs. 2. It is a continuous process: - Human Resource Planning is a continuous process because the demand and supply of Human Resource keeps fluctuating throughout the year. Human Resource Planning has to be reviewed according to the needs of the organisation and changing environment.

3. Integral part of Corporate Planning: - Manpower planning is an integral part of corporate planning because without a corporate plan there can be no manpower planning. 4. Optimum utilisation of resources: - The basic purpose of Human Resource Planning is to make optimum utilisation of organisation s current and future human resources. 5. Both Qualitative and Quantitative aspect: - Human Resource Planning considers both the qualitative and quantitative aspects of Human Resource Management, Quantitative meaning the right number of people and Qualitative implying the right quality of manpowe r required in the organisation. 6. Long term and Short term: - Human Resource Planning is both Longterm and short-term in nature. Just like planning which is long-term and short-term depending on the need of the hour, Human Resource Planning keeps long-term goals and short-term goals in view while predicting and forecasting the demand and supply of Human Resource. 7. Involves study of manpower requirement: - Human Resource Planning involves the study of manpower availability and the manpower requirement in the organisation. Objectives of Human Resource Planning 1. Optimum utilisation of human resources currently employed in the organisation. 2. To reduce imbalance in distribution and allocation of manpower in organisation for various activities. 3. To ensure that the organisation is well-equipped with the required Quantity and Quality of manpower on a sustained basis. 4. To anticipate the impact of technology on jobs and resources. 5. To control cost of Human Resources employed, used and maintained in the organisation. 6. To provide a basis for management development programmes. 7. To ensure optimum contribution and satisfaction of the personnel with reasonable expenditure.

8. To recruit and retain human resource of required Quantity and Quality. Need for Human Resource Planning 1. Shortage of Skills: - These days we find shortage of skills in people. So it is necessary to plan for such skilled people much in advance than when we actually need them. Non-availability of skilled people when and where they are needed is an important factor which prompts sound Human Resource Planning. 2. Frequent Labour Turnover: - Human Resource Planning is essential because of frequent labour turnover which is unavoidable by all means. Labour turnover arises because of discharges, marriages, promotion, transfer etc which causes a constant ebb and flow in the workforce in the organisation. 3. Changing needs of technology: - Due to changes in technology and new techniques of production, existing employees need to be trained or new blood injected into an organisation. 4. Identify areas of surplus or shortage of personnel: - Manpower planning is needed in order to identify areas with a surplus of personnel or areas in which there is a shortage of personnel. If there is a surplus, it can be re-deployed, or if there is a shortage new employees can be procured. 5. Changes in organisation design and structure: - Due to changes in organisation structure and design we need to plan the required human resources right from the beginning. Problems with Human Resource Planning 1. Resistance by Employers: - Many employers resist Human Resource Planning as they think that it increases the cost of manpower for the management. Further, employers feel that Human Resource Planning is not necessary as candidates will be availab le as and when required in the country due to the growing unemployment situation. 2. Resistance by Employees: - Employees resist Human Resource Planning as it increases the workload on the employees and prepares programmes for securing human resources mostly from outside.

3. Inadequacies in quality of information: - Reliable information about the economy, other industries, labour markets, trends in human resources etc are not easily available. This leads to problems while planning for human resources in the organisation. 4. Uncertainties: - Uncertainties are quite common in human resource practices in India due to absenteeism, seasonal unemployment, labour turnover etc. Further, the uncertainties in the industrial scenario like technological changes and marketing con ditions also cause imperfection in Human Resource Planning. It is the uncertainties that make Human Resource Planning less reliable. 5. Time and expense: - Human Resource Planning is a time-consuming and expensive exercise. A good deal of time and cost are in volved in data collection and forecasting. Guidelines for making Human Resource Planning effective 1. Adequate information system: - The main problem faced in Human Resource Planning is the lack of information. So an adequate Human resource database should be maintained/developed for better coordinated and more accurate Human Resource Planning. 2. Participation: - To be successful, Human Resource Planning requires active participation and coordinated efforts on the part of operating executives. Such participation will help to improve understanding of the process and thereby, reduce resistance from the top management. 3. Adequate organisation: - Human Resource Planning should be properly organised; a separate section or committee may be constituted within the human resource department to provide adequate focus and to coordinate the planning efforts at various levels. 4. Human Resource Planning should be balanced with corporate planning: - Human resource plans should be balanced with the corporate plans of the enterprise. The methods and techniques used should fit the objectives, strategies and environment of the particular organisation. 5. Appropriate time horizon: - The period of manpower plans should be appropriate according to the needs and circumstances of the specific

enterprise. The size and structure of the enterprise as well as the changing aspirations of the people should be taken into consideration. Factors affecting Human Resource Plans External factors Government policies company Level of economic development policy Information Technology Level of Technology Business Environment information International factors operation policy Internal factors Strategies of the Human Resource Job Analysis Time horizon Type and quality of Company s production and Trade unions External factors They are the factors which affect the Human Resource Planning externally. They include:1. Government policies: - Policies of the government like labour policy, industrial policy, policy towards reserving certain jobs for different communities and sons-of-the-soil etc affect Human Resource Planning. 2. Level of economic development: - Level of economic development determines the level of human resource development in the country and thereby the supply of human resources in the future in the country. 3. Information Technology: - Information technology brought amazing shifts in the way business operates. These shifts include business process reengineering, enterprise resource planning and Supply Chain Management. These changes brought unprecedented reduction in human resource and increase in software specialists.

Example: - Computer-aided design (CAD) and computer-aided technology (CAT) also reduced the existing requirement of human resource. 4. Level of Technology: - Technology is the application of knowledge to practical tasks which lead to new inventions and discoveries. The invention of the latest technology determines the kind of human resources required. 5. Business Environment: - Business environment means the internal and external factors influencing the business. Business environmental factors influences the volume of mix of production and thereby the supply of human resources in the future in the country. 6. International factors: - International factors like the demand and supply of Human resources in various countries also affects Human Resource Planning . Internal factors: 1. Company Strategies: - The organisation s policies and strategies relating to expansion, diversification etc. determines the human resource demand in terms of Quantity and Quality 2. Human Resource policies: - Human Resource policies of the company regarding quality of human resources, compensation level, quality of working conditions etc. influence Human Resource Planning. 3. Job analysis: - Job analysis means detailed study of the job including the skills needed for a particular job. Human Resource Planning is based on job analysis which determines the kind of empl oyees to be procured. 4. Time Horizon: - Company s planning differs according to the competitive environment i.e. companies with stable competitive environment can plan for the long run whereas firms without a stable environment can only plan for short term. Therefore, when there are many competitors entering business/ when there is rapid change in social and economic conditions of business/ if there is constant change in demand patterns/ when there exists poor management

practice, then short term planning is adopted or vice-versa for longterm planning. 5. Type and Quality of Information: - Any planning process needs qualitative and accurate information about the organisational structure, capital budget, functional area objectives, level of technology being used, job analysis, recruitment sources, retirement plans, compensation levels of employees etc. Therefore Human Resource Planning is determined on the basis of the type and quality of information. 6. Company s production and operational policy: - Company s policies regarding how much to produce and how much to purchase from outside in order to manufacture the final product influences the number and kind of people required. 7. Trade Unions: - If the unions declare that they will not work for more than 8 hours a day, it affects the Human Resource Planning. Therefore influence of trade unions regarding the number of working hours per week, recruitment sources etc. Affect Human Resource Planning. 8. Organisational Growth Cycles: - At starting stage the organisation is small and the need of employees is usually smaller, but when the organisation enters the growth phase more young people need to be hired. Similarly, in the declining/recession/downturn phase Human Resource Planning is done to re-trench the employees. Process of Human Resource Planning 1. Analysing the Corporate Level Strategies: - Human Resource Planning should start with analysing corporate level strategies which include expansion, diversification, mergers, acquisitions, reduction in operations, technology to be used, method of production etc. Therefore Human Resource Planning should begin with analysing the corporate plans of the organisation before setting out on fulfilling its tasks. 2. Demand forecasting: - Forecasting the overall human resource requirement in accordance with the organisational plans is one of the

key aspects of demand forecasting. Forecasting of quality of human resources like skills, knowledge, values and capabilities needed in addition to quantity of human resources is done through the following methods: a. Executive or Managerial Judgement : - Here the managers decide the number of employees in the future. They adopt one of the three approaches mentioned below: I. Bottom-Up approach: - Here the concerned supervisors send their proposals to the top officials who compare these with the organisational plans, make necessary adjustments and finalise them. Top-Down approach: - Here the management prepares the requirements and sends the information downwards to the supervisory level who finalises the draft and approves it. Participative Approach: - Here the supervisors and the management sit together and projections are made after joint consultations.

II.

III.

Drawbacks The chief drawback of these methods is that estimation of manpower is made using guesswork.

b. Statistical Techniques: - These methods use statistical methods and mathematical techniques to forecast and predict the supply and demand of Human Resources in the future. Ratio-Trend analysis: - In this method depending on the past data regarding number of employees in each department, like production department, sales department, marketing department and workload level, etc ratios for manpower are estimated. Past values are plotted and extrapolated to get fairly accurate future projections. c. Work Study method: - This technique is suitable to study the correlation between volume of work and labour i.e. demand for human resources is estimated based on the workload. Wo rk

study method is more appropriate for repetitive and manual jobs when it is possible to measure work and set standards. d. Delphi Technique: - Delphi Technique is named after the Greek Oracle at the city of Delphi. In this method, the views of different experts related to the industry are taken into consideration and then a consensus about the Human Resource requirement is arrived at. Delphi technique is used primarily to assess long-term needs of human resource. 3. Analysing Human Resource Supply: - Every organisation has two sources of supply of Human Resources: Internal & External. Internally, human resources can be obtained for certain posts through promotions and transfers. In order to judge the internal supply of human resources in future human resource inventory or human resource audit is necessary. Human resource inventory helps in determining and evaluating the quantity of internal human resources available. Once the future internal supply is estimated, supply of external human resources is analysed. 4. Estimating manpower gaps: - Manpower gaps can be identified by comparing demand and supply forecasts. Such comparison will reveal either deficit or surplus of Human Resources in the future. Deficit suggests the number of persons to be recruited from outside, whereas surplus implies redundant employees to be re-deployed or terminated. Employees estimated to be deficient can be trained while employees with higher, better skills may be given more enriched jobs. 5. Action Planning: - Once the manpower gaps are identified, plans are prepared to bridge these gaps. Plans to meet the surplus manpower may be redeployment in other departments and retrenchment. People may be persuaded to quit voluntarily through a golden handshake. Deficit can be met through recruitment, s election, transfer and promotion. In view of shortage of certain skilled employees, the organisation has to take care not only of recruitment but also retention of existing employees. Hence, the organisation has to plan for retaining of existing employees.

6. Modify the Organisational plans: - If future supply of human resources form all the external sources is estimated to be inadequate or less than the requirement, the manpower planner has to suggest to the management regarding the alterations or modifications in the organisational plans. 7. Controlling and Review: - After the action plans are implemented, human resource structure and the processes should be controlled and reviewed with a view to keep them in accordance with action plans.