Employee Relations

Employee Relations

Introduction

 

Today's turbulent business environment makes increasing demands on managers and workforces, as competitive standards rise and expectations of individuals increase. Managers must respond positively to changes in contemporary workforce attitudes if they are to get the performance levels they need.

 

Employee relations consist of all those areas of human resource management that involve relationship with employees – directly and or through collective agreements where trade unions are recognized. Employee relations are concerned with generally managing the employment relationship.

 

Employee relation practices include formal processes, procedures and channels of communication. It is important to remember, however, that employee relations are mainly conducted on day to day informal basis by line managers and team leaders; without the framework of employment and employee relations policies but acting mainly on their own initiative.

 

Definition

 

Those policies and practices which are concerned with the management and regulation of relationships; between the organization, the individual staff member, and groups of staff within the working environment.

 

Objectives

 

 To build stable and cooperative relationships with the employees that minimize conflict;

 

 To achieve commitment through employee involvement and communication processes;

 

 To develop mutuality- a common interest in achieving the organization’s goals through the development of organizational cultures based on shared values between management and employees.

 

 To maintain a safe and effective work environment

 

Gestures necessary to build Employee relation

 

 I care for you

 

 I am willing to help you

 

 I share your sentiments and feelings

 

Qualities required of a HR professional

 

 Empathy

 Listening skills

 Presentation skills

 Ability to handle conflicts

 Facilitation skilss

 Selflessness

 Change agent

 Integrity and honesty

  Trust

 

Roles of Employee relation function

 An employee relations officer works at both a strategic and operational level to manage various personnel policies that affect people at work.

 Designing HR policies

Responsibilities of Employee relation

 Induction: tour of the office, introduction to colleagues, entry of name into time office, lunch details, work station, policies and procedures, introduction to job. E.g., buddy program, career counselor, supervisors; all these help build employee relations.

 Establishing and maintaining good relationships between employers and employees.

 Ensuring grievance handling and disciplinary proceedings are carried out in line with company policy and national legislation.

 Preparing staff handbook to ensure that the workforce is aware of company policies.

 Climate and organizational development initiatives

 Employee separation (exit forms, insurance claims, loans, notice periods, salary, bonus, incentives, leaves, exit interviews).

The elements of employee relations

The elements of employee relations consist of

 The formal and informal employment policies and practices of the organization.

 The development, negotiation and application of formal systems, rules and procedures for collective bargaining, handling disputes and regulating employment. These serve to determine the reward for effort and other conditions of employment, to protect the interests of both employees and their employers, and to regulate the ways in which employers treat their employees and how the latter are expected to behave at work.

 Policies and practices for employee voice and communications.

 The informal as well as the formal processes that take place in the shape of continuous interactions between managers and team leaders or supervisors on the one hand and employee representatives and individuals on the other. These may happen within the framework of formal agreements but are often governed by custom and practice and the climate of relationships that has been built up over the years.

 The philosophies of the major players in the industrial relations scene: the government of the day, management and the trade unions.

 A number of parties each with different roles. These consist of the state, management, employer’s organizations, the trade unions, individual managers and supervisors, HR managers, employee representatives or shop stewards and employees.

 The legal framework.

 The bargaining structures, recognition and procedural agreements and practices which have evolved to enable the formal system to operate.

Advantages of maintaining good employee relations

 Reduces turnover, means savings in recruitment/selection cost.

 Greater commitment means quality output/reduces rejections.

 More open communication, means better understanding.

 The low level of industrial conflict means productivity up.

 Provides numerical flexibility, means easy workforce adjustments.

 Easy introduction of new practices means better output.

 Increased job satisfaction

 Shared goals leads to better understanding of business

 A shared value leads to agreed values binding the employees.

 Shared learning leads to continuous improvements

 Shared efforts lead to better teamwork

 Shared communication ensures effective communication.

Role of the HR functions in employee relations

The HR function provides guidance and training and will develop and help to introduce and maintain formal processes; but it does not do line managers jobs for them. However, in their role as industrial relations specialists, HR practitioners may deal directly with the trade unions and their representatives. They are also likely to have a measure of responsibility for maintaining participation and involvement processes and for maintaining employee communications. They can and should play a major part in developing employee relations strategies and policies that aim to:

 Achieve satisfactory employment relationships, taking particular account of the importance of psychological contracts;

 Build stable and cooperative relationships with employees which recognize that they are stakeholders in the organization and minimize conflict;

 Achieve commitment through employee involvement and communication processes;

 Develop mutuality- a common interest in achieving the organization’s goals through the development of organizational cultures based on shared values between management and employees;

 Clarify industrial relations processes with trade unions and build harmonious relationships with them on a particular basis.

In these capacities HR practitioners can make a major contribution to the creation and maintenance of a good employee relations climate.

Approaches of HR team should have towards employee relations

 A drive for job responsibilities (starts from defining of job responsibilities, developing monitoring the job responsibilities and controlling of job responsibilities.)

 Emphasis of mutuality

 Complimentary forms of communication and team meeting. Eg, open house sessions.

 Shift from collective bargaining to individual contract.

 Employee involvement in improvement groups. Eg, quality circles, TQM, six sigma.

 Pressure on quality

 Flexibility in working arrangements

 Multi skilling

 Focus on team work.

HR Policy

Human Resource Policy

Introduction

Human Resource management is defined as a strategic and coherent approach towards management of an organization most valued asset- the people working there who individually and collectively contribute to the achievement of its objectives.

Human Resource System

Human resource operates through human resource system that bringing together in a coherent way:

 HR Philosophies

Describing the overarching values and guiding principles adopted in managing people.

 HR strategies

Defining the direction in which HRM intends to go

 HR Policies

Which are the guidelines defining how these values, principles and the strategies should be applied and implemented in specific areas of HRM

 HR Processes

Consisting of the formal procedures and methods used to put HR strategic plans and policies into effect.

 HR Practices

Comprising the informal approaches used in managing people.

 HR programmes

This enables HR strategies, policies and practices to be implemented according to plan.

HRM Policies

HR policies are continuing guidelines on the approach the organization intends to adopt in managing its people.

They define the philosophies and values of the organization on how people should be treated, and from these are derived the principles upon which managers are expected to act when dealing with HR matters. HR policies therefore serve as reference points when employment practices are being developed, and when decisions are being made about people. They help to define “the way things are done around here”

A policy provides generalized guidance on the approach adopted by the organization, and therefore its employees, concerning various aspects of employment.

Need for HR Policy

 HR or employment policies help to ensure that when dealing with matters concerning people, an approach in line with corporate values is adopted throughout the organization.

 They serve as the basis for enacting values- converting espoused values into values in use.

 They provide frameworks within which consistent decisions are made and promote equity in the way in which people are treated.

 Because they provide guidance on what managers should do in particular circumstances they facilitate empowerment, devolution and delegation.

 While they should fit the corporate culture, they can also shape it.

Objectives Of HR Policy

 To provide the guidance and directive to the employees for a effective and efficient functioning of the organization

 To meet the organizational outcome with Employee Satisfaction

 To send powerful messages to the employees on various aspects of the employee-employer relationship

 To ensure the employees concerns and interests are taken care

 To protect the interests of the organization on the legal aspects

 To ensure transparency in dealing with the employees

Need For HR Policy

 Policy manuals are developed to help staff and management teams run the organization. In best use situations, policies play a strategic role in an organization. They are developed in light of the mission and objectives of the company and they become the media by which management’s plans, rules, intents, and business processes become documented and communicated to all staff.

 Carefully drafted and standardized policies and procedures save the company countless hours of management time. The consistent use and interpretation of such policies, in an evenhanded and fair manner, reduces management's concern about legal issues becoming legal problems. There is more about the legal aspects of policy later in this section.

 Policy manuals and their close relative the employee handbook should be an important part of the operation. They should be the first thing given to a new employee (either in hard copy of an electronic version). 1They should also be easily accessible in their most up-to-date version. Hence it is extremely important that an organization’s policies be a “living document” prepared and saved in Microsoft Word and easily exported into portable versions (like PDF) and made available over the company network.

 Considering the benefits of written policies; a set of written guidelines for human resource decisions. Offer the benefits to the process of developing policies. The process a company management team undergoes when comparing the policy alternatives, understanding their importance, and evaluating the company's current practices will help them to develop the company's guidelines and procedures that will make the organization a better run entity.

 A policy manual is a means of communication with employees; it is first a way to communicate to employees the management rules and guidelines of the organization. Employees want and need that type of guidance in black and white. In addition, policies help to organize and announce management's plans for growth, and they communicate the company's investment in its employees by explaining employee benefits and workplace issues.

 As a company’s policies are developed they become a framework for consistency and fairness. Polices define management's standards for making decisions on various personnel and organizational issues. Clearly defined procedures and standards, spawned from polices that are well thought out, express the company's intent to make consistent and evenhanded decisions.

 It is true that policy can help an organization run at its most efficient and effective level. That alone may bring value through cost savings and additional revenue. However, if done correctly, policies can bring more value by accurately reflecting the company's philosophy of business and employee relations as they demonstrate your creativity in solving policy issues, the competitive position of the company in providing a variety of employee benefits, and respect and appreciation for human resource management. This type of message can go a long way towards promoting staff loyalty and everyone knows that staff longevity is a valuable asset.

 There is also a legal aspect of policies. They are a means to protect the legal interests of a company. The company's policies and procedures in many ways define the rights and obligations of the employee and the company. The policy manual is an expression of the rules governing the employment relationship. Today, more than ever, a company must protect its rights within that relationship by adopting policies that are fair to both sides, clearly stated, and legally permissible.

 With regards to the legal aspects of policy creation there is one important caution. If a company's employees are represented by a labor union, any collective bargaining agreement (CBA) between the company and the union will, in effect, serve as a policy manual with respect to employee issues covered by the CBA

Contents of HR Policy

1. Our Company

• Introduction

• Welcome Letter from the President

• Company History

• Company Objectives/Mission

• Organization Chart

• Statement of Growth, Profit, and Business Plan

• Statement of Commitment to Employees

• Continuity of Policies - Right to Change or Discontinue

• Acknowledging Receipt of Policy Manual

• Acknowledging Electronic Receipt of Policy Manual



2. Employment Policies

• Recruitment

• Announcement of New Positions

• Employee Selection Process

• Employment Eligibility Verification — Form 1-9

• Immigration Law Compliance

• Equal Opportunity

• New Hire

• Rehire

• Relatives

• Return to Work after Serious Injury or Illness

• Employee Orientation

• Confidentiality of Company Information

• Conflict of Interest

• Medical Evaluations and Interviews

• Disability Accommodation

• Outside Employment

• Grievance Procedure

• Gratuities to Government Employees or Officials

• Gratuities to Customer or Supplier Representation

• Inventions and Patents



3. Employment Status & Records

• Anniversary Date and Reinstatement

• Reinstatement

• Employment Classifications

• Access to Personnel Files

• Consent to Release Information

• Background Checks

• Authorization to Provide Information

• Performance Review and Salary Merit Increases

• Performance Improvement

• Job Descriptions

• Equal Pay

4. Employee Benefits

• Vacation

• Child Care

• Holidays

• Workers' Compensation Insurance

• Sick or Personal Leave

• Voting

• Jury Duty

• Military Service

• Bereavement Leave

• Relocation of Current or New Employees

• Temporary Assignment Allowance

• Professional Memberships

• Health Insurance

• Health Benefits Continuation (COBRA)

• Short-term Disability Insurance

• Long-term Disability Insurance

• Life Insurance

• Employee Assistance Program

• Flexible Spending Account

• Employee-Incurred Expenses and Reimbursement

• Mileage Reimbursement

• Travel Reimbursement

• Required Management Approval

• Educational Assistance

• Parking

• Kitchen — Break Room

• Employee Recognition

• Matching Gifts Plan

5. Payroll

• Salary Administration

• Payroll Deductions

• Shift Premium

• Timekeeping

• Payday

• Pay Deductions

• Pay Advances

• Overtime Compensation

• Termination



6. Workplace Guidelines

• Record Retention

• Employer Security

• Employee Safety

• Injured On the Job

• Emergency Instructions

• Employee Privacy

• Workplace Search Policy

• Workday

• Smoking

• Meal and Rest Periods

• Non-Business or Social Visits

• Use of Company Vehicles

• Use of Rental Car on Company Business

• Emergency Closings

• Flextime

• Telecommuting

• Compressed Workweek

• Cell Phone Policy

• Telephone Use

• Medical Leave of Absence

• Family Leave, Parental Leave and Pregnant Employees

• Family Leave

• Pregnant Employees

• Leave of Absence and Military Leave

• Visitors

• Recreational Activities–Sponsorships

• Code of Conduct

• Substance Abuse

• Drug and Alcohol Policy

• Drug Testing

• Attendance

• Dress Code

• Sexual Harassment

• Workplace Violence

• Workplace Emergency Plan

• Political Activities



7. E-Policies

• General Principles

• User Responsibilities

• Access to Information Technology Resources

• Abuse of Information Technology Resources

• Unauthorized Use and Sanctions

• Digital Millennium Copyright Act

• Management Access to Technology Resources

• E-mail Policies

• Spyware Policy

• Internet Usage Policy

• Content Filtering

• Internet Access and Administration

• Making Company Purchases over the Internet

• Virus Protection

• Internet Security

• Internet Miscellaneous

• Disaster Recovery Policy

HR Policy Areas

Hr policies can be expressed as overall statements of the values of the organization. The main points that can be included in an overall policy statement and specific policy areas are set out below.

Overall Policy

The overall policy defines how the organization fulfils its social responsibilities for its employees and sets out its attitudes towards them. It is an expression of its values or beliefs about how people should be treated.

The values expressed in an overall statement of HR policies may be explicit or implicitly refer to the following concepts:

 Equity: treating employees fairly and justly by adopting an ‘even handed’ approach. This includes protecting individuals from any unfair decisions made by their managers, providing equal opportunities for employment and promotion, and operating an equitable payment system.

 Consideration: taking account of individual circumstances when making decisions the affect the prospects, security or self-respected of employees.

 Organizational learning: a belief in the need to promote the learning and development of all the members of the organization by providing the processes and support required.

 Performance through people: the importance attached to developing a performance culture and continuous improvement; significance of performance management as a means of defining and agreeing mutual expectations; provision of fair feedback to people on how well they are performing.

 Work-life balance: striving to provide employment practices that enable people to balance their work and personal obligations,.

 Quality of working life: consciously and continually aiming to improve the quality of working life. This involves increasing the sense of satisfaction people obtain from their work by, so far as possible, reducing monotony, increasing variety, autonomy and responsibility and avoiding placing people under too much stress.

 Working conditions: providing healthy, safe and so far as practicable pleasant working conditions.

These values are espoused by many organizations in one form or another, but to what extent are they practiced when making business-led decisions, which can of course be highly detrimental to employees.

One of the dilemmas facing all those who formulate HR policies is, how can we pursue business-led policies focusing on business success, and also fulfill our obligations to employees in such terms as equity, consideration, work-life balance, quality working life and working conditions?


It may be difficult to express these policies in anything but the generalized terms, but employers are increasingly having to recognize the they are subject to external as well as internal pressures, which to recognize that they are subject to extent to which they can disregard the higher standards of behavior towards their employees that are expected of them.

Specific Policy

Employment Policies

These are the policies that guide hiring practices, orientation of new employees, compliance with employment laws, and confidentiality.

Employment Status & Records

These are the policies that define such issues as employment classifications, access to personnel files and guidance on how background checks and performance reviews are to be performed.

Managing Diversity

A policy on managing diversity recognizes that there are differences among employees and that these differences, if properly managed, will enable work to be done more efficiently and effectively.

Managing diversity is a concept that recognizes the benefits to be gained from differences. It differs from equal opportunity, which aims to legislate against discrimination, assumes that people should be assimilated into the organization, and often relies on affirmative action.

A management of diversity policy could:

• Acknowledge cultural and individual differences in the workplace;

• State that the organization values the different qualities people bring to their jobs

• Emphasize the need to eliminate bias in such areas as selection, promotion, performance assessment, pay and learning opportunities

• Focus attention on individual differences rather than group differences.

Promotion

A promotion policy should state the organizations intentions to promote from within wherever this is appropriate as a means of satisfying its requirements for high quality staff. The policy could however, recognize that there will be occasions when the organization’s present and future needs can only be met by recruitment from outside. The point could be made that a vigorous organization needs infusions of fresh blood from time to time if it is not to stagnate. In addition, the policy might state employees will be encouraged to apply for internally advertised jobs, and will not be held back from promotion by their managers, however reluctant the latter may be to loose them.

Employee Development

The employee development policy could express the organizations commitment to the continuous development of the skills and abilities of the skills and abilities of the employees in order to maximize their contribution and to give them the opportunity to enhance their skills, realize their potential, advance their careers and increase their employability both within and outside the organization.

Reward

The reward policy should cover the following matters:

• Providing an equitable pay system

• Equal pay for work of equal value

• Paying for performance, competence, skill or contribution

• Sharing in the success of the organization (gain sharing or profit sharing)

• The relationship between levels of pay in the organization and maket rates

• The provision of employee benefits, including flexible benefits if appropriate

• The importance attached to the non financial rewards resulting from recognition, accomplishment, autonomy, and the opportunity to develop.

Workplace Guidelines

These policies are quite varied and their purpose range from defining certain work arrangements such as flex time and telecommuting to offering guidelines on the use of company assets and record retention.

Work-life Balance

Work-life balance policies define hoe the organization intends to allow employees greater flexibility in their work patterns so that they can balance what they do at work with the responsibilities and interests they have outside work. The policy will indicate how flexible work practices can be developed and implemented. It will emphasize that the number of hours worked must not be treated as a criterion for assessing performance. It will set out guidelines on specific arrangements that can be made, such as flexible hours, compressed working week, term-time working contracts, working at home, and special leave for parents and careers, career breaks and various kinds of child care.

Employee Conduct

These policies are guidelines that control employer behavior and conduct on the job. The mainstay of this section is a code of conduct but also important are policies regarding substance abuse, smoking, harassment, and workplace violence.

E-Policies

These policies guide staff in the use of the organization’s information technology. Policies defining acceptable and prohibited activities and use of e-mail and the Internet make up a majority of these policies.

The policy on e-mails could state that the sending or downloading of offensive e-mails is prohibited and that those sending or downloading such messages will be subject to normal disciplinary procedures. They may also prohibit any browsing or downloading material not related to the business, although this can be difficult to enforce. Some companies have always believed that responsible use of the telephone is acceptable, and that policy may be extended to e-mails.

Formulating HR Policies

1. Gain understanding of corporate culture and its core values.

2. Analyze existing policies, written and unwritten. HR policies will exist in any organization, even if they are implicit rather than expressed formally.

3. Analyze external influences. Hr policies are subject to influence of Labour legislations, employment regulations, etc.

4. Assess any areas where new policies are needed or exsisting policies are inadequate.

5. Check with managers, preferably starting at the top, on their views about HR policies and where they think they could be improved.

6. Seek the views of employees about the HR policies, especially the extent to which they think they could be improved.

7. Seek the views of senior union representatives

8. Analyze the information obtained in the first seven steps and prepare draft policies.

9. Consult, discuss and agree policies with the management and union representatives.

10. Communicate the policies, with guidance notes on their implementation as required. Supplement this communication with training.

Implementing HR policy

When implementing policy and procedures there are a number of considerations including the following:

• Visible support for the policy should be evident from the Board of Directors, Executive Director, Senior Management Group or others as applicable.

• Core values that include a statement regarding human rights in the workplace should be identified.

• All employees should be concerned with developing a human rights culture in the workplace (Definition: A workplace environment where human rights and

responsibilities are promoted and respected and where employees are free from concerns related to basic equity issues).

• All managers should be aware of their duties and responsibilities under human rights law and the related organizational policy.

• Employees responsible for advice, policy adjudication and/or complaint resolution should receive specialized training.

• Plain language should be used for policy implementation information.

• All employees should have a copy of the policy or know where to access it for review. Employees should not be placed in the position of having to ask

someone for the policy.

• Employees should sign off that they have received and reviewed the policy and agree to be bound by it. (Provide the acknowledgement form at the time of

hiring or, at the latest, as part of the orientation process).

• The number of paper copies of the policy should be reduced/limited to avoid out-dated material from remaining in circulation.

• Policies and procedures should be posted onto the shared intranet or other information sharing mechanisms that are available.

• The policy should be communicated and promoted effectively and consistently.

The policy should be discussed at staff meetings, department meetings and other meetings as applicable.

• The policy should be discussed with various committees as well as at the board as applicable (for example: health and safety committee, diversity and

equity committee, personnel committee).

• All employees must be informed when the policy is up-dated to ensure that they understand the revisions, have an opportunity for questions and answers, sign

off by acknowledging receipt and agree to be bound by the revised policy.

The collective agreement and any revisions should be

provided to all employees.

• The organization should plan to evaluate and measure the policy every two years reviewing the level of use, effectiveness, absenteeism rates, accessibility, privacy and confidentiality, perceptions and trust etc.

• The organizational financial bottom line should be considered in combination with the human costs involved. Successful and supportive organizations

understand the needs of the employee and the employer and how these can best be addressed for the benefit of all concerned.

• The organization should ensure respect and dignity in the workplace in order to make it a safe environment for employees to come forward to ask any questions they may have.

Manpower Planning

 

Manpower Planning

 

Manpower Planning

Man power planning in Human Resource Management is a core factor. Human Resource Planning determines the human resources required by the organization to achieve its strategic goals. Human Resource Planning is based on the belief that people are an organizations most important resource. It is generally concerned with matching resources to business needs in the longer term, although it will sometimes address shorter term requirements. It addresses human resource needs both in quantitative and qualitative terms, which means answering two basic questions: first, how many people, and second, what sort of people? Human resource planning also looks at broader issues relating to the ways in which people are employed and developed in order to improve organizational effectiveness. It can therefore play an important part in strategic human resource management.

Meaning

Manpower planning or human resource planning is the process by which management determines how an organization should move from the current manpower to the desired manpower position. Through planning, a management strives to have the right number and the right kind of people at the right place, to do things which result in both individual and the organization receiving the maximum long range benefit.

Definition of Manpower planning

Stainer defines manpower planning as "strategy for the acquisition, utilization, improvement, and preservation of an enterprise's human resource. It relates to establishing job specifications or the quantitative requirements of jobs determining the number of personnel required and developing sources of manpower.

Objectives of Manpower Planning

• To determine future needs
  
• To recruit and retain human resources
  
• To improve standards, skills and abilities of existing employees
  
• To estimate cost of human resources
  
• To make best use of existing human resources
  
• To foresee the impact of technology
  
• To assess the shortcake or surplus of human resources
  
• To minimize imbalances
  

Need and Importance of Manpower Planning

• Understaffing loses the business economics of scale and specialization, orders, customers and profits.
  
• Overstaffing is wasteful and expensive, if sustained and it is costly to eliminate because of modern legislation in respect to redundancy payments, consultation, minimum periods of notice, etc. very importantly overstaffing reduces the competitive efficiency of the business.
  
• Manpower planning is a double edges sword. If used properly, it leads to the maximum utilization of human resources, reduces excessive labour turnover and high absenteeism, improves productivity and aids in achieving organizational goals.
  

  If not used properly, it leads to disruption in the flow of work, lower production, less job satisfaction, high cost of production and constant headaches for management personnel.
  

  Therefore for the success of an enterprise, manpower planning is a very important function.
  

Manpower Planning Procedure

1. Analyzing organizational plans
   
2. Demand forecasting
   

   Forecasting overall human resources requirements in accordance with the organizational plans
   

3. Supply forecasting- obtaining the data and information about present and the future human resource.
   
4. Estimating the net human resources requirements
   
5. Incase surplus, plan for redeployment, retrenchment and lay-off.
   
6. Incase deficit, forecast future supply of human resources
   
7. Plan for recruitment
   
8. Plan to modify or adjust the organizational plan if supply will be inadequate with reference to future net requirements
   

Planning staff levels requires that an assessment of the present and future needs of the organization be compared with present resources and future predicted resources. Appropriate steps then be planned to bring demand and supply into balance.

Forecasting Techniques

• Time and Motion Study
  
• Service based Study
  
• Managerial Judgment
  
• Ratio- Trend analysis
  
• Work study techniques
  
• Delphi technique
  
• Flow model
  

Time and Motion Study

This method is used in manufacturing industries where the attributes measured are quantitative in nature. Such as, the time required for each process and also the no of persons required for accomplishment of the task within the specified time frame.

Service based Study

This method is adopted for service organizations. Here the attributes measured are qualitative in nature and hence complex. These studies the number of personnel required to effectively carry out a particular service without compromising on part of the quality of such service.

Example: According to WHO in a hospital, the number of persons required per bed are four, which include nurse and helps. So this sets a standard for the manpower planning in Health industry.

KEY INFLUENCES OF MANPOWER PLANNING-CURRENT STATUS


The starting point for planning is to have proper records of existing employees. Basic records cover:

* Personal data including date of birth (age), qualifications, special skills, and training record

* Position data including current job and work history in the organization

* Financial data including current pay, how this is made up (for example, overtime and shift preemie), incremental scale, and pension rights.

Many of these details will traditionally be kept for payroll purposes.

*Headcount analysis, by age, service, skills, grades, and department. The overall profile of the workforce generated in this way is basic to any manpower planning system, and a vital aid to management decision making on things like redundancy. It can highlight impending problems, such as the retirement of a whole cohort of employees, and the need for fresh recruitment and training.

KEY INFLUENCES OF MANPOWER PLANNING--WASTAGES


*Employee turnover, using data on joiners and leavers over a year. Along with headcount analysis, this is basic to forecasting supply. It may also identify problems for example, particular jobs where there is high turnover and stimulate corrective action

*Absenteeism and sickness. This will be especially geared to alerting management to problems and the need for corrective action. It will interact with other indices concerned with productivity (such as the amounts of overtime that are incurred simply to provide cover for absenteeism and sickness). Like turnover data, this information clearly needs to be generated on an ongoing basis, as distinct from basic records (the 'inventory'). It is likely to be a natural product of payroll data and the subject of regular reports from line functional management.

*Overall structure of the paybill, including how salary costs will rise with increments and reduce with new entrants at lower points in a scale

*Actual paybill against budget, with areas of variance.

Analysis in these various ways can identify significant issues of performance and productivity, and imbalances that may need to be corrected. It underpins the shift in manpower planning from macroforecasting towards the more problerncentred approach.

KEY INFLUENCES OF MANPOWER PLANNING - labour utilization

The audit activity described above may be supplemented from time to time by data from other sources concerned with how efficiently people are being used. Whether this is part of a normal auditing process will depend from company to company. Data on analysis of manning ratios ('directs' to 'indirects') is a case in point. This may come under review only when cost pressures or the example of a competitor cutting indirect staff focuses attention on labour costs. Many large organizations have permanent staffs using work study and O&M (organization and methods) techniques to undertake periodic reviews of working methods and the efficiency of staff levels.

Forecasting the demand for labour


At first, forecasting the demand for labour might seem straightforward. Unfortunately, it is not. The problem is how to convert volumes of work into numbers of people. Two of the favored means for doing this are ratiotrend analysis and the use of work study standards. The Process of estimating future people required is also planned on the basis of annual budget and long term corporate plan.

Factors considered here are:

• External factors
  
  • competition,
    
  • change in technology,
    
  • laws and regulatory bodies
    
• Internal Factors
  
  • Budget
    
  • Organizational structure
    
  • Production levels
    

Ratiotrend analysis


The basic principle here is to say if it takes six people, for example, to perform an existing amount of work, it will take twelve people to do twice as much. Organizations measure activity levels in a variety of different ways. The ratio between 'directs' and 'in directs' in manufacturing is a classic one.

Individual departments in an organization also will have their own rule-ofthumb measures. A sales department, for instance, may have an idea of the number of customer calls a salesperson should make in a week, and, indeed, use this as one criterion for monitoring sales efficiency. If the business plan projects an increase in the number of new customers, this can be translated into a proportionate increase in the sales force.

The problem with measures like these is that they are crude. They take no account of economies (or diseconomies) of scale which affect efficiencies; nor of local conditions; nor of the potential of new methods and technology to increase efficiencies.

What ratiotrend analysis can do is to provide ballpark figures, which then focus attention on ways of improving efficiencies and a closer look at the underlying implications.

Work study


Work study is a more systematic method, but limited to manufacturing, certain other areas of manual work, and large clerical functions. For it to be worth while and doable in the first place, an activity has to be repeated sufficiently often to generate a reliable standard and justify the cost of measuring it.

KEY INFLUENCES OF MANPOWER PLANNING - Forecasting supply


Forecasting supply has two components, internal and external. Forecasting external supply means understanding the impact on recruitment and retention of such factors as:
Existing human resources

• Potential losses to existing resources through employee wastage
  
• Potential changes to existing resources through internal promotion
  
• Sources of supply from within the organization
  
• Sources of supply from outside the organization
  

•Demographic patterns
•Levels of unemployment
•Developments in the local economy like transport, education, and housing
•he pay policies of other employers, locally and nationally, and their plans for growth and contraction.

Factors which affect the efficiency of labour
1. Inheritance: Persons from good collection are bound to work professionally. The quality and rate of physical as well as mental development, which is dissimilar in case of different individuals is the result of genetic differences.
2. Climate: Climatic location has a definite effect on the efficiency of the workers.
3. Health of worker: worker's physical condition plays a very important part in performing the work. Good health means the sound mind, in the sound body.
4. General and technical education: education provides a definite impact n the working ability and efficiency of the worker.
5. Personal qualities: persons with dissimilar personal qualities bound to have definite differences in their behavior and methods of working. The personal qualities influence the quality of work.
6. Wages: proper wages guarantees certain reasons in standard of living, such as cheerfulness, discipline etc. and keep workers satisfy. This provides incentive to work.
7. Hours of work: long and tiring hours of work exercise have bad effect on the competence of the workers.